Math is hard for computers
Hi friends – Donnie Steele from SmartPak to help clear the air! As an infrequent poster and occasional lurker, I tripped over this thread and wanted to help explain what’s happening with our promos and why the math is wonky. The short answer is that you guys are absolutely right – the calculations are off! The basic gist is that our promo system doesn’t think like a rational person.
To articulate the issue with some nice round numbers, any reasonable person would assume a 15% discount and 5% discount on a $100 product would stack to produce a 20% discount. However, our promo system has to evaluate each promo code individually, which creates unexpected results. To our system, that same example would produce the following:
How our silly promo system thinks it should work
[table=“width: 300”]
[tr]
[td]Retail Price:[/td]
[td]$100.00[/td]
[/tr]
[tr]
[td]- 15% (of $100.00):[/td]
[td]$85.00[/td]
[/tr]
[tr]
[td]- 5% (of $85.00):[/td]
[td]$80.75[/td]
[/tr]
[/table]
Net discount: 19.25%
We at SmartPak obviously agree with everyone on this board that the discounts ought to stack to produce a 20% discount. To accomplish this, we increase the USEF/AQHA or SmartPerks discount by one percentage point to give us a +20% discount.
How we FIX it
[table=“width: 300”]
[tr]
[td]Retail Price:[/td]
[td]$100.00[/td]
[/tr]
[tr]
[td]- 15% (of $100.00):[/td]
[td]$85.00[/td]
[/tr]
[tr]
[td]- 6% (of $85.00):[/td]
[td] $79.90[/td]
[/tr]
[/table]
Net discount: 20.10%
So, what ends up happening is that we purposefully over-discount to avoid the disappointment of under-discounting because a computer doesn’t think like a person. HOWEVER, we made a human mistake on this last promotion and forgot to up the Perks promotion by a percentage point, which is why we were off by .75¢ per $100. I can assure you this wasn’t a diabolical “Office Space” scheme to skim pennies (really goes against our motto of “Healthy Horses, Happy Riders”). One of our awesome SmartPakers simply made a very human mistake and we’re adjusting our SOPs to ensure we’re ALWAYS at or north of any advertised discount.
On behalf of the friendly SmartPak crew, I’m genuinely sorry we screwed this up. As always, we’re working to make it right and trying to prove why we are here – to serve you and your horse!
Thank you!
Donnie Steele
dsteele@smartpak.com