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The economist Alex Tabarrok has argued, that the success of this promotion lies in the fact that consumers value the first unit significantly more than the second one. So compared to a seemingly equivalent "Half price off" promotion, they may only buy one item at half price, because the value they attach to the second unit is lower than even the discounted price.
In the pay yourself first budget people first save at least 20% of their net income, and then freely spend the remaining 80%. They can also choose a 70/30, 60/40, or 50/50 budget for more savings. The most important part of this method is to put one's savings apart before spending on anything else. [5]
[20] For 2023 (for the 53 weeks ending 3 February 2024), Dillard's net income was $738.8 million. Net sales for the same period were $6.75 billion. Operating expenses to 3 February 2024 were $1.77 billion. [21] In March of 2024, Dillard’s opened their first location in the upper midwest in Sioux Falls, South Dakota, in the Empire Mall.
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