A store increases the price of a jacket by 25%, then offers a 20% discount on the new price. What is the net percentage change in price?

Thu, 30 Apr 2026 16:53:19 +0000

A store increases the price of a jacket by 25%, then offers a 20% discount on the new price—what is the net percentage change? This pricing strategy is sparking quiet conversations among shoppers and market analysts, reflecting growing interest in how brands manage price adjustments and consumer perception. The mix of a meaningful price hike followed by a discount creates a dynamic that challenges easy assumptions—what looks like a larger jump might actually result in a moderate overall increase. Understanding the math behind this shift helps clear confusion and enables smarter shopping and business insights. --- ### Why Do Retailers Slice Prices Then Slash Discounts? When a store raises jacket prices before applying a discount, it’s not just an internal pricing reset—it’s a carefully studied move tied to psychology, seasonal trends, and market expectations. A 25% increase sounds significant, but the 20% discount on the new value often moderates the final price impact. This pattern responds to consumer behavior shifts: customers increasingly expect value-first messaging, even when price moves upward, and discounts framed after price adjustments feel more authentic.