What on Earth does "cheap at half the price" mean?

There has been a saying in American English: "Cheap at twice the price." This has traditionally been used to indicate that something is a great bargain.

"Cheap at half the price" is a humorous reversal of this statement. It is used to express contempt for the quality or price of an item, or both.


From http://www.phrases.org.uk/meanings/cheap-at-half-the%20-price.html:

Those, who suffer from literalism, faced with an item offered at half the usual price would expect it to be cheap - what isn't cheap if you halve its price? 'Cheap at twice the price', now there is a bargain.

The interpretation of this phrase has caused some debate.

(in Phrasefinder Bulletin Board):

  1. 'Cheap at half the price' is understood to mean 'reasonably priced' and if people understand that meaning why worry about logical niceties?
  2. It was never intended to be taken seriously and is a pun on the meaningful phrase 'cheap at twice the price', intended either humorously or in order to deceive.
  3. It is just an error made by people who meant to say 'cheap at twice the price' but didn't think hard enough about what they were saying.