Imagine The Savings Once You Discover How Sales Tricks Impact You!
This past Prime Day was Amazon’s most significant in history, scoring over $12.7 BILLION in two days (CNN). But were people getting a bargain, or were they tricked by enticing sales tactics? Do you see these pricing strategies from a mile away, or are you savvy enough to look past the pitch and only buy what you truly need? Many think they are aware of these sales hacks, yet the average person spends over $18,000 on non-essentials each year. So, I’ve put a few pricing strategies to be aware of for the next time you are out shopping and how to strengthen your impulse control while adding things to your cart.
Prestige Pricing
Picture this: you stroll into a store, and your eyes lock onto that luxurious bag sporting a ridiculously high price tag. "Must be of premium quality," you think to yourself. But hold on! Prestige pricing is just an illusion, turning our brains into mushy marshmallows. Instead of falling for it, remind yourself that price doesn't always equal value. Stand tall, with your wallet safely tucked away, and ask yourself, "Is this bag worth its weight in gold, or am I just buying the brand name?"
Payless pulled the best marketing stunt to make a social statement back in 2018 when it hired an ad agency to create a fake storefront called Palessi. This chic backdrop drew in major fashion influencers willing to drop significant dollars on a pair of shoes with an 1800% markup. Some were willing to pay hundreds of dollars for a $35 set of sneaks just because they thought it was high-end.
Decoy Pricing
Ah, decoy pricing, the sneaky ninja of the shopping world. The store displays two similar items, one reasonably priced and the other with a slightly higher cost but packing extra features. Your brain screams, "Bargain alert!" But fear not, for you are now enlightened! Ignore the decoy's mesmerizing charm and evaluate the value of each item independently. Take a moment to appreciate your newfound power to spot those faux savings from a mile away.
Anchoring 101
It's time to break free from the chains of anchoring! Imagine yourself eyeing a smartphone priced at $1000, and then suddenly, a "limited-time offer" slashes it down to $750. The adrenaline pumps and you feel the urge to seize the deal. But wait! Take a deep breath and remember that the initial $1000 was merely an arbitrary number. Do some research, compare prices elsewhere, and let the anchor drift away like a helium balloon.
BOGO Bonanza & FOMO Fiasco: Temptation, Be Gone!
Ah, the classic Buy One Get One Free tactic and the ever-elusive Fear of Missing Out (FOMO) urge. These dynamic duos have the power to cloud your judgment and make you believe you'll never encounter such a fabulous deal again. But fret not, intrepid shoppers! Before surrendering to the BOGO hype, ask yourself if you genuinely need two jars of pickles. Embrace the liberating thought that it's okay to miss out on some deals—your wallet will thank you later.
Scarcity Out Of Stock Decoy
This is a clever tactic that many companies use to make you feel that a certain product is incredibly popular and that everyone wants one. They’ll market it that it’s “out of stock” and notify you when it’s available again, creating a sense of urgency when it restocks in a week or two.
So, How Do You Protect Your Wallet From These Savvy Sales Tactics?
Arm yourself with this newfound knowledge and make a plan before you shop. You are now your own guardian against the enchanting world of impulse buying. Embrace the power to say "no" to fancy pricing, phantom savings, fixed anchors, and tantalizing BOGO deals.
The best way to stop a bad habit is to make it harder for yourself to continue with it. Things like unsubscribing to sale emails, deleting apps off your phone like Amazon, taking a different route home to avoid your favorite store, or only using cash are great ways to inhibit you from spending. The power of the pause is also an amazing tactic. Give yourself 24-48 hours before hitting that purchase button is incredibly powerful. You’ll see that it wasn’t really a great buy to begin with.
Determining a budget ahead of shopping and creating a specific list will also help! But ultimately, if you can figure out why you are shopping in the first place, that will be the best strategy of all. Most of us shop to fill a void. You may be shopping to pull yourself out of a funk, needing that extra shot of dopamine, or maybe it’s out of boredom, feeling unworthy, or needing to keep up with Jones’.
First, identify the root reason and replace it with a different, healthier activity that could get you the same result, like getting out in nature, spending time with a friend, journalling, workout, reading, or doing a craft. It’s truly amazing how well this helps if you are aware of why you are impulse shopping in the first place.
So, the next time you're out shopping, tread lightly, keep your wits about you, and let your wallet breathe a sigh of relief. May your purchases be intentional, your savings bountiful, and your shopping trips filled with laughter and joy! Happy shopping, wise warriors of the shopping cart! 🛒💪
