Did You Really Save? How to Avoid Sales Traps
08/22/2024
Since the dawn of time, when a holiday rolls around, so do sales. It's a great way for companies to get people in the door, especially when they might be off work for the day. Everything is on sale, discounts are everywhere, and you feel like you NEED to take advantage. You don't want to miss out!
You fill your shopping cart, physically or digitally, and check out.
Did you really save money?
These offers might be enticing, but many of these "deals" are just psychological tricks designed to get you to spend more. You think you're taking advantage of a sale, but they're really taking advantage of you thanks to "buy more, save more" tactics. Don't worry! We'll identify these tricks to help you avoid overspending when you think you're saving.
Here's How They Get Ya
Sales tactics are inherently designed to encourage you to spend more money than you anticipated, often in the hopes of saving money overall.
Here are some of the more common tactics retailers use:
- Buy One Get One (BOGO) Deals: BOGO deals usually come in the form of buying one item at full price and getting another similar item at a discount. While you may save on the second item, you likely wouldn't have purchased the additional item without a deal in place.
- Free Shipping Thresholds: Many online retailers offer free shipping once you spend over a certain amount, like $100. You add a few more items to your cart to reach the minimum, but then you spend more than if you paid for the shipping from the start.
- Bulk Purchase Discounts: Businesses also offer special savings on purchases over a high dollar amount, such as "Spend $500 and save $100 on your purchase." This practice can lure you into buying more just to meet the discount threshold, resulting in buying things you don't need.
But WHY is it Bad?
You probably don't see the issue with taking advantage of a sale, and most of the time, there isn't one, but there can be serious downsides to overspending caused by attempts to "save."
Take a moment and think - have you ever done one of the following because of a sale?
- Spent way more than you planned or budgeted
- Created waste: Buying in bulk seems economical, but it can also lead to extra waste when you buy things you won't even use, especially perishables.
- Give in to urgency: limited-time deals can trick you into buying something you just don't need or will never use because you don't want to miss out.
The thing all three have in common is a sense of waste, whether it be money, time, or the items you buy. What's the use of buying something if it's just going to gather dust or expire?
How Can I Shop Smart?
Now you know the psychological tricks that retail marketers are trying to pull, so how can you avoid falling for them?
- Trust Your Budget: Very few of us LOVE budgeting, but it's the best way to manage your finances. Setting limits on how much you spend and pursuing savings goals can help you avoid impulse purchases or falling prey to false deals. Don’t know where to start with budgeting? Check out our blog - 8 Reliable Tips to Weed Out Bad Financial Habits
- Do You REALLY Need it? Write out your shopping list, shop smart, and don't let yourself peruse the aisles unless you want to break your budget. Sales are eye-catching, but before you grab something from the shelf, ask if you really need it.
- Crunch the Numbers: Pull out your calculator or do some mental math. Is the deal ACTUALLY that good? The savings might not be as good as they seem.
- Get Rid of Sale Alerts: Most of us no longer receive flyers in the mail. Instead, ads come right to your email inbox. If you don't need the temptation, unsubscribe from sales notifications!
- Shop Smart: Prioritize your shopping list and then consider if any items on sale fit your budget/lifestyle before purchasing them.
We're Here to Help!
You might not feel like a victim when you push a full shopping cart out of a store - but it's important not to let businesses try to part you from your hard-earned money. While shopping is necessary, you don't have to let sales or limited-time deals derail your financial plan.
Bit worried about your self-control? Make it harder to spend leftover money - move it into a Free Kasasa Saver Account or invest it into a Money Market Account. Put your savings on autopilot instead of wasting it on things you don't need.
If you want to learn more about the various savings accounts available to you, we're ready to help. Please stop by any of our convenient branch locations or call 800-834-0432 to speak with a team member today.
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Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.