Let’s face it; retailers are in the business of making money. Whether it is through marking up their merchandise or getting you into the store to spend, retailers have one goal in mind and that is the bottom line.
If you do not spend, they do not stay in business. There has to be a profit. Unfortunately, it is easy for the consumer at times to fall prey to tricks of the trade retailers use to make you overspend.
The “Spend More Get More” Incentive
One of the biggest tricks retailers use to get you to overspend is by enticing you to spend a set and specific dollar amount. For example, a retailer will offer you a coupon detailing that if you spend $50.00 or more, you will get $10.00 back. So, if you went into your local department store simply for an extra pair of pantyhose, they have got you. Now you are faced with the choice of purchasing more than you went in for simply for the sake of getting that $10.00 back in your pocket.
Retailers feed into your logical side enticing you to think, “Well, I’m here now and I will probably need something anyhow, so why not buy it now and get that $10.00 back in my pocket.” And, this works.
The “Use Your Credit Card and Get a Coupon” Incentive
Retailers love to get you to use your credit card, and it is not for your benefit either. Retailers have the hopes that you will use your credit card, overspend, not be able to pay, and thereby collect interest off your purchase.
Retailers will offer you an incentive in the form of a coupon via email for your next purchase or an on-the-spot discount for simply using your credit card. How many times have you used your credit card to get the incentive, spent more than you needed to get that incentive and wound up not being able to pay the bill? They just hooked you and reeled you in to overspend.
Placing Random Items on End Caps Near Registers
Most, if not all stores have strategically placed items right at the point of checkout. This is in the hopes of securing a last-minute impulse purchase. Unfortunately, many of those items are in the form of candy, gum, or soda. This wreaks havoc on parents with small children on their way to check out.
Retailers know the power of a child’s scream in a public place. Retailers know that a parent will avoid a scene with their child and the unwelcome stares of strangers at all costs – even if it means a pack of gum washed down with a soda.
These are just a few things to be aware of when it comes to Tricks Retailers Use to Make You Overspend.
The important thing is to recognize them and not fall prey.
NOTE: This is a workbook. If you purchase the digital version of The One Week Budget vs. a physical copy, you can find the downloadable, spreadsheet templates from the book for free here:
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Tiffany “The Budgetnista” Aliche