Saving money for retirement, or even a rainy day, has become much harder over the last couple of years. Prices for necessities have risen, while income levels have grown stagnant. However, this doesn’t mean that it is impossible to save for the future and learn how to stop spending money. You just have to be a savvier shopper.
Of course, there are always ways to save money when shopping. Using coupons, taking advantage of sales, and even buying in bulk is great ways to save money. But the real trick to savvy shopping and saving money is to understand how retailers trick you into spending more.
How to Stop Spending Money – Watch Out for These Tricks!
There are five common ways that retailers increase your spending without you even knowing. Understanding these tricks will allow you to better manage your money and save for retirement.
High End Products at the Door:
There are two reasons that retailers place very expensive products near the entrance. First, they want you to get into the “shopping mood.” High end, highly-coveted items will place people in the mood to shop, even if it is not to purchase that product. It is the simple response that most people have when they see things they want but cannot afford; they purchase more of what they can afford. The second reason they place these items here is to make you feel more comfortable about the other items you purchase. Psychologically, you can justify what you pay for other products in the store because “it’s not as much as” the items you saw when you first entered.
Common Necessities Priced Low:
Grocery stores will often price common necessities very low to give the appearance that all of their prices are low. Someone purchasing cheap eggs, milk and toilet paper will assume that prices for other goods are just as well priced. In fact, the prices for other common goods will be higher to compensate for the loss on these products.
Three Tier Pricing Displays:
In many different studies conducted by the retail industry, it has been found that most people will purchase the mid-priced object, even if it is not the best value for their money. Retailers often will create displays of items that include a very high priced item, a very low priced or undesirable item, and a mid-range priced item that they wish to push because it has the biggest profit margin for the store. Be very careful when you purchase from displays because you may not find the best deal. Look at the cost per unit in grocery stores and check clothing racks behind the displays for other items that may be of better value.
Customer Reward Programs:
While these programs can be very beneficial, retailers know that most people do not take advantage of the rewards these programs offer. However, people will automatically purchase something, regardless of price, if it adds rewards points to the customer card. If you are going to use a rewards card, make sure that you only purchase what you need and take advantage of the program to your benefit.
Aromatherapy:
One thing that triggers the brain into a relaxed and “ready to spend” mood is the sense of smell. Grocery stores place their bakery or rotisserie near the doors so customers walk into a pleasant smell. Retailers are using scents throughout their stores to create an atmosphere conducive to shopping, such as sweet perfume smells in the ladies clothing section. Be aware of this and avoid overspending just because it smells good.
Readers – What “traps” do you fall for when you go shopping?
Jennifer Willard is a new blogger in the financial community. She writes for her own personal finance blog about her journey out of debt, and her new life as a mother and spender.
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I have been too busy to shop lately and it’s been a huge moneysaver!
I know, I love when my schedule eliminates the possibility of ‘luxury shopping’!
I had no idea about the bakery being used at the front to draw you in, but now that you mention it all the stores have it right at the front.
Thanks for enlightening me.
No joke, Glen – retailers are full of tricks. Most stores are set up so that no matter what you need, you have to walk through the whole store (passing hundreds of impulse bait) to get to it.
Now that I think about it, seeing those donuts in the front does make me love the store just a little more … 🙂
Places like the apple store where you can see and touch the product which makes it very tempting. And places like Ikea which show you what the perfect room looks like. It builds the dream for you so you don’t have to use your imagination.
You’re right – tactile interaction is huuuuge for sales. Think about all the food samples in Mall food courts and Sam’s Clubs! Tech shops, especially, strive to create a playground atmosphere where buyers can try everything out.
Great examples. The only thing the Apple store could do better: Make the store less crowded so I could actually get in there to try out some of the products! 🙂 I can never make it two steps into one of those!
I just try and avoid stores and the mall altogether. That way I can’t spend!
Haha! You’ll have to stay off of the internet too, Michelle!
I’ve written about this a few times, but I really dislike shopping and I’m not sure there are any traps that I fall into. If I’m guilty of anything its from my own lack of discipline and maybe eating out an extra time (or two) each month.
I try to stick to a list – this usually prevents the trap from springing… but not always!
Sometimes I wonder if we aren’t all puppets controlled by the marketing departments of the world. 🙂 I was cracking up when I saw the Venus Flytrap photo at the beginning of the article…
I think that photo sold me on the guest post! 🙂
You forgot those items at the checkout that encourage impulse buying. chocolates, candy etc. all bad! i always fall for them 🙂
You said it! Beef jerky is my weak spot. When I’m hungry and there’s a stick of meat with teriyaki favor for $2, my primal instincts take over my wallet!
I’d say I am guilty with the aromatherapy trick. I am a food lover and I always start my day in the mall with eating there.
Food is also my big weakness too. As I get more hungry, I tend to spend a lot more.