Tricks to Avoid when Shopping

There are many tricks that companies use to encourage us to shop more and to spend more. Maybe it's time that we should start learning about some of these tricks and trying to spot them on our next shopping trip.

(Image source: https://commons.wikimedia.org)

Anchoring

Ever go into a shop and see so many sale signs that it seems to be almost normal? They are likely making use of this bias called anchoring, which is people's tendency to rely on the first piece of information that they come across (for the record, this is also applicable in investing, which I've mentioned in Organizing Thoughts) A high retail price is given while a lower, sale price is the actual price, making it look like there's been a huge markdown, encouraging you to buy, while the retailer is still able to make their profit margins.

Loss Leaders

Companies some times may sell items even below their cost just to drive people into their store. This is particularly common in supermarkets where staples are sold at low prices, which are then placed inconveniently in stores to get people to walk through the aisles (ever notice that common necessities are not on the same aisle and sometimes at different ends of the store)

Limited offer

This is usually used with sales, where they are limited based on time or quantity. These create the urge to buy it before it runs out, whether we really need it or not. This is also linked our aversion of loss as we think that the cost of losing this deal is greater than purchasing the item.

Multiple options

There is usually one item that the seller wants you to get, which is usually the one with the highest profit margin. In a restaurant, usually the wine which is the second cheapest is the item, mostly as they don't expect you to get the cheapest one or a more expensive one. In other scenarios, a middle option, such as a medium size between big and small, may be added just to make the decision to buy the biggest one easier, by making the gaps between the choices smaller, or making the larger one seem like a better deal than the middle option.

Deliberate layout

From where items are placed on shelves to what is at the checkout counter, many shops take advantage of their floor plan to encourage you to get things that you don't really need. For example, snacks are conveniently placed near checkout lines in supermarkets as you are more likely to get them while you're just waiting in line. The placement of the items that drive the crowds into the store is another one that is commonly used

With the knowledge of these tricks, we may be better able to avoid them on our next shopping trip

If you have enjoyed this post and would like to receive notifications on new posts, you can subscribe to my blog via email or like our Facebook page