Retail Sales Techniques: Do Stores Trick You into Spending More Money?

Retail stores are constantly trying to lure you in with sale and clearance prices. However, more times than not, these sale prices are only used to trick you into spending more than you would have. Let's face it, if the item you're buying wasn't on sale, would you be buying it? Probably not. Every once in awhile, yes, you'll get lucky by finding something you actually need on sale.

However, more than likely you go to the store to buy a certain item but then out of the corner of your eye you see a clearance rack. You find a couple of shirts you like for under $10, that's a great deal right? Well, yes, but that's about $20 you didn't plan on spending. There are many techniques retailers use to trick you into spending more than you expected.

Layout of the Store

Retailers put the most desirable items away from entrances. Think about it; you walk into a store looking for the clearance items and you end up finding those items in the back of the store, farthest from the entrance. They construct their layout in this way so you spend more time walking around in hopes that you will see something you want but don't necessarily need.

Retailers also place impulse items near the register. These items are usually lower-priced items. For example, most retail stores place inexpensive jewelry near the check-out counter. Some stores place $5 to $10 items right on the counter; sometimes so many items are covering the counter you don't even have room to lay out the items you want to purchase. You have no choice but to look at these items and even play around with them while you are waiting for the clerk to check you out.

Yet again, retailers place the most profitable items in areas you will constantly walk by. Dillard's and Kohl's are famous for this; you walk into the store and run right into the cosmetic department. There is no way to avoid this department in the store because it's smack in the middle.

Bathrooms and customer service areas are usually placed in small nooks and corners of the store. You can end up spending a lot of time walking through the whole store just trying to locate a bathroom or changing room. The objective of the retailer is to get you to walk through the store in hopes that you will spot more items you need or want.

To prevent yourself from spending more don't stop in the store until you find exactly what you came for. Keep a list with you and stick to the items on that list.

Discounts

Retailers know that most people aren't good at math or don't take the time to think the deal through. For example, the double discount is what gets a lot of consumers. A 45% discount is better than a 20% and 30% discount; a 20% and 30% discount does not equal a 50% discount! Most people assume that it does. With the 20% and 30% discount, the retailer will take 20% off an item and then 30% off the item.

Retailers also make it difficult to figure sales discounts in your head by labeling items at $9.99 rather than $10. Also, as studies show, consumers process the first number as stronger than the last numbers. So many times consumers will assume that $9.99 is a better deal than $10.

Another technique retailers use is playing on your assumptions. If you see a huge sign above a rack of clothes that says $19.99, you assume that the item is on sale. However, when you look at the tag you realize that the price has not been marked down at all. Most consumers, however, don't ever look at the price tag! Also, don't forget that when you see a sale sign, that doesn't necessarily mean that the item has been discounted or is the best deal.

Many retailers will also offer multiple items for a single price. For example, three items for $9.99; consumers automatically assume that they have to purchase three items in order to get the $9.99 deal. However, make sure you check the all the details of the sale. You may be able to buy just one item for $3.33.

Buy One Get One Free is another technique used in the same way as the three item technique. You may be able to purchase only one item for half the price. Again, make sure you check all the details of the sale.

Make sure you check price tags, not signs. It is also smart to carry a small calculator with you if you can't do the math in your head. Also, get in the habit of buying only what you need; you can end up wasting a lot of your hard-earned money by stocking up on items that you may never use.