Are Bargains Really A Good Reason To Buy?

November 30, 2017

Shopping seems to be on everybody's mind these days and with another black Friday in the history books, you may be wondering what happened to the thrill of getting a bargain?  And those bargains, aren't really anything special anymore.  What happened? The good news is that it isn't you.  The thrill of scoring a true bargain is still out there but are harder to find.  The problem is retailers really don't like knocking off money to get items sold. In the past you could get good deals when stores needed to offload inventory but modern inventory technology systems and computers means stores can control their supplies much more efficiently.  However customers love a good sale, or what we perceive as a good sale, which is why retailers have "planned reductions", which is more of a psychological game to think you're getting a deal when in reality you're not.  In short, retailers know virtually no one is going to pay full price (thanks Great Recession), so they "plan" a discount of usually 20% to 40% and inflate the initial price. For instance, you would never buy a leather coat for $450, but if it's "on sale" for $210, then it appears to be a deal while the store gets the original price they wanted. It’s a pricing manipulation to create a rationalization to buy. But this "planned reduction" may have created a monster.  A recent survey found that seeking out a bargain was the number one motivator for shoppers rather than the value of a product.  In other words, don’t buy a sweater that’s a little baggier than you’d like just because it’s 30% off.  Buy the sweater you absolutely adore even if it’s more expensive and even if it’s not marked down at all. Buy it because it will bring you real pleasure to wear. Then, when you get a compliment on it, resist the urge to talk about its cost. Instead, talk about how you love its softness or the way it breathes while staying warm because it’s 100% real wool. Just make a budget and stick to it. If you absolutely need a sweater and can only spend $15 on it, you should just work to get the best bang for your buck. But when it comes to impulse buys don’t settle for something that’s simply a good bargain.

SOURCE: Popular Science

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