I know what you are thinking: “I don’t fall into shopping traps.” But if you have ever shopped at a sale or taken advantage of a cashback offer, you might have already fallen victim to a shopping trap. Here are some common examples of traps so you can learn how to avoid shopping traps.
Shopping Trap #1: Sales
Buy One, Get One (BOGO)
You pass by Famous Footwear and see the neon banners announcing a sale. You have been needing new tennis shoes for awhile, so you make your way into the store. Once inside you discover that not only are your tennis shoes on sale, they are a BOGO (Buy One Get One) 50% off sale, meaning you can buy your pair of tennis shoes for regular price and get 50% off of those stunning red heels that caught your eye! It’s your lucky day!
You grab the tennis shoes and the high heels and do the math in your head. If the tennis shoes cost $75 and the high heels cost $40, BOGO 50% off means you pay $95 plus tax for two pairs of shoes. You walk out of the shoe store THRILLED that you were able to score two pairs of shoes when you only needed tennis shoes! Look how much you saved!
How To Avoid Shopping Traps: Sales
Focus On What You Pay – Not What You Save
Now listen, this is a judgment free zone. If this was you last month, it’s fine. This was ME not too long ago. I am going to change the angle on this scenario. Instead of focusing on how much you saved, think of what you paid to save. You saved $20 on a pair of shoes, but you had to spend $20 to get that deal. If you needed the red heels, that is great! You were able to get them at a cheaper price then if you had bought them at the regular price. But if you didn’t need them, you just spent $20 you weren’t planning on spending in the first place.
Shopping Trap #2: Annual Sales
Annual Holiday Sales
We already talked about BOGO sales, but let’s talk about annual sales. Annual sales are a great way to save some big money. Labor Day sales, Fourth of July are great ways to save hundreds on appliances and furniture. The sale of all annual sales is Black Friday. I know people who plan their entire Christmas around this weekend, and for good reason because the savings can be huge. However, these huge savings can also be a huge trap if you aren’t careful.
Black Friday Sales
I am not a huge Black Friday shopper myself. Although the sale advertisements for black Friday can be really tempting, I personally prefer to avoid the crowds. One year I decided to brave the crowds so I could experience Black Friday shopping and see what all the hype was about. I didn’t want to buy anything, I just wanted to experience it. So Iwent to the place of all places for Black Friday: Walmart. I was in the middle of the electronic section and I heard someone say, “Do I need these? Who could I give these to? What could I use these for?”
That experience has stuck with me ever since then. I have found myself asking those same questions when I see an item for a good deal. But are you really saving if you are buying something you don’t need or won’t ever use? Sometimes we focus so much on what we are saving, we forget how much we are spending.
How To Avoid Shopping Traps: Annual Holiday Sales
Know Thyself
If you know you are easily tempted by seeing deals, stay out of the store! Stay out of locations where you know you will want to spend money. If you can’t walk out of Target without something, start shopping online! And if you can’t live without at least going into Target, leave your debit card or credit card at home.
Shopping Trap #3: “Free” Money
Notice that I put quotation marks around ‘free,’ because if you are getting free money most of the time it is because you either spent money to get the free money or you will spend a certain amount to obtain the free money – so it really isn’t free money.
Cashback
A common tactic that stores use is offering cashback when you spend a certain amount on your purchase. I have to catch myself every time I see this advertisement. It comes in the form of a gift card or store coupon/cash to be redeemed at a later date. If we are spending more than we budgeted for just to get the deal, then we should consider saying no.
Rebates
Rebates are another form of free money where you actually get money back from a product you purchased. So no danger, right? Well, let me tell you a story. Ibotta had a bonus deal going for Scott products. I really wanted the bonus, so I bought 2 packs of the mega roll toilet paper to get it. I was so consumed with getting the cash back bonus that I didn’t even look at the toilet paper I was buying. Come to find out, it was 1 ply toilet paper. We hate 1 ply toilet paper. So you know where those went? They went straight to our emergency preparedness stash, though I am pretty sure that even in an emergency we still wouldn’t use 1 ply toilet paper ;D.
How To Avoid Shopping Traps: Free Money
Buy What You Need
So learn from me. Don’t get caught up in earning that you buy toilet paper or anything you won’t use. When this happens to you, because I can almost guarantee it will happen at least once, check yourself and make sure you are buying items you need and will use and not buying items just to get cashback :). Read more on common money traps and how to avoid them. As you can see, rebates can be a money trap, but they don’t have to be if you use them wisely! Check out my post on how to maximize rebate earnings to earn cash back the right way without spending more to save more!
So how do we avoid these money traps that can be so easy to fall into? It comes down to being a smart consumer.
How To Be A Smart Consumer
Understand That Businesses Are Smart
As a consumer we have to understand the nature of business. Businesses are founded with the purpose of creating a product or service and making a profit. Period. Because the primary focus is making money, retailers have made it their business to know their customers. They know how to attract customers, how to keep them in the store with product layout, lighting, etc., and know how to subtly encourage the consumer to spend money. It’s nothing personal – it’s just business. The job of a smart consumer is to also be in business – but be in the business of saving money. And here’s how.
Always Compare
Remember, the job of a business is to make money. As a consumer we mustn’t automatically assume we are getting the best deal; sale or not. To ensure I am getting the best deal, I ALWAYS have my phone out while shopping. Why? I search the item I want to buy to see if the selling price is in fact the best deal. First, I type in the item brand in Google to get a general idea of what the item is selling for elsewhere. Second, I check sites like Amazon to compare prices there.
Never Settle…For More
In matters of life, you never want to settle for less. In matters of money, you never want to settle for paying more than you have to pay.
I recently was on the hunt for good winter boots – stylish but with good grip. Good boots can be pricey, so I decided that I didn’t want to spend more than $75. After many store runs, I found the perfect boots for $95, on sale for $76. Perfect, right? I pulled out my phone and typed in the brand and style of boot I wanted. I found them on Amazon for $57 (link). Remember. ‘On Sale’ does not mean it’s the best deal!
Don’t Stop At Best Deal
Once you have found the best deal, don’t stop there! You can still save money by applying store discounts and coupons. My favorite app for coupons and savings is Retail Me Not. You can search for savings by store and apply at checkout. Find ways to save online too so you never pay full price for anything!
Know the Difference Between Needs and Wants
Let’s go back to the example of the red high heels. How often do we really need those red high heels? These ‘red heels’ can be anything – clothes, appliances; virtually anything we shop for. If we don’t really need that second item on sale, then are you really saving money or are you just guilty of spending more to save more?
Now you don’t have to worry about falling into money traps because you know how to be a smart consumer, find good deals AND stick to your budget! Comment below with how you are a smart consumer and avoid shopping traps!
