Have you ever wondered why it’s so difficult not to spend more than you’re supposed to? Many people have that issue, so don’t think you’re imagining things. The reason is that retailers have perfected the best way to sneak into your wallet without you even knowing. So, here are 15 retail tricks you can watch out for if you want to spend less.
Decoy Pricing
Decoy pricing is a trick used by retailers to introduce a third, less attractive option of a product to make the more expensive item look like a better deal. Take the movies, a small popcorn costs $3, a large costs $8, but a medium costs $6. The medium’s only purpose is to push customers towards the large popcorn, which now appears to be of better value than the medium. Now you’ll buy the large, thinking you got a better deal, but the cinema’s just made more money from you.
Charm Pricing (“$9.99 instead of $10”)
Charm pricing is a psychological tactic that places items just below a round number, like using $99.99 instead of $100. The difference between the values is only a cent, but consumers perceive the difference as significantly cheaper. It works because our brains usually read items from left to right, making $99.99 seem closer to $99 than $100. Though it’s subtle, it has proven to increase product sales by reducing the price by 1 cent.
Eye-Level Product Placement
Retailers understand that eye-level shelves are like prime real estate. Since most eyes fall on these shelves, they’re usually stocked with the brand-preferred items that are the most profitable and marked up the highest. There are a lot of shoppers who grab what’s in front of them, ignoring the cheaper options around them. The strategy allows retailers to sell more expensive items without the consumer realizing they had an abundance of cheaper options.
Store Layout Traps
Stores are built to guide customers along a certain path. For example, supermarkets place essential items like eggs, milk, and bread in the back, meaning shoppers need to walk past tempting displays to get to them. They do this to expose customers to more products, increasing the chances of them buying on impulse. Slow music, wide aisles, and end caps are all ways a store’s layout is designed to trick the customer.
Limited-Time Offers
Nothing makes you want a product more than a ticking clock. Limited-time products psychologically pressure customers to buy a product so they do not miss out. Whether they use a “Only 12 hours left!” or “Flash Sale!” the idea is to stop the customer’s rational thought. Many customers are inclined to buy items they don’t need just because they can get a great discount.
Free Samples or Demos
Have you ever tried a demo or free sample and decided to buy the product in the end? When you are given a free item or demo, it’s done to create a feeling of reciprocity, since you feel like giving back to someone who gave you something. It also lets the customer try the item before they decide to buy it, which reduces purchase hesitation and increases confidence to buy it.
Larger Shopping Carts
By increasing the size of shopping carts, it quietly encourages the consumer to buy more products. Heading to the checkout with a cart that isn’t full enough makes you feel like you haven’t purchased enough, while small carts do the opposite. Some studies have even found that increasing the size of shopping carts can increase purchases by 40%.
Sensory Marketing
Retailers use smells, sounds, and sights to influence the shopping behavior of their customers. Calming music in a clothing store or the smell of freshly baked bread in a supermarket makes your brain more focused on craving a product that fits the environment. Sensory cues will create an emotional response like excitement, nostalgia, or comfort, which easily leads to impulse buys.
Upselling at Checkout
Just when you think you’ve finished your shopping trip, last-minute deals hit you in the checkout line. Simple upselling lines like “Buy 1 more, get 50% off!” or “Would you like an added warranty?” have been placed to catch you off guard and make you panic. It’s a retailer’s last attempt to squeeze as much out of their customers as humanly possible before you leave.
“Buy More, Save More” Schemes
Retailers use “Buy More, Save More” schemes to lure customers into buying more than they need. Offers like “Spend $100 and save 20%,” or “Buy 2, get 1 free!” may sound like great deals, but they require the customer to spend more before the deal is activated. A customer might end up purchasing items they might not have bought if those “sales” didn’t apply.
Personalized Discounts
Retailers are masters when it comes to tracking their customers’ behavior, whether that be in-store or online. They do this so that they can offer a customer personalized deals. Adding an item to your cart, then abandoning it a few times, might make them offer you a discount. The tactic is so powerful because it focuses on what individual consumers want, making it seem like they’ve given you a special discount. But in reality, they just want you to buy the item, and that discount doesn’t even carve into their profits.
Loyalty Programs
Loyalty programs might seem like rewards, but they’re just ways to keep you spending money. Their exclusive deals, cash backs, and points encourage repeat visits, with higher spending allowing customers to reach better rewards. It’s the psychology of progress; when you see your points add up, it forces you to keep on purchasing even if you don’t need any of the products.
Price Anchoring
Price anchoring is when a high initial price is set to make another option seem much cheaper in comparison. A $500 watch next to a $200 watch makes the $200 watch seem like a steal, even if the $200 watch has a massive markup and is actually overpriced. Many luxury retailers use this strategy to manipulate their customers’ perception of value, driving them towards purchases they wouldn’t consider without the price anchoring.
Strategic Product Pairing
Related items are often grouped to encourage additional purchases. Pasta might be placed near sauces, or smartphones will be displayed close to accessories and chargers. Many retailers call this strategy cross-merchandising, which does make shopping more convenient for customers but also tempts them into buying items they don’t need. They usually get customers to ask the question, “If I’m buying this, won’t I also need that?” which is when the trick works its magic.
“Free Shipping Over $X” Thresholds
Many online retailers use shipping thresholds to boost the total value of orders. Shipping might be free for orders above $50, so if your cart is at $45, shouldn’t you just add one or two more items to get past the threshold? Not only do these thresholds make you think you’re saving money, but they also leave you feeling proud for avoiding the delivery fee. They successfully turn a deterrent into a way to subtly upsell to millions of people.
