8 Overspending Traps You May Not Be Aware Of

8 Overspending Traps You May Not Be Aware Of.  Sales, Free gifts or items, bundled products, Stickers announcing potential savings, Uniform price schemes, Buy now pay later schemes, lack of preparation.
For businesses to thrive, customers have to spend. However we, the customers, actually want to save.

And indeed there are a lot of ways to do so. However, businesses have been quite adept at making us think we are saving money, when we aren't.

How? Here are 8 ways:

1. Sales!


Sometimes it might not really be on sale.Though rare, it can happen that sale prices simply reverted back to it's original price after a very recent price hike.

Admittedly this maybe rare, so let's move on to number 2...

2. Sales!


I know I'm harping on sales promos, but this is worth emphasizing. It might be 70% off, but if you don't need it, it' still 100% overpriced.

3. Free gifts/items


You know the drill: Buy Php200 more worth of items and you get a free something.

But if you've bought what you need and are still short 200 (or even 100; or less) for the "free" item then it's not really free.

Worse, if the item isn't something you need, then you just bought 200 worth or unneeded items to gain another unneeded item. But somehow, those free gifts make us feel like we got a good deal.

4. Bundled Products


Right now, I'm just talking about grocery stuff. Like a certain brand that bundled it's spaghetti noodles with it's spaghetti sauce.

If that's the brand you buy, then it's a good deal. But just because it's bundled and slapped with a big sticker that says "PhpXX.XX off!" doesn't mean you're really saving money.

Some of the other, unbundled brands are still cheaper even after factoring in the discount.

5. Stickers announcing "Save PhpXX.xx!"


They're comparing against themselves. So usually, the "savings" are just economies of scale - it's cheaper because it's the bigger size/volume.

Don't mind those stickers. Keep comparing with the other brands.

6. All items Php66!


I actually love these stores. There's a lot of interesting items in them.

However, despite the seemingly low price, you might be surprised that after picking up a few items, you've actually spent quite a lot of money.

And actually you may have even overpaid.

The uniformly "low" price gets you to stop thinking about the price, and instead focus on the items. But at 66 (or 88; or whatever price they're selling it at), some of those items are actually over priced already.

It helps to know what the "real" prices of same or comparable items are. That way you can avoid the over priced ones.

And remember to keep checking how much you've placed in your basket; those 66's add up quickly.

7. Buy now, pay later!


These are mostly for credit cards. Either installment schemes or an actual pay after x months promo.

If you can't afford it now, don't buy it now.

This is only a good deal if you have the money handy, you need the item (or is a goal you saved up/invested for), and you can safely invest the payment in a time deposit or money market fund.

Otherwise, you may just be spending money you don't have, but might need for future necessary purchases.

8. Lack of preparation


Alas, this is something we bring on ourselves. Before any purchase: ask around, canvass prices, learn more about what you're buying, and look for possible alternatives.



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photo credit: grubby_cunning via photopin cc



2 comments:

  1. Sales!!! I bought four tubs of ice cream because the price was slashed by 50%. Good deal, yes..but ice cream is the last thing on my list since I'm on a very strict diet. tsk.

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    Replies
    1. It's kinda like traffic lights; seeing "red" makes us want to "go" hehe

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