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27

How to Win Against Consumer Spending Tactics

Blockbuster

Twelve days ago I wrote about how I will practice simplicity and extreme frugality for one month.

Today I went to Blockbuster to return some movies I rented weeks ago. Just like when I was at the grocery store last week, I was overcome with the advertising and product placement going on there.

Have you ever noticed that you can’t just walk in and then walk back out of a Blockbuster? They make you walk through the entire store before you can exit! Holy crap. I can’t believe I didn’t notice this before. They also force you to walk through a gauntlet of candy and soda before you can reach the checkout counter. I never thought about it before because… I guess I’ve never gone in to return movies without picking up more. I wonder why! Sheesh.

My best friend Samantha is always talking about product design and placement with me because she’s very interested in industrial design as a career, and being a web designer and marketing manager, I work primarily in design and marketing myself. I understand the techniques and I honestly USE many of them in my job. But this doesn’t mean I’m immune to them, even if I recognize the tactics. And some practices aren’t as obvious as a massive candy display in the waiting line.

Just the other day, Sam and I were talking about how stores will frequently use scents in their various departments to subliminally encourage you to spend. It’s not news that smell helps - every smart person showing a house for sale will bake fresh cookies or bread or something delicious-smelling to get potential buyers to feel homey and welcome inside.

I started to read about this tonight and got overwhelmed - this is really a weekend project for me However, I found a great article about how stores control consumer spending which you may want to check out.

How can you protect yourself?

For everyday shopping:

Plan Ahead - Make a list of what you need before you go to the store.
Create a Budget - If you must comparison shop in-store, give yourself a spending cap.
Defer Impulses - Make yourself a “maybe” list while at the store and hold onto the list until the next time you go shopping. If you still want the items the next time you go, they’re likely not just impulse buys.

For big purchases:

Comparison Shop Online - Don’t allow a salesperson or the store atmosphere to persuade you. Do your research on your own terms and learn all you can. This also means you can avoid frantically scanning the product boxes in the store, mentally tallying the pros and cons of each item.
Know Your Limits - Again, make a budget and stick to it. A car dealer will try everything to get you to buy from them - and to buy TODAY. Know what amount you’re okay spending before you step onto the lot, so you can walk away from the deal if need be. As Dave Ramsey would say, don’t buy the house before you buy the house! Prepare yourself to turn around and leave if you can’t get just what you planned to buy.
Prepare Yourself - If you’re up for a fight, put on your battle face and know what you’ll be facing: tempting “sales,” persistent salespeople, and possibly pressures to buy immediately or you’ll lose. If you aren’t so strong-willed, bring a close friend or family member with you to keep you in check. And remember to bring the right kind of friend! If you want to do this right, avoid bringing along the shopaholic friend
Think Twice About Everything - Know the gimmicks. Know the tactics that the particular store will use. If it’s a clothing store, it will be scents, lighting, and music. If it’s a discount store, it will be bulk sales offers. If it is a car dealership, it will be “limited time only!” Same with electronics stores.
Consider Other Options - Don’t ever take the seller’s first offer. Everything is negotiable. And if you just still aren’t sure, look somewhere else! Be a skeptic, and be a cynic. Try craigslist or eBay or freecycle. You’d be surprised what you can get sometimes.

All in all, most of these suggestions are about controlling your impulses and preemptively blocking yourself from making a bad decision. And remember, it always helps to do the research first on big purchases! Always! But don’t screw yourself out of quality in an effort to be frugal. I think quality always should win. I wrote a great post on quality vs cheap a couple of weeks ago.
Great resources on spending:

Kick Impulse Spending to the Curb - Working For Financial Freedom
Are You a Shopaholic? Six Steps to Curb Compulsive Spending - Get Rich Slowly
Spending Less By Ridding Ourselves of Advertising - Associated Content
Tech Lust: How to Cope With Gadget Envy - Get Rich Slowly
How to Not Overspend on Christmas Shopping - LifeHack.org
Friends and Money: Coping With Social Spending Situations - Get Rich Slowly

Comments

3 Responses to “How to Win Against Consumer Spending Tactics”

Lynnae @ Being Frugal.net on February 27th, 2008 12:11 pm

Thanks for the links! You really do have to be aware of the marketing tactics businesses use against you when you’re shopping. Product placement is EVERYHTING. That and the notion of the limited time offer. That one gets me a lot, too.
KathyBrazoscowgirl on February 27th, 2008 2:39 pm

I work in marketing in stores, the things the companies do would surprise you. Lately the thing they have done is put expensive products right in the middle of a row of cheap ones. In the hopes that you take the expensive one, and by the time you know the price you will not care.

I can’t blame the people working there, heck I do some of the things I am speaking of. These decisions are made on market driven teams on a very high management level. The cards you use to get something on sale is truly a marketing genious scheme. They know exactly who buys which type of product. Sometimes after an article comes out about the hottest item we bump up the price.

My best advise is to limit the trips to retail stores of any kind. Shop with a list, and pay attention to each price. If I am really organized I take my calculator out right in the store to make sure I know which is truly a bargain and exactly how much we are spending.

I buy pancake mix at Sam’s in bulk. I don’t buy everything in bulk but one thing I do buy is pancake mix. It is a Sunday morning treat, then I buy sausage or bacon on sale and freeze it. I found my receipt today it was 5.87. A dozen donuts here are over 6.00, and we eat at least two dozen when we buy them. So my big huge pancake mix is a steal!
shanti on February 27th, 2008 3:37 pm

@Kathy - Thank you so much for your comment! Yeah, I worked in sales with brokers for supermarkets for years. I understand all I would have to for that job about product placement and consumption based on placement - people will notice if they go to the supermarket that all the name brands and more expensive products will always be located at eye-level and within easy reach Generic granolas are on the top shelf! And things geared toward kids are placed lower… and things geared at mom’s who want to buy things for their kids are up higher but low enough that a kid in the cart will notice it. The cost of our biscotti on the middle of a shelf was nearly 3x the cost of a lower shelf, or an area off to the side.

Buying bulk if you can use it is always great! When I moved out into my own apartment for the first time, my dad bought plastic trash bags, laundry detergent, dryer sheets, and toothpaste in bulk for me and my sister, who was also moving out on her own. It was a great present! The stuff split between us was a perfect amount to be able to store, and I haven’t even come close to needing to buy these things yet, four years later!
And I do agree about avoiding retail stores, especially if you don’t have a plan - shopping online is so much better when you can. You will find it much easier to stick to a list when you can look up and click on just what you intended to buy. Thanks for the input!