One of the reasons that so many retail stores are making such high profits is that they are very good at convincing the average consumer to purchase items that they really do not need. From convincing consumers that the brand name is better to offering deals to entice consumers into buying more than one of a product, retail marketing is designed to separate you from as much of your money as possible. Learning how to resist these marketing techniques can save you from hundreds of dollars of unnecessary purchases each year.
Only Buy What You Came To Buy
Many stores depend on impulse purchases to double or even triple the total amount that you spend on each visit to their location. From stacking attractive items at the end of aisles to locating particular products at the front of checkout lanes, stores have many little techniques that they use to make putting that additional item in your cart seem very attractive. A simple way to resist this marketing technique is to make a list of the items that you intend to purchase at that store before you go and stick to that list while in the store so that you only purchase the items that you initially intended to purchase.
Avoid Signing Up For Store Credit Cards
One of the most common marketing methods used to get individuals to sign up for store credit cards is offering an attractive deal, such as a discount of a certain percentage off the total price of that day’s purchase or a percentage of the amount spent on the credit card returned as a cash back reward. What many people do not realize is that retailers and credit card companies are not in the business of losing money and that store credit card will cost you much more in interest and fees than you will ever save using the credit card. It is better to pay with cash or with a debit card and avoid having to pay interest on the purchase.
Introductory Interest Rate Expirations Can Be Costly
Some businesses offer financing for large purchases, such as appliances and furniture, with a 0% interest rate for a specific period of time, allowing the consumer to pay off the purchase without having to pay interest on the balance. This is a great deal – as long as the items are paid off before the introductory interest rate expires. If the introductory interest rate expires before the balance has been paid off, then the consumer is responsible for paying all of the interest that would have accrued if the item was financed at the interest rate now being charged to the account, which could add hundreds of dollars to the price eventually paid for the purchase. It is best to just pay for a purchase outright if you have the money available, but if you choose to take advantage of one of these 0% interest deals, be sure that you can pay off the purchase before the introductory interest rate expires.
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