articles

Frugal Philly Presents

Retailers Spend Billions to Outsmart You

By Sally Pyle (aka Frugal Sally) February 23, 2013

  I have worked in the retail field for most of my life (over 30 years).  I learned the tricks, was taught the tricks or figured them out.  Retailers pay billions a year to trick you into spending more than you intended.  Through something as simple as where something is placed on a shelf, to what color the box is, they are on top of this game.  They know where you are most likely to go when you walk into the store.  They know what direction you will likely turn and where to place things so they know you will look at them.  It is not a game folks!  They are out to get your last cent!

  This is a science to retailers.  They hire companies of researchers to study the consumer, the set up of the store, colors, scents, tastes and how things are worded.  When you walk into a store they already know that chances are you will go to the right.  If you don't think so, the next time you walk into a store notice that the check outs (registers) are usually on the left side of the store.

  When you walk in you will turn right and look left.  Prime location to put a big sale or what the store wants pushed is right there (to the right and on your left side).  If you look to the right of the door (I mean right inside the door) you will not see much of interest.  In grocery stores it is usually a seasonal display, restrooms or maybe even something like floral.  As you go through the store, specialty-type items will be along the outside aisles.  Again, in grocery stores it will be the bakery (bakeries are usually up front; you can smell what is being baked so it makes you hungry), deli, produce and meats.  The items you really need (such as milk or bread) are usually in the far corner of the store so you have to walk through the entire store to get them.  They are hoping you will pick up some things along the way.  The way you move dictates the way a store is set up.

  Placement on the shelf is another trick retailers and vendors use to get you.  Expensive items are at eye level, because that is where people look.  You would be surprised how many people miss the better deals on the top or bottom shelves.  Children’s’ items such as sugary cereals are
always down low where the children can see them. They use the same placement with children’s vitamins and the candy at the checkout.  Adult type candy and gum are on the higher shelves and the kiddy candy is down low.  This is not an accident; this is very carefully planned placement.

  Sales are another way to get you if you don't know your prices.  I was recently in one grocery store where they had Chef Boyardee canned pasta for 10/$10.00.  It was flying off the shelf! Right down the street it was $.89 a can and it wasn't moving.  I have noticed that when there is a sale like that if I wait for a BOGO (buy one, get one free) sale, I get a much better deal.  It also pays to shop several stores’ sales (I go on-line and compare the sales for the 3 stores in my area before I head out the door).  You also have to pay attention to the way a sign or tag is worded.  One week a tag may say $.69 each but the next week it will say 2/$1.75.  The "2 for" deal makes it look cheaper, but it is actually more expensive.  The funny thing is it didn't sell as well until they put "2 for" on the tag.  I recently noticed this on a Coca Cola sale.  One store had it priced at 3/$9.00 and another had it priced at Buy 2 (at $10.58), Get 1 free.  Because the word FREE was on the sign it was selling faster when in reality the 3/$9 was cheaper.

  Retailers try to make you feel rushed.  They know that people buy when they think time is running out.  They will train their staff to say "this is for a limited time only" or "the sale ends in just 2 days."  Don't buy something out of urgency, only buy it if you need it or had intended to buy it in the first place.

  Some retailers will actually go to the lengths of having "Going Out of Business” sales every other month or so.  I have seen this regularly with furniture stores, appliance centers and rug shops.  A sense of urgency and the thought of a good sale brings people in ready to buy.

  No money? No problem!  Many retailers will offer credit, some on the spot. Just because you came in with no money or with no intention of buying, doesn’t mean you will walk out empty-handed.  Retailers are more than happy to help you get what you want. Some will offer 90 days same as cash.  They know that people think they will pay this off before the bill comes due.  The fact is: people generally don't.  The store then backdates the interest to the day you bought the item.

  Sales people are taught to "add-on."  The rule is: "One more item.  Ask once, ask twice, ask three times, but one more item."  Have you ever gotten to the register and the salesperson or cashier starts with, "And would you like a warranty on that?  Would you like to open a credit card with us?  Do you need batteries to go with your purchase?  How about socks or a handbag to go with those shoes?  A tie with that dress shirt?”  Does this sound familiar?  It should!  It is a variation of McDonald’s classic upsell method: “Do you want fries with that?”

  We were recently in Men's Wearhouse® to get my husband a suit.  By the time he came out of the dressing room, the salesman had shirts, ties, socks, shoes, cufflinks, belt...the whole nine yards ready on a table to present the package.  Pretty impressive, I had to admit.  It would have added nearly $300 to the purchase.  Yes, people will buy it all!

  If possible, go into stores primed with knowledge about what you are planning to buy.  Do some research at home.  I will tell you that in some stores the sales people will lie to you just to sell a product.  I worked for one company that paid commissions on certain products if we sold them.  Guess what we pushed?  I heard some pretty good whoppers coming from some of the salespeople to sell those products.  I always thought it funny that one week it was the greatest product, but the next -- when the commissions ended on that product -- it was not as good as the next commissioned product they were asked to sell.  Do your research and know what you are buying.

  Another good reason to do your research is to be aware of the "package deals."  There is one vitamin company that will try to sell you a "package deal" every time you pick up a bottle.  "Oh, you need this to go with that" or "this works better when you take it with that".  Sometimes it isn't even true, but it's another attempt to get that add-on sale.  They also know that these are products that once you start taking them you will more than likely continue to keep buying them.

  All in all what I'm trying to say is: be an "aware consumer."  Know that the retailers are doing these things so you don't fall prey to them.  They will win sometimes, in fact they will win a lot of times, but maybe now it won't be quite so often.  The best word you can learn in a lot of these situations is "NO."  If you feel pushed into buying something, leave the store, go home and sleep on it.  Chances are you won't want it by the next day.  Do your research and comparisons.  Be AWARE.

  This is not a game. 

 

Please Like Sally on Facebook and leave a comment telling her that you saw her article in Macaroni Kid : NEPhilly-EMC!  

Check out the Being Frugal Sally blog!

PREVIOUS "FRUGAL SALLY" ARTICLES IN MACARONI KID : NEPHILLY-EMC

What Makes Me This Way -- May 11, 2012

Frugal Lessons Every Parent Should Teach Their Children -- May 18, 2012

What Would YOU Do For A Million Dollars? -- June 01, 2012

"Make It So" -- July 08, 2012

Lessons My Grandmother Taught Me -- October 05, 2012

My Resolutions -- December 30, 2012

 
Watch for our FRUGAL PHILLY feature in up-coming newsletters

for more ideas from Sally & other frugal authors.