I walked into a local shop this past weekend that is similar to a high-end Potterybarn. I didn’t need anything, but I was curious because a friend of mine told me this is the shop where I could find a $20,000 bathtub! Who needs a $20,000 bathtub!?!?! Anyways, that got my curiosity going, and so I ventured in.
This sign to the right is the first thing I see!! “BUY MORE, SAVE MORE!”
Now, what kind of sale is this? Isn’t something on sale or not? Why do I have to buy more to save? Doesn’t that defeat the purpose of saving to being with?
Then, only 10-20% off? This is the store where I can get a $20,000 bathtub, and yet the sale is only 10-20% off? I highly doubt this store is running thin margins.
In fact, there was a little side table marked for $250, which I could have sworn I saw the same one at a big box retailer for about $39.99! Maybe it’s the “quality”.
Bottom Line
If you are looking for a sale, don’t buy more to save. Actually save money on what you need. These types of deals are just scams…
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This post was written by...
Robert – who has written 317 posts on The College Investor.
Robert is the founder and editor of The College Investor, a personal finance site dedicated to young adult and college student finances. You can learn more about him here and connect with him on Twitter or Facebook.
{ 6 comments… read them below or add one }
Great advice and I find it ridiculous when I see signs like that. The problem is that most people fooled. For example yesterday I saw a “reduced” price sticker at Hyvee. The price of a box of Oreos went from a high $3.00 to a low $2.99. Huge savings if you ask me.
-Ravi Gupta
Yes! I think it’s funny seeing coupons for “Save $10 on any purchase of $100 or more.” Especially at places where I’d spend $20-$50 at the most. The only time I’d look to spend more and save a little extra is for a car or home, maybe I’d be able to get something safe/better and save something extra, but I steer away from these campaigns at retail stores.
I view all marketing as a system to get me to buy when I wouldn’t! After all, there departments justifying themselves in companies worldwide. I view the information and decide if I want to by it or not. The scariest thing about this, it works!
Totally agree. Those signs are ridiculous, and what’s crazier is that consumers fall for them. Psychology is quite interesting, isn’t it?
It reminds me of the line of thinking that I’ve heard before, about how it’s better to “stretch” to buy the home you really want, since you’ll get a tax deduction. Let me get this straight: I’m supposed to borrow more so I can can get a bigger deduction? Huh?
That’s why it pays to be on the side of rational thinking. It’s hard for all us to always be on that side, but just being aware gives us a chance of making better decisions.
consumers are dummies.
Signs like that crack me up. Don’t people know that you spend more when you buy more?