Did your heart start pounding a little bit more? Did that jacket or shoes that you weren’t searching for just become 100% necessary? Did you think to yourself, “What a steal!”? Hold on a second – before going into that store, going to town with your credit card, and making an impulse buy – did you even think about what that percent off means? If not, welcome to the world of percentage-based marketing.
In this post, we’ll break down some of the most commonly used tactics in the world of percentage-based marketing, how you can stay one step ahead of the game, and make the most educated decisions about your purchases. Ready?
Common Percentage-Based Marketing Tricks
Inflated Discounts
Say you came to a store to buy a new winter jacket because your old one has seen better days. You are in the shop for one thing and one thing only – the jacket. But to get to it, you have to pass by some workout clothes now – atop those workout clothes – there is a big old red sign saying workout clothes are “50% Off”. This makes you stop as you start thinking about those New Year workouts you plan on starting, and these outfits at that particular discount would look great! But the question is are those pants half off, or did the retailer jack up the price and act like they slashed it just to get you to buy? This is a good argument to avoid impulse buying and always making sure that a discount really is a discount!
BOGO Offers
Next up, is the notorious BOGO offer. “Buy one, get one at 50% off.” Sounds awesome, but let’s really think about this: do you need two pairs of those shoes? Let’s reflect for a second. We know this seems like a good deal. If you buy 1 item at $100, you get a second item at $50, so you’re spending $75 per item (saving $25 per item), which is 25% off. Is this not a deceitful practice to make you feel like you are getting half off one item when you are just paying the regular price for both? What’s the moral here? “50% Off” tends to distract consumers, urging them to throw reason and logic to the wind. Again, don’t worry about it but look before you leap into that purchase!
Psychological Pricing
Why is it that two discounts can be technically the same, but one just simply sounds better than the other? Well, my friends, this is called psychological pricing. For instance, “Save 33%” sounds way more appealing than “Save 1/3”, even though they’re the same thing. The gown .99 pricing (ex: $19.99 instead of $20) gets one over on you, too. This causes consumers to think that they’re spending less when they’re really not. Tricky, tricky. Once you see through these tactics, marketers don’t stand a chance!
Interest Rate Traps
But we can’t overlook the interest rate trick stores play on barely conscious shoppers. A shop offers financing options, and you can pay 1.5% interest monthly, which seems reasonable. But run the numbers and you’ll discover that you’re looking at an incredulous 18% a year. It may seem foolish, but charges like these can take a purchase that you thought you could handle and turn it into a financial headache. Don’t ever overlook the fine print, when it comes to financing—and always calculate your final pricing involves interest to see what you’re really committing to purchasing or financing.
Outsmarting These Tricks
We’ve named some of the most popular percentage marketing tricks, but we’re not going to leave you hanging, powerless to purchase anything ever again. Some discounts are real and can actually save you money. So, how do you bypass these sneaky tricks?
Use a Percentage Calculator
Use a percentage calculator! This tool is a simple little device that can empower you to check discounts pretty easily. Whether you want to learn the final price after a discount or compare two separate discounts, a calculator can take you from feeling pressured into making a hasty decision to being confident in your final decision to buy. You’re not left to manually calculate your final pricing by hand, rather a good old percentage calculator can do so in a few steps.
Compare Percentage vs. Dollar Savings
When it comes to a discount, compare the percentage to dollar savings. Sometimes, a flat discount will give you more bang for your buck than a store giving you a 3% discount on an item that costs $2000. Other times, percentage discounts are your new best friend, working out in your favor for large-ticket items. Consider a $100 item, $50 off is a simple concept, whereas “25% Off” might not be as easy to understand and evaluate. Before you complete a purchase, make sure that you’ve done your calculations to make sure that you’re receiving the best possible discount for your wallet.
Check Original Prices
Before you get carried away with a discount, always check the sale price. If the discount isn’t lower than the original price that was sold a few months ago you probably have no sales in the first place! They are just using it as a trick to get you to buy. Some businesses may operate in a way that starts increasing the price back by a fraction, maybe by increasing the sale rate. So always be aware of the pricing for each product you regularly buy.
Break Down BOGO Deals
Lastly, take time to calculate the BOGO deals. Find the cost per item before actually buying anything. Most of the time, buying a single product might be cheaper than buying two at a discount. The business can sometimes take advantage of the discount you are offered. When you take a look at the numbers, you will feel good about making an informed decision and you can avoid unnecessary spending.
Never Getting Hoodwinked By A “Percentage Discount” Again!
Percentages are great ways for businesses to trick shoppers and make a profit out of you no matter what! And it is so easy to get hoodwinked by the seemingly great sale and the big, bold flashing signs they put, but pause and work out with something like the percentage calculator app to ensure you get a discount before spending. Knowing how businesses can use their weapon (percentage) to manipulate you to buy, you will now be aware of how you should shop. Have you and your (closet) fallen prey to some of these nifty sneaky tactics? The good news is with some handy knowledge and a percentage calculator it will never happen again!