With end-of-year sales everywhere, millions of consumer flock to the malls keeping the economy going one purchase at a time. Considering the economic downturn and the millions of people without a home this past Christmas, it makes no sense to keep charging even more onto our well-used plastic.

The magic power of sales

Have you ever gone out during a sale to buy one thing you need, but actually come home with items you did not need at all as well? Often consumers are lured by ads promising “buy one, get one free”, or “second item half off”. These sales are actually not as good as they sound. The first one just means everything is 50% cheaper, but only if you buy more than you might want. If you only buy one item, you save nothing. The ’second item half off’ sale actually translates to a 25% sale. Now, between two stores advertising 25% off, or 50% off a second item, where do you think most people will go? Exactly, most people pick the second one, even though the deal is no better than the first. (Some might argue it is worse, because here too you are forced to consume more than you might want to).

How to avoid temptation

You can avoid falling for the clever advertising and psychological tricks sales drive on by:

• Being aware of the tricks (know what really is a good deal).
• Decide what you really want to buy before leaving home, and what you actually need.
• If you come across an amazing deal, consider whether it is your 12th pair of jeans, or just your 3rd and you could really use an extra one.

Here is an excellent article on the psychological power of the word “free”, and how it is used in sales. I can bet $100 that you’ve been swayed at least once by a “Buy X, get Y Free” sale. Who hasn’t thought of it as a great deal? Point is, now you know what it really means, and you can decide when it is a good idea to just keep your money instead.

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