Financial Peace

Who doesn’t want a deal?

I have provided you with four pricing techniques that retailers use to convince us we’re getting a great deal. There is a way that will tell if the item is actually on sale or not with these pro shopping tips below.

                                                         Price anchoring and the retail world know it.

When you watch shopping channels, the hostess normally demonstrate the latest gadget and her pitch is usually the same. She will tell you that the item normally cost $149.00 but if you call in right away you can get it for the low price of $49.99, and guess what we will even throw in the same item and free shipping. Infomercials are a classic example of price anchoring.

They first has to establish a higher price in our minds so when we hear the same item at a lower price we automatically think we just made the greatest deal in the world. That is why we the suggested retail price on everything from automobiles to children clothes. Who knows, it may be a deal or it may not.  Never assume the prices you see are the best ones. You can usually research  online networks and find the item that you want for a cheaper price. Compare the price and choose the best one that is suitable for your pocket.

If you had a choice of getting body lotion for 35%  off the regular price or in a bonus pack of 50%. which one would take? In a study published in the Journal of Marketing Researcher more shoppers chose the bonus pack, but the kicker is the discount was a better deal. 50% more product equals a discount of 33% which is less than 35%.  If the shopper would have picked the regular pack at the discounted price they would have made a better deal.

Yes, it tricky but if you want to enhance your finances you have to make better choices, not only in shopping but in every area of your life.

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