How many times have you walked out of a store thinking you’ve gotten a great deal? Retailers want you to feel this way because it increases your chances of becoming a repeat customer and spending more money!
But, what if you didn’t get a bargain at all, and instead fell for one of the store’s marketing gimmicks?
Most companies have a strategic marketing team and their main goal is to get you to buy. They use marketing gimmicks as a way to make you believe you’re getting a great deal or something for free which in turn makes you feel special!
Whether you realize it or not, your emotions have a powerful impact on your behavior. They influence your money personality, along with the ways you save and spend.
It’s important to understand that marketing gimmicks and other advertising tactics’ only purpose is to get you to spend money. Oftentimes, they’re designed to tempt you to purchase impulse products and other goods that you don’t even need!
However, when you become aware that the ultimate goal of these marketing gimmicks is to get you to buy, then you can stop wasting money on them. By doing this, you’ll reduce your burn rate, increase your savings ratio, and achieve financial freedom faster!
Here are 10 marketing gimmicks that continue to trick consumers into buying.
Many retailers give you the option to make a purchase now and pay for it later (BNPL). Most often, they require that you make a small down payment and commit to a weekly or monthly repayment plan.
Often, there’s no interest charged on these BNPL marketing gimmicks, making them a better option than credit cards. But if you ever miss a payment, not only will you incur large late fees and interest, your credit score may be negatively impacted, too!
The Buy Now, Pay Later advertising tactic allows you to spread your payment out over time. This reduces your monthly expenses and tempts many people to buy more than they can afford. Oftentimes, they’ll buy pricier items or in larger quantities than they initially planned since they won’t have to pay for it today!
While many retailers still offer BNPL, the modern day equivalents of this marketing gimmick are afterpay and Klarna. Both claim to be a free service, that is until you miss a payment!
Consumers who fall for this trick usually can’t afford the item because they can’t pay for it in full. Their strong desire for instant gratification convinces them to buy it now without considering how they’ll be able to pay for it later!
Most people sign up for loyalty cards as a way to get coupons, store discounts, and special offers. However, many don’t realize that these promotions are just marketing gimmicks that make you want to spend more!
Limited Savings: Some retailers offer reduced prices to their loyalty card members or send coupons to their frequent shoppers. But, these discounts usually require that you spend a certain amount before they’ll give you the special deal which in turn only tempts you to spend more.
Privacy concerns: Signing up for a loyalty card program includes giving out some of your personal information, such as your full name, phone number, and email address. The business may then use this information in various ways, such as selling your information to third parties or tracking your purchase history. With this data, they now can send you tailor-made coupons and affiliate offers that tempt you to buy!
If you’re concerned about your privacy, I highly recommend reading up on the company’s privacy policy to understand what they’ll do with your personal information.
Excessive spam: Retailers will also use your contact information to send you marketing material which sometimes feels excessive and overwhelming. They may spam you multiple times a day via email, mail, or even phone calls and text messages. My advice to you – before you sign up for any loyalty program, make sure you can opt out of unnecessary advertising materials.
The 0% Interest Rate marketing gimmick typically attracts buyers interested in real estate, vehicles, credit cards, and consumer goods. It makes consumers think they’re getting a special financing offer when in fact, the cost of interest may already be included in the price!
Most products that get financed using a 0% interest rate have special terms and conditions, too. If you pay late or default on payments, then you could face large penalties. The interest charge may get backdated and accrue based on your original purchase date and price!
You should also be aware of your loan terms. Sometimes, the rate is held at zero percent for a limited time before it goes up and so will your payments!
Several stores advertise in-store financing options that allow you to buy items “90 days same as cash.” At first glace, this offer might appear like it’s a good deal, but unfortunately, it can end up leaving you in a poor financial position.
When you agree to buy a product for 90 days same as cash, the retailer guarantees you a 90-day zero-interest loan. As long as you pay for the item in 90 days, then this marketing gimmick works the same as if you had paid for the item in cash.
Most people who fall for this advertising tactic intend to pay the balance in full within 90 days. But unfortunately, life can change unexpectedly. Sometimes, despite their good intentions, they face emergencies, a job loss, or other unexpected costs which prevent them from paying their bill in full.
If your balance isn’t paid within 90 days, you get charged interest. In some extreme cases, the interest could be backdated to your purchase date and added to your loan balance, too!
To avoid wasting money on interest, plan ahead and save for the items you want to buy.
Sometimes businesses experience a drop in sales and in an effort to get out of this slump, they offer deadlines to act. These time limits can make those who’ve held off on buying to act fast, thinking they’ll miss the benefit if they delay any longer.
Here are a few common Deadline to Act advertising tactics that retailers use:
Coupons are one of the largest and most common marketing gimmicks that exist. They offer small discounts on items that may have gotten marked up or been purchased cheaper elsewhere.
While coupons can tempt you to buy impulse goods, they can be useful, too. Coupons can help you save money on the items you already planned on purchasing. On the flip side, they also require a lot of time and work, such as planning ahead and potentially driving to multiple stores to take advantage of their particular discount.
Grocery store cards also get included in this category. As you buy more of their products, you rack up more points which can encourage many people to spend strictly on the thought they’ll get something for free. In addition, these cards are another way to track your spending habits, so the retailer can send you other marketing offers, which again is just another attempt to get you to buy more stuff!
Think about it, how much does coupons really help you save, if you never intended on buying the product in the first place?
Some retailers put a higher “every day price” on their items and then use coupons and sales to lower them. This gives the illusion that you’re getting a good deal, but oftentimes you’re not!
Luckily, several websites can help you determine if you are getting a bargain and saving money. A few of the best price tracking sites are:
To eliminate the high-low pricing marketing gimmick, try to combine a sale with a coupon whenever possible so that you can maximize your savings, too!
Everyone likes getting something for free which makes Buy One Get One offers appear to be really good deals. Upon closer inspection, they’re just another advertising tactic that creates a sense of urgency and pushes customers to buy.
How much do you save by using BOGOs?
Unfortunately, most people put too much value on the deal and the freebie they’re getting which puts them in a spending trap. They think that by purchasing a large quantity, they’ll get a larger discount, but usually, they just end up buying more than they need!
BOGOs are most common at grocery stores. At times, this marketing gimmick makes you overbuy, giving the food time to spoil before you ever have a chance to eat it!
Upon walking into most stores, you’re greeted by elaborate displays. They showcase discounted items that grab your attention and may even play tricks on your mind!
Seeing these displays when you first walk in can generate excitement at the thought of saving money. Not only can savings compel you to buy now, but they can also prompt you to browse the entire store, thinking everything is on sale!
For example, try and recall the last time you walked into a store around the Super Bowl or during the summer. At the entrance, you most likely saw products arranged in a detailed manner that were heavily discounted. For many people, these savings and displays generate excitement about an upcoming event or season which prompts them to buy without doing any research or price comparison shopping!
Another advertising tactic that retailers use is decoy pricing. They price products in a way that pushes you towards a particular model because it makes you think you’re getting a great deal!
For example, imagine a company that sells watches at multiple price points. If the company prices a few models extremely high and the others much lower, then it appears that you’re getting a bargain by purchasing the less expensive version!
It’s important to keep decoy pricing in mind while you’re shopping, too. It can help you choose the model that’s catered to your needs, instead of your wants!
If you’re like most people, you love getting a great deal. Companies know this too, so they use marketing gimmicks to fool you into thinking you’re getting a bargain. But, most of the time you aren’t.
Retailers will continue to use advertising tactics to get you to spend money. When you realize this, you can avoid falling for them and make better purchasing decisions, instead!
How many of these marketing gimmicks have you fallen for? Comment below.
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