How to Avoid Overspending During Sales: 14 Smart Strategies to Keep Your Wallet Happy

November 7, 2023
by Admin

Sales events can be a shopping paradise for many, allowing you to grab your favourite items at discounted prices. However, it’s essential to be cautious during these times, as it’s easy to get carried away and overspend. According to a report by Bain & Company, Indian consumers are expected to spend over ₹12 trillion ($150 billion) during the festive season in 2023. Americans, Brits, Canadians, Australians, and New Zealanders are also projected to spend a substantial amount on holiday shopping this year. With these staggering numbers in mind, it’s vital to know how to avoid overspending during sales.

Some figure from the recent sales:

Flipkart’s The Big Billion Days sale in 2023 recorded 1.4 billion customer visits.
Amazon’s Great Indian Festival in 2023 saw 9.5 crore (approximately 95 million) customer visits in the first 48 hours.
Prime members of Amazon shopped 18 times more in the first 24 hours of early access than the average daily purchases.

Why Do We Overspend During Sales?

Before diving into strategies to avoid overspending during sales, let’s briefly explore some of the cognitive biases that influence our purchasing decisions during sales:

Anchoring Bias: We rely heavily on the first piece of information we receive. In sales, this can lead us to make purchases based on the initial, sometimes inflated, discounted prices.
Loss Aversion: People are more afraid of losing something they already have than gaining something of equal value. Sales can tap into this fear, encouraging us to buy things we don’t need to avoid missing out on a deal.
Scarcity Effect: Limited-time offers or items can create a sense of urgency, making us feel that we must buy now, even if the thing isn’t essential.
Confirmation Bias: We often seek information that confirms our preconceptions and desires. When shopping during sales, we may ignore negative reviews or overlook potential downsides to justify our purchase.
Herd Mentality: We tend to follow the crowd. If others are buying something, we’re more likely to do the same during a sale, even if it’s not a wise choice for us.
Sunk Cost Fallacy: The more we invest (money or time) in something, the harder it is to let go. In sales, this can lead to purchasing additional items to justify our initial investment.

The next time you hit the stores, steer clear of those sneaky cognitive bias traps. Keep that cash in your pocket and shop with confidence!

14 ways to Avoid Overspending During Sales

Now, with these cognitive biases in mind, let’s explore some practical strategies to help you avoid overspending during sales.

1. Set a Budget and Stick to It

Before you hit the sales, decide how much you’re willing to spend and be strict with yourself. Having a budget in mind will help you avoid overspending during sales, reduce impulsive purchases and ensure you stay within your financial comfort zone.

2. Create a Shopping List

List the items you genuinely need or have been planning to buy. Stick to this list and avoid exploring tempting deals on unrelated things.

3. Research and Compare Prices

List the items you genuinely need or have been planning to buy. Stick to this list and avoid exploring tempting deals on unrelated things.Don’t be fooled by apparent discounts. Research prices for the items on your list before the sale begins. This way, you’ll know if you’re genuinely getting a good deal or if the discount is merely a marketing tactic.

If you’re using Buy Now, Pay Later (BNPL) for your payments, just remember to keep that convenience fee in the back of your mind. It might not seem like much at first, but when you look at it over the course of a year, it can add up to quite a hefty sum. Look how – Diwali Shopping with BNPL: The huge Cost of 2% Convenience Fee

4. Avoid the Sales Staff If Possible

Interacting with sales staff can lead to a barrage of suggestions and temptations. Only seek assistance if you have specific questions or need help finding a particular item.

5. Beware of Retailer Tricks

Retailers often use psychological tactics to encourage spending. Keep an eye out for strategies such as:

Whole Number vs. Decimal Pricing: Items priced with real numbers may seem more expensive. For instance, ₹150 may appear higher than ₹149.99, leading you to choose the latter.

Number of Syllables: Items with prices having fewer syllables may appear cheaper. For instance, ₹38.72 (seven syllables) may seem more expensive than ₹40.90 (five syllables).

Commas in Prices: Removing commas from prices can make them appear less expensive. So, ₹1299 might seem like a better deal than ₹1,299.

Charm Price: Prices ending in 9 (e.g., ₹19.99) can create the illusion of being significantly cheaper and are more likely to sell.

Decoy Effect: Picture this: you’re out shopping for a new smartphone, and you’ve got two choices in front of you. There’s the Basic Model for $499, which doesn’t break the bank, and the Premium Model for $999, which sounds pretty fancy.

Now, just when you thought you had it figured out, the store throws in a wild card – a so-called Deluxe Model for a whopping $1,199! It’s all shiny and high-priced, but honestly, it’s more than you need. What’s happening here is the decoy effect in action.

Even though you were already leaning towards the Premium Model, the presence of that pricey Deluxe Model makes it seem like a better deal. Sneaky, right? It’s a trick retailers use to nudge you into spending more, and it works!

6. Have a Mint Gum or Candy

The intense flavour of mint can help neutralize enticing fragrances in stores. Sucking on a mint candy or gum can make you less susceptible to making impulsive purchases based on smell.

7. Avoid Soft Music

Soft and soothing music can make you linger in stores longer, increasing the chances of overspending. opt for stores with less inviting music or headphones to stay focused on your shopping list.

8. Wear High Heels

A study by Brigham Young University found that wearing high heels can help you make more balanced buying decisions. The effort required for balance can discourage impulsive purchases.

9. Don't Touch Everything

According to a US consumer marketing research firm, the more you touch items on display, the more likely you are to buy them. So, avoid touching things you don’t intend to purchase.

10. Don't Take a Cart, Carry Smaller Bags

If you’re shopping without a cart or large bag, you’re less likely to load up on items you don’t need. Stick to essentials and avoid the temptation to add more to your cart.

11. Avoid Peak Shopping Times

Crowded places, such as malls or stores during sales, can lead to rushed decisions. You’re more likely to be influenced by others and make impulsive purchases. Try shopping during less busy hours.

12. Shop with a Disciplined Friend

If you struggle to resist impulse purchases, bring a friend along who is good at saying no. They can help you stay focused on your budget and avoid overspending during sales.

13. Reflect Before Purchasing

Before finalizing a purchase, take a moment to think about whether the item is a genuine need or just a want. Is it something you’ll use regularly, or will it collect dust in a corner?

14. Utilize Technology

Use shopping apps, price comparison websites, and coupon apps to find the best deals. These tools can help you make informed decisions and avoid overspending during sales.

Conclusion

Sales are an excellent opportunity to save money, but they can also lead to overspending if you’re not careful. By setting a budget, creating a shopping list, and being aware of psychological tricks used by retailers, you can make the most of sales events without breaking the bank. Stay focused, stick to your plan, and remember that a good deal is only a good deal if it’s something you genuinely need. With these strategies in your arsenal, you can shop smarter and keep your finances in check, even during the most enticing sales. Happy shopping!