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5 Marketing Tricks Costing You Thousands
Are you being tricked into overspending?
👉🏻 The TL;DR (5 minute read):
The holiday season is just around the corner, and it tends to be the spendiest time of the year. I’m sharing 5 marketing tricks to pay attention to so that you don’t get fooled into spending more money!
🚨 Get started on your personal finance journey with one of my budgeting tools! Check out the Personal Finance Dashboard and the Basic Budgeting Template!
MONEY
Marketing Tricks Costing You Thousands
Raise your hand if you’ve ever gone shopping “just to browse” and ended up spending $200 by accident? 🙋🏼♀️
It’s not entirely your fault. Brands literally design their stores and websites to make this happen.
In my effort this year to buy less and buy better, I’ve developed a critical eye when it comes to analyzing my wardrobe and shopping.
I’ve started to notice the patterns on brand sites and in stores that make me want to spend, as well as my own personal patterns and when I tend to have the urge to splurge.
While controlling your shopping impulse and learning how to spend is your responsibility, there is a layer of this conversation that really does default back to the brands.
They have entire teams of people who are dedicated designing an environment and experience that will get you to spend.
So today, I am going to share some of these psychological tricks brands use so that you can spot them and fight back!
Let’s get into it!
Price Anchoring
This is when brands will place more expensive products up front in an effort to make mid-tier items (or whatever you see next) feel like a better deal. You’ll notice this happen with items placed at the front of the store or styled on mannequins, as well as on sites where the flashiest items default to the top of the page.
Remember, it’s only a deal if you already planned to buy it!
Scarcity and Urgency
You’ll often see messaging on brand sites highlighting “low stock” or “40 other people viewing this item” in an effort to get you to act quickly on your purchase. Remember, there is plenty of stock of every item, or similar items, all the time. If you see these triggers and feel the urge to buy immediately, ask yourself: would I still want this tomorrow if there were plenty available?
Free Shipping Thresholds
This one is where most of us fall victim most frequently. Usually it shows up at checkout, where you are reminded that if you just spend $15 more you can get free shipping! Usually this results in one of two actions:
Buying something low cost and random that you didn’t originally want just to cross the free shipping threshold
Buying an additional full price item that is significantly more than the cost of shipping
You aren’t saving any money by spending more money to avoid paying a $5 shipping fee!! ❤️
Bundling & Value Packs
You don’t need multiples of items just because they are on sale. You also don’t need to buy bulk just because you’re getting a better per-unit price. This applies to every category from clothes to beauty to groceries. You’re not saving money by buying more if you didn’t need more in the first place!
Limited Drops & Collabs
This is something that has become more prevalent in the last few years with influencer marketing. It creates a sense of FOMO, and FOMO shopping convinces you that exclusivity = value. It’s just hype. I avoid any sort of limited item or drop -based business as much as possible.
Remember This:
Shopping should be intentional, not emotional. The next time you’re about to click “add to cart,” ask yourself: Is this me choosing, or is the trick working on me?
If you are ready to take control of your shopping habits, check out these resources:
My latest youtube video, where I dive deeper on each of these tactics
The Basic Budgeting Template designed to help you start tracking your expenses
The Personal Finance Dashboard, a comprehensive money planner that will help you take your financial power back
Is there a marketing tactic that you fall victim to the most?
Which marketing tactic do you fall victim to the most? |
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WEEKLY RECOMMENDATION
America’s housing paradox, hiding in plain sight. I recently read this essay by Katie (Money With Katie) that details why and how housing the US has become so unaffordable. This is a topic that I have personally been very interested in, and Katie is the queen of dissecting these complicated issues with facts and analysis. Highly recommend this read!
RESOURCES
What’s Happening This Week at Break Your Budget
This week on Don’t Depend on Daddy: I sat down with my friend Benny, who is my personal travel expert that I text regularly with all my travel and credit card questions. He speaks the language of credit card points - something that I personally struggle to decode to their fullest capacity. If you’re interested in traveling on a budget, you need to listen to this!
Marketing Tricks Keeping You Poor: In this week’s video, I dive a bit deeper on each of the psychological tricks I explained in this newsletter!
LOOKING FOR MORE?
Check out ALL of my Money & Career Resources!
Read by books, Own Your Money and Own Your Career!
Take your financial power back with The Personal Finance Dashboard, my comprehensive money management tool!
Up-level your career and get promoted with the Own Your Career Template!
Just getting started on your financial journey? Check out the Basic Budgeting Template!
Learn exactly how to put together a plan for your finances with the 4-Week Financial Plan!
xoxo,
Michela