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Friday, 28 November 2014

5 Whys behind the Bargain Buys of #BlackFriday, #CyberMonday, Clearance sale, ...


An estimated £1.3bn is expected to be spent over the weekend, with many stores slashing prices by more than 50% on some items.

The concept of Black Friday -the magic four days - including cyber Monday has now been adopted into the British retail psyche.

The media hyperbole both Offline and On  report the scenes at stores include “mayhem , bedlam, madness , carnage and stampede”. Shoppers are reported as” flooding the stores  scrambling for bargains, stealing the best deals

There are reports of Police concerns as to ‘customer conduct’, stories of shoppers being prized apart, of fights, assaults ..

Yet many bargain shoppers buy things which
·         they don’t end up using,

·         spend money they wish they hadn’t,

·         and waste time window shopping for “further reductions”
 
The 5 Whys behind the Buys

1. Fear of missing out FOMO WIGIG  - Buy now while stocks last
FOMO is some we are aware of in social media. Fear of missing out on party invites, the gossip and increasingly  today the news.
Online shopping is particularly potent at exploiting FOMO as you see the stock levels of ‘bargains’ selling out before your very eyes. The power of buy now while stocks last or when its gone it’s gone (WIGIG) is strong. We see the same on the TV shopping channels when the viewer is constantly updated on how well the ‘bargain’ is selling.
The rational solution is to make a list of coveted items and only buy what you’re sure wanted before it went on sale.

 2. Competition of the crowd
In the stores at sales there is a sense of competitive sport. Some get a positive rush when they nab an item ahead of others whom they are sure wanted the item. Crowds heighten our emotions and sense of  competition. This in turn can reduce our ability to think carefully about the true value of what we’re buying.

Time is the solution. Take time and few calm moments to level off the excitement of the moment. It’ll reduce the chance of making ultimately an unsatisfying purchase.

3. Believed Value
Strangely enough we depend on the price charged for goods to figure out their value. Yet  most folk don’t understand why for example  one pair of shoes is £ 85 and another £400. So we rely on the price as a benchmark of quality and style. ( You don't get something for nothing) That explains why those £ 400 shoes that are now £150 seem like a much better purchase than a £85 full-priced pair that we might use more often.

The cure is to imagine the sale price as the initial, unreduced price, recommended retail price and ask yourself if you’d be as excited.
4. Focus change from Spending  to Saving
Black Friday type sales shift our focus  from what we’re spending to what we’re saving . We are faced with a myriad of reduced items . Retailers tap into our frenzy of saving by tallying our savings on our receipt or posting savings rather than costs on websites and in the stores.

The fastest 'hit' is to settle up with cash. Credit cards are a cushion and carry the weight of what you’re getting rather than what you’re giving when you shop. Gift cards, coupons and vouchers are even worse, they can seem like “toy money” rather than real money.
 

5. Return on Time Investment ( ROTI)

Sale shopping, and for many  bargain hunting, takes time and it’s a considerable emotional investment. Many shoppers feel pressure to make good on that investment by not leaving  the store empty-handed. Finding something, anything, can feel like winning a treasure hunt - and of course you can’t leave without the prize.

Keeping things in perspective remains the key. Ask yourself if you really want the item or if your caught up in the moment.


Gaining that desirable item you want is wonderful.

Gaining that discount you need is also wonderful.

Gaining both at the same time is  a harder target to gain.

A simple shift of focus and bit of planning and is all it takes to master the ability to consistently make that truly great discounted purchase.

Yet for many they share Oscar Wilde's opinion " I can resist everything but temptation" 

Related Links


How to sell low price



 

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