What is the real price?
Many online buyer Have experienced the same trick that Sharma had seen. Retailers Often raise the MRP to show that they are offering huge discounts, when in reality, the claimed 50% or so sales The price is usually close to the original price of the product. Psychologists say that when we shop, we get two benefits – utilitarian and emotional. By nature, people are greedy and relaxation attracts our emotional side. The bigger the discount, the more reasonable and happy we feel about our purchase. This is why sellers will highlight as many numbers as they can. For example, which do you like better: 50% bonus or 33% discount? In fact, they are both the same, but buyers will be attracted to a larger number. Another strategy used by retailers is double discounting. Suppose, a seller is giving a discount of 45% while another reduces the price by 20% and later another 25%. Most buyers will think that the second offer is better when in fact it is the first. If you do the math, you’ll only get 40% off the latter offer because the second 25% discount is at a lower, lower price.
what should you do
To avoid getting duped, explore as many sites as possible to check the MRP of the product. This will reveal the actual discount offered by the seller.
Can you pay it in full?
Retailers encourage you to buy expensive items by assuring that they can be paid for in EMIs. Some may even give you zero-cost EMIs but this can only be for limited items or a minimum amount. However, you have to pay processing fee, GST etc. This may negate the discount you get. While the offer may still be tempting, you need to make sure that you can pay for it in the long run. What happens if you miss some payments? You may pay a higher penalty, and spend even more than the original price of the product.
what should you do
If you want to buy a big-ticket item, but the need isn’t urgent, it’s better to save for it and buy it later. Don’t make hasty decisions because there will always be another sale.
Is this really a freebie?
Sellers use many tricks to get you to buy more stuff. Some of them are ‘buy one, get one free’, ‘up to 10% off one and 30% off five’, and so on. These level threshold discounts encourage you to increase your order value to take advantage of the lower prices, allowing you to actually pay more in the end.
It is the part of behavioral economics where discounting plays on the psyche of the consumer. Suppose you are buying one shirt for Rs 1500 at 20%, but if you buy three, you get 50% off on the third one. So, instead of spending only Rs 1,200 as you had initially planned, you have now spent Rs 3,750. Usually such offers hold. Mostly, your choice will be limited to a particular segment or brand, or you may have to spend a minimum amount to avail all the benefits. The product may be out of date or nearing its expiration date, which means you may not be able to fully use it before it expires. The same can be true for cashback offers and vouchers.
Another behavioral economics trick is to create a sense of urgency by displaying scarcity, such as ‘only two pieces left’. People put more value on a product that they feel is limited. Fearing that we won’t get such a great discount or the stock will run out, makes us buy it on impulse. This trick is also used for flash sales, where the product is sold out within minutes of its launch, and then there is a long waiting list for it.
what should you do
The extra expense in a sale defeats the advantage of buying at a discount. Set a budget of how much you want to spend and list the items you really need. Do the math to find out if the deal will help you stay within your budget.
Also, check the exchange, return and refund policy and the time period for these. In some cases, items purchased in a discount sale cannot be returned or exchanged.