Mind Games: How Stores Manipulate You to Spend More?

If you have ever entered a shopping mall just to watch a movie and left with four shopping bags, then maybe it's not entirely your fault. The world is designed in a way to make you spend more. For example, a t-shirt costs $9.99 and not $10. A caffe latte is $3.99 and not $4. Because our brain puts more focus on the first number, this gives us the perception of a one-dollar difference.

These tricks are obvious and visible to our eyes, so we probably won't fall for them. So, I will not waste your time by talking about them here. Instead, we will break open those sneaky little ploys carefully placed in every stage of our buying process so that we won't even realize we are being manipulated. And at the end, I will give you all the wisdom you need to protect yourself from falling for them. This is going to save you a lot of money. So let's get started.

I want to buy a new television. Which brand should I go for? LG? Samsung? Sony? There are over 200 television brands in the world. But still, those were the names that came to my head first. This was before I did any kind of research. And the reason. Ads. The marketing budgets of LG, Samsung, and Sony is in billions. I've often wondered why advertising works at all. We know everything is staged, from the actors to the dialogue to the claims.

Jennifer Lopez appeared in an ad for the Fiat 500. Do you think she actually drives around in a Fiat 500? And then there is the 007 himself, promoting Indian Pan Masala. Really? Pan masala could have always killed you, but now it officially has the license to do that. We know they aren't even slightly related to these fields and shouldn't have a say. All of them are getting paid to say this, yet we somehow believe them, and they influence our shopping decisions. How does it all work?

There is a LG ad with the Indian actor SRK in the main role. In the ad, there is no mention of any of the features of the TV. He is not talking about OLED screens' high brightness and contrast or how slim the TV frame is. The ad is all about class. If you own an LG TV, you will be classy. And who doesn't like that?

Everyone loves stories. We value them over statistics because they get stuck in our brains, and the marketing people know this very well. The best example is Apple. Apple commercials are unique, and they always leave a long-lasting impression. Their ads are not about the product directly, but they show stories about how much fun a person can have with their products. They are not playing to the logical part of our brain; they are trying to create a link between the product and our emotions. Because we buy based on emotions and then justify that purchase with logic.

Now I know this. So, I went against my instincts and decided to head to the local electronics store to check out the models myself.

I was in a shopping mall in the neighborhood. Have you ever noticed something strange about shopping malls? If the escalator to the first floor is on one end, then the one to go to the second floor will be on the opposite end. And the layout is so confusing. And I used to think, "Why can't they get better architects?" Little did I know that this was done intentionally because it brings two benefits. One, it creates confusion, so our brain has to work more, which leads to decision fatigue.

But how can this help sales? I will explain. Think of walking into your local grocery store. What's the first product you see? It's always fresh fruits and vegetables.

They are the most perishable items, so ideally, they should be the last things we should pick up. And do you know what products are kept near the cash counter? Sweets, chips, beverages, and all other processed items. Doesn't make sense right? We all have a finite amount of willpower at any point in time. It's like a battery, so as we use it gets drained. So, after a series of serious choices, our willpower battery is empty when we get to the cash counter. And we tend to make irrational, impulsive decisions. That's why even the ultimate fitness freak sometimes reaches for a Snickers bar at the checkout counter.

The second reason for the confusing layouts is that these stores are concerned about our health. So, they force us to walk around more. I'm kidding; they don't care about the health benefits of walking. But they do care about the money-draining effects. As we pass by other stores, we might see something interesting and make an impulse purchase. Therefore, textile shops, footwear stores, and cosmetics stores are all easily accessible and are placed along the way.

In contrast, others, such as electronic stores and food courts, are always far from the entrance. Now you know why movie theaters are always on the top floor. They know that the more time we spend at the shopping mall, the more things we buy. But how can someone fool us so easily? It's again our decision to enter a store or not, right? We can just walk by. There are some sneaky tricks there, too.

Most cosmetic stores will have someone standing near the entrance who may offer a spray of perfume. A similar pattern can be seen near tourist centers where they give chocolate pieces or wine to taste.

We may feel that they are nice for offering us free stuff, and who doesn't like free stuff? But not all of them have genuine good intentions. If we aren't paying for it, then that tiny piece of chocolate is a debt or favor. They are taking advantage of the fact that most of us have difficulty being in another person's debt. We somehow feel the need to return the favor. So, most likely, we end up buying something from them that we don't need. If not at that moment, then maybe sometime later. There is a reason why Spotify offers you a 30-day free trial.

When I reached the TV section in the electronics store, the first thing I noticed was that there were a lot of TVs. The last time I visited India, I went to buy toothpaste at a hypermarket. I know. Wrong decision. There were almost 100 brands, each with different products like White, Fresh, Max Fresh, Sensitive, and Ultimate. This is called the paradox of choice. We open Netflix and see 1000 movies. We patiently scroll through each of them, and after 5 minutes, we switch off the TV.

When I was young, I could only watch two movies: one on Friday night and one on Sunday evening. There was no choice. They were the only ones broadcasted. I know I sound like an old uncle who starts with "Once upon a time," but it's true that nowadays, people are bombarded with options. There are just too many to choose from. Options are good, but when they go beyond a limit, the choices destroy the quality of life. Just know that in television sets, relationships, or every other thing in life, it is impossible to make a perfect choice. Good enough is actually good enough.

So I was just looking for my "good enough" TV. All those television sets there were totally above my price range. Ideally, the most popular and best-selling ones should be displayed first. That's not the case there, and it's not accidental. This is a sales technique called anchoring. So when you walk past all the $3000-$4000 ones and get to your $500 TV, you don't feel like you're spending a fortune.

The recommended retail price" printed on many products is nothing more than an anchor. When we look closely at the price tags, there are more hidden strategies here. Every product has a fake retail price and then a heavily discounted sale price.

This makes it seem like we are getting a great deal. Ideally, only the current price should matter. But somehow, a product discounted by $300 seems to be a better deal than the one with no discount. If you observe these offers carefully, you will notice that they only last for a "fixed time" or until stocks run out. Do you remember the time when Google launched Gmail? I already had a Hotmail and a Yahoo account then, but I badly wanted a Gmail account. Not because anyone was waiting to send me emails on Gmail but because access was restricted and only given out by invitation. The feeling of rarity increases the value of a product in our eyes, even if it is not necessarily rare.

Another common sales trick is buy one get one free or the BOGO Now. If you're already planning to make a purchase and a second one is free, by all means, take it. But just don't go to the store just because there is BOGO. Of course, for my purchase, I was not going to fall for this. I don't need 2 Televisions, or Do I?. I did check out a few models and talked to a salesperson, but then I left the store without making a purchase. I wasn't prepared. So, let's go home and approach this the right way.

Think carefully about what you want. Set a budget and make sure you stick to it. This should be like "the red line you shall never cross."

Know how much you are ready to cash out before you do any research or check any offers. With purchases like television sets or cars, there will always be small incremental updates. If you pay $50 more, you may get a slightly brighter screen. Or if you pay another $100, you can get the next bigger size. It will never end. Second, Invest the time to do serious research before you buy something. See what are the major brands and models that fall within your budget. Assess products and services solely based on their price and benefits. Read blogs and product reviews.

A good place to check verified reviews on Amazon from current owners. Watch out for complaints and durability of such models. Don't buy from an unknown brand just because their washing machine is at an 80% discount. If it stops washing after a month, you just made a 100% loss. So it's always better to put quality over quantity. Once you have filtered and identified some models, add them to a price comparison service such as Idealo or CamelCamelCamel to know the price history.

Some apps even allow you to set alerts when the price drops below the set limits. If it's not an urgent purchase, wait a few months. Offers always repeat, so the price will drop. Just have the patience to wait for it. And if you have to go to a shopping mall, be clear about what you want to buy and where you want to buy it. Once you are at the mall, take the shortest route to the destination. Take the lift instead of the escalator or stairs if it's on a different floor. You can work out later.

Every time you walk into the mall, supermarket or a store, remember it's you against them. 95% of purchasing decisions are made in the subconscious mind. Once you understand how retailers try to influence your behavior, you can learn to fight back. If you got some value from this blog, please consider revisiting my blog page for more such value pieces.

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