Personal Finance Advice

If you are like most people, you have a hard time sticking to your shopping list.  Maybe you find something on a great sale or maybe an item catches your eye so you buy it, but either way, stores like when customers spend more than they planned on spending. People who buy on impulse may be more likely to not take a closer look at the cost of the item since the purchase itself is usually led by emotion instead of an actual need. Consequently, stores do what they can to try to get you to spend more money than you originally planned on spending.

For example, you attempt to check out to make your purchases at the register, and the clerk starts making suggestions. Do you know if you buy another shirt it will be 50% off? Did you see the new purses that just came in? The same thing happens when you’re ordering food at a restaurant. Do you want the larger side of french fries? Would you like to add a dessert to your order? Even ordering a coffee will yield the same thing. Do you want to add an extra shot of espresso into your latte? Would you like a pastry with your coffee?   The hope is that the clerk’s suggestion will seem like a good one and you will spend more money.

Stores, restaurants and other places that sell things try hard to make it seem like a casual, natural thing to spend more than you planned on spending. Whether it is placing enticing items for sale right next to the checkout register or having clerks suggest that you make one small additional purchase to accentuate the purchases you are already making, none of these occurrences are mistakes or unexpected. Salespeople are trained to ask these types of questions. Who figures out what questions they need to ask? The answer is that there are highly intelligent people who are paid quite a bit of money to figure out exactly how to get consumers to willingly part with their money impulsively. When you buy that extra sweater at 50% off or you upgrade your seating on your airline flight, you’re reacting to carefully orchestrated selling techniques that have been studied, crafted and rehearsed long before you ever stepped foot into the place of business.

It helps to know that these tactics are going to be used on you when you are making a purchase so you know to not fall prey to them. Be prepared for salespeople to try to get you to spend more money, even if it is only a few extra dollars, because these few extra dollars start to add up.

Know what you intend to spend and on what, and try not to deviate from your spending plan. Don’t let yourself get talked into spending more money than you should. Sure, that extra sweater may be 50% off, but that’s still money you didn’t plan on spending. Besides, if you really wanted that extra sweater, why weren’t you compelled to select it while still shopping? Obviously, this is an impulse purchase prompted by a salesperson’s urging. Don’t fall for this type of marketing. 

As retail clerks quickly evolve from being helpful salespeople into aggressive marketers of credit products, shoppers must be on the offensive to make sure they do not find themselves getting talked into opening credit accounts that they don’t really need or want. Salespeople are trained to try to sell store credit cards as much (if not more so) as they are trained to sell the retail products in their store. Don’t be surprised if you find yourself getting pressured to buy a sweater and open a credit card all in the same shopping trip.

Some people have a hard time saying “no.” It is far easier for some people to toss a random solicitation from the mail into the trash or to hang up on a telemarketer than it is for them to tell someone “no” face to face. This can be especially true when factors start to mount up that make you feel a temporary bond with the salesperson. Imagine you take up a great deal of a salesperson’s time while searching for a particular product. The salesperson not only jumps through hoops to get the exact product you need into your hands, but is also very friendly and personable while doing so. He builds up a rapport with you that makes you feel at ease. By the time you get to the register to make your final purchase, you feel as though you have thoroughly enjoyed your shopping experience. This is when your salesperson springs the question on you: “Do you want to apply for a credit card?” You’re told it will only take a minute and you will get a nice discount on your purchase if your application is approved.

Don’t feel silly if you actually feel compelled to agree just because the salesperson was so nice. It’s not easy for most people to inconvenience someone who remains so cordial, but then turn around and say “no.” This is especially true if you have a personality that, for one reason or another, makes you want to be a people-pleaser. Saying “no” to someone can seem downright rude.

Although it may be difficult for you to say ”no,” you have to learn to do so unless you either want to have a ton of unnecessary credit cards in your wallet (which is never a good financial move) or you want to quit shopping in stores altogether. Save yourself the grief and learn to say no.

It helps when you know what to expect. Even the most aggressive salespeople follow a similar formula:

1. The salesperson asks you to open an account, promising a discount and sounding very excited about the whole thing.

2.  If you say no, the salesperson asks you if you are sure and then tells you something else positive about the card or the process of applying.

3. If you still say no, the salesperson may react in a way that makes you feel as though maybe you really are missing out on something great. At this point, some salespeople turn a little sour.

You will have an easier time saying “no” if you go into the store expecting to have to say ”no.” In other words, rehearse the scenario in you mind. Imagine the clerk asking you to open an account, and you saying ”no.” Of course, not all people have to use imagery in preparation of declining an invitation of credit. This system is for people who feel uncomfortable in general when saying “no” to something.

Get used to saying “no.” You don’t have to be rude, but be firm. Never apply for a credit card that you haven’t first researched and decided to apply for ahead of time.

Haggling for a better price on an item you want to purchase is not a thing of the past. In fact, savvy shoppers who know how to successfully negotiate a better deal frequently spend a lot less money for the things you pay full price for. These shoppers go beyond looking for coupons or searching for sales; they are aggressive enough to ask for a lower price and oftentimes they get what they want. This isn’t only prices for items that are commonly negotiated, such as cars and houses, but also everyday purchases that most people never think to ask for a discounted price on.

People who negotiate a better price for things aren’t embarrassed to ask for a discount. It may feel weird to try to haggle for a lower price in a furniture store, clothing store, or even in a grocery store, but the thing you may not know is that most managers of these types of stores have the capability to offer a variety of discounts. Even if it’s only a 10% discount, it is still less money that you would have paid if you didn’t ask for a discount.

What type of discounts can managers offer? Even if certain discounts aren’t advertised, many merchants offer student discounts, military discounts, senior discounts, and may even have a generic discount that is available only for the manager to give in situations that may arise when a discount is needed. Examples include situations when a customer has complained about something or -you guessed it- when someone actually asks for a discount in an effort to negotiate a better price. In fact, if a manager at a retailer tells you that there is no way for you to negotiate a better price for the purchase of an item, there is a good chance that the manager either does not want to give you a discount for whatever reason, or just doesn’t know how to do so.

Know your priorities. Don’t cause a fuss when a store won’t negotiate the price of a $20 shirt with you, but don’t accept paying full price for a couch that costs thousands of dollars. Whether it’s a reduction in the final cost, or free delivery to your home, you shouldn’t pay full price for anything that with such a high cost.

It doesn’t hurt to ask. You can save a lot of money just by regularly asking for a better price, especially when you are making purchases that cost a substantial amount of money.