Retail Scams – Don’t Fall for Them This Holiday Season

The following is a guest post on Retail Scams from Anum Yoon.

It’s hard to believe another year is already winding down.  The end of the year brings with it another holiday season. If you’re like most people, you need to head to the store and purchase gifts. As November winds down and we move into December, many folks will see themselves in retail shops in the near future — perhaps even frequently.

If you find yourself in that category, you should arm yourself with enough knowledge to avoid retail scams. Believe it or not, there’s no shortage of tricks retailers use to encourage their customers to open up their wallets a little wider. With that in mind, let’s take a look at five such tricks:

1) Classical music keeps customers comfortable

According to recent research, classical music helps calm listeners. This is why classical music is played at many public venues, including train stations. City planners believe the music can help deter crime because listeners are more relaxed and less agitated. Similarly, retailers think classical music helps relax shoppers, encouraging them to stay in their stores for longer periods of time. If a store is playing classical music, set yourself a time limit and leave when it’s up. There’s no sense in buying anything you don’t need.

2) Beware of the number 9

In his book Priceless: The Myth of Fair Value, William Poundstone uncovers the fact that on average, retailers realize a 24 percent bump in sales when they price items at non-round numbers. For example, something that’s priced at $19.99 is much more likely to be sold than something that’s priced at $20, even though buyers know they’re only receiving a penny discount. The logic is pretty simple: The price looks lower to shoppers, even if it’s just on a subconscious level. Word to the wise: Think twice about whether you really want to buy that product being sold for $14.99.

3) You don’t have to buy 10 things to get them each for $1

Ever walked around a store and found a sign advertising what appears to be a great deal, with one catch: You have to buy a bunch of them? Truth be told, you can often get those price discounts even if you don’t buy as many items as the sign tells you to. For example, if a store is selling 20 fountain pens for $20, you could probably still grab a pen for a single dollar. Studies show that consumers are tricked into thinking they need to buy the items in bulk to get the discount, which isn’t necessarily the case.

4) The better deals are “hidden”

Retailers like to position products at eye level. They figure that most folks walking down aisles won’t crouch down or get on their tippy toes to look at how items are priced on other rows. Usually, this translates into the better buys being stuffed on the bottom row of shelves while the products that make the most profits are stocked at eye level. To find the best deals, be sure to thoroughly ransack the aisles.

5) Think again when you start feeling nostalgic

Retailers understand the power of nostalgia. That’s why every so often we see things from the past dominating headlines. For example, this summer, the surviving members of the Grateful Dead celebrated 50 years as a band with a series of sold-out concerts. Later this year, a new installment of Star Wars will be released. Showtime has ordered a reboot of the cult classic Twin Peaks. The list goes on and on. Quite simply, nostalgia can make us open our wallets. If you ever suspect retailers are trying to trigger your own nostalgia, be cautious. Studies show that nostalgia makes us much more inclined to spend money.

Retail Scams – Don’t Fall for Them This Holiday Season – Final Thoughts

Dealing with retail stores during the holiday season can be hectic and frustrating. Luckily, you can enjoy a much easier time finding gifts if you can recognize these retail scams in action. If holiday shopping simply isn’t for you, consider skipping the retail store. You could choose to volunteer your time at a charity of a gift recipient’s choosing. There are many family-friendly volunteer opportunities during the holiday season, so you won’t have a problem finding something great to do — and you won’t have to step foot inside of a mall.

No matter what you decide: Good luck in your holiday shopping endeavors! May you find the best deals and recognize the worst ones. Happy holidays!

Anum Yoon is a personal finance blogger and writer. She created and maintains her personal finance blog Current on Currency. You can subscribe to her blog newsletter right here for her weekly updates.