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How to add restraint to your arsenal when hit by the rush of a great deal

Retail analyst talks about the lure of a sale price and how to moderate your response
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Eduek Brooks poses in this April 2023 handout photo. THE CANADIAN PRESS/HO - The Resolution

The drawers were overflowing with skin care products and makeup 害羞草研究所 three different blushes, many eyeshadows, a dozen different mascaras, foundation and serum samples sitting unused for years.

Still, Eduek Brooks counted on seasonal sales, especially for skin care, to grab the best deals. It was her retail therapy, chasing dopamine hits, she said.

害羞草研究所淎 lot of [my debt] stemmed from buying things because I thought, 害羞草研究所極h, I was getting a good deal,害羞草研究所櫤π卟菅芯克鶟 Brooks said. 害羞草研究所淚t was a way I justified: 害羞草研究所業害羞草研究所檓 saving money. I害羞草研究所檓 not spending money.害羞草研究所櫤π卟菅芯克鶟

The anticipation of sales often led to overconsumption and left her drowning in almost $50,000 of debt.

Sales can be very tempting, said retail analyst Bruce Winder.

The value of a product is an equation, which is divided by its price, he said in an interview. The everyday price of an item becomes a value indicator. When the price drops, shoppers view it as being better value, explained Winder.

害羞草研究所淲hen you see something go on sale, it sparks something inside you,害羞草研究所 he said.

害羞草研究所淵ou have to be careful because there害羞草研究所檚 a lot of marketing out there that hammers at us every day on social media and TV, trying to tell us we害羞草研究所檙e not good people unless we have this product.害羞草研究所

It害羞草研究所檚 more than just a functional exercise. Sales bring tremendous joy and can make people feel better with so-called happy hormones rushing through our body, Winder said.

Retailers rely on sales to draw more customers to the store and provide a revenue boost outside of regular sale seasons such as Black Friday, Boxing Day sales and spring sales, among others.

Sales create a psychological sense of perceived savings, says Ying Zhu, an associate marketing professor at the University of Guelph. Other times, sales with a limit on the number of units a shopper can buy also give the impression it must be a good deal, creating a sense of artificial scarcity, she added.

害羞草研究所(Sales) push people to make decisions before they can thoroughly compare and do the research and make a rational decision,害羞草研究所 Zhu said. 害羞草研究所淭hey are just being pushed by the sense of urgency.害羞草研究所

Winder said the illusion of sales savings could dissipate quickly if shoppers put their discretionary purchases on credit cards 害羞草研究所 as they害羞草研究所檙e now paying interest on those purchases if the credit card bill isn害羞草研究所檛 paid off in full at the end of the month.

害羞草研究所淵ou害羞草研究所檙e going to have a big problem because your disposable income will go to service debt from your previous purchases, and you won害羞草研究所檛 have enough for your essential items like food and rent and gasoline,害羞草研究所 he said.

Brooks realized what was going on about six years ago. She then began her journey to break free from sales cycles and overspending. That journey ultimately led her to leave the engineering field and become a financial educator at her company Two Sides of a Dime.

害羞草研究所淭he root cause of the debt was overspending and a lot of it was consumer items 害羞草研究所 it was not a student loan or anything I could really justify,害羞草研究所 she recalled, as she began paying off $47,000 in debt.

Brooks looked at how much she was spending, where the money was going and if it had any utility.

Then came a budget to establish strict boundaries, even when shopping for personal care, further breaking down it into categories 害羞草研究所 $150 for clothing and $100 for skin care, for example.

Brooks also began carrying cash or prepaid credit cards to avoid using the 害羞草研究所渂ank害羞草研究所檚 money害羞草研究所 and not exceeding her budget.

害羞草研究所淚 would take cash and not my credit cards because if I walk into Sephora, I害羞草研究所檓 going to be tempted 害羞草研究所 there害羞草研究所檚 always going to be something that you want.害羞草研究所

Brooks said she only buys items she knows are useful and not because it害羞草研究所檚 on sale.

害羞草研究所淚t害羞草研究所檚 about getting the use out of it and not just buying it for the sake of getting a discount and then it害羞草研究所檚 going to end up being wasteful,害羞草研究所 she said. For items on sale at Walmart or Costco, looking at the cost per quantity helps too, she added.

Without a budget or discipline, a sales addiction can be dangerous. Winder said it害羞草研究所檚 important to ask yourself if you really need the item on sale right now.

害羞草研究所淎m I going to use this, or is this going to sit in my closet and collect dust?害羞草研究所 Winder asks himself every time he sees an item on sale. 害羞草研究所淏y inserting that pause, that allows me to walk away from 95 per cent of those sale items that I would have potentially purchased.害羞草研究所

Shoppers should also look out for deceptive sales 害羞草研究所 hidden fees, service charges and add-on costs can reduce the amount of money you害羞草研究所檙e actually saving.

Zhu suggested making a list of items you need to buy, researching what they may cost and sticking to the list to avoid being impulsive.

If the item on your list is on sale, that害羞草研究所檚 great, she said, because 害羞草研究所測ou already plan to buy it and it just happened to be on sale.害羞草研究所

But if the item on sale didn害羞草研究所檛 make it onto your list, don害羞草研究所檛 worry, there will be other chances, Zhu said. 害羞草研究所淪ales and discounts will come around.害羞草研究所

There are other ways to indulge in sales that give a sense of savings while still having what you want, Winder said.

害羞草研究所淵ou can borrow products, thrift products,害羞草研究所 he said. 害羞草研究所淪ave the environment and you save your pocketbook.害羞草研究所





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