Actualis



May 2011
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Do I really need to buy that?

Ever feel as if you’re spending too much? That’s no surprise:  retail stores are designed specifically for that.

It’s well known that profitability in the retail business is often based on impulse buying:  purchases that the consumer was not planning to make. Sales specialists have a full arsenal of techniques to encourage impulse buying – with the result that a fair number of households can’t quite make ends meet.

Let’s see how it works.

·Store layout
Have you ever wondered why the milk is usually at the back of the store? As you can see from the diagram below, retail operations are designed so that the traffic patterns will lead you past all kinds of less essential items on your way to the milk fridge. And of course batteries and chocolate bars are always at the checkout.

·Product displays
Why is candy displayed near the cash register at a child’s eye level? The answer is obvious.

·Clever incentives
Potato chips are on sale at two for $5.99? That might not be much of a bargain if the price is somewhat higher than the cost of one bag and you don’t really need the second. Similarly, certain products might be displayed prominently on the shelves because the manufacturer has paid the retailer a premium in order to be featured – even though the items aren’t necessarily on special.

·A shopping-friendly atmosphere
Does the store offer you free coffee to enjoy as you shop? How nice. But this also means that you’ll spend more time exposed to the products on offer. Pay attention to the background music and aromas, too. They are often designed to “enrich your shopping experience” – but not your wallet.

Of course there are ways to counteract these unquestionably effective tactics, but it takes discipline.

Make a list and stick to it
No less than 75% of consumers don’t do this.

·Delay your purchase
If you discover a product while browsing, make a note of it and add it to your list… for next time (if you decide you really want it, that is).

·Pay cash
We always have less money in our wallets than we can access with our credit and debit cards.

·Make a budget
…and keep it up to date by regularly entering each new expenditure. Few things will discourage unnecessary purchases as effectively as red ink in the family budget.

In the end, it comes down to simply ensuring that when we buy, we are making our own decisions, not just reacting to the stimulation of our senses by the expert use of tried-and-true techniques!



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