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The biggest shopping season of the year is upon us. And no matter how well you shop or how much you like shopping, you, like the rest of us, are more likely than not to start the New Year with a couple holiday shopping regrets. There are just too many options and too many price promotions in today’s hyper-competitive retail environment, so everyone will be shopping with at least a touch of “bargain brain.” That means that whether it’s the wrong gift or the wrong price, it’ll be harder than ever to get it right this season.
One solution is resignation. Approach the holiday shopping season knowing that at least once you’ll miss the lowest price or see something later that would have made a better gift. Frankly, that’s not a bad strategy — it preserves time and saves energy that might be better used socializing.
However, if you’re a perfectionist, optimist or just have extra shopping fortitude, here are a few things you should know to lessen the likelihood of making the the most common bargain-brained errors of this particular holiday shopping season.
Most of the shoppers I interviewed this year said that with few exceptions, if it wasn’t on sale, they weren’t buying it. Retailers have gotten the message. To compensate, the “regular” price of many products has been inflated to leave room for discounting. Therefore, as you’ve likely already seen, it’s a deal-a-minute holiday out there this year. Promotional sales are ubiquitous and with our smartphones always at hand, communication will feel more relentless that ever. News of “unmissable” “unbelievable” “never before” sales will be coming at you from all directions: advertising, catalogs, emails, texts, through your social media feeds and all other sources of digital communication.
Therefore, clarity about the pitfalls of bargains will be crucial. Sales cause FOMO (fear of missing out) fever and feel like exciting opportunities to get more for less. Fear and excitement muddle thinking. Add in the emotional pressure and competitive fuel of crowds and it’s understandable how so many end up making regrettable purchasing decisions this time of year. Information about how this season’s holiday sales work can help you keep your cool.
Early in the season most sales will be “promotional” — that is, planned long in advance of the holidays to lure early shoppers and generate excitement. Until we’re days away from Christmas you’re unlikely to see deep clearance prices. Through Black Friday, discounts will be between 20-40% and on Black Friday the average discounts will be in the 40-55% range except for a few loss-leaders, otherwise known as door-busters. Keep in mind that even Black Friday discounts are planned price reductions — in other words, the retailer was always prepared to sell the item at that price or even purchased the item (sometimes a cheaper version of a more elite product) as a lure for Black Friday shoppers.
The only time you need to get all FOMOish is for limited supply “door buster” offerings or if retailers start to panic that their competitors will blink first and they’ll get caught holding the bag (full of merchandise that they’ll eventually have to dump at clearance prices, and often without profit). That’s far less likely to happen this year than in previous years as retailers have adjusted to the economy and increased shopper sophistication.
Even in the face of a jaw-dropping bargain, stay focused on how much you really want the item rather than on discount. During frenzied moments people can easily lose focus on what they’re buying and end up with gifts in search of a recipient rather than a thoughtfully chosen gift for someone on your list. Jenny, a busy working mother, for example, has a “gift drawer” stuffed with cashmere scarfs. “I got them online during a flash sale a couple of years ago and I’m still working though that stash. It’s almost embarrassing because I honestly can’t remember who I’ve given one to in previous years.”
Also keep in mind that when we’re emotionally charged while shopping we’re also more prone to impulse purchases. Whether online or in store, tempting add-on items (especially those stocking stuffers and knick knacks that can hammer your holiday budget) will be especially prevalent this year. The solution is to breathe deeply and take an extra moment to consider what you’re really buying. Know that once you’ve decided to open your wallet, purse or smartphone app to pay — you’re more vulnerable.
Another problem with the swift and steady stream of promotions we’ll be wading through this year is managing the complexity of offerings. Neil, an engineer by profession who is used to tackling complexity, says even he’s confused. “I have a coupon for $50 off if I spend $200 so that’s a 25% discount but what if I find something for $150 for my wife? Then I’d probably end up spending more to get the discount which blows the discount. Or I can wait for Black Friday but maybe what I want won’t be included in the sale.” Stay calm, use your phone’s calculator and don’t spend in order to save.
In my research I’ve found that consumers that are heavily bargain-focused actually spend more total money shopping than others. Why? They spend more time shopping, which means they see and therefore often want and buy more merchandise. Also, because their focus is on how much their saving, they more easily lose track of what they’re spending. And most deadly of all, bargain shoppers often mentally considered the money they’ve “saved” as “earned” money and that means it gets spent pretty easily. Consider what Angie said in a recent interview, “I got these pants I needed on sale, so I treated myself to the matching top. It was full price, but that’s okay because I saved all that money getting the pants on sale.” Get the irony? In no universe is spending money actually saving money. But it can feel like that.
There’s one more potential pitfall to bargains. They often come with strings attached. The most problematic being a no-return policy, short return windows or returns that only qualify for a merchandise credit. Take it from Carly, an avid online shopper: Unless you’ve seen and considered the product before, losing the ability to return merchandise can be costly. “I spent half my Christmas budget on clearance blow-out merchandise at Vente-Privee and while a few of the items were perfect and I got them for a steal, at least half were ungiftable and totally wrong. I’m stuck with them, so it’s not really a bargain in the end.” Keep in mind that bargain pricing also sometimes negates other promotional offerings, such as free shipping.
If you find yourself succumbing to “bargain brain,” remember that the antidote is always the same: mental calmness, laser focus on the value and cost of a product rather than simply the reduced price of a tempting sale “opportunity,” and staying loyal to your gift list and budget.
Photo credit: Martin Abegglen/Wikimedia Commons
