Recently, while walking through my local store, a shiny new blender that dropped from $99 to $59 caught my eye. On the surface, it looked like a great deal!
But one question stopped me. Because the shop told me? How much is a blender really worth? ”
That’s a question that doesn’t often occur to our minds. But you probably should.
Let’s face it. Most of us don’t know the real cost of building a blender, shipping it to the shelf, and staffing a store. Or forget the blender. I don’t know the actual cost. Any Items we buy include pants, wallets, car sunshades, or new sets of golf clubs.
We take retailers at their word.
They say the blender is worth $99, but you can get it today for $2. that’s all $59! Alternatively, this wallet normally costs $250, but it’s out of stock so you can buy it for $109. Or, for two days only, you can gobble up the normally $49.99 Fire TV Stick 4K for just $22.99.
There are even stores that specialize in selling products marked with prices well below the ‘actual retail price’.
basic economic principles such as supply and demand It certainly plays a role in free market pricing. But it doesn’t stop there. In fact, it’s just the tip of the iceberg.
Beneath the surface A whole web of clever retail tactics and pricing tricks Designed to give us our hard earned money.
For example, consider a bait price where a company offers at least three products: a high-priced product, a low-priced product, and a product in between. A mid-range product should be considered a “compromise” choice. Customers find it neither too expensive nor too low quality, making it the most attractive option.
Then there is the tactic of anchoring, where the initial price is set high and then “marked down” to create the illusion of value. And don’t forget the attractive pricing. Sell something for $59.99 instead of $60.
prestige price This is another neat retailer trick. Higher prices are used here to convey quality, luxury, or exclusivity. The $300 designer shirt you’re eyeing isn’t just about meeting your clothing needs, it’s about expressing your style, status, and personal brand. In some cases, they are simply priced higher to convince you that they are of higher quality.
But do these retail prices accurately reflect the intrinsic value and cost of production of the goods?
Most likely not. These prices are carefully crafted psychological tricks designed to capitalize on our desire for value, status and bargains to encourage consumption.
So before you’re tempted by “50% off” tags, clearance racks, or coupons that give you $10 off when you spend $50, take a moment to pause.
Ask yourself if this is really necessary. Will it add long-term value to your life, or is a bright red “sale” sign a hot topic? Is your purchase motivated by a genuine need for the item, or a convenience reaction to a retailer’s cunning pricing?
Remember, even if you didn’t need the item before it went on sale, just because it’s in the clearance rack doesn’t mean you suddenly need it today. Don’t let sales tell you what you need.
Last week, Amazon celebrated itself by announcing its most profitable and most successful Amazon Prime Day ever. The two-day event saw consumers spend a staggering $12.7 billion on the web.—A significant increase of 6.1% compared to a year ago.
Did we really need another $12.7 billion in home products? Or was most of the spending driven by perceptions of bargains and the illusion of savings rather than actual need and desire for the products we purchased?
If we want to regain control of our resources and lives, it’s time to stop relying on price tags and clever retail strategies to make purchasing decisions.
A product’s true value should not be determined by arbitrary numbers printed on tags or websites. It should be determined by the value it brings to our lives.
And as consumers, it’s time to be more skeptical of pricing, especially attractive markdowns.
So next time you find it discounted on retail shelves or online clearance sales, take a moment to pause. Look beyond the flashing red sign, beyond ‘Limited Time Sale’. Ask yourself, “How much is that blender really worth?”
See the game as it is and take back control of your consumption.