Five Sneaky Retail Tactics

Marketers are experts at playing mind games. This is something we like to gloss over because it is why we have such a bad reputation. Communication expertise combined with insight into why consumers make purchases, lead marketers to be able to successfully implement retail tactics. A great marketer could convince you to sell your left hand then buy it back for double the price!

Knowing marketers retail tactics can help you become a more conscientious consumer. Or as a samll business, it could give you some ideas! Online brands explained the tactics below:

1.The Instant Markdown

In essence, this occurs when retailers claim a hefty markdown from the retail or original price. Consumers would rush to purchase a good claiming to be 60% without considering whether they really are making a 60% saving. It is possible the retailers stepped up the price beforehand to make the illusion of a great saving.

Solution: The best way to ensure you don’t fall for this is to price spy. Although it is not possible to keep mental tabs on every good in stock, it is possible to have a general idea of basic goods prices.

2. Decoy Pricing

If you upsized a meal, or purchased a large drink just because it only cost $1 more, it is likely you have fallen prey to decoy pricing. As claimed by Redditor Chrisfrat, “If there is a small and a large size and the small is $2 and the large is $8, most people will buy the small. However, if you add a medium at $7, most people will buy the large because they say, “Oh, It’s only a dollar more than the medium.”

Solution: An economics rule of thumb claims that rational consumers only purchase goods until they are satisfied- ask yourself whether you truly want an upsized meal or whether you just want the satisfaction of a decoy saving.

3. The One Overpriced Option

By having one or two items on the menu expensive, all other items will appear affordable in comparison. Consumers will believe that just by purchasing any item except the overpriced one, they will be making a saving.

Solution: For overpriced options often the best solution is simply being aware of it.

To read the other tactics, check out the article on Online Brands here: http://onlinebrands.co.nz/174/five-sneaky-retail-tactics/