You and Market Research
Big retailers and the companies who make the products they sell do marketing research to determine prices to sell their products.
They are looking for the price point that allows them to make the most profit based on the current cost, without causing potential buyers, like you, to stop and consider the real value of the product to them.
The price point is a concept that you should be aware of becoming a smarter shopper. In fact, you can do your own market research.
Since my goal is to help you build a better mindset for money, you will be able to save a great deal of money over time if you learn to use the concept of price point to your advantage.
Most products are sold by many retailers. The costs at which they base their pricing will vary depending on location and the volume of sales potential. Based on their market research.
Shopping Criteria
Most marketing research reflects the response to advertising. In other words, they are researching what motivates buyers.
What motivates you? I hope it is the potential savings you can realize as you look for the best value for the least cost.
The retailers, of course, are trying to get you so excited about a product that you will look at buying as an urgent matter. That should be a caution light for you!
Retailer pricing errors or fewer customers than expected can create inventory excesses or sales volume disappointments. That is when sales occur, aside from the normal holiday sales.
Good shopping criteria means that you become familiar with the price that a desired product normally sells for. Then, you can recognize the real sale price.
Different Places Different Prices
A quality shopper can find the deals by knowing the market for items they wish to shop for. They know that different places have different prices.
Shopping takes time. And that should be a measure for how much shopping effort will give you the value in savings that you are looking for.
Remember that the stores in buildings must carry inventory, incur shipping costs and labor costs. Their products will most likely cost more than what you can get online, unless they are on sale. However, they are available now, which may factor in your cost with time.
I know that I am not telling you anything new. But I want you to understand what goes on before you decide to shop.
Having shopping criteria will help you add more to your savings account over time, which is my goal for you.
Slow Down—Look and Save
Being patient is hard when you are in the market to buy. When you can motivate yourself to delay a purchase until you find a sale or a place which offers a better deal than expected, you can expect to reap savings of 10% to 50% of the normal price.
At this point, I should ask that you consider your present financial situation. Can you afford to buy without using credit? Will you put money you saved shopping into your savings account?
Slow down. If you look at more, you can save more!
Do Your Best to Find Deals
Experience will teach you to look at items of interest and ask yourself, “Am I willing to buy this at that price?”
Your best strategy is to hesitate. Yes, you may miss out on something that has limited availability. But was that a life-or-death decision or just a disappointment?
I do think you should have some value in mind for the time you spend shopping.
Do you have an immediate need for this item? Is this item replacing an item that still has some usefulness? Does this item qualify as a “want” rather than a “need”?
When you use your time value and the timing needed for your purchase, those decisions will help you to be a better shopper.
A good shopper does their best to find deals!
Think Limits to Qualify a Buy
There are two considerations to qualify a buy. First, there may be more than one product that will satisfy your needs. Second, you may need to shop several places to see those options. Some options may be different from what you expected to see.
For that reason, online shopping has given many more products a market to be seen.
The offset is that there may be too many choices and the decision can be overwhelming, especially since you cannot see the products side by side.
That has helped some stores stay alive during the dramatic growth in online shopping.
Shopping is a process. Think of your limits and the limits of retailers. Then, qualify a buy.
Build Your Financial Potential
For you to build a better mindset for money, you need to build a process for shopping. That will greatly affect your financial potential.
You will find that the impatience of others can cause you to become impatient with yourself. That could cause some poor purchasing decisions. An example that is easy to recognize relates to buying a vehicle. The salesperson is trained to build excitement and urgency in your mind about the vehicle. They will try to convince you that the price is the best deal available and the limited choices available.
Only your own market research and price awareness will give you the courage to walk away and look for the “real deal”.
Saving is a philosophy that values what you keep and qualifies what and when you spend.
The potential of savings and investments to compound earnings over time is a much more satisfying story to tell than the money you wasted on clothes that wear out and vehicles that break down.
Shopping can be fun. There is much satisfaction in finding a deal!
But your shopping goal should be to delay for a deal and realize savings for eventual investment.
Then, you will have made financial potential for yourself because you sought to save on buys!