Key Points:
- Corporations use persuasive advertising to stir up emotion that encourages you to spend more
- Common sales tactics are used each year, and each year, many people fall for them
- An expert reveals these tactics and also provides tips on how you can protect yourself
The holiday season is a time of joy and celebration, but for many people, it can also be a time of financial stress and strain. With the pressure to buy gifts, decorate, and entertain, holiday spending can quickly spiral out of control. Even with the best intentions, it’s easy to get caught up in the festive spirit and spend more than planned.
During this busy shopping season, retailers employ various marketing strategies to encourage spending. While many sales and promotions offer genuine value, it’s important to recognize which deals align with your budget and needs.
Understanding how marketing works can help you make more informed decisions while still creating wonderful memories with your loved ones. Jason Higgs, Senior Deals Strategist at Proxy Coupons, says, “Being aware of how products are promoted during the holiday season can help consumers make better decisions to enjoy the festivities while keeping their spending in check.”
Here are some common marketing strategies to be aware of, followed by practical tips to help you save money while still having a memorable holiday season.
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Limited Time Offers
Retailers will advertise limited-time offers during the holiday season to encourage consumers to make quick purchases. These deals may seem like great bargains, but they can also lead to overspending and impulse buying.
“Be aware of language such as ‘Don’t hesitate…’ and ‘Act now before it’s too late’ as these are meant to create urgency in the buyer’s mind that doesn’t exist,” says Jason.
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Psychological Tricks
Marketers often use sophisticated pricing strategies to influence purchasing decisions. This could include using phrases like “up to 80% off,” which doesn’t necessarily mean that every item is that heavily discounted. Pricing an item at $9.99 instead of $10 can make consumers perceive it as a better deal, even though the difference is just one cent.
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Over-Reliance on Buy-Now-Pay-Later Plans
With the rise of “buy now, pay later” plans, it can be tempting to make purchases without considering the long-term financial implications. These plans often come with high interest rates and fees, which can add up quickly if you’re not careful.
“This is how many customers get into debt that they cannot afford, which catches up to them long after the holidays are over,” warns Jason.
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Peer Pressure
During the holiday season, friends and family may pressure you to buy gifts and participate in expensive activities that are outside your financial capabilities.
Jason suggests, “Set a budget and prioritize your own financial well-being rather than giving in to peer pressure and overspending. It may seem ‘cheap’ at the time, but your bills will be more manageable come next month.”
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Emotional Advertising
Seasonal Marketing Holiday advertising often tries to connect with our emotions and memories. This can make it difficult to resist purchasing sentimental or luxury items, even if they’re outside your budget.
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“Holiday Sales” That Aren’t Really Sales
Retailers may use the holiday season as an excuse to mark up prices and then offer a “sale” discount, making it seem like you’re getting a deal when, in reality, you’re paying the regular or even a higher price.
“This method has been used for years, yet we see consumers still falling for it. Keep an eye on the history of prices for big-ticket items so you can spot a deal if one arises,” says Jason.
To avoid these money traps, follow the tips below. If used properly, they will save you money and allow you to enjoy your holiday season guilt-free.
Expert Tips to Avoid Falling into Holiday Sales Money Traps
- Do your research before making purchases—Compare prices and read reviews from multiple sources to ensure you get the best deal.
- Take advantage of price matching policies—Many retailers will match a competitor’s price, so don’t hesitate to ask.
- Stick to your budget—Retailers often use sales tactics to get consumers to overspend or buy more than they originally intended. Write out what you want to spend and make a plan before setting foot in any store.
- Don’t be afraid to negotiate—Especially for big-ticket items, it’s always worth asking for a better price or additional discounts.
- Check return policies and warranties—Some retailers may offer extended warranties or return policies during the holiday season, but make sure to read the fine print for items you think may not hit the mark with the recipient.
- Trust your instincts—If a deal seems too good to be true, it probably is. Don’t let sales tactics push you into making a purchase you’re uncomfortable with.
Jason Higgs, Senior Deals Strategist, Proxy Coupons, Comments:
“Small, intentional changes in spending habits during this time of year can significantly improve one’s financial health. This may sound easier said than done, but like most things in life, you must do your due diligence ahead of time to reap the benefits later on.
“Always remember that the holiday season is not about material possessions. It’s about spending time with loved ones and creating cherished memories. Instead of focusing on purchases, prioritize experiences and quality time with family and friends. This should improve your financial health and bring more joy and meaning to the holiday season.”