17 Ways Companies Trick You Into Spending More Money
Companies use psychological tricks to get people to spend more money. If people know about these tricks, they can make smarter choices and not fall for these common sales tricks.
- Tricia Quitales
- 6 min read
Companies often use clever tricks to get you to change the way you spend your money in today’s consumer-driven world. To make you feel like you need to buy more, companies make you feel like time is running out, hiding fees, and strategically placing products. Knowing how these tricks work can help you shop more carefully and avoid buying things you don’t need.
1. Limited-Time Offers
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Companies often use limited-time offers to make you feel like you need to act quickly. You might feel like you need to buy something right away because you’re afraid you’ll miss a good deal. This strategy works because it plays on people’s fears of regret and their need for immediate satisfaction.
2. “Buy One, Get One Free” Promotions
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You spend more than you need to, even though it looks like you’re getting more for your money. Because of these deals, you might buy things you usually wouldn’t just to get the free stuff. However, the item you want costs money, so the “free” offer does cost money.
3. Price Anchoring
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Putting a pricey item next to the one you want to sell makes the second one look like a better deal. People often pick the option in the middle because they think it’s the best deal. The price anchoring trick makes you want to buy something more expensive than planned.
4. The Power of “Free”
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Businesses know that the word “free” can entice people to do things. It can make you feel like you’re getting something extra, such as free shipping or a gift. Ultimately, the company compensates for the “free” item by making the product you were interested in cost more.
5. Hidden Fees
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Many businesses say they have low prices, but when you check out, they add extra fees. Some of these hidden costs are taxes, handling fees, and shipping. Companies trick you into thinking you’re getting a deal when you’re not by not showing you the full price right away.
6. Subscription Traps
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Signing up for a free trial might not seem dangerous, but it often leads to subscriptions you don’t want. Many companies make it hard to cancel, and you end up paying for something you didn’t want by accident. When these things happen automatically, they can cost you more in the long run.
7. Scarcity Tactics
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Sometimes, businesses say that an item is limited to make you feel like you need to act quickly. This gives you a false sense of need that makes you feel like you need to buy something right away. It uses the fear that you might miss out on something valuable to get you to buy something.
8. Bundling Products
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Companies often sell multiple items at what seems like a discount so that you don’t have to buy just one. It’s possible to buy extra things you don’t need just because they come with the package. Even if you buy more than planned, this trick makes you feel like you’re saving money.
9. “Retail Therapy” and Impulse Buys
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Store layouts and displays are planned to make people buy things without thinking about it. Things are often put near the register or at eye level to get your attention. Even though these purchases don’t seem like much at first, they can add up and cause you to spend more than you planned.
10. Free Shipping Minimums
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Many businesses will try to get you to buy more things, so they can offer free shipping. The shipping cost might not seem like a big deal initially, but the “free shipping” offer makes you spend more than you need to. It makes you think that in the long run, spending a little more will save you money.
11. Membership Fees
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Some businesses let people become members only and promise discounts or other benefits. Conversely, A membership fee may be more than the savings you get. People often spend more to get what they want when they think they will have “exclusive” access.
12. Price Reductions in Larger Quantities
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It sounds like a good deal to buy in bulk and save money per unit, but most of the time, you end up with more than you need. Companies do this to get people to buy bigger items, which leads to more overall spending. It might look like a good deal because there is more of it, but you might waste what you don’t use.
13. Using Colors to Trigger Spending
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The colors used in ads and stores are chosen carefully to influence your buying choice. Red and yellow, for instance, can make you feel tense and rushed, while blue can help you trust and relax. Businesses use these psychological triggers to get you to buy more without realizing it.
14. Free Gift with Purchase
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Like “buy one, get one free,” free items often make you buy more than you meant to. This can happen even if the gift is worth less than what you’re buying. You still spend more. This method makes you think you’re getting something extra, even if it’s not a big deal.
15. Showing “Original Prices”
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Putting the original price next to a sale price can make the deal look like a huge bargain. You might be compelled to buy because you think you’ll save a lot of money. The original price is often higher than it really is, so the discount isn’t as big as it seems.
16. Flash Sales
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Flash sales happen for a short time and force you to act quickly. Don’t miss out on these sales because they often don’t give you time to compare prices or decide if you really need the item. Because of the time crunch, people often make hasty choices that cost more than they should.
17. Loyalty Programs
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Loyalty programs offer rewards or points for purchases but often encourage overspending to reach a “reward” threshold. You might need to buy more to earn more points, even if the reward doesn’t justify the extra spending. These programs can lead you to make unnecessary purchases to “earn” discounts.