The Psychology of Sales & Discounts – EP 406

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Will it surprise you when you find out that the 10% off deal you got when you purchased your new containers is the actual price? In this episode, Jen and Jill give FREE hot takes on marketing ploys such as how discounts and price sales are made to trick you into buying, costing you more!

If the money ain’t there, it ain’t a deal!

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  • Your favorite things. Whether it’s a beautiful  day with no plans or a butter-fried hotdog followed by a stick of gum, we all have a little list of what brings us joy. And if you’re looking for more things to add to that list, get the Friendletter! We’re sending you emails each week letting you know about freebies and deals, deep dives on how to buy quality over quantity, and budget toolkits.

The Psychology Of Discounts: Why (& When) Consumers Are Drawn To Deals And Coupons

This article by Namogoo shares an in-depth perspective of marketers on deals and discounts from marketers themselves.

What Jen + Jill have to say:

Jen discusses a study tracking sale prices at major retailers, revealing that many sales are misleading or fabricated. Despite this, discounts still influence consumer behavior significantly, with a majority seeking deals before purchasing, and coupons driving unplanned purchases such as buying from brands that they may have never heard of.

Jill emphasizes the psychological impact of discounts, citing the research from Namogoo that shows they evoke positive emotions and increase oxytocin levels. It’s important to discern actual deals from marketing tactics, spend based on personal value rather than feeling clever for finding a discount.

8 Discount Psychology Principles To Drive eCommerce Sales

This article by Namogoo lists down ways marketers use psychology of discounts to sell.

What Jen + Jill have to say:

Jen highlights different marketing tactics involving discounts, such as the Rule of 100 for determining whether percentage or dollar off discounts are more appealing, and the manipulation of scarcity and urgency to drive sales. Be mindful of advertised numbers and not to fall for the charm of the brands solely based on social media presence. Jill adds the importance of understanding perceived value and the psychological power of the word “FREE” in marketing. Critically assess deals, considering factors like necessity, affordability, and alignment with your spending plan.

What is the last "good deal" you passed up?

Jen found great deals on organizing containers at Aldi’s Aisle of Shame. Jill resisted buying yard torches at a yard sale, though it genuinely intrigued her.

Bill of The Week

Thank you Amber for sharing your bill about your son breaking his Xbox controller – not needing to buy batteries every other week!

Thanks so Much for Listening!

Thanks so much for listening. We love love love reading your kind reviews and we especially loved this one from:

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Learning and Laughter

These girls know their stuff and they crack me up. I have been off the frugal bandwagon for a few years now, and they have helped me jump right back in with tips and anecdotes. And the best part is that they don’t make me feel guilty for my financial errors -past or present.

Thanks for listening. If you enjoyed this show, please take a minute to leave a rating and review, it helps potential new listeners know what our show is all about!

And don’t forget to share your favorite quote from the episode by using the hashtag #FrugalFriendsNote. 😉

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