You may not have noticed … but it has already begun

I have always found the holiday season to be the most challenging time of the year, not only as a consumer but as a former merchant and consultant to that world.

I did love the atmosphere, the busyness, and the sales. I didn’t love the long hours and the time away from family. Increasingly, I found customers less and less “jolly” and more stressed because of the full-court press of constant advertising and the frenzy that cumulative pressure generated.

These realities inspired today’s post; this is a guide to lessening the stress of Holiday Shopping by explaining what retailers are thinking, promoting, and executing. I aim to help you get the greatest value during this time of year.

A sale price doesn’t necessarily mean the price is lower. As a careful shopper, I encourage people to check model numbers and compare prices online before purchasing. Manufacturers have a recommended “manufacturer’s suggested retail price,” which is used to calculate the savings for sale tags; however, merchants may regularly sell the items for less, which makes the savings potentially misleading. Recommendation:  Search the model number online to see market pricing before jumping at what appears to be a 50% off sale price.

Better than black Friday actually can be. Adopted from the States more than twenty-five years ago, Black Friday is perceived as a sale with the lowest prices of the year. To widen the appeal of this day, often retailers will run a “Better than Black Friday” sale before the actual day and often the prices and deals are better. Recommendation:  For big ticket items, ask your salesperson what the price will be during Black Friday and compare it to the “Better than Black Friday price.” Any salesperson who says they don’t know can check, as advertising and pricing are usually done weeks in advance. If they won’t or can’t tell you, ask for a price guarantee, if they won’t give you the honor of that, don’t buy it from that store.

As far as it is disrespectful to veterans, every veteran I ever asked didn’t think it was an issue; they said they fought or served to enshrine freedom, and whether a store had Christmas decorations up or not before Remembrance Day didn’t bother them. Recommendation:  If you don’t like Christmas Decorations up before Remembrance Day, don’t go into those stores; that is your right, just as it is the right of the retailer to decorate their store as they chose to.

Check out the store’s clearance items. Regardless of the time of year, often the best deals are on clearance items. Merchandising and ordering is not an exact science and many store buyers make mistakes or items become discontinued, most merchants want to convert these items to cash to free up space for newer stock, and discount prices to clear the unwanted items. Recommendation:  Shop carefully, still compare prices, and on bigger ticket items, ask for an additional discount or free delivery … they might say yes.

Is financing your purchase a good deal? Many retailers offer delayed or deferred payments. Learn how their plans work. Do they charge a fee for financing? What do they collect at the time of sale? How is the interest calculated? What if you can’t pay for the purchase in full by the due date? Where, how, and who do you make the payments to. Recommendation:  Financing can be a great option; however, if you don’t ask these questions you could end up paying far more for your purchase than you planned for.

Are extended warranties worth it? Maybe. Some extended warranties are simply cash grabs, and some are definitely worth it. Understanding what is covered and what is not as well as understanding where and who does the servicing is important. Recommendation:  I purchase these but only after I completely understand what is covered. Additionally, some merchants will offer to credit you back after the term expires if you haven’t used the warranty and this is good but remember to understand how that process works and know they will likely leave it to you to remember.

Are Door Crashers worth getting up at stupid times? Merchants use door crashers to drive traffic and fill the store to continue to the busy atmosphere that helps drive sales. Recommendation:  The problem with door crashers for some stores is the quantity of door crashers does not come close to the number of people who typically line up. Instead of satisfying customers far more people leave unsatisfied. Recommendation:  Sleep in and look for deals that are not limited by quantity.

Why “Limited Time Offers” aren’t. Boxing Day began on December 26th, then it became Boxing Week, then Pre-Boxing Day, and now ads for Boxing Month are not uncommon. Merchants like to get as much mileage for their sales as possible and “held over” is to be expected. Recommended:  Remember during the holiday season there is almost always a sale so only buy when you are sure.

Similarly, beware of dumb claims. Some of the dumb phrases advertised include, “Don’t pay retail, No Dealers Please, VIP invitations that don’t include your name, and Factory Direct Pricing. These phrases mean nothing, for example, everyone pays a retail price for everything they buy, factory direct pricing is usually higher than what retailers price at, and no dealers imply their competition will buy from them rather than from their own supplier. By far the dumbest are VIP invitations that are blank which are common in advertising print bundles. Recommendation:  Be wary of these merchants and carefully examine their claims and intentions.

Price guarantees. If a salesperson talks about their price guarantee as a reason for you to trust them, ask the following questions:  How does their price guarantee work, what terms and conditions apply, do you get cash back or store credit, what is the burden of proof, and how long does the guarantee last for. Recommendation:  Retail is detail and if their price guarantee is worthwhile they will not hesitate to share the answers to all of those questions … if not, don’t buy from them.

A great salesperson once told me that people make purchases based on 5 motivations. They might buy because they know a merchant has what they want and they trust that merchant (Security); they buy because they know a certain merchant has the products and services they want (Utility); they know that a merchant has a reputation for selling the best products and they want to show off to their friends (Prestige); they want things that make them feel good (Pleasure); and they want to save money (Savings).

During the Holiday season, you are flooded with advertisements focused primarily on “SAVINGS,” my recommendation is to consider what your motivation is, follow the brief steps I have suggested, and be a careful shopper  during the months that are “The Holiday Shopping Season.”

Good Luck,

Paul.

Leave a Reply

Your email address will not be published. Required fields are marked *