(TNO) Many businesses build sales programs targeting impulsive and extravagant spenders. This article highlights some basic traps you need to avoid if you want to save and get rich.
 You need to identify and avoid some basic sales traps to save and get rich – Photo: Shutterstock |
A common misconception about wealth accumulation is that you cannot get rich because your income is too low. According to Life Hack, this is more of an effect than a cause. Many people find it difficult to accumulate significant assets because they have invested too much time and money in things of little value.
Those who want to get rich often avoid some prominent sales traps, which many businesses across various industries implement to target impulsive and extravagant spenders. Here are some of these traps and ways to avoid them.
1. Discounts, discounts, promotions
When businesses or distributors organize sales events, many customers think they will get more value for the same amount of money. It is not uncommon for sales teams to raise the prices of products weeks before they offer promotions and discounts, creating a false impression of value.
Even if the item is discounted by more than 50% and becomes extremely attractive to buyers, the discount itself does not offset the multiple times the price had been increased before.
To avoid this trap, as a buyer, you need to take responsibility for your shopping decisions, browse different stores, compare prices, quality, and calculate carefully before making a purchase. A certain discount on a purchased item will never turn into pure savings for you.
2. The allure of “exclusive”
Online price comparison technology has posed a major challenge to retailers, as it puts more information and shopping motivation in the hands of consumers compared to traditional sales methods.
However, it is also online where the word “exclusive” impacts customers. Sellers use this adjective to justify high prices and limit customers from shopping at surrounding stores. By marking products as “exclusive,” retailers make them appear unique and give themselves a better bargaining position, especially with impatient buyers.
Therefore, customers need to be patient. Flexible “gods” can also find other non-“exclusive” products that serve the same purpose.
 Compare prices before making a shopping decision to avoid common sales traps – Photo: Shutterstock |
3. Persuasive sales techniques
Most salespeople are self-made individuals, or in other words, they are persistent and relentless in seeking customers and pursuing their goals. This leads customers to a common shopping trap: making a purchase due to relentless persuasion.
This trap is based on direct communication and psychological durability. These “gods” can easily be persuaded to make a purchase if they feel that a sales representative is genuinely interested in them.
To avoid these traps, customers need to clearly determine their own needs or desires for a product or service and not change them during the conversation with the salesperson.
4. The art of arranging displays
Have you been to a furniture store recently? If so, you will notice how perfectly the main products such as beds and sofas are arranged along with numerous attractive decorative accessories.
Although many stores claim that they do this to help customers imagine how to apply and decorate the products after purchase, the real purpose is to increase the attractiveness of complementary products that are not included in the main product price.
To avoid this trap, these “gods” need to focus on their own consumer needs. Before going shopping, you can make a concise list of the items you need to buy, a fixed budget, and a feasible shopping plan. In addition, when making a decision, you should try to separate the main product from the decorative accessories.
5. The temptation of high short-term returns
On the path to saving and getting rich, you may be attracted by some investment opportunities. Although you are cautious, there may be times when you are tempted by instant needs and high returns in risky opportunities, leading to impulsive investment decisions.
In reality, some quick-profit investment opportunities often target inexperienced investors who do not fully understand the relationship between risk, return, and long-term benefits. To avoid making mistakes, you can thoroughly research the market you want to invest in and make sure that there is indeed a reliable long-term investment opportunity.
Frequently asked questions
One of the most common traps is the ‘buy now, pay later’ scheme, where people are lured into making impulse purchases with easy credit options. This can lead to excessive spending and debt accumulation. Another trap is the ‘fear of missing out’ (FOMO), where people feel pressured to buy something immediately without considering their financial situation. This can result in unnecessary purchases and financial strain. Additionally, falling for ‘get-rich-quick’ schemes, which often involve high-risk investments or scams, can lead to significant financial losses.
It’s important to practice self-control and avoid impulse buying. Create a budget and stick to it, ensuring that you only purchase what you can afford. Understand your needs versus wants and prioritize necessary expenses. If you do use credit, ensure you have a plan to pay it off quickly to avoid accumulating interest.
FOMO creates a sense of urgency and peer pressure to buy things we might not need or even want that badly. To overcome this, it’s crucial to understand your personal financial goals and priorities. Take time to consider purchases and ask yourself if the item aligns with your values and budget. Also, be mindful of marketing tactics that play on FOMO, such as limited-time offers or exclusive deals.
Be wary of opportunities that promise unusually high returns with little to no risk. If it sounds too good to be true, it probably is. Conduct thorough research on the company or individual offering the investment and look for red flags such as a lack of transparency, high-pressure sales tactics, or unsolicited offers. Always seek independent financial advice and diversify your investments to minimize risk.
Start by educating yourself on basic financial concepts and terms. Utilize reputable online resources, books, and financial advisors to build your knowledge. Stay informed about market trends and investment options, and consider taking a course or attending workshops to enhance your financial literacy. The more you understand personal finance, the better equipped you’ll be to make wise decisions and avoid costly mistakes.
