sales tactics

8 Secrets to a Debt-Free Holiday Season

Kentin Waits — Mon, 13 Nov 2017 09:00:07 +0000

Remember when the holidays were all about simple pleasures like spending time with family and exchanging modest gifts? Neither do I. Holidays have taken on a life of their own, turning otherwise reasonable folks into consumer zombies and blowing up the budgets of too many Americans. This year, let's celebrate simplicity and financial solvency. Here are the secrets to a debt-free holiday season.

1. Push back against "holiday sprawl"

Ever feel like the holidays come earlier, last longer, and require more gifts, more elaborate decorations, more money, and more travel? Let's call this endless expansion what it is — holiday sprawl. Fight back by embracing the idea of enough. Suggest (and stick to) reasonable spending limits and keep ballooning expectations in check. Your budget will thank you. (See also: 9 Things You Can Do Right Now for a Frugal Holiday Season)

2. Shop early and shop around

Bright lights, big crowds, sales of the century — it's enough to make even the most levelheaded shopper lose control. Skip all the holiday madness by shopping early (I start in September and try to finish by Thanksgiving). You'll have more time to compare prices, shop for sales, and space out purchases so you won't have to rely on credit. (See also: 6 Reasons January Is the Right Time to Start Planning for Christmas)

3. Slow down

Holidays can be frantic. In the rush of activity, we often make bad decisions about what to buy and how much to spend. Slow. Things. Down. Break up your shopping excursions into several smaller trips and avoid shopping on days when you have a thousand other things to do. When shopping online, load your virtual cart, but don't commit to buy until you've thought about your choices overnight.

4. Avoid gimmicks

The holiday season can make or break retailers. To help us stretch our spending muscles, almost every store features blowout sales or deals that require the purchase of multiples (10 for $10). My advice? Be skeptical. That "biggest sale of the year" probably isn't. And what are you going to do with 10 bacon-scented candles, anyway?

5. Pay cash

Do you tend to spend more when you use credit? You're not alone. Paying by credit card — or worse yet, smartphone — blunts the conscious connection between spending more money and having less money. Make this holiday a cash-only affair. It'll keep your accounts in the black and make your first credit card bill of the new year a lot less frightening.

6. Make your gifts

Exchanging handmade gifts can be wonderful, even among adults. Buck the retail trend altogether and focus on your talents. Are you an expert baker? A gifted artist? An inspired brewmaster? Explore Pinterest for inexpensive homemade holiday gift ideas, then tap into your creative spirit. (See also: 10 Gift Ideas That Cost Almost Nothing)

7. Skip the greeting cards

I didn't get the memo: When did everyone decide that $14.99 is an acceptable price for a box of holiday cards? This year, save a few bucks by ditching the costly cards and postage. Instead, send a group email or catch up with a leisurely phone call.

8. Share experiences

If money's tight, swap traditional gifts for the gift of time together. Organize a holiday potluck, host a movie night with friends, or coordinate a charity event where everyone contributes a few hours of their time as a group. After all, what could be better than good food, good friends, and goodwill?

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This article is from Kentin Waits of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Home Listing Gimmicks to Watch Out For

Mikey Rox — Tue, 04 Apr 2017 08:30:20 +0000

Searching for a new home? It's an exciting process, but you need to keep your wits about you to see through the smoke and mirrors. I caught up with a few real estate agents recently who revealed some of the tricky tactics some agents use to reel you in hook, line, and sinker.

1. They set the asking price too low or too high

When a home is listed for a price that is unusually high or low for the area, it's usually to manipulate potential buyers. The listing agent is telling the seller to "draw in buyers to initiate a bidding war" with an enticingly low asking, or to capitalize on a hot market by shooting for the stars.

I currently have one of my homes on the market. It's priced above market value because my listing agent told me that the market is saturated with all-cash buyers who'd snap my place right up. A month later, zero offers. As such, the price reduction will now be rather significant to compete with the comps in my area.

Don't be manipulated by a deceptive asking price. Know your market and bid accordingly.

2. They intentionally misrepresent the property in photos

All the homes I own were first on my list to look at because the listings had clear, thorough photography. But real estate photos can be tricky. I've found listings online that featured no photos — huge red flag! — and some that have even used stock photos to show a similar unit or property, but not the one that's actually being sold. That's just the tip of this iceberg.

Mortgage broker Giustin Valnova of Just 4 Mortgages says, "Another major red flag to look out for is listings that have photos that don't tell the full story. If there's a major problem area of a certain room, the seller may try to cover that up by taking strategic photos that purposely ignore parts of the room. If photos are very zoomed in on a certain area, or are taken in a way that excludes part of a room, you should start asking why."

A good way to see if this tactic is being implemented is to look at the floor plan, if the listing includes one. You can often use that to figure out if any part of the house has been excluded, or if — for example — the kitchen photo has been taken from the center of the room and only focuses on one area. Also, anything heavily filtered, out of focus, or badly lit may be intentionally done to hide or misrepresent what it really looks like.

3. They use deceptively positive keywords

Perhaps you've found a home described as "quaint," "intimate," or "cozy." Maybe it excitedly proclaims to have an "efficient" kitchen or laundry room. While these all sound like pretty appealing qualities (who doesn't like cozy?), more often than not, these are just crafty codewords for "small." And this isn't the only cleverly-worded trick up real estate agents' sleeves.

A house with "charm" and "character" may in fact have plenty of both, but prepare yourself; it's also probably really old. The same goes for "vintage." A listing that describes a bathroom or kitchen as having plenty of "vintage charm" might just mean that room hasn't been touched since the 1950s. If a home is "secluded" or "off the beaten path," you may enjoy some peace and quiet living there — while also having to make day trips to the closest grocery store. "Custom" and "one-of-a-kind" are other words to be wary of. They may sound fancy, but a home that was "customized" to the previous owner's tastes probably has some eccentricities you simply won't like.

To be fair, no house is going to be perfect. And no real estate agent is going to list off a home's less pleasant features when they're trying to make a sale. It's up to you as a buyer to read between the lines of a listing.

4. They stretch the truth with bold claims

Listing agents will do just about anything to draw a buyer in, even if that means sometimes bending the truth. While most agents won't straight-up lie to you about a property, there are manipulative ways to make the listing seem more attractive than it really is by massaging the facts.

For instance, "Some agents will market their listing results as 'sold for over asking price,' when the asking price was artificially low," says Paul Lisanti, a Keller Williams Edge Realty agent. "Many consumers assume that the asking/listing price was at/around market value when in fact it was considerably lower. This strategy can work for sellers and it can also backfire. If a property is worth $300K and listed at $250K, when it sells for $285K, who is the real winner?"

5. They put artificial pressure to bid

The listing agent might tell you that they've already got bids flooding in, and the sellers are eager to make a decision in days, when it's simply not true. They are looking to close the deal even if it means that the sellers lose out on the best offer. They might also pressure the sellers to make a decision before giving it a real chance to be available on the market. This might be because they want to sell to their own client, giving themselves both the seller and buyer agent fee, or they just want their fee sooner rather than later. While you won't know for sure whether they're telling the truth, you shouldn't let an agent pressure you into making such a big decision without thinking things through.

This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Sneaky Ways You're Being Upsold

Paul Michael — Fri, 28 Oct 2016 10:00:10 +0000

Upselling is defined as "a sales technique whereby a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale." And it can be used in almost every industry where money changes hands for goods and services. Most of us can spot a big upsell — like the heavy-handed extras car dealerships will try and push on you in the financing room. But there are more subtle upsells being used on you; some you may not even realize are upsells at all. Here's how to spot them, and sidestep them. (See also: This Creative Shopping Strategy Could Save You Tons)

1. "Did You Save Room for Dessert?"

It seems like an innocent enough question, although if you really think about it, it's kind of insulting. "Hey… did you completely pig out, or are you planning to do that with a slice of cake?" However, this question is the classic restaurant upsell, pushing you to add an additional series of charges onto the bill that you were not planning on. Some restaurants will go one step further, and actually bring around a dessert trolley, or a cheese board. Then it gets even harder to say no. But it's an easy enough one to turn down. Know that your server is not interested in seeing you enjoy a delicious piece of triple-chocolate fudge-mallow brownie. He or she simply wants a bigger tip, and the more you spend, the more they get. Even if you could eat another main course, simply say you're too full… unless, of course, that sweet treat is calling your name.

2. "This Shirt Comes With Your Choice of Tie..."

At first, it almost sounds like a freebie. You look at the ties (or replace ties with anything else that could complement your fashion purchase) and select one. You're invested in it. Only then are you told that if you'd rather not have the tie, the shirt will be $20 less. In other words, you're paying for the tie. But, you've already invested in the tie emotionally, and may even feel embarrassed to give back the tie and pay less for the shirt. This is a common technique used by salespeople in many industries. They will offer you an item that naturally complements something you are going to buy, using language that suggests it's all part of the price. It's certainly a little deceptive, but not illegal as they will always state that you can pay less for the original item by not choosing the add-on. Sneaky.

3. "Would You Like Fries With That?"

Or batteries. Or a matching waistcoat. Or insurance. Whatever the industry, asking you straight up if you'd like an additional item, be it with your food, clothing, gadget, automobile, or even new home, is a classic upsell. It's become synonymous with the fast food industry, which more than any other has perfected the art of the subtle upsell. Simply asking if you want fries with a burger is a no-brainer, but not all places include them for free (looking at you, Five Guys). The most common reaction is "sure," and bingo, you've just added an extra cost to the bill.

4. "These Items Are Frequently Bought Together…"

If you want a prime example of this subtle upsell, look no further than Amazon. When you pop an item in your cart, let's say it's a set of kitchen knives, you will see a "Frequently Bought Together" box that could contain a knife sharpener and cutting board. You will also see a combined price for all three. Now, some people think that buying all three will apply a discount for the bundle, but that's not usually the case. Amazon is simply upselling you a package that contains three related items. You could buy all three separately and spend the same, or buy just one extra item without losing out on any kind of discount. It's quite clever when you think about it.

5. "For Only $50 More, You Can Get…"

Faster processing speed. Bigger rims. An extra handset. The salesperson or, more commonly these days, website, will prompt you to get some upgrades to your purchase for a small fee. Apple and other computer manufacturers do this masterfully. You select your model, perhaps a 27-inch iMac, and then get asked a series of questions about upgrades. Would you like it to run even faster? Would you like to give it more storage space, or a more powerful graphics card? You click through the upgrades list, and by the time you've finished, your $1,500 computer now costs over $2,000. Of course, they could always offer you the best model available from the very beginning, and ask you to reduce the price by downgrading it, but that leaves a nasty taste in your mouth. No one likes de-pimping their shiny new gadget, and the starting price would be prohibitively high, resulting in fewer sales.

6. "…And Did You Want the 16 ounce?"

When you're in any kind of place that serves food and drink, this classic, but subtle technique is a way to upsell you without even getting you to think about it. Say, for instance, the menu lists three different sizes of steak – 8 ounce, 12 ounce, and 16 ounce. The server can easily get you to choose the most expensive of the three options simply by not acknowledging the other two. If he or she asks "and which size of steak would you like?" you will look at the menu and probably choose based on your hunger level, and the price. But by turning the question into one that's more presumptive, they are much more likely to get a "yeah, sure" response.

7. "You Get a Lot More for Just a Little Extra Money."

This is a quality upsell, and it is used everywhere — from restaurants and electronics stores, to car dealerships and vacation sites. The basic premise is this; you've already committed to spending a big chunk of money, so why not spend a tiny bit more to get something way better. Maybe it's going from a $300 mountain bike, to a $400 mountain bike. But it has extra gears, a leather seat, and will last forever! When this happens, chances are the salesperson is on commission and wants a bigger check. Now, that's not to say you aren't getting value for your money. Quite often, when you pay a little more for a better quality brand, you are doing well. But, don't be fooled, as this is always about making money for the store.

8. "Would You Like a Smaller Cocktail?"

Most of you are probably thinking, That doesn't sound much like an upsell to me. But, it is, when used correctly. When this little tactic is invoked, the customer in question has already indicated that a regular drink, or dessert, is too much… either in volume, or price. They'd rather just settle the bill.

But servers don't want you settling the bill if there is a chance you could spend more. So, they will entice you with a smaller item, which is still much better for them and the establishment than you ordering nothing at all. Every item has a profit margin. They may even make the smaller item sound like a much better deal. For example "this smaller cocktail packs a real punch, and it's half the price." This doesn't just apply to restaurants though. Whenever any salesperson sees you opting for the "I'll have nothing" answer, they will immediately bring in smaller, cheaper options. This technique is actually known as "downselling" but it's still technically an upsell.

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Sneaky Store Perks That Make You Overspend

Kyle James — Thu, 28 Apr 2016 09:01:03 +0000

Retailers are notorious for finding clever ways to separate you from your hard-earned money. Many of these tactics, at first glance, seem completely harmless. After all, who doesn't like free shipping, or an awesome return policy? But it's not until we dig a little deeper into the motivation as to why these "perks" are offered, that we see the real reasoning. Here are a few of these so-called "perks" and how we can avoid the retail traps.

Liberal Return Policies

Have you ever been in a store, trying to decide on a purchase, and told yourself you'll go ahead and buy it and just return it later if you don't use it? If you have, you're in the same boat as 91% of Americans who factor in the store's return policy when making a purchase. But what you probably don't know is that the store is banking on you making this decision and often has a liberal return policy in place to help sway your buying decision.

The fact of the matter is stores use their return policies as a way to pad their bottom-line because they know a percentage of shoppers won't ever bother to return the item. Instead, they'll keep it lying around, with a bunch of other stuff they don't need. The evidence even shows that the longer return window a store gives, the less likely we are to return the item. We tend to get attached to it, forget we even have it, or use good ol' procrastination to tell ourselves we have plenty of time to return it.

So the next time you're standing in the aisle ciphering over a significant purchase, don't let the store's return policy trick you into making the purchase. Instead, make the decision based solely on need and a competitive price. If you use a liberal return policy as the deciding factor, be aware that you're playing right into the retailer's hand.

The Psychology of Free Shipping

Online retailers know that free shipping is a big deal for shoppers. As a matter of fact, 96% of online shoppers are more likely to shop on a website that offers free delivery. But don't let free shipping blind you to other important factors you should consider. Namely the price of the item, how costly it might be to return the item, and the reputation of the website. In other words, don't let the attractiveness of free shipping keep you from doing a quick price comparison with an app like ShopSavvy. After all, free shipping isn't that big of a deal if a competing retailer has a better price, even when factoring in shipping costs.

Attractive Rebate Offers

When I worked in the paint department at The Home Depot, we periodically had a "rebate weekend" where you got $5 back on a gallon of paint and $20 back on five gallons. But the rebate wasn't instant — it required you to mail in your receipt and wait for the rebate check to show up in the mail a few weeks later. You wouldn't believe the number of repeat customers I'd talk to that would buy paint with every intention of mailing-in the rebate, but would fail to do so.

The fact of the matter is that rebates are still in the "snail mail" stone age. This is for a reason — retailers want to make them as hard as possible to redeem so shoppers will put them in the desk drawer and forget about them. And guess what? It works. Redemption rates hover in the 40%–50% range depending on the size of the rebate.

The takeaway here is to always mail in the rebate as quickly as possible. The longer you wait, the more likely you are to not take the time to get your money. I strongly recommend keeping the rebate in your bill pile and fill it out the next time you sit down to pay your monthly bills.

"Cheap" Add-On Items

Just the other day, I was purchasing a workout program online and was happy to see it would only cost me $39.99 for several DVDs and a meal planning guide. Then when I was checking out, the site kept promoting these add-on products before they would let me get to the actual checkout page. Having only paid $40 for the program, I found myself intrigued and ended up spending another $30 for a bonus DVD, water bottle, and a couple cool trinkets.

After I finished my purchase and was reviewing my order, I realized that I had played right into their hands. They offered a product for less than what I expected to pay, then persuaded me into buying some relatively expensive add-on items that do nothing but pad the store's bottom-line. You see this technique done all the time with infomercials and most recently with Amazon, which forces Prime customers to bundle purchases that include add-on items. Buyer beware.

How do you avoid spending more when the deal looks too good to pass up?

This article is from Kyle James of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: