Getting a Good Deal (Week 30)

June 1, 2014

Spend more to save.

Spend more to save?  Wait, what?

Like most people, I enjoy getting a ‘good deal.’  And hearing the word sale, is a sure fire way to get me to think that I am getting that elusive ‘good deal.’  But is it really a savings?

The photo are two coupons I had in my handbag. They both advertises a savings, if I spend up to a certain amount.  I often see these type of savings in the stores.  $50 off of $100, this sound like a ‘good deal.’ If I purchased $100 worth of items and only spend $50, that’s a savings of 50%!

spend $50  + extra $50 = $100 spent (- extra $50 from coupon) = $50 total or 50% savings

I would happily fill up my shopping carts to obtain the 50% savings.

Unfortunately these types of deals don’t consider two things:

1. Did I really need the extra items?

2. Did I really like the extra items?

Often the answer to both questions was no.  But I ignored these facts so that I could ‘save money’ and purchase enough items for the discount.  And I often end up with more new pieces than I needed and/or new pieces that I don’t really like.  If I don’t need it, or I don’t like it, I’m not going to use it.  And unused items, are wasted money.

Instead of saving $50, I would have lost money.

If I only wanted $40 worth of merchandise, but I spent an extra $10, so that I could save $50, I have overspent by 25%.

want $40 + extra $10 for ‘good deal’ = $50 spent or 25% overspent

And if the extra $60 worth of merchandise that I added to reach $100, sat unworn and unused, to eventually be purged, I would have lost $60 worth of merchandise.

want $40 + extra $60 for ‘good deal’ = $100 or 60% over

I thought I saved 50% by spending an extra 25%, but in reality I spent an extra 25% and purged 60% of my purchases because they were items I never wanted or used.

Have you ever purchased more items than you wanted because of a ‘good deal?’

 

2 comments

  1. I have in the past but buying more to get a discount is something I’ve learned to reject. The extras I’d buy turned up un-worn in the giveaway bag too often for me to ignore. We had a Costco open in our area recently and I’ve also managed to avoid joining it. I will admit part of my restraint comes from having several friends who’ve offered to take me shopping there. I’ve never taken them up on it, I suspect if I do it will be more to have an excuse to have lunch and an outing with them than to actually buy anything.

    Thrift shops are full of boxes of things that people overbought and died before they used up!

    1. I canceled my Costco membership a few years back. I was buying in bulk because it felt like a discount, and then items would go uneaten, because we would get tired of it before using it all up. I ended up wasting money and not saving money on food. Clothes, food, it doesn’t matter what it is, extra is still extra. Thanks for stopping by!

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