June 1, 2014
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?’