Recently, while walking through a local store, a shiny new blender marked down from $99 to $59 caught my attention. On the surface, it looked like a great deal!
But a question stopped me in my tracks: “Why exactly am I so ready to believe that this blender’s worth is $99? Just because the store told me? How much is a blender really worth?”
It’s a question that doesn’t cross our minds often. But maybe it should.
Let’s face it. Most of us don’t know the actual cost of manufacturing a blender, delivering it to a shelf, or staffing the store. Or forget blenders, we don’t know the actual cost of any item we purchase—be it a pair of pants, a purse, a car sunshade, or a new set of golf clubs.
We just take the retailer’s word for it.
They tell us that the blender is worth $99, but we can have it today for only $59! Or that this purse usually costs $250, but since it’s on clearance, we can own it for $109. Or for two days only, this Fire TV Stick 4K which is usually $49.99 can be gobbled up for just $22.99.
There are even entire stores dedicated to selling products marked WAY down below “Actual Retail Value.”
Basic economic principles like supply and demand have a role to play in free market pricing, certainly. But it doesn’t end there. In fact, that’s only the tip of the iceberg.
Beneath the surface, there’s an entire tangled web of clever retail strategies and pricing tricks designed to part us with our hard-earned money.
Consider decoy pricing, for instance, where a company offers at least three products: a high-priced one, a low-priced one, and one in the middle. The middle-priced product is supposed to be seen as a “compromise” choice. Customers perceive it as not too expensive, but also not of lower quality, making it the most attractive option.
Then there’s the tactic of anchoring, where a high initial price is set, then ‘slashed’ to create an illusion of value. And don’t forget charm pricing—selling something for $59.99 rather than $60.
Prestige pricing is another trick up the retailer’s sleeve. Here, higher prices are used to convey quality, luxury, or exclusivity. The $300 designer shirt you’re eyeing does more than fulfill your need for clothing—it’s a statement about your style, your status, and your personal brand. Sometimes it’s just priced higher to trick your mind into thinking its higher quality.
But do these retail prices accurately reflect an item’s intrinsic value or its manufacturing cost?
Most often, they do not. These prices are carefully crafted psychological tricks designed to drive consumption, exploiting our desire for value, status, and a good deal.
So, before you’re lured in by that “50% off” tag, clearance rack, or coupon offering $10 off if you spend $50, pause and take a moment.
Ask yourself, is this something you genuinely need? Will it add long-term value to your life, or is it the bright red “sale” sign that’s doing the talking? Is your purchase motivated by a genuine need for the item or is it a knee-jerk response to the retailer’s cunning pricing game?
Remember, if you didn’t need an item before it went on sale, you don’t suddenly need it today just because it’s on a clearance rack. Don’t let a sale tell you what you need.
Last week, Amazon congratulated itself posting its single most profitable day ever and most successful Amazon Prime Day. The two-day event saw consumers splurge an astounding $12.7 billion across the web—a whopping 6.1% jump from a year ago.
Did we really need an additional $12.7 billion in products in our homes? Or was most of the spending driven by perceived bargains and the illusion of savings, rather than an actual need or desire for the products purchased?
If we want to take back control of our resources and lives, it’s time we stop letting price tags and clever retail strategies dictate our buying decisions.
The real worth of an item shouldn’t be dictated by numbers arbitrarily printed on a tag or website. It should be determined by the value it brings to our lives.
And it’s time we, as consumers, adopt a more suspicious eye towards pricing, especially those enticing marked-down prices.
So the next time you see a slashed price on a retail shelf or an online clearance sale, pause for a moment. Look beyond the flashing red sign, beyond the “limited-time offer.” Ask yourself, “I wonder how much that blender is actually worth…”
Start to see the game for what it is and take back control of your consumption.
Heidi Mc says
I liked this article. I heard many years ago from a shoe mfg. sales rep that shoes in department stores were marked up j100%.
Jessica says
A lot of people held out buying planned purchases to save money on them for Prime Day. So those dollars may have been spent in the weeks before, but instead, they were postponed to that day. Did you review that data?
What was that $12billion on? It’s also possible that it was on household essentials, not frivolous stuff. If I’m going to finally get that waterpick my dentist says I need in order to stop getting plaque on my teeth, then I might wait till it goes on sale. Likewise if I know I’m low on TP, but I know there’s a sale on it next week, I’ll probably place the order on sale day to save 10% on something I was going to buy anyway.
joshua becker says
Top Five in Order:
1. Temptations Cat Treats
2. Amazon Fire TV Stick (as subtly referenced in the article :)
3. Liquid I.V. Packets
4. Echo Dot
5. Blink Outdoor Camera
Source.
D Homer says
So, what is the actual cost of a blender? How do I know if the price is right? I read the article out of curiosity though I’m in agreement with the basic premise… less is best.
Amy says
On top of the pricing and marketing issues, there’s also the true cost of the good – manufacturing conditions, fair labor standards, climate impact. Paying attention to the human impact in the whole product chain on poorly priced goods can help us walk away.
Michelle says
I learned about pricing working for a sewing machine retail store. Prices were artificially inflated to show a discounted price. I know view sales on any product I am considering buying as, a two part question: Do I really need this item, if yes do I feel the price point is the correct value for the item. I try to buy second hand for items I need, but for things that I can’t purchase used, I wait till the price is what I feel is the correct value. Two for one on the shirts I like and will wear. Only one style and brand, in multiple colors.
Tanja / Minimaattori says
This, so much this! Consumerism, marketing, making us to believe we need more, we need it now, we need more expensive, because I’m worth it. But what is the actual value indeed. What does the price tag represent? Am I a better person buying more quality stuff, does the price tag follow the real value and finally: do I really need this item? If the item was sold for 59 $ at the beginning, would I purchase it?
One thing I’m happy about being European: EU recently applied a law that you can’t sell an item for lower price claiming its real value is higher if it was not on sale for the higher price during the last 30 days. Baby steps, but towards better.
JF says
Hi,
If we the people would happen to know the Margins taken on each and every products sold out there there would be an instant revolution (in the streets).
Also:
BUYING and NOT BUYING is voting… for or against exploitation, for or against non-socially responsible companies, for or against heartless corporations, for or against local businesses, for or against over-consumption, for or against the common good, for or against the destruction of the environment, for or against animal cruelty.
BUYING and NOT BUYING is voting for or against a way of life, for or against our own values. BUYING and NOT BUYING is taking position, BUYING and NOT BUYING is to vote tens, hundreds and even thousands times a year, every day. You can choose to vote as many times as you want, every day.
The choice is yours, every single day. YOU decide what you vote for ! I agree I buy. I don’t agree I don’t buy and do something different. SIMPLE enough, yet powerful. So let’s do different. And this can start today.
Jennifer Goode says
When I was young (years ago) I worked in a clothing factory. When we had orders for JC Penney, that was how they were labeled. If it was Sears, they were labeled Sears. Same clothes, different name.
Mimi says
If you really need a blender, check out your neighborhood thrift store.
sandy halliburton says
my feeling is, if a $99 item is on sale for $59 now, then it was NEVER worth $99 in the first place!
jeanne cosentino says
I’ve never been a prime day shopper, but this year I did! I found a piece of furniture I had planned on getting from Ashley Furniture. The piece was on sale at Ashley for $789, bought it for $437! Identical item, however we will need to do some assembly, would be assembled from Ashley. My husband is very handy, so the savings was well worth it!