Are You Really Saving With a Sale?

Unless you're fabulously wealthy, it's hard to resist the draw of a good sale. Nothing motivates a buyer like hearing "fifty percent off." 

But when is a sale not really a sale? And are all sales made equal? Can the pursuit of a bargain actually cost us more money in the long run? 

Sale prices aren't always what they appear to be. Let's consider some of the tactics sellers employ to exploit our unceasing appetite for bargains.

The Sale That Isn't

Sometimes, a sale is totally transparent and a good deal for all involved. Unfortunately, not all sales are consumer-friendly. A study by Profitero, an e-commerce analytics firm, found that some online marketplaces list up to 75% of their products as "on-sale" at any given time, often using inflated original prices to create the illusion of a bargain. But when a sale is perpetual, isn't it just the regular price?

Even famous Black Friday sales don't always offer the lowest price. The same firm found that only 2% of Black Friday sales offered prices lower than other times of the year. Consumers, however, typically see these items marked as sales and assume they are getting a one-time discounted price.

Consumers shouldn't automatically assume that "sale" means a better price. Sometimes, it's just a matter of marketing.

The Vanishing Bargain

Sometimes, a sale seems too good to be true - and in many cases, it is. Another tactic retailers often use is promoting a deeply discounted, highly desired item that's sold in limited quantity. If you're one of the lucky few to land the item, that's great.

However, for the consumers who arrive after the items are sold out, there's only disappointment - and plenty of regularly priced merchandise available for purchase. Getting you inside the store is more than half the battle, so companies are happy to give deep discounts to a few people to lure in hundreds or thousands more to buy at regular prices.

If this sounds familiar, it should - it's the animating principle behind every Black Friday sale.

How to Ensure You're Saving

Especially when shopping for a big ticket item, there are strategies you can use to make sure a "discounted" price represents an actual discount:

• Use Price Comparison Tools - Several websites and apps offer historical pricing of various products across different retialersretailers. For example, the Camel Camel Camel website allows you to enter an Amazon item's URL and provides its price history.

• Be Wary of Anchor Pricing - Don't be swayed by high "original" prices. Research the typical cost of an item across different retailers to find its actual retail value.

• Calculate the True Cost - When determining whether a deal is worthwhile, factor in shipping, taxes, and any subscription fees.

• Be Mindful of Quality - Low prices on low-quality items aren't a good deal if you'll need to replace them soon.

The Takeaway

There's nothing wrong with a good sale. The key, however, is identifying when a sale is nothing more than an empty marketing strategy.

Before making a purchase, comparison shop to ensure the sale price represents a discount of the item's accepted market value. Do this, and you'll avoid questionable sales and marketing tactics.