Be a smart shopper in this festive season when we are most lured by the tons of advertisements and marketing campaigning that strikes hard on our sentimental impulses. See how the marketing strategies try to grasp us like the first thing is advertisement with family drama trying to make the emotional fools or creating a social taboo or status symbol with the gifting items to the wife or sister with high end smartphones.
Our traditions and customs have somehow bounded us spending mindlessly and showcasing the luxury under the social pressure. The budget, investments and expenditure needs to be done at an earlier hand. We need to track the price and discounts throughout the year not just in alluring festive season
Marketing strategies in festivities
That explosive word works as a bomb in the emotional hook marketing.The first thing to keep in mind is Sale is mostly complied on the limited stocks or the old stocks that needs to be replaced with a fresh ones.The type and quantity of products on sale are rather minimal and not in the right fit, colour or are not too good to be true. For Instance these days, mostly you get the sale on the summer items that has already gone and for the ongoing winter season all items are in the list of fresh arrivals with no sale and discount.
Sale only on slow moving stocks
Mostly the discounted items are those which are slow moving with less profit value like if you are getting a discount on the electronic item in the festive season, this deals only to increase the quantity or volume of the products.
Often when we hear the word discount it plays with our psychology like “buy 1 and get 50% off on second that means we are getting a discount of 25% on each item and for the “buy 2 get 1 free ” 33% discount on each item. The real motto is push the business towards the greater volume.
Forced fear of missing out
Online marketing also targets the customer for missing out their cart by messaging like soon going out of stock or for instance during flight or hotel booking they flash the message of few seats left only. Common online statergy played also distracts the customer like the items that are shown to be discounted are available only for the extreme sizes and showcases the similar one in the appropriate sizes without discounts.
Delivery charges and GST
Prices shown often don’t include extra charges and taxes. Shipping charges (also known as delivery charge or handling fees) are applicable on many products. It will be higher if yours is an international order. Goods and services tax (GST) will also push up the price like, the GST on fashion items can vary between 5 percent and 12 percent of the price of the product for luxury goods GST is charged at 28 percent.
‘Free shipping’ is another selling trap. You obviously don’t want to pay an additional amount, for delivery , you’d rather go for a another goods. Right! It has already been included in the price of the product.
Coupons games will also distract you and you will realise that the coupons and codes come with many terms and conditions that actually make them useless. Like, many of the coupon codes do not work on already discounted items, or you have to shop for a minimum amount (which is almost never a small amount).
Purchasing Gold in India is a high Business drama specially on Festivals like Dhanteras but be careful before buying Gold. Gold purchased every year on Dhanteras since 2005 has yielded an average annual return of 7% but the returns from gold may not compare very favourably with other asset classes such as equities and debt.
What should be done
Always do the calculations properly before going for such deals and figure out . There will always be sale opportunity in the future with ‘bumper’ offers and discounts, Christmas and New Year sales, end of season sales etc. Don’t become the target of marketing strategies or you buy based on what you need.
Gift cards is a good option
Smart buying includes the option of gift cards or voucher which I find the better option if you don’t know exactly what to buy or of how much is the budget, so buy the gift cards of longer validity or in smaller denomination that can be paid in installments later on and banks also offer the Gift Card ,so from this Diwali choose the right Gift Card option.Gift cards are prepaid payment cards that can be used at single or multi-chain stores. They are available for a variety of products from movie tickets ,retail products, travel and so on. You can buy a physical card or the digital variant. These can be purchased using cash, debit or credit card or Net banking.
No Credit Cards this Diwali:
Credit card use is just like spending the hard-earned money mindlessly and thinking just about the present moment purchasing and not about the annual budget. Credit cards use often don’t go well planned with our future budgets.
Paying big loans with the bonus money
Paying of heavy dues as soon as possible will help in reducing the burden of interest. If you cannot fully prepay, you can at least pay a part of it using the bonus amount as this can also reduce the interest outgo to some extent. You do this with other loans like personal, car, or even home loans as well.This will truly make a sense to The festival of lights.
Diversify the investments:
Like purchasing different kinds of sweets, crackers,, decorative materials and clothes on the occasion of Diwali so just like bring diversity in your investments too.The idea is to have a right mix of different products and allocation in to FDs, PPF, PF, Mutual funds, SIPs, Equity or a real estate, this will make sure that your risk is reduced considerably.