The monsoon sale season is about to start. With signboards such as 60% off, 30% flat discount and buy- one-get-one-free outside showrooms of fast moving consumer goods, textile stores, supermarkets, mobile phone stores and even shops selling high-end products, it is impossible not to shop. However, before you head to the nearest mall, do the basic math of how the prices work and tricks stores employ to attract you.
Price anchoring: Shoppers still use original and list prices as a point of reference to understand the value of an item and how good the sale price is. Also, most shoppers are aware that stores regularly use fake, inflated prices to manipulate customers into thinking the inevitable – discounts are impressive. In other words, a 50% sale is the real price, while the original price mentioned on the product is just a mythical figure meant to give a false impression of the value of the item.
