Sales season is right around the corner, and most of you are waiting eagerly for that big event. However, financial experts recommend not to make impulsive purchases in order to catch the latest sale. “In the case of purchases made online consumers tend to spend more than they should due to a simple return policy. You can purchase three things believing they can return two items and keep just one, but due to appealing discounts, they could keep two and invest in something that’s not necessary,” said Vishal Dhawan the director of Plan Ahead Wealth Advisors. According to research conducted by Arthayantra the Telengana-based company that provides investment advice, at the very least 60 percent of their customers prefer shopping online and at minimum 30% of customers who shop online overspend.
Certain experts believe that price reduction shouldn’t be the sole reason in order to make a purchase. “You must always consider about the reasons why the store is offering discount prices that are so low. Consider the viewpoint of an institution. If a bank has an apparent high rate for deposits, this indicates that the bank faces problems in attracting customers and making more profit, and could not be running a profitable businesses,” said Melvin Joseph who is the creator of Finvin Financial Planners. When purchasing a product it is important to consider other factors too. “Discounts are not the only consideration. Particularly in the case of expensive devices like mobile phones, consider the support and services you’re getting as part of the purchase like warranties, exchange policies spares and backups,” said Devangshu Dutta the director of Third Eyesight, a retail and consumer goods consultancy firm.
Be aware that during the sales season retailers tend to sell off old inventory. “Say you buy a vehicle in January. It was on sale at a significant discount due to the fact that it was built in December. If you’re certain you’ll be driving it for a long period, for example, 10 , you might have gotten a bargain but if you’re likely to sell the car within five years to purchase a new model, you’ll get the lowest resale value for an older model that is discounted and the purchase won’t prove to be beneficial,” said Joseph. Additionally, getting a great deal can be difficult with unbranded goods since there’s no way to compare them and it’s difficult to determine the quality based on what it appears on the computer display. “Physical retail stores are more responsive due to the increasing number of sales on websites. Therefore, if you enter an establishment and tell them that you’re able to get an online deal Some might be willing to negotiate prices,” said Dutta.
When shopping online, make sure you use a discount code such as those you will find on voucherful.co.uk.
In the sales season, price and discounts can be used in a variety of ways from a consumer’s perspective. “Not all discounts are great bargains. Retailers usually purchase items for sales during the last week of the season and make more money from the visitors to their stores or websites. Even at the so-called discounted cost, there might be a good return for the retail store. This is particularly true of products that are sold under the brand’s private label, or with a brand name that isn’t well-known,” he said.
The purpose of the seasons of sales has changed. “Originally there was a seasonality to sales. It was usually after the festive season’s peak and weather-related sales or at the end of the season,” said Dutta. Retailers now offer sales during other times to increase demand. “Retailers might also purchase products in spur of the moment, particularly to coincide with the end of the season or other sales seasons.”