FatCat's Money Confessions

FatCat's MoneyConfessions - helping you save (& make) money, one click at a time

How often have you walked out of a supermarket with dozens more items than you intended to buy?

Supermarkets conduct extensive research on consumers and shopping habits and they know exactly how to get us to fill our shopping trolleys and empty our wallets.

It’s all aimed at impulse spending. Little wonder they’ve been referred to as “cathedrals of consumerism”.

The moment we step inside those electronically controlled doors we are being psychologically manipulated by perfectly honed marketing tools and at the mercy of tricks - both subtle and overt!

Stands are designed to catch our eye and the store layout is structured to maximise profit and define what products and brands we buy.

So how to beat the system?

1) Be aware of the tricks – the food smells that make you hungry, the eye level marketing, the placement of essentials at the back of the shop forcing you to walk past other produce which heightens the possibility of impulse buying, the sweets and magazines placed close to the registers and of course irrational pricing where items are charged at say $4.99 instead of $5.00 which is all about memory processing time.
2) Don’t let supermarket marketing steer your trolley – it’s all about adopting the right mindset. Replace "what's the cheapest way to get all the goodies I want?" With “what's the best value I can get on my $$ budget?”
3) Downgrade brands and buy the same for significantly less. Supermarkets have hypnotised us into spending more by moving us up the brand chain. In many instances downshifting from the premium brand, through the manufacturer’s brand, the supermarket’s own brand to the no frills brand will reveal very little difference in quality. Variations in packaging and labelling allow supermarkets to justify huge price variations. Often it’s all just a myth.

Have you worked out a way to avoid succumbing to supermarket psychology?

Tags: budgeting, psychology, shopping

Share

Reply to This

Replies to This Discussion

Making a list is always a good idea.

Checking that week's catalogue or specials is a good way of finding out if there's good deals on. But that doesn't justify "stocking up" if you're not going to use the products. I have had to chuck out stuff because it's gone out-of-date before I could use it.

Reply to This

i find eating before i shop helps keep the trolley down a bit. also not taking my husband and daughter with me saves a lot :)

Reply to This

You hit the nail on the head Pat. When my wife and I go to the supermarket, we always and I mean always overspend. It's got to a point where I go one week and she goes the next week. Compare dockets to when we go together and we can guarantee $100.00 to $150.00 differance. Of course it's all her fault! (tongue firmly placed in cheek)

Reply to This

UMM!! I'm not quite sure but aren't they businesses trying to make money like a business should?

Reply to This

Absolutely.. But it’s wise to remind ourselves that these businesses are using a lot of clever psychology to suck us in. Unless we’re aware of the tricks we’re easy fodder.

Reply to This

Too true, and this is the case with many businesses we deal with on a daily basis, particularly big ones. JPT, you're right that they're trying to make money, but what we need to do is to be smarter and not get taken in by them. I think this is the point here.

Reply to This

Supermarkets should not be classed as a business because it's food etc that we have to have.

Reply to This

If you have the discipline to stick to it the time honoured shopping list is a good idea. I very much agree with the comment about never shopping when you are hungry or thirsty. I do one big shop per fortnight but I realise that my single person household experience is way different from someone with children etc.

Reply to This

Over the past four months I have prepared a menu plan for each month, then created a shopping list from that plan. My grocery bill has dropped dramatically. Now shopping has a purpose and isn't random grabbing from the shelves with the thought - Oh this would be nice one night.
I have also told family members that when a product has almost run out to put it on the shopping list. If it's not on the list I can't buy it!! This way I know what to buy and always go shopping after eating so I'm not tempted by "little treats".

Reply to This

We always have a grocery list too. Also, every Friday evening, I casually tell my partner how much our credit card balance is. (We live on the card - offsetting our mortgage) This always have an indirect impact on the grocery bill. Heh heh.. :)

On the topic of groceries, how much do you guys spend? We are a 2 person household and we spend between $80 - $160 a week. Is that a lot?

Reply to This

No, that is not a lot if you're purchasing fresh fruit and vegetables. We're a 2 person home and we spend about the same.

Reply to This

That's quite a range, but at either end it's not much. We're two and spend more like 200-250...

Reply to This

  • 1
  • 2

RSS

Latest Activity

There are 185 forum topics on FatCat's Money Confessionson Friday
Karen Green, arti sham, marcus clayton and 7 more joined FatCat's Money Confessionson Wednesday
nikki replied to nikki's discussion 'debt bankruptcy'June 26
You were honest and disclosed your information. Did it say anywhere on the application that Bankruptcy excluded you from applying? I don't know if it would preclude you from acceptance but you never can tell. I sympathise with you and am curious t...
arti sham replied to nikki's discussion 'debt bankruptcy'June 25
I have done a debt 9 agreement , I am about to accept a job offer with comminsure which is CBA,they about to do a probity check have disclosed to them that i have done the debt 9 agreement.I am worried whether they will declined the offer to me i ...
BTW any cost incurred in trading are written off against the income although I think brokerage is wrapped up in the capital costs
As far as I can see there is only one entity YOU so the losses and gains are ALL aplieed to you. Unless I am wrong you are filling in personal tax returns for the business income and losses so as far as the ATO is concerned it is all You I am not...
Greg replied to Greg's discussion 'Share Trading offsets'June 22
Thanks Bandwidth, The business is a micro-business and unregistered, so income defaults to me personally. The share trading likewise so I am personally carrying a small business income and ongoing capital losses personally to add the share tradin...
Hello Greg Sorry to hear of your bad run and I hopre you can find a way to settle your affairs in a way that allows you to carry your losses in a way the allows you to write them off. It is a complex matter nad depends on how any income was pres...
Hello Greg There are some good examples on the ATO. I don't know if there are any that meet your needs but worth a look. The structure of your business will change the way losses can be carried
Greg replied to Greg's discussion 'Share Trading offsets'June 21
Thanks Bandwidth, I have been through some tough times so have done all my tax myself - I've had the time and a good understanding is all I've needed. It has been simple so far but just need advice as to which boxes to fill. Could not justify a t...
I am not an accountant and I suggest you talk to a good one, here is my view All the income and loss from share trading is in the name of the entity doing the trading If the business income is a wage you are paying yourself then the losses can b...
Greg added a discussionJune 20
I am carring significant capital losses and since Dec 08 have been actively share trading to recoup, since my business has also been reduced to part-time due to the downturn so I had the time. As a active share trader I have made some trades that ...
nikki added 2 videosJune 17
nikki replied to nikki's discussion 'who is responsible?'June 17
Thanks a bunch for that, I will pass it on to my elderly client. He has been very worried about it. I love this forum :)
JeffK replied to nikki's discussion 'who is responsible?'June 17
OK, so I may have been wrong - not for the first time ;) After reading the link jacquesk supplied and talking to a financial planner I'm ready to admit that I was wrong. It appears that if there's no estate then the lender can't chase rellies. S...
nikki replied to nikki's discussion 'who is responsible?'June 16
I was asked this question by an elderly client on an aged pension where I work. He is in a rental house, has no assets and the bank sent him free credit increases. You know " sign here for a credit limit increase" etc. So he did and now has a larg...

FatCat news

Cash is king but card use growing: RBA

Australian remains a cash-based society but the use of plastic and debit cards is growing as consumers seek more convenient payment methods, the RBA says.

Bank customers vent anger online

Social networking sites are booming with people publicly expressing their displeasure at the big four.

Instutions join pledge to assist struggling homebuyers

The banking industry says all home lenders should sign up to the federal government's initiative to support borrowers who have lost their job and are struggling with mortgage repayments.

Tax & retirement strategies

There are a number of tried and tested tips and strategies that may work for you

SMSF strategies for low income earners

How can we lessen the tax burden on our SMSF to enable us to build wealth and retire eventually?

Property with positive cash flow

When interest rates are low and rental yields are high, some property owners can set up a structure commonly known as positive gearing

18 Share Tips - 16 June

Red Fork Energy - we first recommended this company a few months ago when the share price was well below 30 cents

Receiving a refund from the tax man

Tax is levied on your taxable income on a progressive basis referred to as marginal tax rates, which can vary from between 0 per cent and 45 per cent

Home grants risk more defaults: Steve Keen

The extension of time for the enhanced first home grants puts more borrowers at risk of default, as the spectre of double-digit unemployment looms, an academic says.

Watch your forecasters closely

Precise economist forecasts need to be treated with a grain of salt

© 2009   Created by FatCat

Badges  |  Report an Issue  |  Privacy  |  Terms of Service

You are Offline Sign in to chat!