There’s no denying it, Amazon Prime Day is an event worth having in your diary because there are some serious savings to grab. That being said, we definitely recommend having a plan. Can you tell we’re financial advisers yet...? 😜
Without a plan of what you want or need and how much you should reasonably spend, most of us will buy things we don’t need and overindulge from a financial perspective. And the worst part? Amazon is the best in the business at encouraging us to spend more.
The convenience of one-click shopping combined with Amazon’s scarcity countdown clocks, it’s all too easy to get carried away with a budget-busting shopping spree you may come to regret.
So, as ever, we’re here to save the day and give you some tips so you can get the most out of Prime Day and make your hard-earned money work harder for you.
1) Think about what you want and need BEFORE you shop the deals
It’s human nature to want to get extra value and deal events like Prime Day play into that. The genius sales and marketing team at Amazon HQ know that you are much more likely to buy something if you feel like you’re getting a good deal, so they make sure any discounts are presented to you in the most enticing way possible.
Just look at this example with the Amazon Fire Stick. They’re showing you the deal price, the original price, what percentage of saving that is and exactly how much of a cash saving that works out to be.
Breaking it down so granularly is a very intentional sales technique. There’s no confusion around how much you’re saving which makes it much easier for you to process the information and instinctively feel like it’s a deal you just can’t miss.
It’s true, a saving is a good thing – but we’d like you to think about it this way: are you actually saving money if you had no intention of buying it before?
The reality is, you’re only ever saving money if you were going to buy the item at the full price. Otherwise, you’re probably just getting sucked into making an impulse buy of something you don’t even need and was never in your budget.
So, it’s important to take the time to decide whether the buy is something that will add value to you and your life. If it will and you have room in your budget, go for it! If it won’t, try not to get sucked in on the discount alone because it won’t be worth it.
2. Don’t give in to the pressure to act fast!
The 48-hour ‘event’, huge countdown clock and 15 minute flash sales are marketing tactics designed to create the feeling of urgency, all so you rush into making a purchase.
Again, it goes back to human psychology and the ‘you need to act fast’ set up triggers the scarcity effect, which is a cognitive bias that makes people place higher value on products they believe are sought after and running out.
Luckily for you, having an awareness of these tactics and how they can affect our mindset towards buying decisions is the first step to not being caught out by them. So, keep this blog in mind as you’re shopping and you’ll be well on your way to outsmarting those crafty tactics.
3. Check the deal is as good as it seems
All retailers are notorious for inflating prices before a sale so the deal price they’re showing looks even steeper – and Amazon is no different. They usually do this by advertising the RRP even if the item was recently priced lower, so it pays to do your research.
Despite the deal Amazon is presenting to you during Prime Day, another retailer may have priced it even lower so before rushing and clicking ‘buy now’, make sure to do a search and compare all the prices. It might not be worth it if you’re buying something small for less than £10, but if you’re shopping some of those big-ticket items, you could be pleasantly surprised with the saving you’ll find elsewhere.