6 Helpful Tips To Put A Halt On Impulsive Purchases

As you dig thru the pile of the items that you regret purchasing, you realize that you have one recurring problem. You keep on engaging on impulse purchases! Your credit cards do not seem to help you either. Instead, it invites you to shop more as if it calls out your name.

How can you reduce this tendency to shop without forethought? Well, start by planning ahead.

#1: IT PAYS TO PLAN AHEAD

When it comes to eliminating your unwanted expenses, it pays to plan ahead. Make a list of all the items that you need to purchase before shopping. Make it a habit to plan for upcoming occasions, birthdays, and other large purchases.

Image Credits: pixabay.com

Equipping yourself with this list as you shop around ensures that your purchases are more deliberate and less spontaneous. Furthermore, you may anticipate the upcoming clearance sales and other promotions.

#2: PINPOINT YOUR TRIGGERS

Take control over your shopping habits by monitoring your urges. Using a piece of paper or your handphone’s notes, mark each time you experience the urge to purchase. Describe the situation and the feelings attached to it. This helps you to increase your awareness while you shop.

Be aware of the different symptoms such as faster heart rate or a change in breathing. Becoming more aware of the changes in your body and mind can help you control the urge.

#3: IT TAKES 30 DAYS

You heard about contemplating for 24 hours before committing to a purchase. However, have you heard about the 30-day waiting period? Yes! You read that right. Stick your wish-list on your refrigerator and put a date to each item. You must wait for a month before making a purchase.

The mechanics may sound easy, but it takes a lot of patience and self-control to overcome the urge at first. These feelings are valid and can fade soon. You will take delight sketching out items off the list! The only exemptions to the 30-day period are groceries and other necessities.

#4: AVOID THE TEMPTATIONS

A surefire-way to reduce your impulse buys is to avoid going to shopping areas or shopping websites. Do not even go to dollar or budget stores as you might get trap in the process.

When purchasing, follow a list religiously. Get out as quickly as you can afterwards. Avoid walking around the shopping center for entertainment and find other ways to stimulate fun.

#5: IT IS ALL ABOUT THE BUDGET

Trimming down your expenses does not mean that you have to take out the fun. Give yourself a “splurge budget” that you can follow thru each month.

Decide whether you are willing to allot a budget for a new clothing item or a fancy restaurant date each month. Whatever it is, ensure that you are willing to spend a discretionary amount every once in a while. Take it as a way to reward yourself for straightening your finances. It is healthier that way!

#6: DO NOT MIX WITH THE WRONG CROWD

Surrounding yourself with people who are addicted to retail therapy may not be the best idea. It is easy to get out of track when your shopping buddies convince you that all the outfits you have tried looks great!

Image Credits: pixabay.comIf you want to shop with your friends, do it with people who have savvy spending habit. This way, you will be able to tell spend your money in a frugal manner.

Sources: 1 & 2

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How Do Dollar Stores Make Money?

From ValuDollar to Daiso, how do these budget stores make profits from their extremely low prices? Is it by selling volumes over pricing? Or is it because they offer knockoffs?

Here are several reasons why budget stores can still survive!

#1: NEARING ITS END

The shockingly low prices offered by the budget store might be due to the expiration dates of its products. While S$1 for a liter of soda sounds too good to be true, you must be vigilant when it comes to its lifespan.

You get to purchase a product for an insanely low price and the budget store gets rid of a stock that they would otherwise throw away. It is a win-win situation. This strategy is not limited to budget stores alone. Many supermarkets and bakeries slash their prices as they close for the day.

Minor defects in the packaging may also contribute to the low prices. A small dent on a soap bar or a small tear on a box can contribute to its lower cost. Do not judge the item by its cover! Sometimes, the savings outweigh the appearance.

#2: REDUCING ITS SIZE

There is truth to the saying that size matters. Interestingly, retailers can mask the true cost of their products by changing its sizes. Some dollar store items are small samples sold for a dollar or less. This way, the retailer makes more money with each dollar you spend.

#3: SELLING THE OFF-BRANDS

Have you ever tried the Tim Tam chocolates biscuits from ValuDollar and noticed the significant difference in taste and packaging? I have! Well, this occurs because it is not from the original company itself! You see, dollar stores typically import items from other countries to get cheaper alternatives.

For instance, they may import Tim Tam biscuits made from Indonesia instead of importing it from the root source – Arnott’s Australia. This does not mean that the alternative is fake or inedible. It could just mean that the ingredients used for the off-brand biscuit varies and are typically of lower quality. Do a taste test and compare it to the supermarket’s Tim Tam to see for yourself!

#4: WINNING THE GREY MARKET

What are Grey Market products? For starters, Grey Market products are sold outside the authorized distribution channels by retailers which may have no relationship with the manufacturer of the products. Let us simplify things with an illustration!

Say that a laundry detergent distributor in Singapore sold its stocks to supermarkets such as FairPrice and Cold Storage. However, this distributor has extra stocks. How can it maximize its profits? It reached out to Grey Market dealers to offer its goods at heavily discounted prices. This is why dollar stores can get a hold of the same products and sell it cheaper than the rest!

Image Credits: Flickr Creative Commons via Random Retail

Be a smart shopper! Just because a store has the word “budget” or “dollar” in its name does not mean that you are getting a good deal. In fact, it is likely that you are paying more at a dollar store for certain products that you can find at supermarkets. On the other hand, you must discern whether a product (such as a toothbrush) can be better acquired in a budget store. Keep these in mind the next time you shop!

Sources: 1 & 2

 

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Which Makeup Products Should You Splurge On?

A study has shown that women spend approximately S$20,000 on beauty products in their entire lifetime. That is a lot of lipsticks! With a shocking number like that, you must weigh whether a beauty product is worth splurging for or not.

LIPS THAT KISS

If there is one thing that you should splurge on when it comes to luxury cosmetics – it is lipstick! I am not saying this merely because I am obsessed with this product. A reliable lipstick is important because you can apply it as a vibrant eye-shadow or a pigmented blush too. For instance, I use my MAC Russian Red (about S$30) to give a flush of crimson on my cheeks and on my lips. You can use the same technique to Charlotte Tilbury lipsticks and others alike. Gone are the days when multitasking sticks do not exist!

Experts believe that anything put around or on the mouth can make or break your look. A subtle lips can give off a natural aura while a red lipstick can be a showstopper. Moreover, a good lipstick stays for a long period of time. Less purchasing equates to more savings.

BASE THAT STAYS

Whether you like it or not, it all starts with a good base. Make sure you splurge on skincare and a really trusty primer. Think of your face as a room’s platform, you will not be able to build the room you desire without a sturdy surface. Having a good base will enable you to get away with a drugstore foundation. Do not get me started with how drugstore products are becoming more competitive now. That is a different conversation. Anyway, let us go back to skincare.

Many Singaporeans turn to Korean beauty for their skincare regimen. You can follow this too! Or, simply cleanse and exfoliate regularly. Personally, I prefer the sensitive formula of Cetaphil as a cleanser. Afterwards, I would put the NUXE body oil. I may also partake in an all-in-one lactic acid treatment by Sunday Riley (retails for S$223 at Sephora Singapore). It is a product that many skincare obsessed people shell out for. It brightens, soothes, and reduces your blemishes and fine lines. It leaves you with an even-toned radiant complexion!

BROWS THAT BOWS

Many makeup artists believe that eyebrows are the most important facial feature next to the teeth. They go the extra mile to shape one’s brows for a variety of reasons. Firstly, a nicely shaped brow can make someone look more youthful and fresh. The volume in your brows can make you look rested!

Secondly, it gives a subtle change without having to splurge on other cosmetics. You can either look edgy or feminine by shaping your brows. Lastly, even the Royal Duchess of Cambridge believes in a set of perfectly shaped brows. She uses the Bobbi Brown Brow Kit that retails for S$85 at Sephora. A cheaper alternative would be the cult classic – Anastasia Brow Wiz for S$40 at Sephora. Brow Wiz is a holy grail to many beauty fanatics due to its user-friendly wand and its natural finish.

Image Credits: unsplash.com

Let me ask you one thing. Which luxury beauty products do you splurge on? Leave your comments below.

Sources: 1 & 2

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Everything You Need To Know About Daiso

Most of us have shopped in Yano Shoten without even knowing. You read right! Daiso, our go-to budget store, was once called Yano Shoten. It was named after its founder – Mr. Hirotake Yano.

ITS RICH HISTORY

From humble beginnings to a myriad of setbacks, Hirotake Yano’s path to success is not a straightforward route. He and his wife survived the economic downturn of the past decade and become one of Japan’s inspiring stories.

He has failed many times in past and thought that nothing he will ever try would succeed. He said: “During the inflation era, I thought many times about quitting. It seemed absurd to sell things at a fixed price. I kept going because I thought there was nothing else I could do.”

His willingness to move forward led him to multiple jobs and a chance encounter with a mobile merchandiser. He started working for him. Years later, he established his own store called Yano Shoten where goods were displayed on a wooden stand.

In 1977, he changed the company’s name to the brand we know and love – the Daiso Industries. Daiso introduced the universal price of ¥100. Why would he sell everything for ¥100? Well, he simply does not want to tag a number of products with different prices! Tagging was a time consuming task for him and his wife. Thanks to his effort to save time, we were able to save our money!

Daiso, which translates to “big warehouse, is far from ordinary. The company Yano founded has no business plan, no budget, and no quarterly results. Through it all, Yano believes that he is just an ordinary man.

ITS LOCAL PRICE

In Singapore, everything Daiso sells go for two dollars. Whether you are purchasing a bag of chips or a bulk of cotton buds, you can expect to pay the same price. This enables the shoppers to anticipate their total costs. Furthermore, your eyes will be spoiled with choices!

On the other hand, our neighboring country Malaysia has to pay RM5.90 (about S$1.93) per item. Imagine if the exchange rate is in our favor! This means that we can get cheaper Daiso items in Malaysia instead.

ITS SOURCE OF GOODS

Daiso has a wealth of outlets scattered throughout the globe and a wealth of goods scattered throughout the aisles. With over 100,000 goods offered, you can expect that a good portion comes from overseas. Although majority of the goods are made from Japan, approximately forty percent of goods are outsourced.

To save the cost of production, can you guess where most of the items come from? You are right! Many of which hail from China.

ITS DYNAMIC PRICES

Did you know that not every Daiso product is priced the same? Lucky for us, anything we pick up inside a Daiso costs S$2. However, overseas outlets experience dynamic pricing.

For instance, majority of the products in Daiso Australia are set at a standard price of AU$2.80. While, other items cost more. The same goes for Daiso Philippines. Consumers get to enjoy products from PHP88 and up.

Use the steady price of two dollars to your advantage by tracking the amount of items you fling inside your basket!

ITS SUCCESS STORY

Mr. Yano attributes his success to his ability to source out a variety of products. From quality essentials to quirky must-haves, everything sells for S$2! Moreover, people’s desire for deals remains to be the driving force of Daiso.

Image Credits: Flickr Creative Commons via Kai Hendry

Let me close this article with a nugget of wisdom from the man himself.

“Business is like climbing a mountain. The lesson of climbing a mountain is that there are always struggles and hard times. When you reach the top you get a sense of gratitude towards the mountain.”

Sources: 1, 2 & 3

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5 Sneaky Tricks Advertisers Use To Get Your Money

Subliminal messages exist for a reason. You see, most of our decisions are made on an unconscious level. This means that our behaviors are influenced by our wishes, interests, and motivations.

Say that you have been scrolling freely thru your Instagram feed and you saw a fast food ad. Days later, you caught yourself craving for a delicious cheeseburger.

Hidden persuasions are the driving force behind advertising. And, these persuasions happen more often than you think!

On that note, here are 5 Sneaky Tricks Advertisers Use To Get Your Money:

ILLUSION OF SCARCITY

Why are people so attracted to items that are limited edition? For starters, scarcity is usually linked to luxurious products. Talk about the limited supply of Yeezys and diamonds!

Scarcity also suggests that people want a product so bad that its supply depleted. I can vividly recall the time I visited a blogshop and saw this long black dress. At the bottom it displayed: “only one piece left”. I really wanted to purchase this dress, but I was contemplating on whether I need another black dress or not. Buying mode kicked in when the fear of missing out (#FOMO) emerged. I wanted to secure the last item left! This goes to show that scarcity technique works so well because it entails that our freedom of choice can be gone is a snap!

POWER OF SOCIAL PROOF

Word of mouth spreads like wildfire! When you want to purchase new products or try new services, you approach others for recommendation. We go to recommended doctors for health advise and to highly-raved hairstylists for a new ‘do. You are more likely to subscribe to something that has gotten a stamp of approval from a person you admire. So much for individuality, huh?

Image Credits: pixabay.com

When my significant other and I go on a date, we usually check out food review websites such as burpple.com and hungrygowhere.com. We tend to eat at places with higher reviews. This illustrates the power of social proofing. According to social proofing, we are more likely to buy something that the majority approves. This is why modern advertisers turn to Facebook and Instagram to get as much “likes” as possible!

ART OF REVERSE PSYCHOLOGY

Let’s face it! There is a reason why some people hide from sales representatives who follow them around. Nobody likes to be told on what to do, especially when they are about to make a purchase. This is where the Art of Reverse Psychology comes in handy.

Advertisers understand that you do not like to be blatantly persuaded. Which is why they try to convince you that you have a choice in the matter. They may say something along the lines of “you are free to try Brand X but…”. Their transparency can hook you into buying the product.

INFLUENCE OF THE DECOY EFFECT

Have you ever experienced shopping around for appliances and seeing the usual price as well as the discounted prices? Well, the discounted price sure is attractive! It makes me wonder how long has the usual price been there? Is the discounted price really a steal?

Dan Ariely, an Ivy-league professor of Psychology and Behavioral economics, did a study on the different price options. As it turns out, a company may include an additional price option just to make you think that you are getting a good deal.

His study included three magazine subscriptions: an online subscription for $59, a print subscription for $125, and a print-and-online subscription for $125. When Ariely offered the three options to the participants, most of them picked the combo option as it seemed like the best deal. However, things changed when only the print or online options remained. Most of them sticked to the cheapest option – the $59 online subscription.

RICHNESS OF ANECDOTES

Customer testimonials are powerful not only because of social proofing, but also because of the richness of anecdotes. Research suggests that stories and individual examples stick to our brains better than statistics. This make sense as stories transport us to a place where we are most likely to believe in something.

Simply watch this heartwarming video by a Thai Insurance company:

If you are more likely to be persuaded by emotional advertisements or stories, you may want to stay vigilant for your budget’s sake!

Sources: 1 & 2

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