Why Sale Prices Aren’t Guarantees You’ll Save Money, According To Experts
Written by
Angela Mae
Edited by
Amen Oyiboke
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Retailers know that there’s nothing quite like a good sale to draw customers in. That’s why so many have promotions or steep discounts throughout the year. It’s also part of what makes major holiday sales events so lucrative for those retailers. How can you pass up your favorite brand when it’s 40% or 70% off?
But be cautious when shopping during the sales. You might have been taught to believe that something on sale is a good deal, but that’s not always the case. Sometimes, low prices only exist to draw you in — and get you to draw funds from your bank account. Some so-called deals aren’t even really deals in the first place.
Here’s why sale prices aren’t guarantees that you’ll save money, according to experts.
If You Wouldn’t Otherwise Buy, You’re Not Saving
A sale will only save you money if it’s something you would have already purchased and used. If it’s not, you’re not saving at all.
“The truth is that most people would never buy certain items, at least not at the time they buy them, or in the quantity that they do, if these items were not on sale. [Sadly] they don’t realize how much they lose by purchasing these items they either do not need or could do without if [they] hadn’t gone on sale,” said Aaron Razon, a personal finance expert at Couponsnake.
If the thing you buy isn’t something you plan to use, it’s wasted money. If it’s something you would never have given a second glance, it’s not savings — it’s spending money you probably shouldn’t have.
Getting Caught In the Hype Means Spending More
Steep discounts draw people in. That’s why so many people go shopping during major holiday sales events like “Black Friday, Cyber Monday” weekend.
In 2024, consumers spent $10.8 billion online on Black Friday alone, a 10% increase from the year before. But it’s not just the holiday weekends that do it — it’s those steep discounts. According to AP News, retailers with greater discounts draw more traffic. For example, Forever 21 attracted more customers with its 50% to 70% off deals than H&M with its 30% discounts.
This isn’t to say that holiday sales events are a bad thing. If you need whatever’s on sale, and it’s of high quality, you could score a great deal. But if you’re spending because you’re getting caught up in the hype, you’re losing out.
“Sales can work against you when you buy on emotion, especially if the deal feels ‘too good to pass up,'” said April Lewis-Parks, communications and public relations director at Consolidated Credit. “If you don’t need the item, you’re not saving — you’re just spending.”
Retailers Set Spending Traps Under the Guise of ‘Sales’
Be wary of sales traps, too. Major retailers design their sales and promotions to attract customers. You might not be saving so much as falling right into their spending trap.
For example, you might have seen the “buy more to save more” promotion at retailers like Home Depot or Macy’s. This strategy encourages you to buy more items to get a bigger discount — even if you don’t necessarily need the extra goods.
Some spending traps are easier to spot than others.
“People need to look out for fake original prices, too,” said Lewis-Parks. “Retailers sometimes inflate ‘list prices’ so the discount looks deeper than it is.”
And, of course, watch out for any flash sales or countdowns. These are designed to pressure you into buying things before the sale ends, regardless of whether they fit into your budget.
There’s Always a Catch
Retailers are in it to make a profit, so keep this in mind the next time you see a sale.
“The truth is, when items go on sale, there is always a catch, and when it’s not limited quality, it could be a minimum purchase amount/quantity [or] a bundle deal that includes other items you most probably don’t need,” said Razon. “The catch could also be so subtle that you might not even notice it until you have made a purchase, and this is why shoppers really should be cautious.”
Don’t get distracted by the low price tag or the slashed price promising 50% off for a limited time. Pay attention to the little things, like the price-per-unit of the item and the overall quality. Check the other shelves or racks to see how prices stack up. And don’t forget to look for expiration dates on perishables — if something has already expired or is about to and you don’t use it on time, that’s a financial loss.
Holiday Sales Can Be Good (But There Are Other Options)
Did you know that U.S. shoppers are 26% more likely than global shoppers to be motivated by deals and discounts, according to recent Mailchimp research? The good news is that the majority of U.S. shoppers (82%) also shop major sales events with a clear idea of what they want to buy.
Whether or not you’re shopping during a major sale — like Black Friday, Labor Day weekend, or back-to-school shopping weekends — going with a clear plan doesn’t hurt. Not only can it help you avoid impulse buys, but it can also keep you from purchasing things just because they’re discounted.
“It’s important to avoid making spontaneous purchases when items go on sale because the truth is that, when you purchase items on sale out of impulse, then it means that you never had any genuine need for them, but are only attracted by what looks like a good deal,” said Razon. “That perceived good deal, more often than not, end[s] up being a waste of money, even if you end up putting the item to use.”
Whenever buying anything, ask yourself if it meets the following criteria:
- Need
- Budget
- Quality
- Value for the money
“If the item improves your quality of life, like replacing worn-out shoes or upgrading a failing appliance, buying on sale is great,” said Lewis-Parks. “Another great strategy is buying seasonal items on sale, like winter coats in March or patio furniture in September.”
Shop using coupons (for things you already need) and price comparison tools to get a good deal. You can also shop during off-peak seasons to save money on things you’ll need in the future.
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