In this post, I will tell you how companies fool you. They fool people using ‘Psychological tactics’ about which I wrote in my previous blog. I told you how companies set the prices of products and services in a certain manner like 99, 199, 499, 999, etc. Such prices are used by companies to manipulate people and make them buy their products and services. Between 99 and 100, which is a smaller number? It is obviously 99, so when you see prices like these, your mind says it is a cheaper product and you buy it.
The other reason for setting such prices is that it helps companies to make extra money. Suppose, you buy a product which costs 99 rupees. You give 100 rupees to shopkeeper because you don’t have the change and the shopkeeper says he has also no change, so you let go that 1 rupee thinking that this is just only 1 rupee, but you don’t know how much companies are earning because of this price strategy.
If you think, it is just 1 rupee, what’s the big deal? Let me explain it to you. Suppose, a company has 1 such store in your city and 50% of the customer let go that 1 rupee, you can imagine how much that single store is earning in a day. Now, suppose, this company has 20 stores in a state and 100 stores in a country, just imagine how much money this company is earning in just one day.
I am sure you have heard stuff like buy 2 and get 1 free. Companies use this tactic to increase their sales. You buy the product because you think that you are getting it free. You buy 3 pieces of that thing when you need only 1. You don’t think whether you need it or not. You just spend the money which you could have used for something else.
Have you heard about the flash sales? In a flash sale, limited product units are sold online for a limited time period. The psychological tactic behind this strategy is to create a hype among the people for the product. If the company makes available this product online or offline in abundance, it won’t help the company to create hype. The second reason, flash sale helps the company in free marketing. Most people have a habit of showing off things. When they get something in flash sale, they obviously tell others about it and this mouth publicity will help the company to sell more products. The other reason behind flash sale is that it doesn’t give time to people to make the decision. Suppose, you are planning to buy a new phone and you come to know that a flash sale is happening on a particular day for a particular time. Many people think that whether they will get such a chance again or not and buy the product. Limited time affects your decision-making ability.
Many companies fool you emotionally also. They use your emotional side to make you buy the products and services. They attach a product with your sentiments like, this product is preferred by mothers for their children. Companies knows very well that everyone loves their mother and by using mothers in advertisements, they can fool you emotionally and make you buy that product.
Many companies fool you by using your trust. You might have seen toothpaste advertisements in which they say that this product is recommended by doctors or used by doctors, but they don’t show any evidence about their claim.
I am sure you may have used online shopping, but you might not know that these many online shopping companies also fool you. You might have also experienced that when you put something in the shopping cart, after some time, there are only a few units of that product remained available. Why does it happen? These online companies create a virtual shortage of that product to make you buy that product. When you see, only a few units of a product are remaining, it blocks your mind and affects your decision-making ability. You buy that product fearing that product might go out of stock and you might not able to buy it.
Many online shopping companies also cheat you using misleading prices of the products. Suppose a phone is launched at a price of 15000 rupees and an online shopping company is showing the product with a price tag 15000 rupees. After some time, the price of the phone has been slashed to 10000 rupees by the phone company. The company shows the product with the price of 12000 rupees with a discount of 20% on 15000 rupees. You will think that this is a good offer because the company is showing the price of 12000 rupees which is not its actual price at that moment. You will buy the product with a loss of 2000 rupees thinking that you have got the product at the discounted price. These companies fool you by not showing you the slashed prices of the products.
Now, you know how these companies fool people. So, next time you buy something, don’t hurry and take your time. Be aware about the prices. Be sensible while making your decision.
Be aware and be sensible.