Page 21 - Book5E

on buying those mints? Probably not, but she also probably didn’t even give it a second thought. That is impulse buying at its best. The store made another sale.
We’ve all done it: added some little item to our shopping cart that we just couldn’t resist as we waited in line to pay. Understanding that people have this propensity for impulse buying is one of the strengths of the retail stores we visit.
Besides the monetary cost of impulse buying, there is also ‘opportunity cost’. Opportunity cost is the value of what you give up doing when you decide to do something else. If you decide to go to the movie, you give up the chance to go to the basketball game. Not being able to go to the basketball game is the opportunity cost. When you decide to use your holiday bonus to buy a new iPod, you give up the opportunity to add to your 401k.
A few ways to keep those impulses under control include:
• Always keep an ongoing list of things you need to buy on your next trip to any store. Review the list before you leave, and remember to take it with you!
• Make as few trips to the store as possible each month, and avoid the malls entirely.
• Give yourself a time limit for how quick to get in and out of the store, along with a personal challenge to not buy anything that’s not on your list.
• Avoid sales except for necessities. It’s too easy to justify impulse items when they’re on sale.
• Beware of give-away gimmicks that entice us to buy things we don’t need.
• Don’t use shopping as entertainment. Mall cruising is too much of a temptation.
• Ask a friend to be a shopping buddy to help you stick to your commitment.
• Develop a desire for meaningful experiences rather than things.
Why We Spend
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