Cash advice

NAIL THE SHOP LAYOUT

Every item on a shelf has been purposefully placed to get you to buy – and spend – more. Retailers position essential items such as milk and bread at the back of the shop so you’re forced to walk the through the rest of the aisles to get to it, past shelves laden with enticing special offers and other goodies. Avoid this by starting your shop at the point furthest from the entrance and by sticking to your list. You’re likely to spend less, if you do. Always head out with a list and allow yourself a maximum of one or two impulse buys that you can afford.

DON’T PANIC

Have you ever noticed how shops urge you to ‘act quickly’ before ‘unmissable deals’ on ‘musthave’ products end? Maybe you’ve felt pressured to buy something in bulk, simply because stock seems to be running low?

Sound familiar?

Shops do this on purpose because it creates a sense of urgency for shoppers. Resist the temptation to panic buy and understand that stock levels will rise and fall, but your bank balance doesn’t need to, too.

SIZE MATTERS

The amount we buy is directly related to the size of our shopping trolley. In fact, according to author and marketing guru Martin Lindstrom, when retailers doubled the size of their trolleys, people bought 37 per cent more. Yikes! So, beat them at their own game and grab a basket so you won’t overspend.

DO YOUR MATHS

When the festive season rolls around, supermarkets pull out all the stops with deals on seasonal party food to tempt your taste buds. Multibuys, for instance, can be misleading when shops increase the price of a single item just as the offer begins. This means you end up spending more per item than you would have done before the offer, so it’s crucial to do your maths carefully. Make sure that you’re not paying more than necessary – keep an eye on prices – and check the unit price on the sticker (price per 100ml or per kg, for example). In most places, food will be clearly priced by weight or volume across the store to make it easier for consumers to compare products and spot the best deal.

THE COMPROMISE EFFECT

Research shows we’re more likely to choose the middle option in a selection rather than the options at the pricier or cheaper ends of the spectrum, so retailers stack their shelves accordingly. If shopping for a bottle of wine or a TV, we tend to go for something in the middle of the price range – and retailers know this. The result? We may end up spending more than we planned to!