How poundshops ‘dupe you into spending more’ – but here’s how to spot the REAL bargains
The fixed price means shoppers think they are getting a good deal c- but are they? The Sun Online investigates
FROM Poundland and Poundworld, discount shops are everywhere – and they are making a fortune.
That's because these days we are all trying to be more savvy with our cash, and pound shops appeal to us as they offer great value for money.
But do pound shops actually offer decent bargains, or are consumers simply being duped into buying poor-quality products because after all, it’s “only a quid”?
The fixed-price mentality lures you in
Having a consistent price makes financial sense; you don’t need to pay staff to price the stock and it can move straight from the warehouse shop floor.
But it’s the simple branding concept - everything for a £1 - that gets shoppers through the door in droves, says Dr Dimitrios Tsivrikos, consumer psychologist at University College London..
This creates an "environment of cheapness" where shoppers feel more relaxed because everything now seems affordable.
Psychologists found that this triggers chemicals in the brain, which create a feeling of happiness causing shoppers to spend more. As a result, nearly a third of sales are impulse buys.
“Consumers spend more as they heavily engage in impulsive buying since they feel that they cannot resist a bargain,” he said.
Well-known brands near the front of the store
Retail experts suggest that the location of well-known brands at the front of a pound store gives shoppers the impression that it’s just like a normal supermarket – although, significantly cheaper.
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Seeing these familiar brands instils a sense of trust and encourages consumers to come inside.
Although, once through the door, you’ll see a larger proportion of products on sale are actually own-brand products without the pound shop’s name.
By using a “phantom brand”, the retailer avoids any potential negative assumptions about the quality -and further adds to the impression of a wide variety of brands on offer.
You think you're getting a good deal - but that's not always the case
“Everyone is enticed by a good deal, no matter what walk of life you come from; we see a great price and we think we better snatch it up before it runs out,” said George Charles spokesperson for www.VoucherCodesPro.co.uk
“We think we are in control of our purchasing decisions when the price is as low as a pound but in fact many pound shops play tricks on customers to let them believe they are getting a good deal when the fact is, that they are getting less for their money,” he said.
For instance, many pound shops frequently convince companies to selling their product in odd-sized packages to keep the retail price under £1. But while the contents of the package are reduced, the box or bag holding the products appears the same size – therefore giving the perception of equal, or better, value.
So, while the big supermarkets will sell crisps in multipacks of six or 12, for instance, at Poundland they are packs of five.
“Suppliers often provide the value retailer sector with products of a specific size and/or quantity to allow stores in the channel to sell items at a specific price point,” says Chris Bennett, spokesman at Poundworld, which boasts 300 shops, serving more than two million customers a week.
“These products are very popular with customers and often provide shoppers with a solution that helps them get by until pay day.”
The packaging makes it virtually impossible to leave empty handed
It is virtually impossible to walk through a pound shop without having offers jump off the packages on the shelves: a bottle of bleach boasts “50 per cent more” while a three pack of Toffee Crisp bars claims you get an extra for free – creating the illusion of a bigger saving.
Consumer psychologists found that bargains and offers cause a biological change in most shoppers’ brains that triggers a reaction which says "this is a reward" - and it’s very difficult to pass up.
Here's how to find the REAL bargains
Now that you know the tricks that these discount retailers use to get you to spend more, why not beat them at their own game?
Here are five ways to make your money go further at the pound shop.
Use social media to find the best deals
Money-saving, says the best way to grab a deal is to use social media.
“Bloggers will often write or even film a video for YouTube about the best items, or their hauls. While the stores’ own social media channels will also share the bargains that customers have been loving.”
This enables you to keep an eye on stock without even leaving the comfort of your own home.
Compare prices using grocery comparison app
Another good way to ensure you are getting the best value for money is to compare prices on the shop floor, said Drew.
“Download the “My Supermarket” app on your phone so that you can quickly access the prices of products across major retailers,” she said.
Own brands aren't always a rip-off
Don’t be quick to dismiss the retailer’s own brands – you might be surprised what you find in terms of quality.
Poundland’s Make Up Gallery line, for instance, was highly praised by women’s magazines Vogue and Cosmopolitan, saying it was comparable to higher-end cosmetics brands.
It’s no surprise that stock soon sold out and extra product had to air freighted in during December. Over 100 cosmetics products are included in the range, including nail varnishes, eyeliner foundations and lip glosses, all for just £1 each.
Go early to get the best deals
Stock is replenished throughout the day, so don’t wait until a specific part of the week to search for good deals. Ensure you get first dibs on products and visit the shop in the morning as popular items go quickly.
Do the maths before you buy
If you are going to buy branded products anyway, you will often find comparable items cheaper in the pound store. But, if you are a fan of the supermarket own brands, make sure you do your sums first as these often work out a better deal.
Johnsons’ Cotton Buds (200) for instance, are currently on offer at Poundland for £1, but head to Sainsbury’s and you can pick up a 300-pack of their Little Ones cotton buds for just 55p.
Watch out for expiry dates
The majority of products sold in pound stores have the same typical use by or best before dates than those found in any other retailer, but this is not always the case.
Many retailers bulk-buy ranges from manufacturers keen to clear through their excess stock and, as a result, will have a shorter-shelf life.
A spokesman from Poundland said: “It's no secret that from time to time we can bring amazing value items to our shelves because having over seven million shoppers a week can help brands clear shorter shelf-life items quickly,”
“But we never compromise on quality so we always ensure the customer gets a real bargain by making sure there's enough life left in the product for the customer to enjoy it.”
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