Unwrapped: The Lies Retailers Tell You During the Holiday Season

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All your favorite merchants want your money right now. Keep reading to learn a few of their tricks to get you to spend, spend, spend. 

The winter holidays bring with them comfort, joy, cheer — and sometimes a bigger credit card bill than you want. Americans plan to spend an average of $875 to celebrate this year, according to research from the National Retail Foundation and Prosper Insights & Analytics. Most of that tab ($620, to be exact) is what they intend to spend on gifts specifically. With this in mind, it’s worth considering all the ways retailers try to lure you in to spend more money. Here are a few to watch out for.

“Black Friday features our lowest prices of the year!”

You might assume that holiday sales mean you can snag great presents for absolute rock-bottom prices. While Black Friday is a good time to buy certain items (such as small appliances and smart home gadgets), you can find better deals on TVs, furniture, and clothing at other times of the year, according to RetailMeNot.

TVs in particular are the quintessential Black Friday buy — how many low-quality cellphone videos that featured suburban housewives trampling each other in the middle of the night for a chance at one for cheap have you watched? But our friends at The Motley Fool noted a few years ago that those supposedly high-end sale TVs might be made by substandard brands, or even using cheaper parts than a non-sale TV. Yikes!

“That’s on sale for 50% off the original price!”

One sneaky retailer lie you’ll hear during holiday sales leans on the technique of price anchoring. Price anchoring is a strategy businesses use to make you think you’re getting a better deal (and a better product value) than you really are. Let’s say you’re shopping for a new purse for your mom, and you see one sale priced at $40, and the tag says the original price was $80. Wow, what a great deal! But who’s to say the original price was ever actually $80? If this purse is always “on sale,” and never actually going for $80, it’s been price anchored, and the store is hoping you’ll see “$40 for an $80 value,” and jump on it.

This is certainly a dirty trick, but there are ways around it. One strategy is to use price-tracking software or apps — these can also help you jump on the perfect gift when it’s at an actual lower price.

“It’s the perfect time to get a store credit card!”

Store credit cards can be…complicated. On the one hand, some excellent store credit card options offer ample cash back and other perks at your favorite stores. But on the other hand, there are plenty of substandard cards that offer meager rewards and very high APRs. It’s never a good idea to take on a new credit card while you are being pressured to do so by a store clerk, and also while you’re in the middle of your holiday shopping and likely under stress and a time limit. Don’t be fooled by that piddly 10% off your first purchase they’re offering — there are better welcome bonuses out there.

If you want a new credit card for holiday shopping, I recommend instead applying for one of our favorite rewards credit cards. Wouldn’t it be great if the money you spend on holiday expenses benefits you by giving you a little cash back or even rewards points you can turn into a cheaper vacation in 2024? Time it right, and you might even be able to meet a sweet welcome bonus thanks to just your gift purchases.

Retailers have plenty of lies and tricks up their sleeves, especially during the holiday season. But now you’re hip to a few of them, so use this information to ensure you’re spending your holiday cash in the best (and smartest) way possible.

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