Money Hack #4: Watch out for fake deals

With Prime Day just past us and Black Friday coming up, this is the perfect time to talk about deals. Who doesn't like a good one? It's not just about the money saved, and you know I love saving money. It just feels good knowing you paid 20% less for <popular gadget of the year>. Even more if you were going to buy it regardless, but managed to snatch a deal just before buying it.

Now, why am I going on talking about fake deals? A deal is a deal, right? Well, no, not all deals are created equal. Let's take a brand new phone for example. You go on store A's website and find the phone for $500, but with a limited 50% discount applied, the phone only costs $250! What a bargain! But wait, if you search a bit and go on store B's website instead, there's no discount there but you can buy it for... $250. What gives?

Many sellers take advantage of the psychological effect of discounts to nudge buyers into action by providing a discount. But that cuts into their margin. What if there was a way to offer a discount, without actually having to pay for it? Enter fake discounts, where a discounted value is offered but the final price is the same. If you think this is scummy and a show of bad faith, I agree. That's why it's illegal in certain jurisdictions, but not all. And even in places where it is illegal, proving it can be hard since sellers are allowed to set their own price after all.

You probably know a store like this, where everything is always on sale, no matter the time of the year. A regular buyer would be hard-pressed to know what the "real" price is since they've never actually seen it in action.

What can you do against that? Don't get fooled by a passing deal. Money Hack #2: Sleep on it to make sure you're not being pressured into a bad deal. Research your options, and find the price history of the product/service you're buying. I love deals just as much as everyone, but make sure it's the real deal!