There’s no doubt that retailers have figured out pricing tricks designed solely to separate you from your money. In fact, they often hire psychologists to determine how best to set their pricing and even how to set up store displays to get you to open your wallets wide. These pricing tricks exist because they absolutely work. They have even grown more elaborate as online shopping has flourished the past ten years. Here are six of the most common pricing tricks retailers currently use, along with handy tips to fight back and keep more of your money.

1. Decoy Pricing

Decoy pricing is a pricing tactic used by retailers to trick your brain into buying an item based almost entirely on perceived value.

Steve Jobs was a master at decoy pricing and Apple still does a great job with it today.

Take the Apple Watch for example, it currently has over 30 models to pick from, ranging in price from $349 to over $15,000.

All of the watch models with a price tag over $10,000 (there are 8) are simply a decoy to make the $349-$549 versions seem like a great value.

Apple’s goal was never to convince mass quantities of consumers to buy the ultra expensive watch models, but rather to sell a zillion of the cheaper models.

The expensive models serve as a reference to our brains that, “Wow, I can get almost the same watch for under $350. Sold!”.

To avoid falling prey to decoy pricing, it’s wise to consider your needs first, then find the best version of that product that fills those needs in a price range you can afford.

See Also: Apple Student Discount: The Easiest Money You’ll Ever Save

2. Dynamic Pricing

Dynamic pricing is used by retailers to get you to spend what they think you can afford, and thus change the price accordingly.

Some online retailers will go so far as to raise the price depending on factors like your physical address or zip code, while others will dynamically change the price based on your web browsing and buying history.

A few popular retailers who’ve been known to use this tactic include Amazon, The Home Depot, Staples, and Orbitz.

If you suspect the price a website is charging you is dynamically changing, you’re probably getting messed with.

A simple way to test out your theory is by putting your browser in “Incognito Mode” (Directions), or by simply disabling 3rd party cookies (Directions).

Once you’ve done either of these, check the retailer’s website to see if the price changed.

Essentially you’ve blocked the retailer from tapping into your browsing and buying history and charging you accordingly.

Another tip is to check the price on your mobile device to see if the price is different as many retailers will charge you differently depending on whether you’re browsing from a PC, Mac, or mobile.

The bottom-line is to always do a quick price comparison so you know what the best price is, then never accept a higher price.

3. Charm Pricing

Charm pricing is fairly obvious.

Whenever you see a product priced at $29.99 or $9.98, the retailer is attempting to “charm” your brain by marking prices just below a round number.

Because our brains are trained to read from left to right, the first digit is the one that sticks in our head and the number we use to decide if the “price is right”.

This phenomenon is known as the left-digit effect and studies have shown that it absolutely works and has a big impact on our buying decisions.

So whenever you see a price ending with a .99 or .98, get in the habit of rounding up, then decide if it’s a good deal.

See Also: Score Free Stuff on Amazon…It’s Surprisingly Easy

4. High-Low Pricing

If you’re a couponer, you’re probably already familiar with high-low pricing.

It’s when retailers have relatively high everyday prices, then frequently release coupons to make you think you’re getting an amazing discount via the coupon.

In reality, retailers that use high-low pricing know they’ll sell minimal items at full-retail, and if they do, it’s a bonus.

Popular retailers where you’ll often see this pricing technique include Ann Taylor, JCPenney, Kohl’s, and Old Navy.

While this is prevalent at brick and mortar stores, you’ll also see it when shopping online.

Many websites like American Eagle, Gap, J.Crew, and Aeropostale will set all of their online prices to full retail just before releasing a coupon code to the public.

Often times the site-wide sale they had prior to releasing the coupon will actually save you more money.

Your best bet to combat high-low pricing is to try and combine a site-wide sale with a coupon code to maximize your savings.

See Also: When Does Target Restock? Here’s the Time When you Score a Deal

5. “Open the Wallet” Pricing

This is the technique of pricing items really cheap in the front display aisles at retail and grocery stores to get your brain excited about saving a bunch of money.

It’s physiological warfare and your money is at risk.

Namely, spending money on stuff you had no intention of buying but simply can’t pass up as the “deal” is just too good.

Target, Walmart, Old Navy, and Home Depot are a few of the retailers famous for these “Open the Wallet” displays.

By knowing exactly what these stores are trying to do, you can walk-by these displays and stay focused on the reason you walked in.

6. Prestige Pricing

Prestige pricing is seen mainly with luxury brands, retailers, and websites.

It’s a trick that makes you think because a price is high, it must indicate the quality is superior to cheaper versions of the same product.

In other words, expensive = good. While sometimes this is definitely true, often times it isn’t.

Examples of prestige pricing that jump to mind include jewelry, automobiles, perfume, handbags, and cosmetics.

Price tags with prestige pricing often end with .00, because odd pricing like .99 or .74 typically makes us think the item must be discounted or of lesser quality.

The best way to avoid prestige pricing, especially when making an expensive purchase, is to always do ample research.

Read user reviews of the product to determine if the prestige price is worth it in terms of overall value.

Also, determine if it’s simply a status purchase, in which case, you might be okay with the price.

Just be aware, that often, the cheaper version will suffice.

Ask the Reader: Have you ever fallen prey to any of these sneaky pricing tricks? If so, how do you keep it from happening again? As usual, I look forward to your comments.

By Kyle James

While it’s always fun to talk about the best buys at Costco, it can often be more helpful to breakdown the items that provide the least value. The stuff you’ll simply want to buy elsewhere and save money in the process. Here are the 12 items that are a bad buy at Costco, many of which will probably surprise the heck out of you.

1. Big Vats of Almost Anything

Due to the expiration dates on things like mayo, mustard, yogurt, eggnog, and ketchup, it’s often a bad buy to purchase these in large quantities at Costco.

After all, saving a few bucks upfront is not worth it if you end up throwing it away before consuming it all. This advice extends mainly to those without a household full of hungry kids.

Here are the average expiration dates on some of these popular items to help you determine if you should be buying them at Costco or not:

Mayonnaise: Once opened, it will store safely in the refrigerator for up to 2 months.

Yogurt: Will typically keep for 7-10 days after the sell by date.

Ketchup: Will keep for up to 6 months in the refrigerator.

Peanut Butter: Opened PB will last up to 3 months in the cupboard.

Pickles: Surprisingly, these will last for an entire year in the fridge.

Sour Cream: You only have 2 weeks to consume a tub of sour cream.

Mustard: 1-2 years past its expiration date when left unopened in the pantry.

Butter: It will last 2 weeks past the expiration date.

Any other items I should add to this list? Let me know in the comments.

2. Diapers

While it can be enticing to stock-up on diapers at Costco, you should look at the Amazon Subscribe & Save program, and get them for 20% less on average.

Throw in the fact that you’ll get them delivered for free to your front door, and it makes Amazon a really good deal.

For example, at Costco you can get Huggies (size 2) for $0.23/diaper, compare that with an Amazon subscription and you’ll only pay $0.14/diaper. May not seem like much savings, but for a box of 246 diapers, you’ll save a significant $9.84 by staying away from Costco.

Similar savings exists for other popular brands like Pampers and Luvs.

3. Snack Foods

I always see shoppers walking around the Costco warehouse with shopping carts full of “snacky” food like granola bars, chips, crackers, jerky, and the like.

I often wonder what the heck they’re doing as the per-unit price of most of that stuff at Costco is more expensive than at your discount grocery stores, especially when you can combine sales with a coupon.

Also, you risk buying more than you’ll actually eat, and end up having to throw some of it away, or end up feeding it to your chickens.

If you want a cheap snack, grab something affordable from the Food Court on the way out.

4. Breakfast Cereal

With 3 kids in the house, we buy a lot of cereal. Cheerios, Frosted Flakes, Cinnamon Toast Crunch, Corn Flakes, the occasional Fruity Pebbles…you get the idea.

We always find it cheaper at our local Winco Foods discount grocery store, ALWAYS. The savings with a coupon is even greater. Don’t let the bigger boxes at Costco fool you, they’re almost always more expensive per serving then what you can find at the cheapest grocery store in your town.

Be sure to do the math on your next shopping trip and you’ll see the difference too.

5. Sunscreen

Are you aware that sunscreen can actually expire and lose its effectiveness? I sure wasn’t.

Some dermatologists actually suggest “using up” a bottle within two months as the active agents can decompose over time.

For this reason, it’s risky buying sunscreen in-bulk from Costco unless you’re lathering up several kids every morning. Instead, look for deals at Walmart or Target on more reasonably sized sunscreen bottles.

6. Media: Books, CDs, and DVDs

While many shoppers think Costco is the best place to score a deal on books, music, and DVD/Bluray movies, the fact of the matter is you can typically find lower prices on Amazon or at Walmart.

Also, let’s not forget about your local thrift store as it’s a great place to pick up “new to you” books for pennies on the dollar.

7. Laundry Detergent

Instead of buying in bulk from Costco, use a printable coupon, along with a sale, and stock-up for less at the grocery store. Besides the grocery store, look for deals at Walmart, Target, and even drugstores.

We’re talking significant savings too. Up to $0.20 a laundry load less when compared to a Costco Wholesale club.

8. Paper Goods

Paper plates, napkins, and plastic silverware, you’ll almost always find them cheaper when they go in sale at grocery stores.

This is especially true when you can combine store and manufacturer coupons on your paper goods.

These paper products are pretty easy to store in bulk, so be sure to stock up when the price is right and you’ll get them cheaper then if you made a trek to Costco.

9. Name-Brand Clothing and Shoes

Beware that whenever you see name-brand clothing or shoes at Costco, they are often made specifically for the warehouse club and are of lesser quality.

Brands where I personally have noticed lesser quality include Levi, Reebok, Hanes, Champion, and Adidas. Instead, buy higher quality name-brand clothing, at a major discount, from stores like TJ Maxx, Ross, and Marshalls.

1o. Non-Organic Produce

Tasty fruit like peaches, tangerines, strawberries, raspberries, and blueberries are typically darn expensive at Costco.

Be sure to check the price per pound as most grocery stores will beat their price by 15-20%.

See Also: The Best Buys at Trader Joe’s According to Employees

11. Towels and Sheet Sets

Due to limited colors, thread counts, sizes, and a higher price point, Costco is not the best place to shop for bed sheets, comforters, and towels. Compared to Costco, you can typically save 30-40% more by shopping for these items at TJ Maxx, Ross, and Marshalls.

Also, keep an eye out for sales and coupons at stores like JCPenney, Bed Bath & Beyond, and Macy’s to score a deal better than what you’ll find at your local Costco.

Ask the Reader: What items on my list do you agree with? Also, let me know if you disagree on any of these and I’d be happy to investigate further. My goal is to keep this information up-to-date and accurate. Thanks.

By Kyle James

Photo by J Brew.

The mention of the word “Walmart” can cause a BIG divide among shoppers. Many love the low prices and selection and shop there regularly, while others vow to never set foot in a Walmart . But putting differences aside, there’s no arguing the fact that Walmart contains really smart buys and some really dumb buys as well. So I headed out and talked to over a dozen employees at 3 separate Walmart locations and got the real scoop.

 The Good Buys

First, let’s start with a few of the best buys at Walmart according to employees.

1. Cheap Furniture

I first talked to employee Mark and he immediately said that the furniture at Walmart is a great buy.

It’s been his experience that the quality is very similar to IKEA and is perfect for college student and families with young kids.

He said that he and his wife had a Walmart coffee table for years when their kids were young and the thing was a beast and definitely held up well and it took a MAJOR beating.

He also had a matching end table that held up really well and a couple table lamps that he’s had for over 20 years.

See Also: 6 IKEA Savings Hacks That’ll Make You Feel Like a Genius

2. Legos

I then worked my way over to the Toy department and talked to a friendly gal named Tina.

She said that having had three kids who’ve all been into Legos at one time or another, she was keenly aware that Walmart was the place to shop to save money.

She said she price compares Legos at Walmart all the time and their price typically beats Target, Costco, and Amazon by up to 25%.

See Also: Did You Know Walmart Has Return Hours? Here’s the Dealio

3. In-House Coffee Brand

Tina also told me that the in-house coffee brand is pretty solid, both on price and taste, and she’s not the only one.

She went on to point out that in-particular the Crème Brulee Great Value brand is better than ANY drip coffee she’s ever had at Starbucks.

And coming in at under $5 for a 12 ounce bag of ground coffee, it’s pretty dang affordable too as one bag makes over 40 cups.

4. Organic Foods

In recent years, Walmart entered the organic food market and is doing pretty well in terms of price, especially when compared to Whole Foods.

According to Jen, an assistant manager at one of the Walmart stores I visited, “our organic veggies, especially the stuff on our wet wall is delicious and the taste is so much better than the non-organic.”

Specifically, she pointed out the baby carrots and mini peppers as being the tastiest veggie she’s ever put in her mouth.

On a side-note, I’d be curious to know if they get their organic foods from the U.S. or other countries where the standards for “organic” are lower and thus so are their prices.

5. Photos & Photo Cards

I think worked my way over to the electronics section and spoke with store associate Ted.

Ted dropped the knowledge on just how affordable the Walmart Photo Center is.

He said his wife is a Kindergarten teacher and has priced all the different photo services in town and Walmart is by far the cheapest and the quality is always very good.

She uses it to create Christmas photo gift for her kids to take home to their parents every year and they always turn out great.

Apparently, you can get 4″ x 6″ photos for 9 cents apiece at Walmart. Seems like a good deal compared to 15 cents at Shutterfly, 12 cents at Walgreens,  and 15 cents at Target.

Ted also said their Passport Photo service is BY FAR the cheapest option in town with printing only costing $7.64/each.

See Also: Thinking of Buying Tires From Walmart? Read This First

And Now the Dumb Buys According to Employees…

1. Gift Cards

Thanks to Olivia, who I caught up to stocking shelves in the home goods section, the first bad buy on our list is gift cards.

She told me that Walmart sells a ton of different gift cards, but the problem is, they sell them for full face value.

She suggested always buying them for UNDER face value from Costco or at websites that specialize in gift card deals.

I did a little research and found that Raise.com and GiftCardGranny.com are two great options for buying discounted gift cards.

2. HDTV’s

Back to my buddy Ted in the electronics department.

He told me something about HDTV’s sold at Walmart that I always thought was potentially true.

Many of them are from lesser known brands and made of inferior components and have terrible specs like only 2 HDMI ports, for example.

Some of these brands include TCL, Hisense, onn., Sceptre, and GPX. Buyer beware.

Surprisingly, he also added that some of the bigger name-brand TVs also come with cheaper internal parts that are specifically made for Walmart.

3. Laptops

I must admit, this one really surprised me.

According to an employee who didn’t want her name mentioned, informed shoppers who want a laptop that’s not going to be obsolete tomorrow, avoid buying a new laptop from Walmart.

She also said that if you want one of their laptops, you can typically find better prices online or directly from the manufacturer.

From looking at their online inventory, Walmart definitely specializes in the budget laptop priced under $300.

So if that’s what you’re in the market for, I’m a little confused why Walmart isn’t a good option, but the employee I talked with definitely tried to steer me away from Walmart.

The bottom-line is to always do your OWN research before before buying any new computer.

See Also: Here’s How to Get a Walmart “Online” Price Match

4. Major Appliances

I was today years old when I found out Walmart sells major appliances like refrigerators, ovens, and dishwashers.

Turns out they do, but they don’t have the same selection as Lowe’s or the Home Depot.

Lewis, who I quickly quizzed while working in the sporting goods department, told me NOT to buy a new appliance from Walmart as they rarely have specials and sales events, which often include free delivery and takeaway of your old appliance.

He went on to add that if you’re buying a small refrigerator for your dorm room, or man cave, that’s fine, but don’t buy anything bigger than that at Walmart.

5. Car Battery

EverStart is the brand that’s sourced to make car batteries for Walmart.

While they come with a decent warranty, I was told by two separate employees that they’re inexpensive batteries for a reason.

Also, it was brought to my attention that the auto shop at Walmart is not equipped properly to test your battery to see if it needs to be replaced which can create a hassle if you bring it in.

I was told that your best bet is to bring it in, with your receipt, and ask for a replacement and often times they’ll give you a brand new battery.

See Also: Guess Who Makes Costco Batteries? Answer Will Surprise You

Ask the Reader: What good or bad buys at Walmart would you add to my list? Let me know in the comments below.

By Kyle James

Photo by Mike Mozart.