If you go shopping, you are likely to encounter “spaving,” which has become a passion for many American shoppers. The premise of this practice is that it can help you save money, but at the same time, it ends up taking more money out of your pocket.
What is spaving? Have you ever experienced it? Almost everyone who shops either in physical stores or online has been influenced by this sales strategy.
The term is a combination of “spending” and “saving.” The idea behind it is that the more you spend, the more you save. One form of spaving is the popular “Buy One Get One” (BOGO) deal.
Retailers use these tactics to entice you to buy items you wouldn’t typically purchase just to enjoy the discount. In the end, you’re not really saving money but rather consuming more.
Spaving comes in three forms.
First is the full price for the first item, and the second item is free. Supermarkets commonly employ this to help clear their overstocked inventory.
But do you really need that first item? Some people end up filling their carts with BOGO items they wouldn’t usually buy, thinking they are getting a good deal.
Big shopping discounts are a way to entice you to spend more money. For example, spend $700 and get $100 off. Initially, you may not have planned to spend that much money, but to save $100, you end up pulling out more cash.
Americans dislike paying for shipping, so they go to great lengths to avoid it. Many online retailers promise free shipping if you reach a certain purchase amount.
The result is that you keep adding items to your cart, and the final amount you spend might just equal the shipping cost.
While inflation tightens people’s budgets, the illusion of saving makes them believe they are actually saving money. They think they are being savvy, but in reality, they fall into the consumption trap.
They participate in “Buy Two Get Three” promotions and end up with five items they wouldn’t usually buy, thinking they saved money.
To most people, it feels like they’re winning at the shopping game.
Declining profits force retailers to ramp up their promotions. Data from the analytics company Numerator shows that from March 2023 to March 2024, the magnitude of temporary price reductions increased by 72%.
In times of excess inventory and reduced consumer spending, spaving serves to stimulate consumers to consume.
Spaving is everywhere. Sometimes, limited-time offers are thrust in front of consumers, along with BOGO deals – making it hard for consumers to find a supermarket or retailer that doesn’t promote spaving.
Spaving can lead to budget spiraling out of control, resulting in increased credit card bills, as consumers end up spending more than their initial budget while shopping.
According to a report from the lending company Lendingtree, Americans repay an average of $1,583 in debt monthly. With already high debt levels, the overspending brought about by spaving only adds to the financial strain.
The problems spaving brings include:
– Overspending, going beyond planned expenditures.
– Waste, buying more than what can be used, such as perishable foods.
– Perception of necessity, thinking you’ll eventually use an item because it’s on sale, even if you won’t need it soon or at all. You believe it’s essential just because it’s discounted.
In essence, you end up spending money on unnecessary items, exceeding your budget in one go.
You can avoid spaving and improve your financial situation. Remember, spaving is a psychological trick used by retailers, and you can steer clear of this “scam.”
No one enjoys sitting down to budget, but to prevent overspending, you must. If you manage to do so and stick to it, you can avoid overspending at stores.
What causes you to impulse buy? Understanding this can help you avoid spaving more than anything else. When placing items into your cart, ask yourself if it’s a momentary impulse or a genuine need; this will slow you down.
When promotional notifications flood your inbox, it’s hard to resist the temptation. Simply unsubscribe from those alerts and unfollow retailers sending the latest sales promotions on Facebook.
Don’t consider purchasing things you don’t need. Frequently check your shopping list when at the supermarket, or avoid aimlessly browsing online. Steer clear of sections in supermarkets that usually have the most BOGO offers, such as the center aisles. And refrain from wandering back and forth in every aisle.
Never shop with a credit card; only use the cash you have on hand, so you won’t exceed your budget due to spaving.
Stay vigilant when shopping and don’t fret about shipping costs, which may be more worthwhile than buying unnecessary items just to qualify for free shipping. Remember, if you don’t need a product, BOGO isn’t a deal.
Spaving will drain your wallet, not save you money in the end.