You see a big red tag screaming "50% OFF!" and your heart races. But before you click that buy button, take a breath. Not every discount is what it seems.
Red Flag #1: The Perpetual Sale
If a store is always having a sale, it's not really a sale. Some retailers mark items as "on sale" year-round, creating a false sense of urgency. The original price was likely inflated to begin with, making the "discount" meaningless.
What to do: Use price tracking tools to see the item's price history. If it's been the same "sale price" for months, you're not getting a special deal.
Red Flag #2: Suspiciously High Original Prices
Ever seen a product marked down from $299 to $79? That original price might never have existed. This tactic, called "reference pricing," makes the discount look more impressive than it actually is.
Compare the "original" price with what other retailers charge for the same item. If nobody else is selling it anywhere near that high price, the discount is fabricated.
Red Flag #3: Limited Time Pressure That Never Ends
"Sale ends tonight!" But when you check back tomorrow, the same sale is still running with a new countdown timer. This artificial urgency is designed to make you buy without thinking.
Real limited-time offers have specific end dates tied to events like holidays or inventory clearance. If the urgency messaging changes but the sale continues indefinitely, it's a manipulation tactic.
Red Flag #4: Coupons That Don't Actually Work
You find a 20% off coupon code online, but when you try to apply it, you get an error or discover it excludes everything you want to buy. Some retailers flood the internet with expired or restricted codes to create the illusion of savings opportunities.
Before shopping, verify that coupons actually work on the items you want. Look for recently confirmed codes from reliable sources, not just any code you find in a search.
Red Flag #5: The "Compare At" Price Trap
Phrases like "compare at $150" or "valued at $200" are red flags. These aren't the actual prices the item sold for, they're theoretical prices the retailer claims the item is worth.
The Federal Trade Commission has rules against deceptive pricing, but enforcement is limited. Your best defense is to check what competitors charge and what the item has historically sold for.
The Bottom Line
Real discounts exist, but so do fake ones. The key is knowing how to tell them apart. Before you buy based on a discount, take 60 seconds to verify the price is actually lower than normal. Your wallet will thank you.
Tools like PayLessly help you cut through the noise by verifying which discounts are real and showing you the true final price you'll pay after all fees and taxes. Because the best deal is the one that actually saves you money.
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