Most of us have an inner desire to develop wealth, primarily because
it affords us the type of financial security that makes life easier.
There are a number of misconceptions that surround the accumulation of
wealth, including the assertion that people can’t get rich simply
because they earn too little. This is a consequence rather than a cause,
and the fact remains that people struggle to accumulate wealth largely
because they spend too much time and money on things that lack value.
A reckless approach to expenditure or a lack of focus will undermine any attempts to generate income, whereas
frugality and hard work will drive success.
In practical terms, those with a desire to build wealth must avoid
prominent sales traps. These schemes are used by companies across
multiple sectors to target those with a propensity to spend impulsively,
although they rarely offer anything of tangible or long-term value.
This is also an issue with short-term investment plans, so you must
tread carefully when faced with the following examples:
1. Marking down a marked up price
When companies or distributors hold sales events, you could be
forgiven for thinking that any subsequent purchases represent far
greater value than usual. It is not unusual for sales teams to inflate
the price of a particular product in the weeks prior to a sale, however,
before
reducing this drastically and creating the false impression of value.
Although huge reductions in excess of 50% are extremely enticing to
customers, this means nothing if the original sale price was manipulated
to mislead individuals about a particular product’s value. To avoid
this, you need to take responsibility as a customer, recognize the
dangers and shop around aggressively for the best possible deal. A
specific percentage discount does not translate into pure savings, as it
simply reduces either the manufacturer’s suggested retail price or the
one initially set by the distributor. By comparing prices across the
market, you can delve beyond individual deals and achieve value for your
hard earned money.
2. The lure of exclusivity
Online price comparison technology has proved extremely challenging
to retailers, as it creates an informed and motivated army of customers
who are less susceptible to traditional sales techniques. This is where
the concept of exclusivity comes into play, as this is a ploy used by
stores to justify high price points and deter consumers from shopping
around. By marketing goods as part of an “exclusive line” that is not
available anywhere else, retailers can drive a far harder bargain and
force the hand of impatient customers. This has proven to be a
successful scheme, especially when it is aimed at impulsive spenders who
are in the market for a specific product. Exclusivity deals are usually
restricted to specific regions, meaning that you may be able to find
your chosen product elsewhere. These deals are usually signed for a
fixed period of time, and once this has passed the product will become
available in other stores nationwide. Patience is therefore crucial,
while more flexible customers can also shop around for a similar product
that serves the same purpose.
3. Persistence wins the day
The majority of successful salespeople are aggressive self-starters, meaning that they are generally
self-reliant and persistent in the pursuit of their goals.
This leads us to another common sales trap, through which customers are
implored to make a purchase as a way of satisfying a relentless and
driven sales effort. Although this is an obvious trap that relies more
on direct communication and tenacity than psychology, customers can
easily be influenced to buy if they feel pressured by the attentions of a
sales representative. In this instance, the key is to remain grounded
and communicate authoritatively with salespeople. If you have no need or
desire for a specific product or service, remember that this is
unlikely to change throughout the course of any dialogue. By focusing on
this and communicating your stance clearly to a sales team, you can
quickly discourage them from pursuing your custom. Time represents money
to salespeople (especially those who rely on commission), so they are
unlikely to chase leads where the customer shows a clear and unwavering
lack of interest.
4. The art of accessorizing
Have you visited a furniture store recently? If so, you will have
probably noticed perfectly standard centerpiece items, such as beds or
sofas, adorned with a number of high end and visually engaging
accessories. While the store will justify this by claiming that such a
practice helps customers to visualize how their property will look in a
fully decorated and accessorized room, it actually serves to enhance the
appeal of ancillary products that are not included in the sale price of
the core product. Not only does this make the core product itself look
more enticing, but it also drives additional purchases. Awareness is
crucial in this instance, as once you recognize this sales trap you can
refocus on your needs as a consumer. The first step is to make a concise
list of everything that you need prior to hitting the high street,
while also establishing a fixed and viable budget for the trip. In order
to ensure that the core product in question meets your needs, you
should also look to strip it of any accessories or ancillary items
before making a final decision. You could even bring in some of you own
accessories from home, as this will present the product in a more
realistic light.
5. When insurance has no purpose
In addition to corporeal items, there are also a number of lucrative insurance products sold on an annual basis. As
the ongoing controversy surrounding PPI claims
proves, however, not all of these products offer value to the buyer or
are sold in an ethical manner. There are two damaging sales traps to be
wary of in this instance, as vendors will either sell erroneous policies
that offer no discernible value or inadequate coverage that fails to
deliver long-term, financial savings. The former policies tend to be
sold aggressively by call center operatives, and they usually look to
capitalize on client ignorance or gaps in knowledge. How do you avoid
the insurance sales trap? The first step is to assume the role of
aggressor when communicating with service providers, especially if you
are in need of a specific product. More specifically, you will need to
set out exactly what you are in the market for, detailing your need,
budget and any additional data that helps to reduce risk. If you are
contacted directly by a firm offering their products, you should also
look to challenge their knowledge and ask them to clearly
explain the terms, purpose and salient points of the policy.
6. The quest for high-yield, short-term investments
In the quest to build wealth, you may be tempted by any of a number
of investment opportunities. You will need to be cautious, however, as
the demand for instant, high returns has triggered a rise in the number
of risk-laden schemes and ill-considered investment traps. While some of
these investment opportunities may well have the capacity to trigger
quick returns, they are primarily aimed at inexperienced investors who
fail to understand the relationship between risk, return and long-term
gains. To avoid this, you will need to research your chosen market and
ensure that there is an opportunity to earn reliable, long-term gains
that offer a suitable reward for your investment. The market for
sustainable assets and green investment is particularly strong at
present, for example, especially when you consider that
there are now viable technologies that reduce carbon emissions
and consumption in sectors such as fuel, energy, and even data storage.
This trend is likely to continue for the future, making this a far more
suitable investment option than those that revolve around real estate
flipping and pyramid schemes.
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