In my review of Jeff Yeager's The Cheapskate Next Door, one of the points in that book that hit me squarely in the eyes was his distinction between “cheapskate” (meaning someone who's frugal, and proud of it) with “bargain hunter” (people who enjoy ferreting out deals and buying for less). He claims that there's a misperception that the two are one and the same.
“What?! Of course the Mighty Bargain Hunter is frugal!” was what I was thinking. But he continues:
“Don't get me wrong, we cheapskates like to get the best possible value for our money. So yeah, when we shop, we do our best to scope out bargains. But the difference between a cheapskate and a bargain hunter is that cheapskates generally don't like to shop.”
(The emphasis in that quote from Jeff Yeager's book is mine.) I guess I fall somewhere in the middle. There are times I enjoy shopping, and other times I don't. I enjoy shopping most in places that things are already very good deals: thrift shops, garage sales, pawn shops, auctions, and the like. I shop for clothes only when I absolutely have to. (So maybe I'm a bargain cheapskater?)
How retailers win half the battle
Deep down, the truly frugal realize the power that advertising has on people's perception of needs and wants. Deep down, they know that businesses have won half the battle the moment they walk in the store. Because once they're in the store, they get bombarded with scientifically researched end-caps, colorful signs, strategic product placement, helpful smiling employees offering you free samples. (First one's free, kid!)
Businesses have to hit people with both barrels the moment they walk in the store. The capital investment tied up in these stores is enormous. They have to work as hard as they can to get that credit card out of the wallet.
But what do they do to get people in the store in the first place? Deals, and lots of them! Coupons. Special sales. Preferred customer status. These are cold calculating moves, too. Businesses have already factored in the cost of coupons in their pricing. They're still doing just peachy even when they sell an item for 25% off. Limited time special sales create a sense of scarcity and urgency. (“One day only! Don't miss this blowout!”) And if someone has reached preferred customer status, well, they've probably already spent a ton of money, so it's a no-brained to throw them a bone to get them to spend even more.
In short, bargains are the retailers' way to hook people, get them into the store, and get them to buy things they might not buy otherwise. What's more, they just appear to be bargains!
How the cheapskate can bargain hunt with a clear conscience
Again, Yeager says that cheapskates like to get bargains. (Who doesn't?) I think the key is that they don't let the marketing weasels cloud their judgment. They have a list of things that they want to buy, but (a) it's usually a short list, (b) they stick to it, and (c) the purchases aren't urgent ones. Let's look at each one of these:
- The list of to-buy items is short. If it were long, then that would mean more money out the door, and truth be told, frugal folks make do with a lot less than most, and they enjoy having less stuff to burden them.
- They don't deviate from the list. Just like it's a great idea to shop at the supermarket with a grocery list, it's a good idea to have a list when going into other stores as well. Unless something is a true screaming bargain that is something that they forgot they needed or could use — which is very different than not realizing that they needed it — they stick to buying what they came for.
- They can wait to buy the items. Retailers love people caught between a rock and a hard place. Why else do the price of flowers double on Valentine's Day? They typically plan ahead enough that they can look around for the best deals.
Conclusion? Bargain hunting and frugality can go hand-in-hand, but only if frugality is the stronger driving force for the purchase.
What are your thoughts? How do you balance bargain hunting and frugal living?
I can identify with this. I have always been pretty frugal, in the sense of just buying what i needed and not shopping a lot. At the moment I am looking for ways to stretch the dollar even further, but it is really hard to find a balance between frugality and bargain hunting. “Am I inventing a need I didn’t have before to fit the really great coupon I just found?” is a question that I frequently ask myself.
I can definitely relate to the difference between the two. I was once a bargain hunter. However I became obsessed with finding the bargains and started running out of cash. I begain to put these so-called bargains on credit cards. Such a ridiculous mistake.
Now I am absolutely a cheapskate. I walk out of thrift stores w/o buying anything because I know I can get it cheaper at a yard sale.
I like this new me far better.
Great post, and I like the tip about waiting. I completely agree. If you can wait, for even 24hrs, then you have the power, and I bet you will probably hold off on buying any particular item, especially if it looks/feels/sounds like an impulse buy. Keep up the awesome articles!
My friend’s dad was a banker. He always said, “You can go broke saving money.” My wife could stand to learn this, as she is always buying up bargains. For what, I’m not sure.