As a child, I grew up watching TV game show “The Price Is Right.” But often, I knew the price was NOT right because their prices reflected full retail value, and every one of those goods could be purchased for less.
This begs the question: What is the right price?
Granted there are some items that you cannot pay anything but full price. Taxes are an example. But you’ll find that the vast majority of material goods can be found at a lower price than MSRP, or manufacturer’s suggested retail price. Even services, like a haircut or hotel stay, have deals or discounts if you take the time to look.
That is why you should find what I consider the target price. How much could the price be after a discount? What is the item worth, in other words, what is its value? Most importantly, what is the item worth to you? Practice giving yourself an ultimatum: “If I cannot buy this $35 item for under $20, then it goes back on the shelf.”
Some ways to reach the target price:
- Get it on Sale
- Apply a Deal or Coupon
- Wait until inventory clearance or a new model enters the market
- Consider getting it Second-hand
- Negotiate if the situation allows for it
You may find that you miss out on an opportunity because your target price estimate was too low. That’s ok. You will adapt. And hey, it saved you from spending money this time. So the next time you go shopping, play the target price game and see if you win!
Homework: Visit your favorite store and without looking at the price tag, determine a target price for the item you want. As a bonus challenge, resist any urge to buy immediately, and wait at least 30 days to see if you are still interested in making that purchase.