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Want to spend less this holiday season? Don’t fall for these tricks.

Companies use dozens of marketing tricks to make customers believe they’re scoring bargains. Here's what to look out for.

A sign aimed at last-minute holiday shoppers is displayed at a retail store in Schaumburg, Ill., Monday, Dec. 18, 2023.
A sign aimed at last-minute holiday shoppers is displayed at a retail store in Schaumburg, Ill., Monday, Dec. 18, 2023.Read moreNam Y. Huh / AP

Holiday shopping season is almost here, but it doesn’t have to be a season of senseless spending. Shoppers who take the time to plan can make smart purchases.

For 50 years, nonprofit Delaware Valley Consumers’ Checkbook has tracked prices and evaluated retail practices. Our secret shoppers have obtained more than a million prices for everything from alternators to zucchini, from hundreds of types of retailers and service providers.

All that research adds up to one key piece of advice: If you want a great deal on anything, shop around. Companies use dozens of marketing tricks to make customers believe they’re scoring bargains. Comparing prices before purchasing is critical to ensure you aren’t overpaying.

Here are 10 sneaky pricing and selling strategies to watch out for while you’re checking off your gift list.

Constant sales

Many retailers constantly advertise big savings. After tracking prices of big-ticket items sold at 24 major retailers for 33 weeks, Consumers’ Checkbook found that 21 of the stores claimed to offer discounts more than half the time. For several chains, most of the items we tracked were offered at false discounts almost every week. In other words, the “regular price” shown on price tags is seldom — if ever — what customers pay.

These special-but-not-really-special discounts, holiday sales (we’re looking at you, Black Friday), and other events are meant to manipulate you into buying items right away, and dissuade you from shopping around. All this good-deal euphoria is also designed to make you snap up more stuff while you’re at it.

Inflated anchor prices

The flip side of constant sale pricing is fake “regular” pricing, referred to in the industry as “anchor prices.” Many sellers show a crossed-out higher price — one they would never actually charge for the item — with lower “sale” prices splashed nearby. It’s a gimmick to make that day’s prices seem like bargains.

Scarcity warnings

Demand is high! Supply is low! Act quickly or you won’t get that hotel room/pair of sandals/grill. Usually, it’s a ruse to make you buy now. Don’t let warnings like these deter you from shopping around. Even if someone else buys that last discontinued sofa, salespeople are always happy to find something else to sell you.

Free or inexpensive trial periods

Companies that offer subscriptions often bait their sales hooks with introductory discounts or reduced-cost trial memberships, knowing that once customers sign up, they’ll later pay higher rates.

Every year or two, reevaluate your business relationships, particularly your cable and cell phone bills, bank accounts, and credit card accounts to make sure you’re not paying for something you’re not using — or no longer getting the best rate for.

Special treatment

“Because you’ve been a great customer” or “Because we have a crew working nearby” or “Because you’re a parent” or “Over age 65.” Salespeople know if they can convince you that you’re getting special treatment, you’ll feel good about their offers — and might not shop around.

Fake deadlines and limited-time offers

Don’t rush. Ignore the countdown clocks many companies post online around the holidays. Most prices you see will still be there once the “special event” ends.

And don’t assume that “clearance” or “clear out” sales signify amazing deals. You might have heard there’s an ideal time of the year to buy certain items because sellers need to clear out old inventory — for example, end of summer deals on grills or lawn mowers. These claims generally have no merit. Checkbook’s shoppers find “clearance” items available for the same price months later.

Deadlines show up in other high-pressure sales environments: Gyms offering to waive hundreds of dollars in initiation fees if you sign up today; free upgrades that won’t be around after you leave. By setting immediate deadlines, they hope you’ll stop your pesky contemplation and buy already.

Hidden fees

Unfortunately, for many services, the price offered is rarely what you’ll pay. Hidden fees cost consumers billions each year. Some of the biggest offenders are hotel- and vacation-booking sites, which don’t include mandatory “resort” and other fees in nightly rates.

Charm prices

Stores display prices ending in 99, 98, or 95 to make prices appear lower: $9.99 is perceived as “$9 and change,” rather than $10. Don’t be fooled into thinking $199 is a lot better than $200.

Sellers may also use a seemingly random amount — say $328.46 — to create the impression that prices were set as low as possible.

Alternative payment methods

Many companies have taken a cue from casinos’ use of chips by pushing alternative payment methods. For example, using Starbucks’ mobile app to pay for daily $5 lattes feels like you’re not spending real money.

Gift cards are another example. Sellers collect money up front for future purchase, but there’s a decent chance the gift card will get lost or forgotten, and the company will realize a near-100% profit. Customers also tend to buy beyond the amount on gift cards, spending their own money to cover the rest.

Easy math

Some sellers, especially those with pricey products, advertise discounts as nice round dollar savings (”Save $100″), rather than a percentage. The idea is that you’ll more easily absorb the supposed deal. Similarly, some sellers group items for one price (4 for $10). You’ll buy four of them, even if you can buy just one for $2.50. We all fall for this.

Inquirer readers can view Checkbook’s full list of marketing tactics to be aware of, along with all its ratings of local service providers and consumer advice, free until Dec. 5 at Checkbook.org/Inquirer/Shopping.

Delaware Valley Consumers’ Checkbook magazine and Checkbook.org is a nonprofit organization with a mission to help consumers get the best service and lowest prices. We are supported by consumers and take no money from the service providers we evaluate.