Is That Sale Real? 10 Pricing Tricks Stores Use

The crossed-out number is called a reference price, and it only means something if the item actually sold at that price for a meaningful stretch of time. The Federal Trade Commission’s pricing guides say as much: a former price is a fair comparison when the item was offered openly and in good faith for a reasonably substantial period, not set briefly so that a later “sale” looks bigger. Some states are stricter. California, for example, doesn’t allow a seller to advertise a former price unless it was the prevailing market price within the previous three months, or the ad clearly says when it was.

The catch is enforcement. Nobody checks every tag, and a “was $199” that lasted one weekend can still end up next to a “now $119.” In the European Union, shops announcing a price reduction must also show the lowest price they charged in the previous 30 days. Wherever you shop, that’s the right yardstick to borrow.

“Compare at $89” sounds like a former price, but usually it isn’t. It’s a comparison with what something supposedly costs elsewhere, and “elsewhere” is doing a lot of work. It might be a similar but not identical product, a manufacturer’s list price that nobody actually pays, or a department-store price from years ago.

Outlet stores are where this gets slippery. Many brands make merchandise specifically for their outlets, with different fabrics, simpler construction or fewer features. A “compare at” price on those items can refer to a full-price version that was never the same product.

“Up to” means at least one item somewhere hits that number. It says nothing about the item you want. A storewide “up to 70% off” event might mean 70% off a few odd sizes and 10 to 20% off everything else, or nothing at all off the things people actually came for.

Deals that require buying more than one item are designed so the headline sounds bigger than the saving:

• “Buy one, get one 50% off” is 25% off each item, and only if you wanted two.
• “Buy two, get one free” is a third off, and only if you wanted three.
• “$50 off when you spend $250” is 20% off $250. If you only needed $180 worth of things, you’ll pay $200 instead of $180, for extras you hadn’t planned to buy.

The cheapest package isn’t always the cheapest product. Sizes vary, “family size” isn’t always cheaper per ounce, and some products quietly shrink while the price stays put. That’s shrinkflation: a bag of chips that goes from 10 to 9 ounces at the same price has just become about 11% more expensive, and no tag will tell you.

Many stores print a unit price (per ounce, per count, per sheet) in small type on the shelf label. Use it, and watch for labels that compare different units on the same shelf, with one product priced per ounce and the next per pound.

Timers, low-stock warnings and “14 people are looking at this” banners exist to rush you. Some are honest. Many aren’t: the FTC’s 2022 staff report on manipulative design, often called “dark patterns,” describes fake countdown timers and false low-stock messages as ways to pressure people into buying.

The listed price is only part of the bill. Shipping, handling, “service” or “convenience” fees and pre-checked add-ons can turn the cheapest listing into the most expensive one. This is called drip pricing, and it works because by the time the extra charges appear, you’ve already decided to buy.

A TV with a soundbar, a camera with a “free” bag and memory card, a skincare set with a bonus travel pouch: bundles make prices hard to compare because no other store sells exactly the same combination. Often that’s the point. Free gifts aren’t free, since their cost is built into the price, and bundled accessories tend to be the cheapest versions the seller could find.

Read the small line under the big number. The headline price may depend on:

• a paid membership or a loyalty account;
• clipping a digital coupon or ordering in the store’s app;
• trading in an old device;
• opening a new phone line, paying in installments over 24 to 36 months or keeping a service plan;
• buying a minimum quantity.

None of these are bad on their own. But a phone that’s “free” with a new line and a 36-month installment plan isn’t free, and a member price only helps if you’re already a member.

When a price says “after rebate” or “after savings,” you pay the full amount now and get money back later, if you send the right forms, receipts and barcodes before the deadline. Rebates work for sellers precisely because a share of buyers never claim them. Instant rebates, taken off at the register, are fine. Mail-in and online rebates are an IOU.