I managed to survive.
I didn't buy one thing at a Black Sale.
I don't even know (I know exactly) why this is a thing at all in Finland, or anywhere else in the world outside of the US - just a money grab. Yet, despite the economy being in the toilet, when I went to the local shopping center to have Adventure Friday with Smallsteps, it was packed full of people looking for a bargain.
I guess if you really need something.
But, is it a bargain? Unlikely. Which is why Finland is bringing in new laws for sales in 2023 that says that anything on sale has to also show the lowest price it has been in the last 30 days, to better inform consumers. The reason is that these retailers are offering 30-70% off items that they boosted in price for a few days last week, just so they can. Yet, people don't seem to care, as long as they feel they are getting a bargain, they will keep buying and buying, and buying a bit more on credit.
I had a walk around our house the other day to take inventory of the things we need and if there was anything pressing, just in case there was something on offer, but didn't find anything that couldn't wait a bit longer. With the winter coming in fast and electricity prices likely to skyrocket for us in the coldest months, we are holding off on getting anything unless necessary.
The thing is though, that all of these sales are compelling because we have been conditioned to respond to them, especially in harder times. It is a weird thing in us perhaps that we look at the price of something on sale and feel that we have "saved 20 percent", rather than recognizing that what we actually did was, spend 80 percent. It is a framing problem and if we were to reframe the purchase from the perspective of spending instead of saving, we would likely buy far less at the various sales.
Saving money is a gain. Spending money a loss.
The idea of "you have to spend money to make money" doesn't extend to consumer items - unless you are going to use them to do something you are going to get paid for. If not, it is all a loss, so make sure you are really going to enjoy the product, don't justify it by saying "it was on sale" because that is still a loss. When you have a 100 in your wallet and you spend 80 of it on a 20 percent off item, you didn't make 20 dollars.
But, this mental gymnastics is common and it is costing us dearly. There is an argument about stimulating the economy to be made of course, but at the same time, we could also stimulate the economy by buying useful items instead of crap too. Sure, the crap-makers will go out of business, but is that such a bad thing?
It is like the argument where it is said that clean-tech is too expensive in comparison to fossil fuels, but making that shift still stimulates and incentivizes the market, so the cost balances in the economy. The difference is, fossil fuel peddlers will lose their market in the process. An economy is just tracking resource allocation, it doesn't care what resources are being used.
Imagine if you could go back and use all the "wasted" money you have spent in the last five years and invest it instead - would you be better off now? Just imagine if everyone on earth had done that - what would the economy look like and what kinds of investments would be popular, thinking that the majority of consumer goods businesses would fail?
Imagine if that is what we did as a global community, where instead of funding wars, or spending money on useless pandemics, we invested it all into something like clean energy development, battery tech and improving wellbeing. Would we be in a better position as a society now?
Resource allocation.
We aren't very good at making good decisions with the resources we have.
Obviously, I am an idealist at heart who believes that there are not only better ways, but there is a chance that we will find and use them. I think though, that just like we know we shouldn't buy crap consumer items we don't need, we know the way, but we just don't want to take the steps down that path, because it doesn't feel as good as having something new and shiny, even if it will be old and dull next week.
At least for most of us and definitely for me, impulse control is hard for many things and we are then influenced by the market to act on our impulses, which is why so many are overweight. Most of the advertising is designed to make us feel bad about our lives, as if something is missing that we need to have to fill it. Or, it is designed to make us feel bad because we don't have what they have and therefore, we will find something else to fill that void. We tend to take the easier way out, even if it is harder in the long run.
Just look at the complaints about body representation in magazines, where people expect the magazines to change the models they use. How about, not buying those magazines? And then, how come the assumption is that influence of seeing those kinds of bodies gives the audience negative results? How come people aren't inspired to get into better shape? And then, if they fill the magazines with "average bodies" doesn't that inspire people to be even worse?
When I watch a World Cup game, I don't want to see a field full of average footballers, I want to see the best the countries have. Similarly, if I am buying a magazine, I don't want to see average people - the streets are already filled with them.
But it is is easier to blame advertising than to actually do something about it, but again, it is about resource allocation. If people really want to enact change, choose how we allocate our resources better. If people really don't want to see "skinny people" in magazines, don't buy those magazines and, if people really dislike these sales so much, stop buying from them.
Money talks.
It is about supply and demand and if what is being supplied has no demand, the providers will change what they supply, because that is how an economy works. Of course, they are going to use all the tricks they have to direct resources to what makes them the most money, but that is what they are designed to do.
They apparently know our design better than we know our own.
Which is why marketing works, because if we knew ourselves better, we wouldn't be nearly as influenced by what we see and hear. But, we are influenced. All those glossy magazines full of beautiful, photoshopped people might make a few anorexics, but take a look around, what is causing the weight at the other end of the scale?
Maybe it is the same thing.
While a few people are inspired to look like those in the magazines, the majority go the other way instead, consuming even more than they would have otherwise.
I can't look like them, I may as well give up and eat what I want.
Consume a bit more.
So yeah I wonder...
If as a world we spent the next five years allocating our resources well - what would the averages of society become?
Would we be spent, or saved?
Taraz
[ Gen1: Hive ]
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Consumerism mindset is difficult to get rid off.
They might just want to enjoy their hard earned money, rather than save it for later.
I'm not saying this is correct and everyone should just buy anything they want from their hard earned money.
Sometimes, it's just hard to resist temptation.
How will Finland government implement this?
Seems like a good idea if implemented correctly. Maybe I can suggest this to our legislatures as well.
People can do as they please with their money, but then it is hard to justify the complaining when that money is gone and they need it for something else - like utilities. I know people who are struggling to pay their mortgage, yet are surrounded by the latest gadgets constantly.
They make it a a law - people do it. One of the things that Finns seem capable of is following laws.
I laugh at their faces when they try to ask for money as they do when I don't join their social climbing just to show off money. Especially when they wouldn't sell their gadgets to cover their money shortage. Good times
Oh wow. It's easy to make laws there. Here, I usually ask how they will implement and enforce it since people usually push to the limits.
Don’t spend and save 100%!
I have noticed for some items Black Friday is more expensive. Most popular items are also not on sale.
Genius!
I never understood black fridays. Although things might be a bargain I actually wonder how much of it is a need vs. a want. I also realized that this black friday is a global event. They also have it in China as well, and its set on 11/11 of every year.
To put how big this event is... US consumer spending on black friday total average is around $19.7 Billion and as for China 11/11 it was reported sales were $139 Billion.... thats pretty crazy actually.
https://www.imagetranslate.com/blog/biggest-sales-around-the-world/
Its good to see there are people like you who thinks twice, and think again. I do worry about the economy going totally unpredictable these days. and I as well put my mind more into savings anf less spending as well.
Pretty good read for me today man~ cheers.
That's insane. The reason for the global sale is pretty obvious, isn't it?
I think it is easy for us to be caught up in the excitement and the FOMO these days, as we don't seem to spend much time thinking why we do what we do, we just react to what we are fed-.
If that was the “event” that requires blocking off all but two of the entrances of a major shopping centre I eventually decided not to try getting into (because of the insanity that doing something like that would result in) then I shall avoid it harder.
And if it wasn’t well I’m going to avoid it anyway, heard enough horror stories and didn’t care about finding out how accurate they were.
Seriously? People are insane...
I don't know if that was actually it or not, it could have been an unlucky coincidence XD
Always assume the worst in people :)
I usually do the opposite >_>
This is in total a very interesting question, about a very interesting strategy.
I think there are small clubs where people seek to save, by not buying depreciating consumer goods which don't produce income, and instead buy assets, which appreciate, and/or produce income. And the latter gives members bragging rights.
We live in a "Bragging RIghts World" in many respects, in that we buy stuff to be seen in that stuff, or for people to know, we have this stuff, so we can give the appearance of great success.
I see this misdirected energy as "one" of the roots of the modern debt problem, because all problems are multi-factorial, with some factors being larger then others...
I think it would be a huge effort, but would also result in a huge effect, to change the predominant culture, of one which brags about buying appreciating assets, and brags more about buying appreciating and income producing assets.
If these were the cultural status symbols, instead of Rolex watches, Laborgini Sports Cars or even Bored Ape NFT Avatars.
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I agree. What we want to brag over is an interesting question though, isn't it? A fancy car, or 10 BTC? Ten years down the track, will the bragging change?
Ha Ha Ha..
You hit the nail on the head, when chose between ten bitcoin and a new car, that thought process will represent an incremental change in our thought processes which will represent a big change, and longterm have a great impact..for those who chose the Bitcoin, and those who chose the car.
LOL
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I have spent my Black Friday staying home reviewing an article for a journal that I meant to finish by December 05! I also watch the 10th season episode two of the great British baking show :) I find it relaxing.
That said…
I have always challenged the conventional wisdom, so let me challenge you:
What if I tell you earning more money is better than saving
If someone is in a dead end job, penny pinching will get you ahead by a couple of weeks, maybe a month? However, learning a new skill, or starting a side business, or joining web3 blogging or p2e gaming (wink wink!) may get you many months ahead towards financial freedom
I am your living example here Dada! I get paid from my hospital on a 6 monthly basis (no kidding!) and you know how shit the pay is. Yet, to this day I haven't ever had to loan any money from any bank or anyone, even after I got married. I even had enough spare to set up my own chamber, and I still haven't gotten "paid" from my hospital for this session.
The conventional economy is at a breaking point and with every passing day I start to realize the truth behind some of the things you used to say. At the time it may not have made sense, but it starts to over time.
If you can't understand it without an explanation, you can't understand it with an explanation
I would say, you need to do both - with the saving money actually a spending money on something useful or generative. :)
As you said, learning a new skill... an investment into making money and can be a cost, but can lead to generative. Not much to learn from anything on sale during Black Friday though :)
Well anything is better than shopping on Black Friday. I am going to focus on Argentina vs Mexico in a little bit. It’s a do or die game, and it is especially important in Houston as more that half of Houston is essentially Mexico! We may not have more Mexicans here than Mexico City, but we can rally for number 2 or 3 place for sure. :)
I have to be dragged, kicking and screaming, to spend any money.
You just described my last 5 years.
If I don't strictly need it, I don't buy it. Feels good, tbh.
Makes quite a difference at the end of a decade I bet.
This is one of the more genius ideas I've come across in recent times. I have often noticed how products on "sale" are actually a few cents above the actual price it was a couple of weeks back. I can usually remember the prices of stuff once I see the price tag and so when I go back to the same supermarket and see a known item on sale, I compare to what it was the last time I saw the price and not surprisingly it isn't what they advertise.
If a 20% sale was supposed to reduce the price by $2 for example, the sale price is often reduced by $0.5 for example, or $0.5 above what it was last I checked. Hence some information on the price would over 30 days would definitely take a lot of the inside manipulation out. Even better would be to show the customers at least 2 of the lowest prices in the last month. Because the supermarkets could easily reduce the sale price by just a cent and make it look like it is the lowest in a month.
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It should work, since Finns tend to follow the law and I am sure it is going to come with fines for non-compliance. Also, Finns tend to watch each other closely! :D
Black Sale or Black Friday is a tricky game. I have many times noticed that stores, especially online ones, increase the price and then make a discount of the higher price. When we see %20-%30-%50 sale, we are seduced to do shopping. I bet this has got something with advertisement method.
This is what has been happening here, so they are brining in the law to combat it.
Now work holiday events are back, gift exchange party at work is back too.
I haven’t needed anything but now I have to find something for the event, that’s probably my only Black Friday shopping this year.
What did you end up getting?
Undecided. If I can’t find anything it’s going to be a gift card.
To be honest, I don't think that when we buy things, especially in times of discounts, if it's something we need, we are throwing money away. Yes, you have already emphasized that. But we should not forget that when we drink a coffee from a nice-expensive-aesthetic cup we just bought, we are happy.
We are happy when we wear a nice apron while cooking. When we wear a nice watch or when we buy a tablecloth that we have wanted for a long time and that does not bring us any financial benefit.
So I think we buy psychological happiness. One thing I have learned, especially from my sister and the women around me, is that the money spent today for our own happiness is not a loss. Because we will always use that expensive apron we bought. We will be happy every day. Let's say for six months. For 1 year. Maybe?
Then we have to buy a new one.
Not investing and spending all the time, yes, as you said, is very wrong. Invest first. Otherwise, it's not very nice to have to work for the rest of our lives.
For how long?`
I think people overestimate how good things make them feel and underestimate how bad they are going to feel when they can no longer afford to either meet their desires, or their needs.
True, but that's exactly why we must have stable sources of income. Preferably more than one😔
I think people tend to just spend so I think it will most likely be spent. Have you noticed how they want everything to be a subscription model? I have even seen cars pushing out subscriptions towards getting features built into the car. I have a feeling they want us to keep spending money like crazy.
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Yes - subscription models are going to eat us all - until we stop subscribing to them-
I also did not buy anything. This year I already bought a new pc so I don't need anything at the moment. Also if Euroleague final 4 will happen in my city and if my team will play in it I imagine that tickets will be expensive . so it is better to start saving just in case...
You wouldn't splurge on a ticket even then? :)
I probably would.
From the start of November I've been bombarded with these huge discounts and sales, mostly unnecessary stuff, it's just so annoying. Fortunately, I survived too, for now, but I did end up spending a tad bit on some "essentials", the essentials being a big new towel and some cereal. 😂
I feel it is also a way to clear out the junk no one wants at normal prices. If you don't want it then, you probably don't need it cheap either.
Spot on, I say it is just like that, especially in our region/country. Some of the offers are just ridiculous. Yet, people will still find an excuse; to go ahead and get something quite unnecessary "for cheap", which actually seems like a "win win" situation for them.
And most of them didn't know what they would buy that day.
It would be better to buy cryptocurrency, there is a 80-90% discount :)
Why is spaminator flagging?
I don’t know, I was too lazy to put the discord.
Probably for the fact that I put 100% likes on my friend's comments, six months ago. Never mind, Hive is a decentralized platform)
It is really not a new thing to see people go for free things even if it is something they can afford they just tend to follow that path in their favour.
We are a reactive society, without much reflection to follow.
!LUV this. So much. Reblogged. Thanks for your direct and thoughtful writing, Taraz.
@tarazkp, @consciouscat(1/5) sent you LUV.
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This is a golden nugget:
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Well I think all expenses are not loss, necessary spendings are worth to spend and money assure our well being and financial freedom. The all I believe money is not only for saving but also keep balancing between earning and spending. Thanks for the discussion topic.
It is all the unnecessary spending I question. Money is for spending, but what it is spent on matters too.
Yup that's true. Thanks again for the discussion. Have a nice day sir