Pimp Your Finances

I recently found some good money tips from a surprising source – Cracked.com.  For those not familiar with Cracked, it’s an off-color humor site, normally full of scathing sarcasm, funny lists, and borderline inappropriateness.

One of their recent lists – “D**k-onomics – How 5 Everyday Businesses Trick You” had some great insights.  Since the site isn’t exactly family friendly, I’m going to summarize their list.

Here are five everyday businesses that try to trick you into spending more.

1. The Bar

Bars don’t want you talking to other people, because it means you’re not drinking.  That’s why they keep the music pumping and the lights low.  It discourages conversation, especially with strangers.

Bartenders have their own tricks too.  Tall, thin glasses appear bigger to the eye, but actually hold less.  Even straight liquor isn’t safe.  The measuring cup for shots could have washers in the bottom, and the pourer on bottle is intentionally narrow to ensure a longer pour – giving the illusion of more alcohol.

2. The Grocery Store

Grocery stores are designed with one purpose – to keep you there as long as possible.  Have you ever noticed how the milk/eggs are in one corner of the store, while the bread is in the opposite?  It’s no accident.  Other tricks to keep you there longer include carpets that slow your carts, and tiles that make excessive clicking sounds (which make you think you’re going faster than you really are).

Groceries will also use your kids against you.  The brightest and sweetest items are normally kept at the eye (and hand) level of little kids. 

If that wasn’t enough, many sales are misleading.  Sometimes they mark up prices just so they can put it on sale.  And of course, the scanner may be inaccurate, whether intentional or not.

3. Restaurants

Many restaurants just try to get you to eat and leave as soon as possible.  That’s why the seats are intentionally uncomfortable, and the restaurant noticeably cold.  Bright colors and tables that lack privacy also encourage you to hurry up and go.

Restaurants have been hit by the economy too, so don’t be surprised if they cut back on their food budget.  The quality of the ingredients have gone down, as have the portions.

Menus are another trap, in that the most expensive dishes tend to be on the upper left corner.  The article claims that the third dish down on any menu is always the most popular.

The check can cost you even more, as it maybe be inaccurate, and some restaurants add gratuities without letting you know.

4. Malls

 Malls are set up much like grocery stores…they want you to walk as much as possible.  The escalators are never next to each other, and stores are never grouped in a way that makes sense.  The end result is that you have to walk past as many store fronts as possible, tempting you to spend, spend, spend.

You’ll also notice a lot of mirrors.  The reason is two-fold.  First, we like to look at ourselves, so it will slow us down.  And second, we probably won’t like what we see in the mirror (especially in florescent lighting), so we’ll be more likely to buy clothes to compensate.

And one thing I never thought about before - most stores by the mall entrance sell small impulse items.  It’s psychological bait.  Once we buy that first item, regardless of how big or small, we’re likely to keep spending.

5. Casinos

Not really an everyday business, but still interesting to take a look at.  They employ a lot of techniques that retailers do.

One thing you’ll notice about casinos is that they lack windows and clocks.  It makes for a disorienting environment with no sense of time. 

Once inside, they try to lull you into a gambling trance.  The music is comforting, and repeats itself.  Intentionally ugly decorations – like those awful carpets and chandeliers – keep your eyes looking forward on the games.

Another trick is to have slot machines randomly play the sound of coins clanging.  If you play the slots, you’ve probably noticed how many times you almost hit the “big one”.  Guess what?  They’re programmed to do that too.

These may not be everyday businesses for you, but you can still learn a lesson from their tactics.  If you understand how businesses try to trick you – and the psychological reasons why it work – you’ll be less apt to fall for their tricks.  It’s like the reasoning behind the book “Why Smart People Make Big Money Mistakes“.  By learning why we fall into money traps, we’re less likely to be taken in.