Up-selling at the Carwash

Up-selling, as I’m sure you know, is a little game that is played by sales people to persuade you to either buy a little bit extra, or to buy something a little more expensive.  If you’ve ever worked retail or worked in the food industry, your employer has probably persuaded you that up-selling is a good idea to increase your sales.  And, it is.

Personally, I hate it when someone tries to up-sell me.  Especially when it’s just so freaking obvious that they are trying to get me to buy more or buy something more expensive.  Actually, it kind of comes from some deep, dark place inside of  me, I feel this gurgling, rumbling indignation begin to rise from some place I didn’t know existed and I just want to scream, “I just want what I came in here for!  Leave me alone!”

Last weekend, on a very pretty Saturday afternoon, my daughter and I went to the “professional” car wash.  You know, the kind where they do all the work for you while you go inside and wait and watch them do all of the work.  My daughter likes to watch the car actually going through the wash, how it gets all soapy and goes through the “woogie-woogies,” those big long pieces of fabric or rubber that hang down and move back and forth over the car.  It’s a little treat we enjoy – she digs the watching, I dig a really clean car.

As we drive up, there’s a fairly long line.  Actually there are three lines of three cars.  We are waved in to one of the lines.  Within moments, one gentleman walks up to the window and welcomes us and let’s us know that a young man named James will be with us in just a moment.  He says something nice about the weather, and then thanks us for coming in today.  He then moves on to the car behind us that has just arrived.

I can see James.  James is a tall, gangly young man who is wearing a baseball hat ever so slightly turned to the side: he is two cars away from us.  He doesn’t seem to be in much of a hurry, but he also doesn’t look like he’s loafing.

When he arrives at our car, I wait for him to provide me the “menu” of options from which I can choose.  This particular car wash has about 10 different ways that they offer to clean your car.  I think the first option is that they just spit on it and use an old dirty rag to knock off the dirt, and they will do that for $2.99.  And then there is the “Diamond Deluxe with Express Wax” wash, the top of the line wash.  For $29.99 they’ll wash and clean the inside and outside of my car, they’ll wax and vacuum, spritz and spray, dust and dry, shine and polish everything, so that by the time I leave, I’ll feel like a new man, somehow.  Then there is a host of options somewhere in between those two, prices going up as they offer more services.

When I arrived, I knew how much I wanted to pay.  I couldn’t remember the name of the wash I wanted, but I knew how much I wanted to spend.  Let me reiterate, when I arrived, I knew how much I wanted to spend to clean my car.  Then James started talking to me.

He welcomed me to the car wash and then asked me if I would like to participate in their special.  He launched into what their special was, but I am not an amateur at these up-selling efforts and I deflected his attempt with a quick, but cursory reply letting him know that I was not interested in the special.  He did not seem taken aback at all and politely moved on, offering me the “menu.”  I opted for the “Ruby” wash.  He asked me if I knew what the “express wax” option was?  I say no.  He proceeded to describe it to me.  At the time, it sounded pretty cool.  I remember thinking to myself, ‘that sounds pretty cool,’ even though I can’t remember now what it meant.  But I recognized that he has just trying to up-sell and I quickly came back to my senses and replied that I don’t think I’ll need the “express wax” today.  He nodded, totally unaffected.

And then with machine like precision, he started running through the list of add-on options that they had for me today.  Would I like my tires cleaned, my trunk vacuumed, my exterior vinyl cleaned (that I don’t have), my plastic floor mats (that I don’t have)?  Would I like the single foam, double foam, triple foam?  How about the clear coat or the spray wax, white walls or rims?  Would I like the ‘Express Service number one’, or the ‘Express Service number two?’

As he started rattling off options, my brain felt like it was starting to scramble just a bit.  Then, when he was finished with his list and I had successfully rebuffed the options I was not interested in; he started with a series of options he could provide at discounts.  And that’s how he got me.  I resisted until he threw in the tire and rim cleaning with the next higher priced car wash on the menu.

For a moment, I felt pretty good that I had struck this deal with James, the car wash guy. Then, after a few moments passed, I thought about it some more and realized that I had completely blown the budget I had set for myself.  Upon arrival, I was set on how much I would spend.  By the time James was done with me, I had spent $5 more on the wash than I had planned – and somehow felt like I had made a great deal in the process.

Most of the time that James was talking to me, I knew what he was trying to do.  Yet, in his incessant efforts, I got sucked into the process, he found a weak spot in me, exposed the weak spot and I finally caved. Perhaps this is what causes me to want to scream, “Leave me alone!” when someone starts up-selling to me, because I spent the next few hours replaying the event and justifying to myself how the tire and rim cleaning really was a good use of the extra $5 I had spent.

 

 

Upselling – Part 3 – My Turn

(Continued from previous post)

My turn.  I place my t-shirts on the counter.  Having heard the dialogue before, I now know what is in store for me.  I begin to think about my answers…”how can I be polite? How do I not show my frustration with this process?  I know that she is required to do this…be nice…”

The salesperson asks, “Did you find everything alright?”  I respond, “Yes.”  My response is abrupt.  I dare not look her in the eyes.  I act disinterested, nonchalant even, hoping she’ll see that I don’t want to engage in conversation and thereby, just maybe, I can dissuade her from engaging me in the round of questions I know are sure to follow.

She starts to scan my items and I notice on the scanner that the t-shirts are coming up at $10 each.

Wait a minute…on the tag it says $16.50.  On the register it says  $10.  What…just…happened?  In my head, I begin to wonder if I should say anything?  Is it a mistake?  Is it wrong to not say anything? I can’t not say something, so I blurt out, “I thought those were $16.50?”  She responds as a matter-of-fact, “Oh, these are on sale, they’re $10 each. There should be a sign next to the shirts. Was it not there?”  “I don’t think so…” I reply, but I don’t remember at all if there was a sign next to the shirts.  I was so distracted by my own thoughts and anxieties that it’s possible an elephant could have walked through the store and I wouldn’t have noticed.  Figuring out all of the colors, doing all of the math, figuring out how many books I could have bought with the same money…what sign? I struggle for a minute, reflecting, was there a sign that I didn’t even notice?  I feel a little bit embarrassed, but then, it dawns on me – Hey! The t-shirts are $10 each!

With this information I begin running some numbers in my head.  A moment ago, I was prepared to pay approximately $115, but now, I’m looking at paying $70.  I have a dilemma.  I ask if we can stop the transaction because I’m mentally calculating, trying to figure out if I should get more shirts or just enjoy the “savings.”  I am having a hard time deciding what I should do.  I feel a cramp in my brain.  I’m no good at this stuff!  I feel so torn about what to do that I stare blankly at the green dots on the register that has my running total at $70. “Do you mind if I run back over and take a look at some more shirts?” I ask.  She replies, “Not a problem.” She smiles politely, knowingly, devilishly and I think for a moment as I move away I hear her laugh – the “we gotcha” sort of laugh.

When I first came into the stores, I picked out the shirts I wanted and then I made a direct line to the counter, head down.  I was a man on a mission.  Now, walking back to the shirt rack, I cautiously lift my head to look around and notice the signs that say “Select Items On Sale.”  Upon seeing the signs, I believe I can actually notice the dopamine showering my brain with yummy feelings, my tummy getting butterflies and on overall sense of excitement.  By the time I get back to the shirt rack, my head is spinning and I have reached a state of giddy-ness.  I notice that there was indeed a sign saying that the t-shirts were on sale for $10 each. How on earth is it possible that I missed the sign – it’s right in the middle of the rack? It’s huge!  I had to pass by it at least 6 times as I looked at the shirts and I never saw the damn sign!  But…there it is, and I say to myself, “Alright daddy-o, I can get some more!”

I convince myself, I came to the store knowing that I was going to spend around $100 so I might as well find 3 more shirts, you know? It’s almost like I’m playing with the house’s money so anything goes, right?  I spend more time reviewing my options, feeling the texture of the shirts, pulling them off the rack and holding them up to my body.  Really deliberating, considering my next move.  I decide on some shirts in colors that I wouldn’t ordinarily purchase, because somehow, this all feels like it’s extra or free or, I don’t know… it just doesn’t feel the same at all.

Heading back to the counter, I begin to tell myself what a good shopper I am! Feeling like a hunter with a prize kill, I swell up with pride.  I lift my head with confidence to view the newly conquered landscape and notice that the “Sale” signs are all over.  I make a mental note to myself that I, Shawn the Super Shopper,  might just have to come back and look at some of these amazing deals!

 

Upselling – Part 2 – The Transaction Before

(Cont’d from previous post)Maze imgae

7 Different shirts at $16.50 – I do the math in my head.  Ten times seven is 70, six times seven is 42, plus three and a half, that almost $115.  For t-shirts!  (but in my head, like my own internal Jedi Mind Trick “you will wear these t-shirts for the next 5 years” – I reply – “yes, I will wear these for 5 years – Dude, it’s okay to by the t-shirts!”) And as the internal dialogue continues, I amble to the counter to make my purchase.

I’m pretty good about not getting distracted between the items I need and where I have to pay.  I don’t look at any other items – straight line to the counter to pay, but there is one other man in front of me.  He is buying two shirts.  As the employee is doing all of the magic stuff she does to make the purchase ready, including taking off hangers, tags, and electronic gizmos, the man turns and looks at me – and I want to say it is a sheepish look, but perhaps I’m just projecting how I’m feeling.  It’s hard to tell at this point.  But I must say that he looks fairly stylish, perhaps even a bit dowdy.

Then, it happens.  I hear the employee, a small, younger woman, begin.   “Are you a member of our rewards program? Do you have our store credit card?  If you sign up today you can save 10% off of this purchase.”  I feel my heart beginning to beat a little bit faster because as I project into the very near future, she is going to be asking me those same questions and I am going to be forced to answer her.  I hate that she is going to ask me those questions, already.  I’m not sure why – I know that I don’t want to be a member of a rewards program and I know that I’m not signing up for a credit card.  But I also know that it is her job to ask – every. single. person.

The man in front of me casually denies her.  She uses a hand-held scanner to scan his two shirts – bleep…bleep…she doesn’t mention how much it will cost him, she just lets it show up on the screen.  The man dutifully takes out his wallet and hands over his credit (or debit) card.  And you would think that from this point it would be a quick and easy transaction… but then she asks him for his email address.  He pauses – I pause – we both think to ourselves about giving out the email address.  We both think, “What are you going to do with my email address?” But, then again, we know what they are going to do with our email address.

After a split second of reflection, or maybe lack thereof, he gives her his email address!  I can’t believe it – he actually gives her his email address!  Then we spend the next eternity as he spells out his email address while the employee scours and pecks at the keyboard. In my head, I’m like, “Dude, they are going to send you emails every six seconds for the rest of your life.  You will never escape them.  You are going to have to change your email account, because when you hit unsubscribe from their email, there will be seven hundred steps to actually unsubscribe and you’ll be so frustrated that you’ll give up!”  He turns his head over his shoulder with a sheepishly sad smile, and without saying a word, sends me this message, “I know.  I know.  I’m not exactly sure why I just did that.  Oh, Lord, what have I done.”  And he turns back to the register.

She proceeds to ask for his phone number and his zip code, which he gives her.  And just as I think I am going to witness the conclusion of this transaction, she asks if he would like to donate a dollar today for the children’s hospital victims of hurricane Xanadu refugee relocation soldiers project homeless food pantry heart disease school lunch backpack fund.

Confusion pic

Silence.

I even think the store music has gone silent for this moment.

I think I can hear his heartbeat.

I know what’s going through his head.

He thinks, “No.”  But she stares at him and waits.  He thinks, “A dollar…ah jeez…”  I feel his pain and look at the ceiling so as not to witness the awkward pseudo confrontation playing out in front of me.  And after several seconds, he says, “sure.”  The employee doesn’t even blink, scans a little barcode on her register that adds a dollar to the purchase and finally she enters his payment by rapidly swiping his credit card back and forth.

As they exchange pleasantries, “Receipt with you or in the bag?” and “Have a nice day!” I wish to myself that I could make my purchase without being asked if I want anything else.  I wish for a totally silent transaction, if I were to be perfectly honest.   But I know that’s not what’s going to happen.  What’s going to happen next is a little game retailers like to play with consumers called “Upselling.”  Don’t be fooled for a minute – this is a well-crafted tactic that retailers employ to help liberate shoppers from their cash – and I know that I’m next.

 

Upselling – Part 1 – Before the Counter

Most of the time, when it comes to shopping for clothes, I would much rather buy books – and at many times in my life, I have gone into the mall with the purpose of buying clothes and come out having purchased books. Or, if there is not a bookstore available, I will talk myself out of buying clothes so that I can go buy books some other place.  There appears to be some wiring defect in my head that, when I begin looking at the price of clothing I begin to think about how good an investment books are. In order for me to buy clothes, I almost have to know exactly what I am going to buy, walk in, grab it, go to the counter, pay and leave.  If I don’t do it this way, the voices in my head can become very active.

Well, recently, I finally decided, after a long debate in my head, that it was time to go buy some clothes.  Specifically, I was in the market for some t-shirts.  The majority of mine had served their purpose and had become fairly well worn out.

t-shirt clip art

Not that you could tell by looking at me, but I am pretty picky about my clothing.  I don’t like wearing logos.  Most of the time, when it comes to shirts, I’m actually not a big fan of pockets.  And, yeah, I’m picky about t-shirts, too – high maintenance, right?  And being that I’m picky, once I find a piece of clothing that I like, I am quite apt to stick with that item for a long time – and then when I am forced to shop again, I frequently return to the specific product I have used before.  It’s suppose it’s a little bit like brand loyalty, but maybe not exactly.  Or maybe so…

Now, I knew going into this shopping expedition that I could get exactly what I was looking for online. But instead of taking the tried and true path, I decided to listen to the people in my inner circle about where I should go for my purchase, perhaps to expand my horizons a bit.  So, I go to a specific store because I have been given a good recommendation about the specific t-shirt in which I am interested. Now, based on past experience, I know when I walk into that store, a whole series of weird behaviors are apt to begin.

I walk in. I do a good job of finding the specific product I am interested in buying and go straight to it.  As I am walking, it is almost as if I can feel the dopamine rush, I breathe in deeply, my eyes widen and I begin thinking, “Ah, Jeez! there are SO MANY OPTIONS, $16.50 for a t-shirt, that’s at least one book, maybe two, this is going to be exhausting, ooh, that fabric feels nice – wow, I wonder if I can pull off the yellow or purple shirts — I’m pretty sure those will look awful on me – no, I just need black, gray and blue — but I need to broaden my tastes — I swear they’re pumping in oxygen — the colors are so vivid — the air is crisp — it is really bright in here –I really do need a v-neck and a crew neck –-I know this song they’re playing — is my heart beating faster?”

Now, when I came into the store I was fairly certain of what I wanted to accomplish and had a set amount of money that I was willing to spend on said product.  But I notice that as I am perusing the products, my limit has somehow moved to another location in my mind – and I begin bargaining with myself.  “I’ll grab a bunch of different colors and I can bring some back” and then, “I never go shopping, I haven’t had new clothes in two years, just buy what you want.” And then,  “I know I could get this cheaper, but I want quality for a change. I’m tired of cheap-ing out.” And of course, “I earned this!” or “I deserve this!” – both of those messages growing louder and louder as the primary messages rattlin’ around in my noggin.

I make my way to the counter with 7 different t-shirts in my hand…(to be continued)

Holidays (Easter) Under Control

I have a seminar that I started delivering two years ago titled “Holidays Under Control.”  The reason why I developed this seminar was because when I was teaching my other programs, people would always start talking about how incredibly stressful the holiday season is and how much more money they spent during the holiday season than at other times of the year.

Well, when people talk about the holiday season, they usually mean from Thanksgiving until the New Year – and that is the time frame on which my seminar primarily focuses.  However, this last weekend, the Easter Bunny made his annual visit.  My wife and I felt compelled to make the basket and fill it with goodies – and our daughter actually expected the Easter Bunny to appear and bring her some goodies.  She didn’t have a list prepared like she did at Christmas, but she had expectations nonetheless.

So, while I don’t typically include the Easter holiday in my seminar, I thought I’d go ahead and look up some statistics on Easter spending in the U.S. According to Statistic Brain (http://www.statisticbrain.com/easter-statistics/), we dropped about $14.6 Billion on Easter this year, of course only $2.6 Billion of that was on candy.  Yeah, $2.6 Billion on candy (turns out that’s 120 million pounds of candy).

So I have three questions for you, my friend:

1. Do you feel compelled to spend money at Easter the same way you do during the fall/winter holidays?

2. Do you feel like there are a lot of expectations around spending during the Easter holiday?

3. Does Easter make the “stress” in your life go up at all?

 

Does Easter stress you out?

Does Easter stress you out?

 

A thought on “Saving”

If I had a dollar for every time I’ve heard someone say they’d like to save more money, I’d be a rich man. In all my years of teaching, I have never met anyone who wouldn’t like to have more money tucked away in savings.  So why don’t we save?  My students tell me it’s because they can’t save.  They don’t have enough money to save.  There’s never any money left over to save after they have paid all of their bills.  When encouraged to examine these responses more closely however, nearly everyone recognizes that he or she has saved for something at some point in his or her life, and, no matter what his or her income level, has at least one penny left over at the end each week that he or she could potentially be saving.  So, if it’s not that we can’t or we don’t have enough, then why don’t we save?

One of the barriers that often prevents people from saving has to do with a pervasive belief that saving is only worth doing if the amount being saved is a large number.  All humans, whether they are aware of it or not, have in their heads a dollar amount below which money holds no value for them.   A penny, a nickel, a dime, a quarter, even a dollar, although it could be saved isn’t hardly worth it in most people’s minds.  This is especially true of people who feel they must save a lot of money in a relatively short period of time.  Consider retirement, for example.  People who feel inclined to save for retirement typically believe they need to save a large amount of money in a relatively short period of time.  Even as much as a dollar per week in savings, in this particular example, seems to most people insignificant and hardly worth it.  So instead of saving a dollar per week, what do they do? They save nothing, because they don’t see the value in it.

When you are able to see that saving is more about implementing a behavior than it is about any particular dollar amount saved, you can perhaps begin to see value in doing it.  So pick an amount that you believe you can comfortably save over the next day, week, month, or whatever.  A penny, a dollar, ten dollars, twenty-five dollars, it doesn’t matter.  Pick an amount.  Start small.  Work it into your budget as a line item.  Start saving.  Start now.  And keep going.

 

The Pain of Paying from Dan Ariely

Here’s a short video from Dan Ariely about how we spend differently depending upon the form of payment we use.  If you are not familiar with Mr. Ariely’s work, you should definitely check him out.

Misbelief

Convenience and “The Tyranny of the Moment”

Often times, our hectic and busy lifestyles lead us to make financial decisions just so we don’t have to think or do any additional work.  It’s called convenience and it’s a big part of our cultural value system.  In fact, huge portions of our economy are based on our “need” for convenience.  Then, as we keep adding in more things to do and more places to see, we “need” more conveniences.

“The Tyranny of the Moment” is the idea that when you are so hectic and crazy in the current moment, you are unable to think about and plan for future moments. In these tyrannical moments, everything feels like an emergency and we begin living our life in a series of firefighting episodes.  And I don’t know about you, but when I’m firefighting, I begin to start using those justifications for the decisions I’m making.

So here’s a quick exercise to take a look at these two concepts:

 

1. Identify three of your most common convenience purchases.

2. Identify a time when you have felt so busy that you made a purchase just to keep things simple.

3. Identify a time when you acted out of alignment with your personal values just because you felt too busy or overwhelmed.

 

Being consistently caught up in “The Tyranny of the Moment” can lead to feeling stressed, anxious and tired, which causes poor decision-making and undermines our willpower.  It also typically leads us to rely heavily on convenient solutions – which are typically more expensive and less healthy for us – as opposed to those perfectly rational decisions. All told, this can be an incredible hindrance to people who are trying to develop economically or even those who are trying to live their lives in accordance with their values.

 

Rational Behavior Education and Your Budget

In the world of economics they have the concept of “Homo Econimicus” or “Economic Human.”   This concept indicates that humans are rational beings that act only in their best self-interest.  This is typically used to explain markets and economic theories but in most circles, especially the academic and professional/political circles, it is a quite predominant perception of how humans act in regards to their personal finances and economics.

Well, a lot of education on how people should behave has a very similar approach.  I call it the theory of “Rational Behavior Education.”  My theory on this is that most education is based on the idea that humans are totally rational and if provided with a good rationale as to why a behavior should be changed, the human will naturally see the benefit of such a change and quickly adapt the new behavior.

Let’s take smoking for instance.  We all know smoking is bad for human bodies.  But most education is focused on discussing the fact that it is bad for us, by telling us all of the negative side effects of smoking.  I was a pretty extreme smoker for over ten years and this is what people would tell me over and over, “Your lungs are black, your breath smells, it costs a lot of money, it makes your teeth yellow, it causes cancer, oh, and you could die.“  Now, I know at one point in time, people did need to be convinced that smoking did harm to their body, but that time is long gone.  We know it.  We have heard it for decades.  We know!  But if we were totally rational humans focused solely on our own best interest, we would see quite clearly that smoking is not good for our body, costs a lot of money, makes us smell (which could prevent potential mating possibilities, maybe), and make our teeth yellow, makes our clothes smell and so on.  We would see all of that and we would stop. But do you see the problem?  Yeah, we’re not rational.  Humans can be rational.  We can be unbelievably rational creatures.  We may be, perhaps, the most rational beings on this planet – maybe anywhere in the universe. But we are not ALWAYS rational.  And educational efforts about behaviors aimed solely at our rationality that neglects to touch on how irrationality and emotion plays a significant role in our behaviors will be minimally effective.

In the world of Rational Behavior Education, if we could just teach everyone how to create and manage a budget, a person’ personal financial life would be sunshine and happiness.  But telling people that smoking is bad for them and that they should budget their money is only occasionally, mildly effective.