A literal use of an anchor. Credit: Beth Rankin/Flickr
Current or original price. What resonates with you when considering a purchase?
A blog called You Are Not So Smart argues that even the savviest bargain hunters, like you and me, are swayed by the original price, called the anchoring effect. I’d never heard of the term anchoring effect until reading this post, but the concept is very familiar. You Are Not So Smart shares this scenario:
You walk into a clothing store and see what is probably the most bad ass leather jacket you’ve ever seen.
You try it on, look in the mirror and decide you must have it. While wearing this item, you imagine onlookers will clutch their chests and gasp every time you walk into a room or cross a street. You lift the sleeve to check the price – $1,000.
Well, that’s that, you think. You start to head back to the hanger when a salesperson stops you.
“You like it?”
My new hat debuted at the polo game, far left.
I bought a smashing white hat with a wide brim – perfect for providing shade on the beach or at a summer party – at Banana Republic this weekend. The hat was already on sale by 25% off, seeing how it’s late July, but I didn’t stop at that.
I noticed two imperfections on the hat and asked for 10-20% off at the register. Under the brim, two pieces of woven material were flaking off. More importantly, a square inch section of the very top of hat was slightly smashed in. The hat had clearly been picked over by others, but given an extra discount I was a willing customer.
UPDATE: This contest is over. Thanks for participating!
Readers are placing their bets for how much the BJ’s recipe below for lemon-chicken bowtie pasta costs. I’ve shared one clue – it’s less than $12.
Whoever comes closest to guessing without going over (like the Price is Right) wins a one-year membership to BJs, a warehouse club with 187 locations in 15 states. Membership to BJ’s costs $45. If multiple readers guess correctly the prize goes to whoever answered first.
So far readers have guessed as low as $2.73 and as high as $9.73. Your guess should be for the cost of the entire recipe, which makes four servings, not the price per serving.
The contest ends Monday at 11:59 p.m. PST and the winner will be announced Tuesday. Leave your answer as a comment on this post, on my Facebook page, or on Twitter. One guess per email, please.
Lemon-Chicken Bowtie Pasta, serves 4 at ??? price
8 oz. Barilla Farfalle
4 Perdue Boneless Skinless Chicken Breasts (1 lb.)
5 Green Onions, sliced
1 clove Garlic, minced
2 Tbsp. Wesson Canola Oil
1/ 8 tsp. McCormick Cayenne Pepper
1 cups Progresso Chicken Broth
2 tsp. Grey Poupon Dijon Mustard
cup fresh Lemon Juice
White Sauce (see below)
1. Cook pasta until al dente. Drain and set aside. 2. Cut chicken into pieces. Set aside. Heat oil in large skillet over medium high heat. Add green onions and garlic and saut one minute. 3. Add chicken and saut, turning chicken occasionally until cooked through, about 12 to 15 minutes. 4. Add pasta, toss and set aside. 5. Adapt Basic White Sauce recipe (see previous page): mix cayenne pepper into flour before adding. Reduce milk by 1 cups, substituting same amount of chicken broth. Add chicken broth-milk mix to fl our mix per recipe instructions. 6. While sauce is still hot, whisk in mustard and lemon juice, then immediately pour over chicken-pasta mixture; lightly toss to mix. 7. Garnish with sliced lemon and serve immediately.
BASIC WHITE SAUCE Makes 2 cups. Your microwaves cooking times may vary. Please watch carefully.
4 Tbsp. Land OLakes Sweet Butter
4 Tbsp. Gold Medal All-Purpose Flour
2 cups Milk
Salt and Black Pepper to taste
1. Melt butter on high in 1-qt., microwave-safe
bowl, about 20 to 30 seconds. 2. Stir in flour, using spoon to break up lumps, until smoothly blended. 3. Add milk, salt and pepper and stir until completely blended. 4. Microwave on high, pausing to stir every 30 seconds or so, until sauce is thick and bubbly, about 1 to 2 minutes. Variation: Add 2 cups of shredded Cracker Barrel Sharp Cheddar Cheese and toss with cooked elbow macaroni for mac and cheese.
My frugalfriend and author Stacy Johnson (I reviewed his book Life or Debt not long ago) shared his five tips for negotiating a lower price, a better room, a free upgrade, and lots more. Inhis post Stacy links to a Consumer Reports video about when bargaining works best. He also shares these stunning statistics from the CR survey:
“These results came from interviewing more than 2,000 men and women who had tried negotiating for at least three years,” he writes. “The numbers below reflect how many achieved a discount at least once during that three year period, along with the greatest discount any of them achieved.”
- Furniture: 94% of those who asked got a better deal at least once.
- Medical Bills: 93% of people who tried negotiating a lower bill were successful at least once.
- Home Electronics: 92% were successful at least once.
- Appliances: 92% were successful at least once.
- Floor Models/demos: 91% were successful at least once.
- Credit Card/Bank Fees: 87% were successful at least once.
- Jewelry: 86% were successful at least once.
- Cell Phone Plans: 80% were successful at least once.
- Collectibles: 78% were successful at least once.
Those are pretty amazing statistics! Of course, they neglect to say how many attempts were made before success. I am successful about 25-50 percent of the time I ask for a discount or perk. But I don’t ask every time, and it’s taken me a lot of practice to get good at playing the customer service game. Here are the negotiating tips I live by.
