Recommendations on clothing budget state that, on average, the family should spend at most 5% of the total family income. Thus, it is important to pay attention to how much you spend on clothes, and there are a few tips for that. In the current post, I will explain a simple game theoretical approach that could help with this issue.
In the current game, we have two players. You, the buyer and
seller. The seller wants to maximize the gap between the prize that he sells
the item and the prize that he paid for the item. You, the seller, would like
to maximize the gap between the maximum price you are willing to pay for the
item and the price you actually paid for the item. Thus, in order to do it
properly, first, you have to determine the maximum price you are willing to
pay.
In order to do so, there is a simple role in understanding
the price of a specific piece of clothing you want to buy. First, begin with a sufficiently
low price, let's say 5 $, and increase it till you reach the price you are not
willing to pay more than an additional cent (the same technique works in eBay auctions
for more details link);
this is your maximum price. It is certain that the transaction will take place
only if there is a match between your minimum possible price and the seller's
maximum possible price.
You might know of many tips to maximize the buyer's gap, and I describe them below. This technique of maximum price determination might also work in other purchases than clothes, but clothes, in my opinion, it is easier to apply.
The tips:
- Shop
during sales: Look out for deals and discounts, especially end-of-season
sales, to save money on clothes.
- Thrift
store shopping: Check out thrift stores, consignment shops, or online
resale platforms for gently used clothing items at lower prices.
- Stick
to basics: Invest in essential, timeless pieces that can be easily mixed
and matched with other items in your wardrobe, such as neutral-colored
shirts, pants, and skirts.
- Shop
off-season: Shop for clothing items during off-season periods to get
better deals.
- Borrow
or swap: Consider borrowing or changing clothes with friends or family
members to save money.
- Use
coupons or promo codes: Before purchasing, search for coupons or promo
codes online to get discounts on your order.
- Buy
in bulk: Purchase multiple items from the same retailer for a discount.
- Don't agree to receive gifts. The
purpose of promotions is "the second 50% discount” or “a third
product for free” when you didn't buy more than products you didn't intend
to buy in the first place.
- Club Membership- Club membership is
one of the ways to collect information about the customer and entice him
with promotions for people who have discovered that they tend to purchase
more products than others in various fields. Take that into account.
- Compare
prices: Before purchasing, compare prices across different retailers to
ensure you're getting the best deal. You can also use price comparison
websites and apps to find the best deals.
This strategic thinking will help
you to be a wiser buyer and save money.
Good Luck!
The pictures in this post were
taken from Unsplash.
