Over-pricing happens in every market. Be smart with your money!

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How many times have you noticed you over-paid for a certain purchase. Probably, you did not know that the price you thought was normal, is actually over the top. I personally noticed that in every market, there are always this attempt to swindle shoppers by giving them prices that are absolutely more than what is obtainable elsewhere.

Many job seekers always include "strong negotiation skills' in their CV because the employer always needs to see that. But it seems this quality is needed not just in the job market or work environment, but virtually everywhere. This is because over-pricing seems to more often than you probably realize.

Sellers in the market are smart. They seem to target some shoppers especially to get them to over-pay. In my area, I noticed that the following categories of shoppers are more likely to be targeted for high prices. They are:

• The repeat buyer
• The smartly dressed buyer
• The naive buyer

Alright lets see how each buyer in this category is targeted and is more likely to overpay for stuffs

• The repeat Buyer:

I use to think that the repeat buyer is always in for some discounts or special treatments - at least that seems to happen initially. So if you have this particular seller you go to always to get your stuffs, chances are that they will get you to overpay. It all starts well. You discovered that they are the only one that sells best quality goods, or they sell at the cheapest price. After the initial purchase, you go back for the second time, and again and so on. It all goes well in the first few purchases. Eventually, they gain your confidence. And that is when you should beware.

Once you become an established repeat buyer, you hardly negotiate prices because you strongly believe they will always sell to you at beast competitive (cheapest) price. So now you are relaxed and always take the seller's word for it. This is where they want you to be. And some sellers will then start gradually lifting the prices. Of course you wont negotiate because you trust the seller. A business relationship over a period of time has created that feeling that he/she will not cheat you. But alas! They do cheat. Since you wont negotiate again, they hike the price and you continue over-paying until somehow, you discover the truth.

Here is another category of buyers that overpay.

• The smartly dressed buyer

In my part of the world, they believe in appearances a lot. Yes, wealthy or educated people tend to dress in a smart way. So their appearance usually set them apart from other buyers. And since many people here care less about their dressing, buyers that are smartly dressed are considered wealthy. So prices can differ based on your appearance.

Many people have done the experiment locally and confirmed this. I noticed it too in my personal shopping experience. When you were your suit and dressed up with your tie, price a roadside fruits seller. Come back another day and dress casually, the price is different. The goods are the same. Your appearance made the difference. They sellers believe that for you to dress in a certain way mean that you are wealthy or literate. They believe you have some money to spare and wouldn't mind the price. Unfortunately, many buyers in this category fall for the trap and end up buying stuffs at unreal prices

• The naive buyer:

Naive here does not mean that the buyer is not intelligent. I used the term to describe buyers that are completely new in the market environment. They are just looking for where the goods are sold, and they have no idea of the price. Possibly, naive buyers haver spent considerable time looking for the market. So when they do find it, they are excited and are happy to buy at any price.

The sellers also know the naive buyers. It does not take long for these experienced sellers to spot an inexperienced buyer. Its easy to know when such a buyer looks distressed and is asking anyone that can show them the market. Other signs include when the buyer asks questions like - "I hope this is the original one?". Also, the seller expects the buyer to mention specific things that shows he understands the market. That includes the name or other identifier for the goods to be purchased. When such details are not specified, experienced sellers will know that the buyer is inexperienced. And most times, they hike the price.

Strong negotiations skills are needed in the market

Like I mentioned earlier, employers are looking for job seekers with strong negotiation skills. But then, such skill help you save money the next time you go shopping. Whether you are a repeat, smartly dressed or naive buyer, strong negotiation skills will help you avoid paying through the roof. You have to have the ability to engage the seller in some conversation about their pricing. You should not be overly confident especially if you are a repeat buyer. There is nothing wrong with trying to compare prices to be sure your trusted dealer is not swindling you.

And it is not advisable to maintain the same dealer over a long period of time without trying to connect with other dealers. Competition pushes the price towards favoring the buyer. If they know you can get it elsewhere, they are more likely to offer a competitive price.

For naive or first time buyers, its best to do a little market price survey. While you are excited - and probably relived that you have found those seemly rare items to buy, do not rush to pay. What you have found could be the first of many. So be sure to walk around and try to see what other sellers are saying. This way, you wont fall victim to over-pricing.

You should not allow your demeanor or appearance to be a snare for over-pricing. While its cute to look nice, its a shame to pay over-the-top because you want to impress the sellers. Have some negotiation power and show that your appearance does not alter how you manage your money.

Final thoughts

If you are constantly over-priced, you end up messing your finances. Sellers and dealers are smart. They are able to sturdy you within a short time of interaction and what they conclude often influences their pricing strategy. If you fall into any of the above categories, its easier for them to attempt to outsmart you with price. But strong negotiation skills will be a powerful tool to ensure you get the best bargain.

Each little stuff you over-pay for counts. You have to be money-smart. Compare prices and do not allow yourself to be tricked into paying more than is obtainable. Paying the right amounts is a smart way to manage money

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