How Companies Trick You Into Spending More (And What to Teach Your Kids)
- Will Rainey
- Sep 13
- 5 min read
Updated: Sep 20
When it comes to money, two of the most valuable skills are knowing how to grow it and how to sell. In recent weeks, I’ve focused on growing money, with stories about Compound Interest and explaining the difference between The Stock Market and Crypto.
This week, I want to turn to the other side: selling. More specifically, how companies use clever marketing tactics to encourage people to spend more. If you enjoyed my blog about The Two Vending Machines, I think you’ll like this one too.
There are two big reasons I think it’s worth teaching kids about sales tactics:
Avoid overspending: When kids understand the tricks companies use, they’re less likely to fall for them.
Entrepreneurship: Kids who want to start a mini-business can learn a lot from how companies attract customers.
To bring this to life, I’ve written a story in the form of a newspaper article. I enjoy trying new formats for my stories. I would love to hear your thoughts on this approach.
At the end of the story, I’ve also included a real-life example of how an Indian restaurant used a very clever tactic which attracted a wave of new customers.
Story:
In the village of An Hoi, a small clothing shop has become the talk of the town, not because of what it sells, but how it sells.
Ms. Tam, the storekeeper, was known for her unusual ideas, ideas that other store owners were quick to laugh at. But as it turns out, her “silly” tricks were part of a clever plan to get customers to spend more, and now she’s become one of the wealthiest people in the country.
In this article, we hear from one of her employees, Betty, who spills the beans on how Ms. Tam’s unique strategies have made her one of the most successful shopkeepers around.
The Clever Location Choice
While most store owners would avoid opening a shop near a direct competitor, Ms. Tam had a different plan. She decided to set up her new clothes store right next to Clothes Mart, the busiest clothing store in town. “Everyone thought she was making a mistake,” Betty shared. “They figured no one would go to her store when Clothes Mart was right there.”
But Ms. Tam was smart. She knew that instead of trying to bring in customers all on her own, she could just let Clothes Mart do the hard work! Since people were already heading there to shop, being right next door meant they might think, Hmm, maybe I’ll check out Ms. Tam’s store too!
Just like that, she got more customers without having to chase them down.
And here’s the really clever part: she knew that if people happen to walk past more than one clothes shop, they are much more likely to start thinking about buying clothes. This turned out to be true, and more people started buying clothes.
The “Crazy” Discount Plan
Ms. Tam’s pricing strategies became the biggest head-scratcher of all. She initially offered discounts when people bought multiple T-shirts:
Five T-shirts for $10
Ten T-shirts for $19.
But then she introduced a shocking deal:
Twelve T-shirts for only $18!
Betty explained that “The new offer meant you could buy twelve T-shirts for less than it cost to buy ten!” Other shopkeepers chuckled, saying Ms. Tam couldn’t do math and figured she’d never make money like this.
It was all part of Ms. Tam’s plan. She had predicted exactly what would happen. People would come into her store intending to buy just one or two T-shirts, but would spot her “mistake” deal and think they were getting the best bargain ever by grabbing twelve!
Ms. Tam’s strategy worked: people spent more than they’d planned, buying way more T-shirts than they needed. Her discount seemed like a loss to her. In fact, she ended up selling more T-shirts than any other clothing store. She made lots of money as a result.
The Lucky Dip Trick
Then came Ms. Tam’s most playful idea yet: a Lucky Dip Box. She put up a sign that read, “Spend $15 and get a surprise gift!”
Other shopkeepers rolled their eyes. “She’s giving away free stuff now? That’s just silly,” they said.
But Ms. Tam knew what she was doing. Most of the prizes were cheap, like socks or stickers, but people loved the surprise. Kids begged their parents to reach the $15 mark just to have a go.
“Customers kept adding one more thing to their basket just so they could dip their hand in the box,” Betty told us with a smile. “It felt like a game.”
The added bonus was that when people opened up their surprise gift, they would take photos and share them with friends. This led more people to know about her store, which made her even more money.
Once again, what seemed like a silly idea turned into another clever way to get people spending more.
What’s the Secret?
To other shopkeepers, Ms. Tam’s tricks seemed foolish. But in reality, she was using clever tactics to encourage customers to spend more without even realising it. She knew just how to make people feel like they were getting a great deal, even if it meant spending more than they’d planned.
Money expert Mr. Fitzgerald explained, “Stores often use clever tricks to get people to spend more. This is why I always encourage people to save at least 10% of all the money they receive. Those savings can be kept away from these sales tricks. It’s like building your own treasure chest.”
The End
📗 Want your kids to learn even more money secrets in a fun way? Grab a copy of Grandpa’s Fortune Fables and give them stories they’ll never forget.
Bonus: Real-life story
As I was researching for the story above, I came across a fascinating real-life example. An Indian restaurant, Dishoom, wanted to fill more tables before 6 p.m. Instead of offering a simple early-bird discount, they tried something unusual.
Diners could roll a dice, and if it landed on a six, their meal was completely free!
Just like Ms. Tam’s Lucky Dip trick, this playful idea worked brilliantly. People came from far and wide for the chance of a free meal. And because they thought they might not have to pay, many ordered more than usual.
Winners eagerly shared their stories on social media, giving Dishoom free publicity and attracting even more customers.
What Kids Can Learn …
Whether your goal is to help your kids avoid overspending or to encourage their entrepreneurial side, they must understand how selling works.
The tactics in the above stories aren’t just clever ideas from one shopkeeper or restaurant; they’re strategies that companies around the world spend billions testing and perfecting. That’s why so many adults struggle to follow the first rule of wealth: Save at least one out of every ten you receive.
By teaching your kids about these tactics, you give them two advantages:
They’ll be more likely to hold onto their money and resist overspending.
If they launch a mini-business, they’ll have practical ideas to attract customers, including where to set up shop, offering discounts and gamifying the sales experience.
👉 Learn more:
Next week, I’ll be sharing some of the fascinating tactics behind the current Labubu craze. There are plenty of lessons there too, so make sure you subscribe so you don’t miss it! (Available now: Link)
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Thanks for reading,
Will
P.s.. If you’d like more ways to help your kids avoid overspending and build healthy money habits, check out my best-selling book Grandpa’s Fortune Fables. It’s available on Amazon or as part of the popular Wealthy Kids Club.
