How Retailers Use Fake “Was” Prices to Fool You Into Spending More
The basic move is simple: a retailer sets an artificially high “original” price—often called the manufacturer’s suggested retail price (MSRP), though many manufacturers never actually set that number—and then marks it down to a “sale” price that is, in reality, the normal selling price. The item might have never been sold at the higher figure. It’s legal in most places as long as the store can show that a “meaningful number” of units were sold at the higher price, but that loophole is wide enough to drive a truck through. Some retailers will list a “compare at” price from a competitor that is itself inflated, creating a false sense of savings.
Take furniture stores, for example. You walk in and see a sofa with a tag that says “List Price: $2,200. Our Price: $1,100.” You think you’re saving fifty percent. But that list price is a fictional number the retailer printed on a sticker. The sofa’s actual wholesale cost might be $400, and the store would be happy selling it for $900. The “sale” price of $1,100 is still a huge profit, and you walk out feeling like a winner. This same trick works with mattresses, jewelry, electronics, and especially with holiday sales. Black Friday is the worst offender: many “doorbuster” deals are on products manufactured specifically for that sale, with a made-up original price that nobody ever charged.
How do you protect yourself? First, never trust the “was” price alone. Use your phone. In seconds you can search online to see what other stores are charging for the exact same model number—not just a similar-looking item. Many retailers have different model numbers for the same product sold at other chains, so you can’t do a direct comparison. That’s a red flag. If a TV has a model number that ends in a peculiar letter, it might be built exclusively for that store to prevent price matching. Second, know the typical price range for the type of product you’re buying. A $50 toaster is a $50 toaster; if a store claims it was $120, that’s nonsense. Third, use price tracker tools. Sites like CamelCamelCamel show the history of prices on Amazon, letting you see if the “sale” is real or just the regular price dressed up.
Another version of this trick is the “limited-time offer” that never ends. A store puts a sign saying “50% off – this week only!” but returns two months later and the same sign is still up. That’s an attempt to manufacture urgency. The price isn’t a sale—it’s the everyday price. If you see a permanent “clearance” section with the same items month after month, those “was” prices are pure fiction.
Retailers also use this tactic with warranties. A store might offer an “extended warranty” for $79, claiming the original warranty is only 90 days. They’ll say “The manufacturer’s warranty is worth $200, but we give you this protection for just $79.” That $200 figure is a phantom value. The actual cost to the store for that extended warranty might be $10. And many credit cards already double the manufacturer’s warranty for free. The “was” price for the warranty is just another fake reference point to convince you to buy something you don’t need.
The best defense is simple skepticism. If a deal seems too good to be true, verify. If you can’t verify, walk away. The stores are counting on your excitement to override your logic. Don’t let a red tag and a crossed-out number make the decision for you. You’ve earned your money honestly. Spend it based on facts, not on fiction printed on a sticker.
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