When you buy two of something and get the third for half price, or add a few dollars to an online order to secure free shipping, you’re “spabbing.”
Spaving is a combination of the words “spending” and “saving,” and means encouraging savings by spending more.
But experts say don’t fool yourself: Savings are mostly about spending.
“Spending always goes up. Savings don’t always go up,” says Jeff Galak, an associate professor of marketing at Carnegie Mellon University’s Tepper School of Business in Pittsburgh.
Sparing has been in the news lately. It seems like something new. The term has barely appeared in the publication. It’s not even in the online Merriam-Webster dictionary. And when you type it into your word processor, your spell checker cries out in protest.
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“Spabbing”: A concept as old as the shopping mall
However, the concept behind spabbing goes back much further.
“Not only is ‘spabbing’ a terrible word, it’s not a new idea,” Galak said. “These types of promotions have been around for a long time.”
Here’s the basic concept: merchants entice customers to shop a little more, or even a lot more, by offering a discount as a perk: buy your third, fourth, fifth item and get the last one free; add another $10 to your cart and avoid the $5 shipping charge.
Does anyone need a gallon of extra virgin olive oil? Maybe they do, if it’s priced right.
Consumers may see a lot of savings offers this summer. Inflation is pushing up prices: A dozen eggs cost about twice as much as they did in 2019. Overall, consumer prices are rising by about a fifth between 2019 and 2023, according to federal data.
Consumers are fighting back, and retailers are offering special sales in response.
Fast food chains are bringing back value meals following consumer backlash over reports of a $15 Big Mac.
Target and Walgreens have announced summer price cuts, as more customers opt for cheaper private label brands.
Spending less on the same Happy Meal you bought a week ago is a no-brainer. Saving money, in contrast, can quickly get out of hand.
“Saving money” can lead to overspending and unnecessary purchases
The problem with thrifting, experts say, is that it can lead shoppers to overspend on things they don’t want, need or use.
“Saving money is always a good thing. The problem comes when you spend money you wouldn’t have otherwise spent,” says Kimberly Palmer, personal finance expert at NerdWallet.
Palmer himself recently succumbed to an offer of alimony.
“It was buy one get one free,” she said. “I wasn’t planning on buying a second shirt. I bought it for my daughter. I took the plunge and bought two.”
The second shirt was free, so perhaps Palmer got a good deal?
Well, maybe not. She bought her first shirt at full price. If there hadn’t been a discount, she would have waited for one. In the end, she said, “I spent more than I expected.”
When is sparing profitable?
Experts say there’s really only one type of money-saving offer that guarantees a good deal: an offer that ends up costing you less.
“Let’s say you come to checkout and your cart is $5 short of the minimum to save $30 on shipping,” says WalletHub analyst Cassandra Happe, “so paying the $5 to get free shipping might be a good idea.”
But in most cases, saving money means spending more, and that’s the point, at least from a retailer’s perspective.
So, if you pay more, is it better value? It depends.
Before you buy something to get a discount, experts say to ask yourself these questions:
- Either way, are you going to buy it?
- Do you have the time?
- Will you use them all?
- Is it perishable?
- Is there space to store it?
It may make perfect sense to stock up on bulk discounted laundry detergent, frozen steaks, and paper napkins.
“My husband and I are both working from home,” Happe said. “We’re now buying essentials like toilet paper in bulk because we know we’ll run out.”
But be wary of bargains on things like corn on the cob, bananas, and never-frozen steaks. Or be wary of items that have a short shelf life, that your family might tire of, or that you shouldn’t buy in the first place.
What is the psychology behind “sparring”?
The appeal of sparing is obvious: Consumers like to think they’re saving money.
“There’s a temporary surge of emotion because people feel like they got a good deal,” said Chris Yamano, a partner at Crew Advisors in Scottsdale, Arizona.
Yamano said the problem arises when consumers are so eager to save that they end up spending too much on things they don’t use.
“You walk into Target and buy dish soap,” she says, “but then there’s a sale in the next aisle, and you end up walking out with a cart full of stuff you don’t need.”
The math behind sparing can be tricky.
Let’s say you buy three pairs of shoes and the third pair is 50% off.
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A quick calculation shows that you’re not actually saving 50% – you’re only saving on one item. At $50 per pair, you’re saving $25 on your entire purchase, reducing your payment from $150 to $125 – a savings of about 17%.
Now, what if the third pair was only $30? In a typical discount deal, the retailer applies the discount to their cheapest item. Now, you only save $15, dropping the price from $130 to $115. That’s less than a 12% savings.
Consumers can calculate this using the calculator on their iPhone, but few people have the time to do it.
“Spabbing is often a high-pressure situation,” Palmer says. “There’s a sense of urgency because the deadline is due in a few hours, at the end of the day.”
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Here are some tips from experts on how to shop and save money without overspending:
- Make a shopping list and stick to it.
- Set a budget and don’t spend it all.
- When considering a sparing offer, do the math.
- Before you commit to a sparring deal, take a moment to think about it.
“I try to wait 24 to 48 hours before buying anything,” says Jack Howard, head of money wellness at Ally Financial. After that pause, “if it’s still fresh in your mind, you’re good to go,” she says.
