How To Control Impulse Buying

Impulse Buying - Not Good For Your Business

Waste not, want not... how true, but don't we all give in to some splurging every now and then? If we are talking about new clothes or business stationary then it probably doesn't hurt much, but if we are talking about big business impulse buying such as a new car for your delivery fleet or a high-end printer-scanner-fax combo for your home office, then it would be wise NOT to give in to impulse.

Business purchasing that focuses on what you NEED and not on what you WANT can save you hundreds or even thousands of dollars that can be saved or invested in a more positive way towards your business.

Curbing Impulse Buying

Sometimes, all we need is a few minutes to think about whether we should or should not buy something. Whenever in doubt, ask yourself the following.

• Do I need it or do I want it. Need is if your business goes in a stand-still if you don't buy it; want is when you think it will 'improve' your business in ways you cannot even quantify.
• Do you need the item now or can it wait till next week, next month, till you get paid for an outstanding contract, etc.
• Do you already have the item? In many instances (yes, even in business), we buy something simply because it's new. If your old printer is working just fine, why do you need a new one?
• What is the item's true cost? That is, how many sales do I need to make to make this purchase worthwhile?
  Ask yourself if the purchase will indeed bring in revenue and if so, HOW MUCH?

Now, let's say that you are aware that you do engage in impulse buying, then make it impossible for you to do so.

• Don't subscribe to 'SALE' or 'DISCOUNT' magazines
• Hide your check book
  
• Don't carry your business debit or credit cards with you
• Don't window shop
• Learn to control your impulse buying behavior

One more tip we have for you is this - keep a business financial diary. There is nothing like having your business expenses listed down and staring you in the face every now and then. By having previous purchases in front of you (ok, confronting you), you are more likely to say NO to an impulse buying moment.

An uncontrollable Impulse buying behavior is a COSTLY practice that should be curbed. Follow the tips we have itemized in this article and waste not a penny more!

Action Steps to Prevent Business Impulse Buying

1. Don't go 'window shopping' for business furniture, equipment and supplies. You will always end up buying something.

2. Avoid constantly carrying your business debit or credit cards with you.

3. Leave your check book at home.

Purchasing Questions

• Do you REALLY need the item?
• Do you need the item NOW?
• Do you have an older model or version of the item?
• What is the item's true cost?
• Will the item bring in sales

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