Consumers Urged to Focus on Actual Spending, Not Just Discounts, Amid Complex Israeli Retail Pricing
Israeli consumers often perceive discounts and promotions as savings, but a closer look reveals that these deals can sometimes lead to higher overall spending. Dr. Hazi Gur Mizrahi highlights that promotional prices are not always the lowest available, and shoppers frequently buy more than intended due to quantity-based offers. For example, a Magnum ice cream promotion at Yellow convenience stores offers two units for 26 shekels, or 24 with an app discount, but the same product at Rami Levy discount supermarket costs only 18 shekels for two units, making the promotion less advantageous.
This discrepancy illustrates a broader issue: consumers tend to compare prices only within a single store or promotion, rather than across different retailers or formats. The blurred lines between convenience stores and discount supermarkets complicate price comparisons, yet household budgets do not differentiate between where money is spent. The article stresses that the real measure of success in fighting the cost of living is reducing total household expenditure, not just securing discounts on individual items.
Similar patterns appear in snack pricing, where quantity deals can mislead shoppers into paying more per unit or buying unnecessary amounts. Sometimes, promotional prices in one chain are higher than regular prices in another, as seen with Osem pasta priced at 5.63 shekels on promotion at Victory compared to 4.90 shekels regularly at Rami Levy. The article points out that "promotion" means a price reduction relative to a previous price, but not necessarily the lowest market price.
The UK government is currently considering stricter regulations on misleading discounts, a move that could inspire similar measures in Israel. Israeli consumers face complex pricing structures involving regular prices, promotions, club prices, app discounts, coupons, and quantity deals, making it difficult to identify true savings. Experts recommend using price comparison tools and asking critical questions before purchasing: Do I need this quantity? What is the unit price? How does this price compare elsewhere?
Ultimately, promotions can be valuable when aligned with actual needs, but they become problematic when they encourage unnecessary purchases. The article concludes that the best deal is sometimes simply not buying, emphasizing the importance of informed consumer decisions to genuinely reduce expenses.
