As each holiday approaches, the grocery store aisles transform. Shelves become filled with products in festive, seasonal packaging, from Halloween-themed candy bags to Christmas-colored coffee creamers. While these items are designed to get you into the holiday spirit, they are also designed to get you to spend more money. Retailers and manufacturers know that shoppers are willing to pay a premium for novelty, and they often charge a much higher price for a product in seasonal packaging, even when the item inside is exactly the same as the standard version.
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The Psychology of Novelty
Our brains are wired to be attracted to things that are new and different. The bright, colorful, and limited-time-only nature of seasonal packaging makes a product feel special and urgent. This creates a powerful psychological pull that can override our normal price sensitivity. We are less likely to compare the unit price of a product when we are caught up in the fun and excitement of the holiday, a fact that marketers use to their full advantage.
Comparing the Unit Prices
The only way to see the “seasonal tax” is to ignore the festive packaging and look at the unit price on the shelf tag. You will often find that the price per ounce for a bag of Halloween-themed candy is significantly higher than the price per ounce for the same candy in its standard, year-round packaging. You are paying a hefty premium for nothing more than a different colored wrapper and a picture of a pumpkin.
The Candy and Snack Aisle
The candy and snack aisle is where this practice is most obvious. A “family size” bag of a popular candy is almost always a better value per ounce than the smaller, individually wrapped “fun size” candies sold for Halloween. Similarly, a box of crackers in a special, holiday-themed shape will often cost more than the standard version, even if the net weight of the product is the same.
The Coffee and Creamer Section
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The seasonal flavor craze hits the coffee aisle hard every fall and winter. While a bottle of “Pumpkin Spice” coffee creamer might be a fun treat, you are paying a premium. The price for these limited-edition flavors is almost always higher than the price for the brand’s standard, year-round offerings.
How to Avoid the Seasonal Tax
The easiest way to avoid paying extra for packaging is to be a skeptical and disciplined shopper. If you love a particular seasonal product, like candy corn, buy it. But if you are just buying regular candy for trick-or-treaters, you should always compare the unit price of the seasonal bag to the standard bag. More often than not, you will find that the boring, year-round packaging offers a much better deal.
The High Price of Holiday Cheer
Seasonal packaging is a brilliant marketing strategy that adds a sense of fun and occasion to the mundane task of grocery shopping. However, it is also a strategy that is explicitly designed to get you to pay more for less. By being a mindful shopper who pays attention to the unit price, you can enjoy the holiday spirit without letting the festive packaging trick you into overpaying.
What is the most overpriced seasonal item you have ever seen? Do you think the fun of holiday packaging is worth the extra cost? Let us know your thoughts!
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