End of financial year sales arrive every year in a flurry of excitement and big promises of “exclusive offers” and “mega deals like you’ve never seen before”. It’s easy to find yourself lured in by a cut-price offer on something you didn’t know you needed.
Our research shows there are some good bargains to be found – if you shop smartly and strategically. But there are also often discounted duds that should be avoided at all costs.
With so many retailers competing for your cash in less than scrupulous ways, it pays to shop with one eyebrow raised
EOFY sales also come with a few well-practised retail tricks – designed to make you feel like you’ve bagged a great deal and saved money, even if you’ve spent more than planned, or you’ve bought a poor-performing product that’s been languishing on the shelf for a reason.
With so many retailers competing for your cash in less than scrupulous ways, it pays to shop with one eyebrow raised.
Here are the EOFY sales traps that catch shoppers out every year – and how to make sure your next purchase is genuinely good value.
We consistently see retailers using the EOFY sales to clear out old and unwanted stock. The shine of a big discount usually dulls when you realise they’re just giving you money off a product no-one else wants.
Remember, just because something is advertised at a reduced price, it doesn’t mean it’s a good buy.
2. Fake urgency
Messages like “Only 2 left!” or “Must buy, sale ends soon!” are designed to create pressure and reduce comparison shopping, even when stock levels aren’t genuinely limited and sales periods can be extended at any time.
There’s no need to panic buy, because we continue to see heavy discounting happen more regularly across the entire year
CHOICE editorial director Mark Serrels
“Remember, the end of financial year sale is just one event on a jam-packed sales calendar,” says CHOICE editorial director Mark Serrels.
“There’s no need to panic buy, because we continue to see heavy discounting happen more regularly across the entire year. Last year we saw EOFY sales extend into July in some cases.
“It’s better to take your time to do your research and ensure you get a good deal,” he says.
Do you know someone who always buys an iPhone, consistently swears by Smeg appliances, or refuses to try an alternative brand of coffee?
Brand loyalty is the tendency for consumers to repeatedly choose the same brand over competitors, whether it’s because they’ve had a positive past experience, the brand is familiar or has earned their trust in some way, or they have a perception of quality or an emotional connection.
CHOICE experts warn that this ‘brand blindness’ during a sales period like EOFY can get in the way of a good deal, and ultimately cost you money.
‘Brand blindness’ during a sales period like EOFY can get in the way of a good deal, and ultimately cost you money
“CHOICE testing consistently finds that products from the same brand can vary wildly in performance – we see this with many big brands like Breville, Smeg, Dyson, and more,” says Mark.
“Buying on brand name alone without doing your research could mean you end up with a dud product. Make sure you check expert product reviews on an independent site like CHOICE before you buy.”
4. Unnecessary extended warranties and other costly add-ons
Ever get to the instore checkout and a super chatty salesperson convinces you “it’s a good idea” to buy some “extra protection” in case something goes wrong? These extended warranties (sometimes also called “protection” or “product care” plans) cost extra, but most of them aren’t worth it.
“Extended warranties are often no more than a sneaky sales tactic that make you pay more for protections you already have under Australian Consumer Law,” says Mark.
“Ask the salesperson: ‘What does this give me in addition to the rights I already have under Australian Consumer Law?’ And read the fine print before signing up.”
When you’re shopping online, be aware of any ‘add-ons’ that might automatically be added to your cart at checkout
When you’re shopping online, be aware of any ‘add-ons’ that might automatically be added to your cart at checkout. Online sites often offer added “protections” such as extra shipping protection, shipping insurance or transit cover policies.
Policies tend to range in cost from a few dollars up to $25. What they provide and how it’s sold to you varies widely, so make sure you read the fine print to see if it’s actually offering you anything of value.
5. Scam shopping sites and unscrupulous online marketplaces
When buying anything online, ideally use familiar retailers and make sure you’re on a genuine website. Scammers are notorious for creating fake websites that imitate popular retailers in order to steal money and information from shoppers. These sites often look very similar to those of legitimate stores.
“Be wary of unusual URLs, red flags like lots of pop-up windows, requests to use an unusual payment method such as money transfer, or prices that seem too good to be true,” says Mark.
“If you’re unsure, you can enlist the help of fellow consumers who might have had previous experience with the outlet.
When buying anything online, ideally use familiar retailers and make sure you’re on a genuine website
“You can find reviews of websites on services like Google or Trustpilot, as well as on social media. If the website you’re using is a scam, there’s a chance victims might be using these forums to warn others.”
You should also be wary of buying potentially unsafe or illegal products. CHOICE recently sounded the alarm on the scale of harm being caused by unsafe products sold online by retailers such as Shein, Temu, AliExpress and more.
Know the products to avoid before you shop. Get our free guide and buy smarter.
Pru Engel is the Audience and Engagement editor at CHOICE. Her job is to ensure as many Australians as possible know about the great work we do at CHOICE.
She works closely with our testers and experts to find the gems of information in our data and research that will resonate with Australian consumers and help them make the best decisions, whether they're purchasing an air fryer, looking for a new mattress or trying to find the cheapest car insurance. She also helps to drive meaningful change for consumers by collaborating with our Campaigns team on content covering issues such as grocery pricing, product safety and scams.
Prior to CHOICE, Pru worked as an editor at many of Australia's leading food and lifestyle titles.
Pru has a Bachelor of Arts in Communication (Journalism) from the University of Technology, Sydney.
Find Pru on LinkedIn.
Pru Engel is the Audience and Engagement editor at CHOICE. Her job is to ensure as many Australians as possible know about the great work we do at CHOICE.
She works closely with our testers and experts to find the gems of information in our data and research that will resonate with Australian consumers and help them make the best decisions, whether they're purchasing an air fryer, looking for a new mattress or trying to find the cheapest car insurance. She also helps to drive meaningful change for consumers by collaborating with our Campaigns team on content covering issues such as grocery pricing, product safety and scams.
Prior to CHOICE, Pru worked as an editor at many of Australia's leading food and lifestyle titles.
Pru has a Bachelor of Arts in Communication (Journalism) from the University of Technology, Sydney.
Find Pru on LinkedIn.
For more than 60 years, CHOICE has been fighting the good fight for Australian consumers.
In the past year alone we've uncovered systemic issues with sunscreens, investigated shonky supermarket pricing, fought for stronger scam protections and helped make complex energy pricing fairer and clearer.
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