If you’ve ever wandered the cavernous aisles of Costco, trolley at the ready and a vague shopping list in your head, you’ll know the feeling: you go in for a few essentials and emerge with enough food to feed a small army, a new set of towels, and a kayak you didn’t know you needed.
But have you ever stopped to wonder why certain deals seem to leap out at you, practically begging to be tossed into your trolley? Well, a clever little trick is at play—all in the words.
On a recent trip to Costco’s Marsden Park warehouse, a shopper noticed something curious about how discounts were displayed.
Right at the entrance, a mountain of Krispy Kreme doughnuts beckoned, but it wasn’t just the sugary aroma that caught their attention.
The price sign was a masterclass in marketing: the original price, a bold ‘Instant Rebate’ highlighted in yellow, and a final, irresistible price in big, black numbers.
The sign read: ‘Krispy Kreme original doughnuts 12pk, $19.00’. Underneath, in that eye-catching yellow, ‘Instant Rebate. Exp. 06/07/25 -4.00’.
And finally, the clincher: ‘$15.99’ in large, bold print. For context, a dozen Krispy Kremes usually sets you back $26.95—$2.24 a doughnut. At Costco’s price, you’re paying just $1.33 each. Bargain, right?
But it wasn’t just the doughnuts. As the shoppers entered the store, they spotted the same ‘Instant Rebate’ treatment on everything from Ruffles chips and Pringles Minis to lamb, gloves, and shoe racks.
The pattern was clear: Costco was using this two-word phrase to make discounts pop, and it was working.
While Costco kept mum when asked for details, consumer psychologist and brand strategist Peter Resanceff shed some light on the tactic. According to Resanceff, words are powerful triggers.
‘If marketers use the right words, they can sometimes trigger a change in behaviour,’ he explained.
Phrases that create a sense of urgency—like ‘Instant Rebate’ paired with an expiry date—tap into our fear of missing out. Suddenly, that discounted item feels like a limited-time opportunity you can’t afford to pass up.
And then there’s the colour. That yellow highlight isn’t just for show. As Resanceff pointed out, yellow has become the universal signal for a bargain. It’s bright and cheerful and stands out in a sea of white price tags.
‘Yellow price stickers are highly visible in a shopping environment—they simply stand out, making it easier for shoppers to spot discounted items amongst those that are not,’ he said.
Plus, yellow is associated with positivity and optimism, which can subconsciously nudge us towards purchasing.
It’s a clever combination: urgency, visibility, and a dash of feel-good psychology—no wonder those ‘Instant Rebate’ signs are so effective.
Of course, not everyone falls for it. Our intrepid Costco shopper managed to resist the siren call of discounted doughnuts and stuck (mostly) to their pre-planned list: kalamata olives, two giant pizzas, a rotisserie chicken, chicken breast, chicken thighs, snacking pears, and passata.
The only unplanned addition? An oversized garlic baguette—because, let’s be honest, who can say no to garlic bread?
The final bill? $130.81—a win by their standards, considering a typical Costco run can easily tip over $200. It just goes to show: a little self-awareness (and maybe a shopping buddy to keep you honest) can go a long way.
But the real takeaway here isn’t just about doughnuts or garlic bread. It’s about understanding how supermarkets—not just Costco—use language, colour, and layout to influence our spending.
From ‘instant rebates’ to ‘limited-time offers’ and ‘members-only deals’, these tricks are designed to make us feel like we’re getting a bargain, even when we might not have planned to buy the item in the first place.
Have you noticed these marketing tricks at your local supermarket? Do you find yourself tempted by ‘instant rebates’ and yellow price tags, or do you stick to your list no matter what?
Share your stories and tips in the comments below—we’d love to hear how you navigate the supermarket minefield!
Also read: Survey exposes Australia’s cheapest supermarket for groceries—here are the results
Actually they’re falsely advertising an ‘Instant Rebate’ for the Krispy Kreme Donuts. $19.00-$4.00 = $15.00. They’re advertising the price as $15.99, which is $3.01 less than the original price! They can’t get me with that ‘reverse psychology’!