Lipstick effect grips consumers
By Dawn Cuthbertson, Sympatico / MSN Finance
Wandering in and out of shops with friends on a sunny Saturday recently, I saw the lipstick effect at work.
Around since the Great Depression, the lipstick effect shows how women tend to shy away from expensive purchases during times of economic hardship. Instead, they'll splurge on a relatively cheap item like lipstick to make them feel better.
So while high-end retail stores and plastic surgeons report declines, cosmetic companies typically do well during recessions. Lipstick sales reportedly doubled in the months after the Sept. 11 terrorist attacks in the U.S.
In this instance, my friend knew she was in trouble before she got into the change room. In her hand was a beautiful spring dress with a $250 price tag.
As expected, the dress looked stunning on her. But instead of justifying her way to the cash register, my friend left the dress on the rack.
"Could I not eat for two weeks?" she joked as we left the store. For us and many Canadians that live on tight budgets, that could be a reality if she went through with the transaction. After monthly expenses are covered, RRSP contributions are made and savings accounts topped up, there isn't much left over for extras - if any at all.
Following the trend of the lipstick effect, my friend treated herself to an accessory under $30 instead of buying the dress.
Later, we talked about how our spending habits have changed over the last six months with our new priorities. She has a wedding to save for, while I'm trying to save up for a property down payment.
Luckily I got an invite to an event this week that allows you to update your wardrobe without maxing out your credit card. Style swap parties require ladies to bring four items of clothing to trade in for other previously loved articles.
Now my friend and I just have to start digging. What spending "splurges" have you cut out?
Posted by: Paula | Apr 5, 2021 11:14:55 AM
The writer states she can pay her bills, contribute to an RRSP and savings. In her bio, she considers this a 'tuna can budget'.
If hers is tuna can budget, then many other Canadians are on a 'garbage can' budget. Being able to meet even basic shelter, food and utility costs use up their entire paycheque. A 'splurge' is getting a tooth fixed. My splurge was getting my dog his annual shots. Now my cable/phone bill will have to wait to get paid. I can only dream of having a tuna can budget.
Posted by: Martini | Apr 5, 2021 1:02:20 PM
Lipstick sales reportedly doubled in the months after the Sept. 11 terrorist attacks in the U.S. Where did does number come from and what else double in sales also?
Posted by: Sierra | Apr 5, 2021 1:02:47 PM
My, how the mighty have fallen.For myself and most likely for others in my situation who are in the low to poverty income bracket, this recession/depression has hardly any effect on us because we go without tuna 365 days a year, so it has little impact. Too many items, fancy foods, 5 star restaurants and other highly over rated extravagances are charging way too much as it is, it is time for a dose of reality. I have no sympathy for anyone who gets use to living high on the hog only to lose it. Be grateful for what you do have and not for what you can't have.
Posted by: Diana | Apr 5, 2021 1:35:11 PM
I think that many people could look at their monthly expenses and make changes that would allow for more breathing space by simply changing habits. Many items that people call neccessities are not really neccessities, such as cigerettes, alcohol, Tim Horton coffee and lottery tickets. I can say this as I was one of those people who did that that. I am happy to say that after 19 years of smoking I have over 11 years smoke free, only go to Timmies occasionally and have money in the bank! We all could look over our budget and do some trimming that would not hurt us abit but quite the opposite, allow for improvement in our cash flow and life!
Posted by: Stephanie | Apr 5, 2021 2:33:04 PM
and the underlying assumption that women must buy their worth, have it weighed in material things and consumption, goes unquestioned.
altering my looks and buying things doesnt make women feel good, even if they tell us it does.
Posted by: Joseph | Apr 5, 2021 2:33:25 PM
My comment is to Diana, and i really get what you're saying but some people like for example my father will never stop smoking just to save some more cash, and im sure there are many people like him that feel the same way about certain things. Because i find changing who we are is the most difficult thing to do. And the same thing goes for buying does neccessities, i mean without those little extra expences that makes us feel good during shopping if we go ahead and eliminate them from our monthly list, what is there to look forward to when we're at home watching a movie without any snacks, and i beleive that this will result in anger and depression.
Posted by: Chloe | Apr 5, 2021 3:54:21 PM
My comment is to Joseph, and i think the line about "changing who we are is the most difficult thing to do" must be elaborated on. I'm guessing that your father wasn't born a smoker, yet he managed to change "who he is" to become a smoker. A complete concept of self-identity must accept that people can and do change, as long as they are willing. Changing "who we are" is a very natural and necessary part of life, and it's only when people refuse to change "who they are" that they will suffer. Smoking is of course a prime example of this, but it applies to any aspect of a lifestyle. If someone refuses to accept that they must now watch movies without snacks, they of course they will get angry and depressed. However, when one understands that they must change their ways due to financial constraints, or any other factors, one's self-identity will easily shift with the constraints and there will be no anger or depression.
To put it simply, things change, people change. Those who choose not to accept this will be hit the hardest during this financial crisis.
Posted by: jdg500 | Apr 5, 2021 4:21:12 PM
My comment is to Paula: If you need to splurge to get a tooth fixed and can't pay your cable/phone bill on time, maybe you should consider getting rid of the dog. If you can barely afford to look after yourself, spending money on a pet probably isn't the best idea. Use your head.
Posted by: Carol | Apr 5, 2021 4:50:42 PM
With the ogvernment bailing out big businesses (who are using the bailout money to pay bonuses), why don't they help those who have lost their jobs, who are presently on EI which will eventually run out? What are these persons supposed to do for money? If you get some part-time work here and there, you're supposed to declare this, so the EI payments will be less...so you end up in the same boat...not enough to pay rent, and buy food...not to forget you have to pay your other bills that were incurred pre-lost of job? The recession is good training to cut back, realize what your priorities are, and just save your money as best you can. Being rigid and cutting back also has another effect... depression, frustration, low self-esteem, loneliness for those who do not have anyone to turn to or discuss what you're feeling, etc. It is good to cut back and set your priorities and give yourself a treat now and then so you don't feel badly.
Posted by: Paula | Apr 5, 2021 5:13:15 PM
To jdg500 - My dog has been a loving member of my family for 10 years. As for 'using my head' - your idea is to permanently do away with my dog because of a temporary recession? Give your own head a shake. Do you extend that logic to aging parents or children- the moment they inconvenience you, they're gone? Of course, there must be a lot of people who think like that because the animal shelters, foster homes and graveyards are filled with 'inconveniences'.
Posted by: Kimmux | Apr 5, 2021 5:48:56 PM
Equating giving your dog away to be able to afford bill payments to "getting rid" of your parents or children makes you look like a psychopath.
Posted by: Mark | Apr 5, 2021 6:19:22 PM
No, they've done psychological studies and people that DON'T like animals usually have personality disorders and, hey, that could mean a "psychopath." No matter how broke, I would never get rid of my dog. Go Paula, don't listen to the haters. I agree with you completely.
Posted by: Paula | Apr 5, 2021 6:28:50 PM
Kimmux- I'm not equating my dog to parents or children. My comment about the animal shelters, foster homes and cemetaries being full was directed to how society has become evil and selfish and disposes/kills whatever inconveniences them.
And how does my skipping one cable bill to pay a vet bill make me a psychopath? I would find it more psychopathic that someone would kill their pet to pay their cable bill on time.
Posted by: vstar | Apr 5, 2021 6:31:22 PM
not a psychopath, Paula sounds like someone with a heart. Would jdg500 really dump his family dog of 10 years if he was in her position? Maybe, but not me, not in a million years. Especially if I had kids that loved him..
Posted by: Kaitlin | Apr 5, 2021 6:32:12 PM
I agree with Paula and Mark. When you chose the pet, you basically 'enter into an agreement' with it and you agree to take care of it for as long as it is alive. The dog didn't asked to be chosen. If there was ever any doubt whether or not you could support the dog then maybe you shouldn't have bothered. But to give it away just because we are in recession does equate to giving away a family member! They are a part of your family and you don't get rid of it at the first sign of 'inconvenience!' Use YOUR head, jdg500!
Posted by: laurasecord | Apr 5, 2021 6:36:45 PM
I'm with Paula. I'd cancel the cable and listen to radio rather than give up the dog. How well people treat animals is a measure of their empathy and humanity. It is a struggle but worthwhile to us to take basic care of our pet.
Posted by: laurasecord | Apr 5, 2021 6:59:36 PM
Back to the author's question about "splurges", we have given up the weekly lottery tickets (the money goes into a savings jar now), cut back on convenience foods and sweet treats (10 lbs down, an unexpected benefit), joined a freecycle group, and generally review every purchase for its absolute necessity. Not spending $250 on a dress is nothing new here, rather a way of life as we work on more important things like paying down the mortgage.
Posted by: Angie | Apr 5, 2021 7:14:00 PM
I agree with Sierra. Be grateful for what you still have or even that you had the opportunity in life to have more at one point. For those of us who were in a low income bracket to begin with this recession means little to us except the slight rise in food costs. We work hard too and maybe people should stop thinking of the luxuries that they can't have anymore because there are millions of people who due to circumstances in their liife will never get to know any luxury. Big deal that you can't buy a $250 dress! There are people out there that have gone their whole life shopping at used clothing stores to get a "new" garment for $2.50 because that's all they can afford.
Posted by: Vic | Apr 5, 2021 7:37:47 PM
oh how vain people are. Buy make-up to pretty up someone's ugly face.
Posted by: Monica | Apr 5, 2021 8:00:09 PM
If she could spend $30, or almost, then maybe she could either have bought the dress after all, or saved money for it and with a little bit of luck, maybe it would have been there, possibly on sale, by the time she could afford it. If not, that $30 plus whatever she would have saved would perhaps have paid for another beautiful dress, or for something else, more useful than a $30 "consolation purchase".