Benjamin Davidovici’s Post

Transcript

Alright, picture this. You're about to buy tickets for that new Israeli documentary everyone's raving about, but when you see the price online, you practically choke on your Bamba. Sound familiar? It's happened to all of us. And what's the next thing you do? You remember those almost mystical words? What club are you with? Today, we're taking a deep dive into the fascinating world of Israeli consumer clubs and discount culture. We're talking about those articles you sent, maybe even some personal notes. And we're going to figure out how this whole system really works and more importantly, if it actually works for us, the consumers. You read my mind. Is it really about being thrifty, or are we all just chasing our tails for a slightly less terrifying credit card bill? You've hit on a key point. In Israel, it's practically ingrained in us to never pay full price, especially for things like entertainment and leisure. But here's the thing. Companies are on to us. They've figured out that bulk discounts equal guaranteed sales and that's where those clubs come in. So it's like that strengthened numbers idea. Exactly. Take those movie tickets you mentioned, even if they sell them at a lower price through a club, they're selling more of them. Plus there's a built in advertising element to it. Every time we ask, what club are you with, we're basically spreading the word without even realizing it. Like free marketing for them. You got it. And the numbers back this up. Shop Analytics data showed that a whopping 50%. Of Israelis use these discount clubs last year. We are talking about a massive chunk of the consumer base here. Wow, half the country is in on this. But it's not just one big happy discount party, right? Some clubs seem to have way more influence than others. Like I swear my friend with the Hever membership always gets the best deals. You're definitely on to something. It's not a level playing field. There is a tiered system to this whole thing. Think of it like this. You have your public price, that's scary number you see online when you first look for tickets or whatever you're buying. Then you have your mid size club price maybe offered through a credit card company or a smaller organization. OK so that's like level 2 of the discount dungeon. Exactly. But then you have the VIP lounge, the big kahunas like Hever for former military folks or Ash Moret for teachers, they always seem to have the inside track on those jaw-dropping discounts. And we're not just imagining that, are we? They actually do get better prices. They do. And you know why? Government subsidies often play a role. These large organizations, representing a significant portion of the population, have the clout to negotiate deals that smaller clubs just can't swing. So it's not even really about the clubs. Themselves, it's about who they represent. More people equals more bargaining power. You've got it. Remember that festival ticket example you mentioned earlier? It's a perfect illustration of this tiered system. The price you pay isn't just about finding a discount. It's about tapping into the right level of discount based on your affiliations. OK, so we're starting to see the method behind the madness. But does this whole system actually benefit us in the long run? I mean, are we really saving money or are we just spending more to access these supposed deals? Stay tuned, because in the next part of our deep dive, we'll unpack the hidden cost and question whether this discount culture is sustainable. OK, so last time we were talking about how these clubs get us those sweet, sweet discounts, but are we really saving money? Or are these clubs just playing us for free years? Well, it's not always so straightforward, right? Some of these clubs, yeah, they're great, but others not so much. So how can we tell the difference? Like, what should we be looking out for? The first thing is to remember those different types of clubs. We've got the open membership ones, the professional ones and those tied to credit cards. And each one has its own, like, quarks. Quarks, huh? OK, so spill the tea. What kind of cracks are we talking about? Well, take those supermarket loyalty programs, for example. You know, the ones where you swipe your card. And rack up points. Ohh. Yeah. I've got like a million of those cards. Right? Everyone does. And they make it seem like you're getting a great deal. But sometimes those points don't add up to much or you end up spending more just to reach that discount threshold. It's like they're tricking us into spending more in a way. Yeah. It's all about psychology. Companies know we love a good deal, and they exploit that. Think about those limited time offers or flash sales. Don't even get me started. Those things make me act crazy. Like suddenly I need 10 avocados. You know, I just bought some yesterday. Exactly. They create the sense of urgency, this fear of missing out, and we make impulsive decisions. So are you saying we should just ignore all discounts? Not necessarily, but we need to be smart about it. Do your research, compare prices, and don't be afraid to walk away from a deal that doesn't feel right. Remember that story from the article about Heather and Shufersal? Oh yeah, the big supermarket chain and the massive discount club. What happened again? They had this huge falling out. They couldn't agree on the terms of their deal, so Hever pulled out a stiffer sole entirely. Wow. If those giants can't make it work, it shows how much pressure there is on both sides to get the best deal. So it's not just. About being thrifty, it's about these companies battling it out too. Totally. It's a high stakes game and we the consumers are caught in the middle. But hey, at least we get some good deals out of it. True that. But there's more to this discount culture than just saving a few shekels, isn't there? It's become a part of who we are as Israelis. Stay tuned, because in the final part of our deep dive, we're going to unpack the psychology behind our obsession with discounts and ask whether this whole system might be due for a digital makeover. You know, before we started this whole thing, I thought I was a pro at this whole discount game. Find the club, flash the card, bam, savings. But now, not so simple, is it? Not at all. It's like I've been playing checkers and this whole time there's been this whole chess match happening underneath. A perfect analogy. Because we've talked about the economics, right? The strategies those companies use. But there's that other layer psychology of it all. Like, why are we in Israel so obsessed with not paying full price? Like part of our DNA or something? Well, the article called it FOMO, fear of missing out. And let's be honest, it's real. Nobody wants to feel like they're the sucker, the freer who paid full price when everyone else got a deal, especially in Israel, they could badge of honor to say, ohh, I got this for a steal, right? And companies are catching on. They use that exclusivity wording, those limited time offers to make us feel like we just have to jump on the deal. Like Doctor Dana Tabot was saying, it's not just about the money, it's about how it makes us feel. Exactly. Saving money feels good. But more than that feeling like you're in the know, like you beat the system. There's a real psychological payoff there. Makes us feel smart, savvy status, even. OK, I totally see that. So where do we go from here? Because the article hinted at things changing, right? Like AI is gonna shake up this whole discount game. It already is. Imagine this, an app that doesn't just show you deals, it predicts what you want before you even know it, analyzes your spending habits, knows you better than your best friend, and bam, personalized discounts just for you. A little too Black Mirror for me. Are we talking about like Minority Report but for coupons? Knowing I need new running shoes before I do. That's the thing with AI, right? Exciting and kind of creepy at the same time. Could be amazing, getting us exactly what we need at the best price. But it also makes you wonder about privacy, about those algorithms having too much control over our choices. OK, so after this deep dive, what's the take away for our listeners? What's the one thing they should remember about this whole discount culture? Remember a deals only good if it actually. Serves you. Don't get so caught up in chasing discounts that you forget to ask yourself, do I even need this? Is this really saving me money or am I just spending more to feel good? So much wisdom. We get to leave some for next time. This has been an incredible deep dive. Thanks for joining me. My pleasure as always and everyone listening. Until next time, happy saving.