08/10/03

The UK’s rich are just as thrifty as the average Brit and don’t make a habit of impulse buying according to the latest UK Wealth Watch report from Lloyds TSB Private Banking.  Over half (53%) of the rich questioned1 for the report admitted to haggling compared to just a third of average Brits.

The report, issued today, explores the attitudes and spending habits of the rich and the general public and suggests that, despite their wealth, the rich really are prudent purchasers.  The wealthy surveyed were more likely than the average Brit to make use of loyalty cards.  A massive 70 per cent of the UK’s rich said they used loyalty cards, compared to only 52 per cent of the general population.

Dispelling the myth that the rich simply ‘flash the cash’ whenever they want, the report also found that despite being financially ‘well-off’ 43 per cent of those surveyed said they carefully research before buying something over £100.  Amazingly only 16 per cent of these wealthy spenders said that they impulse buy regularly.

Mark Cheshire, Managing Director, Lloyds TSB Private Banking, said: “The UK’s rich have certainly shown that they are unlikely to pass up the opportunity for a bargain and are just as prudent in their purchasing as the rest of the population.  These canny consumers may have the money but they are not about to just let it slip through their fingers if they can take advantage of saving a pound or two.”

Martin Lloyd-Elliott, consumer psychologist, comments: “The rich are generally portrayed as either mean or recklessly extravagant but this research shows that neither stereotype is accurate. The rich tend to be very competitive, so they compete with the marketplace to obtain the best result, often for the fun of ‘making the deal.”

Other highlights of the report include:
• Almost three-quarters of the rich look around for special deals such as ‘buy one get one free offers’, with 55 per cent of the rich choosing to use money off vouchers in order to save a few pennies when out shopping.

• Overall men are more likely to haggle or negotiate over price.  Nearly two thirds (64 per cent) of rich men say they haggle or negotiate to save money when shopping with just over 40 per cent of the average British male stating they’d employ this tactic. 

• Rich men are also twice as likely as rich women to haggle to get a better deal with only 30 per cent of women saying they’d do this.  In stark comparison only a quarter (25 per cent) of average British women are prepared to negotiate over price.

• Rich women appear to be the main impulse buyers in the UK.  The research found that rich women are twice as likely to buy on the spur of the moment on a regular basis than rich men.  Nearly a quarter of rich women (24 per cent) admitted to doing this compared to only 12 per cent of rich men.

• Researching  purchases is more of a priority for rich men than women  with over half (52 per cent) stating they carefully researched before buying, compared to just under a quarter (24 per cent) of their female counterparts.

Provided by the Lloyds TSB