Nine Steps to Successful Shopping

The following is an excerpt from High School Money Book, copyright 2007, 2008 Don Silver and excerpt reprinted with permission.

Here are nine steps to help make your shopping successful. To put them in a context, as you go through the steps, think about how they would apply to the purchase of a computer.

1. Do comparison shopping.

One of the keys to being a money-smart shopper is to do comparison shopping. Zero in on what you need. Do research online and through magazines, stores and friends to determine the specifications you need and the product reviews of the various choices.

Comparison shopping falls into two categories: (1) comparing apples to apples and (2) comparing apples to oranges.

Compare apples to apples

If you definitely know the exact item (e.g., model number) you want to purchase, you can then compare prices on the Internet or call different stores.

To make sure you’re really comparing the exact same product (e.g., apples to apples), be sure to ask about shipping costs, warranties and return policies, too. What may appear to be less expensive at first may change once you get the whole story.

If possible, personally take a look at what you’ll be buying.

Comparing apples and oranges

You may not be sure exactly which product you want to buy. Here’s where it gets trickier to do comparison shopping.

Very often, products only list some of their features. It can be difficult to know what’s included and excluded on products of a similar type. You can get much of the needed information through the Net or at your local library. Also try calling a toll-free customer service number to ask your questions and see whether there are some specification or “spec” sheets on the Net that list and compare features on different products.

Then, once you’ve decided on a particular product, you can then go back to your apples-to-apples comparison shopping.

2. Buy pre-owned.

Second, consider buying pre-owned rather than new products. Since just about everyone prefers buying new to old, why buy pre-owned (a fancy word for used)? Buying used saves money.

And in many cases, the quality is the same. You can buy a used, unscratched CD or DVD and the quality can be as clear as a new one. If you can buy a refurbished computer, it may be of the same quality and have the same warranty as a new computer. The only difference might be in the price—it’s lower. However, if your warranty is automatically extended by using your credit card, that extension may not apply to refurbished computers—ask your credit card company.

Libraries are a great way to save on book costs. And once you’re in college, look for other ways to save money on textbooks, including shopping on the Net and/or buying used textbooks or e-books.

There are other reasons to consider buying pre-owned products. You may be helping the environment by keeping a product in use that might otherwise go into an overcrowded landfill. Buying used may keep valuable natural resources from being used up to produce, transport and sell a new product.

If it bothers you to buy something used, consider getting the product through a trade or barter with friends instead. You may have clothes, a CD, DVD, MP3 or DVD player or a computer that is no longer right for you. Maybe it’s the right fit for friends of yours and they’ll have something you need in return.

Just remember there is a big problem when you buy something new. Right away it becomes “used” anyway. That’s the reason you hear a new car loses thousands of dollars of value as soon as it’s driven off the lot.

3. Shop at sales.

Some of the best sales are during the off season. For example, once winter ends, winter clothes go down in price. You can be dollars ahead for next year by making next year’s purchases during this year’s off-season sale.

Department stores have certain items that go on sale during a certain month of the year. Call the major stores close to you and ask about their schedule of sales for the upcoming year. It may be worth waiting to make a purchase until the sale month comes up for that product.

One last word about sales. Sometimes special sale prices only apply to certain items and not the ones of interest to you.

4. Save with newspaper (or Internet) coupons.

You can save money with newspapers in two main ways. Sales are often advertised in papers. In addition, newspapers are filled with coupons (also see Money-Smart Way #28 on Internet coupons). Some stores honor coupons from competitors’ stores or the Net. Remember, a coupon doesn’t save you money unless you really need the item. But if you do, coupons can be a great way to save.

5. Keep ads to show special prices.

Sometimes you go to a store in response to an ad only to find the price of a product is higher than advertised. Usually, this is an oversight on the part of the merchant. One way of getting the special advertised price is to bring the advertisement to the store so any difference in the price will be resolved in your favor. Bringing an ad with you to a store is another way of having a shopping list to control your spending.

6. Get value for your purchases.

Good shopping means getting your money’s worth, not just spending as little as you can.

One of the toughest tasks is learning how to judge quality and value. Usually, quality purchases mean items that will last longer and cost more. With some purchases, it means more durability or strength. With others, it may mean that they won’t become outdated as soon.

Quality takes on other aspects in other parts of our lives. For example, in a grocery store, getting good value may depend on your reading product labels to determine which product is better.

7. Learn to negotiate.

Although we don’t shop in a bazaar where bartering or price haggling is the usual way to buy, the savvy shopper, knowing there may be plenty of room to negotiate, doesn’t necessarily accept prices at face value.

Think about it. You’ll often see advertisements that say, “We’ll match any advertised price.” That means that the listed prices in the store may be higher than the competition’s and the store doesn’t want to lose your business to a competitor. If stores are in essence advertising that their prices will be lower if you ask, speak up.

Don’t be afraid to make an offer if you feel a price for a purchase is too high or unaffordable for you. Just say to the merchant, the car rental agency, the hotel or any other seller, “What’s the best price you can give me?” or “I can only afford this much.” The worst they can say is no. You’ve got a chance that they’ll say yes or settle somewhere in the middle. Why overpay? If you can spot a defect, even a small one, in a product you may also be better able to negotiate a lower price.

Don’t overlook the Internet in hunting for bargains. You may decide to make purchases over the Internet or you may use the information you’ve obtained there to negotiate with your local stores. By being able to show them a printout of how little you can spend for the same item over the Net, you may receive an instant discount to encourage you to make the purchase from them.

8. Ask for a cash discount.

If you’re paying by cash, you’re saving the merchant money. On every credit card transaction, a merchant has to pay the credit card company 2 or 3% as a credit card fee. Why not pocket that discount yourself? Ask for a cash discount.

9. Learn to say no.

The most effective negotiating technique is being able to say no and mean it. If you’re ready to walk away from a transaction but the other side wants you to stay, you definitely can have the upper hand. This allows you to get a better price or to just pass on the transaction if it really doesn’t make sense for you.

Comments

[Angie]

For any electronics I am always doing a thorough search online to get a better feel of durability and functionality. I've found amazon.com to have very in depth and thought out reviews on just about everything. Even if I don't end up buying the product from there, I rely on this site more than others because of users honesty of reviews along with the shear number. Works well with products other than electronics, like makeup, teeth whitnening, car wax, Just about everything!

Another plug I have is for those shopping online. Always look if the site you are buying from gives an extra percentage back from either credit card shopping network, Upromise, gradgold. Although the small percentages don't add up very fast, its still free money.

Several times a product has looked well worth through my research on the internet and reviews on other sites. After reading what people have to say on amazon though, I realized it wasn't as good as it sounds and decided not to buy the product.