Money Management Newsletter

Shopping Guidelines

Dr. Jo Turner, CFP, Professor, Family and Consumer Economics

Today educators as well as businesses are concerned about the competency of school children.  Recent studies show that nine out of ten consumers occasionally buy items on impulse.  Another study indicates that one out of five people in this country do not have the skills necessary to function effectively in the market place.  There are many reasons for this.  Some of the reasons are:

  1. With advances in technology shopping is more complex today than at any time in our history.
  2. We have more products and services from which to choose.
  3. There are more sellers vying for our business and they have more legislation with which to comply than ever before in history. Yet when shopping on the worldwide market there are few laws to protect consumers.
  4. Consumers have increasing amounts of discretionary dollars to spend, that is money to spend on non-essential items.

Studies indicate that an average of 12 to15 percent of total potential buying power is lost due to careless shopping and even more is lost due to improper use and care of purchases. Charlotte Gorman in the Frugal Mind identifies over 1,000 ways to save as much as 50 percent on consumer goods and services.  Shopping is a skill and one that it pays to develop.  The skill is developed through experience and practice in the market place.  There are many guides to use when shopping, listed below are seven.

  1. Plan your purchases.  Before going shopping know what it is that you are going to purchase and why.  Be prepared to say no to those things that don't cost much and would make life simpler.  Avoid impulse buying.  Your planning strategy should include an evaluation of products that you plan to purchase.  Study the ads.  Develop a shopping list, get prepared physically and emotionally for the venture.  Take your ads, shopping list and cents off coupons with you when you shop.
  2. Determine the true cost of an item before you purchase it.  This includes examining the product for unit price.  We generally assume that a larger package of the product is cheaper per unit than a smaller package, but this is not always the case.  Even if the actual cash cost is less for the larger package can you use the product before it spoils?  How much waste is there?  How much are you paying for packaging?  Sometimes the packaging will cost you more than the merchandise.  Compare the merchandise with the unpackaged variety.  Free offers are rarely free.  Those gifts you receive in the packaged merchandise cost you.  You may get the gift rather than the product.  Compare prices of products with and without a gift.  If you use credit to pay for this bargain, be sure to include the cost of credit in the cost of the item.
  3. Know when to shop.  There are best times to shop and best times to shop for certain items.  For example mid-morning when the stores are not crowded and mid-summer when many people are on vacation to find good bargains.  Immediately after the holiday season for the next holiday season, that is if you have storage space for the items.  On food items buy those things in season.  Avoid shopping when you are tired, preoccupied or hungry.
  4. There is a right place to buy.  You will find that place by shopping around.  Don't forget to shop at such places as thrift or discount stores, specialty stores, look for the best price for the item that you want to buy and it will probably not be consistently the same place each time.
  5. Learn to read the ads.  Delete all the emotional and empty words such as "special sale price," "unbelievable savings," and  "too good to be true."  Don't be in a hurry to buy, shop around and save big bucks.
  6. Learn to judge quality.  It takes a lot of study and practice to determine quality.  You cannot rely on price alone to dictate quality.  Once you learn to recognize quality, you can determine when the best quality is desired and when a lesser quality will serve as well.  Brand name are no guarantee of a better quality or value or price.  Check and compare brands frequently.  Always read labels this will give you a clue to the quality of the merchandise.  Read the care instructions before you make the purchase.
  7. Buy from reliable dealers.  Almost everything you purchase has an implied warranty.  It is a well-established fact that you have the right to expect reasonable service from any product that you buy.  But if you cannot find the dealer when the product goes bad, the implied warranty or the written warranty for that matter will not be of much help.  Another important asset for any business is the customer's good will. When you do get a faulty product, take it back to the seller. Learn to complain.

In summary the seven guidelines for developing shopping skills, plan purchases, determine the true cost of the product, know when to shop, learn to read the ads, learn to judge quality, and buy from reliable dealers will help you stretch your shopping dollars and have greater satisfaction from your purchases.