Here is a confession: I spend a good amount of time shopping — online shopping. Don’t get me wrong, though, this shopping around doesn’t waste much money. In fact, it often surprisingly saves a lot of money.
Shopping around for an item has benefits that are not just limited to getting the best price. In fact, it helps you — and me — get the best deal, which is the best value for your money. So for example, you might spend the same amount of money as someone else, but get a better product or service.
In addition, shopping around as an approach goes against impulsive shopping, which means you’re more likely to skip a purchase altogether if the interest was originally motivated by boredom or anything else like pressure from a salesperson or a friend. Just the fact that you decide to take your time to look around and compare prices will give you what you need to recognise that you probably don’t want that item anyway.
Another great benefit of shopping around is getting a sense of how different stores prices their products, and manage their sales. For example, you might find a larger retailer is more capable of offering real deals on certain items that need to go. Alternatively, you might find a store that jacks up prices just before reducing them during a sales period.
Does shopping around encourage more shopping? Even if you’re just window-shopping, you might be tempted to buy something else or just get deeply attached to the item that you’re researching to the extent you don’t question whether you actually need it or not. To balance the pros and cons of shopping around, ask yourself the following questions:
* Is the item in your budget?
In many cases, people overlook this very basic question. For example, an impressive getaway trip may sound like a great deal if it is at 30 per cent discount sale. If it is not within your means, however, you probably shouldn’t rush to get it just because it seems like a bargain. Similarly, if you compare this item’s price tag to other activities or items that you’ve been putting on hold, does it still seem to be the best way to spend your money?
When you have answers to these questions, you will be able to make the very initial determination of whether you should be pursuing the purchase at all or not. If your interest was solely triggered by what appeared to be a bargain but the price — even after the discount — still appears to stretch your budget, then you probably should not be buying this item or service.
* Is it the right time to buy?
Many major purchases have cycles of good and bad times to buy. You will need to understand the trends in your market to decide when it is the best time to put your money down for a car, a house or even a boat. This can be decided by the nature of the market like sales periods, or by major economic indicators like interest rates, supply and demand, etc.
Familiarise yourself with what makes for a perfect time for your purchase. If you’re unable to determine this for yourself, do some research, ask advisers or even salespeople who might be willing to share some of their insights with you.
If you’re unsure, consider the consequences of waiting and reconsidering. In many cases, there are almost no consequences except for the perceived loss of an opportunity to grab a bargain. In other situations, you may find based on your research that buying now or soon will give you a better deal. So be open-minded when you’re considering both options.
* Are you considering enough alternatives?
Shopping around doesn’t mean comparing prices for one item. You should look into different options, different alternatives, etc. For example, are considering buying a car? Consider the different cars that are within your price range, various finance options, service, convenience, etc. You also should consider whether leasing could be a better option, even if you disregard this quickly.
By taking a comprehensive look at your options, you’d be able to make an informed decision. You also should be certain that your choice is the one that makes the most sense for your situation even if it is slightly more expensive.
The writer, a former Gulf News Business Features Editor, is a Seattle-based editor.
Why you should shop around?
• To discourage impulsive purchases
• To ensure best value for money
• To know all your options
• To buy at the right time
R.O.
