People tend to have one or more favorite stores where they
shop, whether it’s brick-and-mortar or online.
They typically choose that store based on variety of items offered,
convenience, or price. But when it’s
time to make a big-dollar purchase, especially one that is not a routine
purchase and maybe only bought every few years, the favorite store may not
stock it. It’s time to comparison shop. Here are a few things you should compare when
shopping. I list these in no particular
order; each person will weigh the factors differently depending on his unique
circumstances.
1. Get prices/quotes from at least three sources. This should be enough to develop a sense of
what the item/service should cost and give the shopper choices or even leverage
for negotiation.
2. Know the quality of the merchandise. You will likely have a choice of makes/models
(e.g. cars, furnaces, refrigerators, etc.), so while a vendor may only
stock/sell one or two brands, make sure with some online research or Consumer Reports ratings that you know the quality of the
available models.
3. Know the warranty.
I’ve been pleased with the improved longevity of cars. I’m less impressed with the quality of many
other manufactured goods. My water
heater, for instance, recently went on the blink after just three-and-a-half
years. Fortunately, the warranty was for
six years, and because that model was no longer made I was able to move up to a
model from another manufacturer with a better reputation in the industry. But look out for small print. The warranty may require you to buy into a
particular service contract or perform certain maintenance at certain places
(or intervals) which you are unwilling to do or for which you are unwilling to
pay. Consider all the costs.
4. The real price is important. This is not as obvious as it seems. If the purchase involves installation (or
other variables than the item itself), be certain the quote includes
installation and details exactly how the installation is to be done, what
installation materials are included, how long it will take to install, and
includes cleanup and hauling away anything the new item is replacing. But be aware there may be some instances in
which it is better to arrange someone else to haul away the old stuff. Some electric companies, for example, will
offer a small rebate for letting them haul away an old (10+ years) appliance
that is being replaced by a more energy-efficient model. I saved $20 in haul-away fees and netted a
$100 rebate that way on my refrigerator purchase last year.
5. Know your payment options. This is a critical one, especially if you
don’t have a rainy day fund with enough money to cover the cost. Financing a purchase can add hundreds of dollars
to your total expense. All other things
being equal, it might be better to purchase a slightly more expensive brand
from a company that offers interest-free financing for an extended period of
time than a less expensive model that you have to finance at five or six
percent interest. But do read that fine
print carefully. If you miss a payment
you might get hit with a penalty, lose the interest-free period, or both. And if you do have the cash, it might still
be beneficial to put it on a credit card (remember to ask if that’s an option
and factor it into your choice of quotes) where you can put off payment until
the next month and not pay interest (assuming you’re already at a $0 carryover
balance) plus get points or other rewards from the credit card company for your
large purchase.
6. Get it in writing.
This is critical if your purchase is especially large and involves
complex professional installation. This
is the only reliable way to hold a vendor to his word and accurately compare
what each vendor is offering to ensure you are evaluating comparable
services—apples to apples, as they say.
7. Be sure the quote specifies how long the price will be
held firm while you’re making your decision.
8. Get references.
I’m not certain this one is so easy.
Vendor-supplied customer references will be skewed to include only those
they know will give them a thumbs-up.
It’s like carefully selecting the references you include on your
resume. I’m skeptical of online tools,
too. I’m sure they have protections
against vendors packing the reviews with bogus “outstanding” ratings, but I
just can’t bring myself to trust everything I read on the internet. Maybe try talking to friends, neighbors, and
co-workers about their experiences with the vendors under consideration.
Good luck, savvy shopper.
And until next time,
Roger
“Suppose one of you
wants to build a tower. Won’t you first
sit down and estimate the cost to see if you have enough money to complete it?”
Luke 14:28 NIV®*
*Scripture quotations taken from the Holy Bible, New
International Version® NIV®
Copyright © 1973, 1978, 1984, 2011 by Biblica, Inc.™
Used by permission.
All rights reserved worldwide.
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