10 Ways to Save on your Next Purchase

10 Ways to Save on your next purchase!

1. Don’t buy impulsively!

Human behavior teaches us that, if you are afraid, you can be controlled, this also applies to retail purchases. If you feel that the quantity is limited or there is some sort of pain relief associated with the product, the retailer can count on impulsive buyers. Their approach is to try to pry a little bit more money out of you while you are already reaching into your pocket. Rental car insurance, accessories, candy and any item that is being “upsold” falls into this category.

2. Do your research

One of the best ways to save is to get quality products that you do not have to replace at a discount. The saying “You get what you pay for.” Is very true with regard to the purchase of products. The key is to get good quality products when they go on sale or as excess inventory so you will not have to replace them. There is a best time to buy everything from cars(end of the month or in the fall, once the next model year begins to arrive on the lot), to homes(fall and early winter) to electronics(after Christmas), do your research to find out when the industry is on the downside of the demand curve and buy, buy, buy.

3. Know about the secondary market

There is a secondary market for all products. All retailers have excess inventory regardless of how successful they are. Even Apple Computer, the best example of a premium product with a high price point and high demand, has returned and refurbished items that come with the same warranty and quality as the new items. For every item or service there is off-menu pricing, the key is find out where these items are since it does not benefit the retailer to tell you. This could be called slightly used, previously owned or excess inventory.

4. Understand that retailers are in business to make a profit on you.

Once you understand that retailers are not in business to save you money you will take a different view of all of your purchases. Retailers always have to move through product to make room for the next batch. They key is to have the patience to wait until they are ready to move the product out, then make your offer to buy.

5. Don’t be an ‘early adopter’!

‘Early adopters’ are consumers that are willing to pay a premium for the latest and greatest of anything. They pay a premium to the first on the block with this pair of jeans, that car, or the newest gadget. If you are a retailer, these early adopters are critical to driving demand for your products, they are community and opinion leaders that can make everyone else feel like they have to have whatever the early adopters have. The key to saving money is to make sure that you are not an early adopter, if you will just wait until they work out the bugs or the second run or third run, the price usually goes down. Ask the first owner of the IPhone how they felt when the second version came out a few months later that was less expensive but better quality than the one that they paid $500 for.

6. Don’t be afraid to ask for a discount

The economy is going through a tough time right now but we are still consumers at heart and we will continue to buy things. Before a vendor will let you leave their storefront they will try to figure out a way to sell you what you want. Don’t forget to ask for a discount on everything you buy.

7. Buy during off-peak times

Don’t be afraid to buy things off-season. Buy winter clothes in the summer and summer clothes in the winter especially if you are an adult and your size is not going to change much. Go to Hawaii in the summer, by boots in the spring, go to Disneyworld after school starts, etc. Again, you are getting the item when the demand is low, so the price will be lower as well.

8. Don’t give in to the fashion trends

Trendy runway fashions are for people that have money to burn. If that is you, then great! If not, welcome to reality. If you must have trendy close make them a small part of your wardrobe or fleet and wait until these items go on sale.

9. Always be ready to walk away.

Consumers tend to forget that they are in control when it comes to the purchasing process. Retailers are in business to separate you from you money. When you have expressed an interest in their product and have the cash to complete the sale, you are just the customer they are looking for. To get to the right price you have to physically walk away to get them to understand that you are serious about getting a good price. They could go through 10-25 customers before they find one that fits the profile of having a need and the budget to meet that need. Use this to your advantage especially now when there is a lot of excess-inventory on the shelves. Get the price you want to pay or walk away!

10. Expose your purchase to competition

The old way to do this is to decide what you want and then pick up the phone or go comparison-shopping on foot. Squidbid.com is a Demand Driven marketplace which has developed a cool concept. Here is how it works: Post a Bid Order, which tells the world what you are looking for in a product or service, the specifications or qualities that if not met, constitute a deal breaker, and the price you want to pay AKA the budget. Vendors then compete for your business by bidding the price down! Sounds great, right! On top of that, it is free for buyers to participate! Want to include only 3-4 vendors that you are used to dealing with, fine, make it an invitation only bid order and send invites to vendors you have personally qualified. The concept is called ‘Reverse E-Commerce(TM)’.

Marcus Crockett
President, Squidbid.com
https://www.squidbid.com