Welcome to the first post in a new series called “Vince’s Value Vault!” This series is dedicated to helping you, the savvy consumer, navigate the sometimes-tricky world of shopping and dealing with big companies.
Themes will include tips & tricks for getting deals as a consumer, spending money wisely, and defending the consumer’s position in a world that is increasingly dominated by AI, automation, and mega companies. Does a consumer really have any power left? We’ll see. Unfortunately, the trend lately is it’s diminishing, so we’re all going to need as much help as we can get.
With 60+ years’ experience (I like to say I’m 20 years old with 40 years of experience), I started to learn at the age of 4 from my father — who was the quintessential savvy shopper and deal finder. Early on, I received a childhood PHD in frugality, learning from a man who had to provide for eight kids on a librarian’s salary.
After my childhood apprenticeship, I embarked on a 40+ year career in marketing technology – consulting mainly with large organizations on how to build marketing systems. As a corporate consultant by day, and a consumer by night, I’ve gained perspective on both sides of the equation.
Today, we are kicking things off with a list of a baker’s dozen (13) essential tips and tricks to ensure you get the best value for your money. In future posts, we’ll dig in further and keep real-life tips and examples coming!
Upfront advice:
- Do Your Research – Before making any purchase, it’s crucial to do your homework. Compare prices across various retailers, read customer reviews, and check for any online promos or discounts. Websites like PriceGrabber and Google Shopping can help you compare prices easily.
- Balance time spent finding savings with the savings potential – In other words, spending even just 15 min to save less than $1 isn’t worth it. That said, everyone has their own threshold. Mine is generally about $1 per min. So, if I can save $5 and it take me 5 min, I’ll do it.
- Study the nuances of the market you are buying from – What that means is there is no such thing as one market. There are local markets and there are global markets. There are markets served by big companies and ones served by smaller ones. Work to better understand the market you are shopping in, which will inform you about deal parameters in that market. For example, occasionally, I shop at Farmer’s markets, and I’ve noticed many of them are price fixing. All the vendors are colluding (maybe implicitly) selling at essentially the same price. This means you won’t find deals there.
Now, the Baker’s Dozen:
- Balance time spent finding savings with the savings potential – In other words, spending even just 15 min to save less than $1 isn’t worth it. That said, everyone has their own threshold. Mine is generally about $1 per min. So, if I can save $5 and it take me 5 min, I’ll do it.
- Never make large purchases on an impulse – Instead, create a spreadsheet with a simple set of columns to lay out the decision and options, and do some quick online shopping. This will help you narrow down the exact product you are looking for, as well as to get a good price for it.
- You will always be trading off price for quality – So understand this and realize that often paying more upfront doesn’t mean paying more in the long run, but it just depends on how long you really want to keep using that product without having to invest in fixing or replacing it.
- It’s rarely worth buying an extended warranty – Companies make huge margins on these. If you simply consider the cost, often a large fraction of the product’s total cost, you are better off taking the risk and paying for another product if it fails early. Often, there is a base warranty anyway. If this is a very expensive product, like a car, and this is important to you, make this an important aspect of your purchase decision – that is – the length of the base manufacture’s warranty, and if it includes parts & labor
- Utilize Cashback and Rewards Programs – Many credit cards and online platforms offer cashback and rewards points for purchases. Make sure to sign up for these programs to earn money back on the items you are already buying. Websites such as Rakuten and Honey provide cashback on a wide range of purchases.
- Sign Up for Newsletters – Brands often send out special discounts and promotions to their email subscribers. By signing up for newsletters from your favorite stores, you can receive exclusive deals directly in your inbox.
- Use Price Tracking Tools – Tools like CamelCamelCamel and Honey’s Droplist feature can help you track the price history of products on platforms like Amazon. These tools alert you when prices drop, ensuring you get the best deal possible.
- Shop During Sales Events – Take advantage of major sales events like Black Friday, Cyber Monday, and annual clearance sales. These events often feature significant discounts on a wide range of products.
- Negotiate with Customer Service – Don’t be afraid to negotiate with customer service representatives, especially when dealing with big-ticket items or services like cable and internet. A polite request for a discount or negotiation on price can often yield surprising results.
- Use Coupons and Promo Codes – Always search for coupons and promo codes before completing a purchase. Websites like RetailMeNot and Coupons.com offer a plethora of discount codes for various retailers.
- Consider Open-Box and Refurbished Items – Open-box and refurbished items can offer significant savings while still providing high-quality products. Retailers such as Best Buy and Amazon have dedicated sections for these items, often with warranties included.
- Take Advantage of Free Trials and Samples – Many companies offer free trials and samples of their products. This is a great way to try before you buy, ensuring you only spend money on items you truly love and need.
- Read Return Policies – Always familiarize yourself with a retailer’s return policy before making a purchase. Understanding the return and exchange terms can save you from potential headaches and ensure that you can get your money back if needed.
By following these tips and tricks, you can make smarter shopping decisions and get the most value out of your purchases. Stay tuned for more insights and advice in future posts of Vince’s Value Vault