How to Be a Savvy Consumer

You work hard for your money. Retailers work equally hard to separate you from it. Being a savvy consumer means looking beyond the sales pitch and assessing the true value of a product.

Difficulty: Moderately Easy

Instructions

1. Utilize the full potential of the Internet to research price, options and product reviews before you buy. Read Consumer Reports (consumerreports.org) for product reviews and the Better Business Bureau (bbb.org) or your county Citizen and Consumer Affairs Office for complaints against a business.

2. Get feedback and recommendations from friends or family who have made similar purchases. Their first-hand experience and tips will be invaluable.

3. Know what you need as far as features and what you can spend before you enter a store.

4. Ask plenty of questions. Be wary of salespeople who are overly aggressive or evasive in answering them. If you're not getting the service and information you need, find the manager.

5. Research and read labels to determine if products are made with potentially toxic materials or pose any danger to people, pets or the environment by their use. Investigate nontoxic alternatives.

6. Always find out what the return and exchange policy is before you buy. See the related eHow titled How to Make Returns. If you're buying online, call the toll-free customer-service phone number with return questions.

7. Read the fine print on a warranty or contract and ask for a clarification if it's unclear. Important information is often obfuscated by legal mumbo jumbo.

8. Get a signed and dated contract that spells out particulars whenever you hire service people. Before you hire a mechanic, contractor or any service professional, get an estimate and the scope of work in writing. See the related eHow called How to Hire a Reliable Mechanic.

9. Charge it, especially if you're making an online, phone or mailorder purchase. Credit card companies will not hold you liable for fraudulent charges and will charge back the merchant if you receive falsely advertised, defective or damaged merchandise.

10. Avoid layaways and rent-to-own plans in most cases. You may be better off putting the money in a savings account so that you--not the store--collect the interest, until you save enough to buy it outright.

11. Stash all receipts, warranties, owner's manuals, contracts and written estimates in a well-organized filing system. A complaint is much harder to prove without documentation. Save packaging for the first week in case you discover defects or unsatisfactory performance; returns may need to be in their original packaging.

Tips & Warnings

• Consult your doctor before buying health-related supplies, equipment or services. That will help you avoid products with dubious health benefits.
• Use a credit card that rewards you with air travel miles and other incentives to reap even more benefits from your purchases.
• Don't be duped by sale signs. Ask yourself, "Am I really getting a good deal for my money?"
• Check the packaging and condition of a product. If a box has been retaped, ask if the item was a return, a floor model, or a reconditioned item. If so, ask for a discount and make sure the warranty is still in full effect.
• Never pay money up front for goods or services offered over the phone, and don't give your credit card number or Social Security number to anyone or any company you don't know.

[mikew12345]

on 4/12/2007 Don't be penny wise and dollar foolish. Many people clip coupons to save a nickel on a bar of soap, but don't bother to do the research that will save them thousands on a new car, house, etc. The more expensive the item, the more you should take your time, study the tips that others publish on how to save money, etc.

on 11/22/2005 Pay more than the minimum payment. Plan your payments so that you will pay off the item one or two months before the accrued interest slams in.