Buyer -Be Very Aware! Retail Shopping Tips

At retailers, there are various tricks and fake discount deals a savvy shopper is wary of. Spot these hidden money sucking schemes to hang on to your cash, as store employees will make these seem like a great savings. Resist the urge to splurge by being aware!

Here’s my top four money sucking schemes:

Service plans- You’re buying a new laptop or a vacuum or even a coffee maker. Expect to be accosted at the register or in the aisles by a sales representative about these extended warranties.  A good sales person will make you think you’re doomed without buying one. The higher the priced item, the harder you’ll feel the push of purchasing add-on service agreements. Don’t forget that most new items already have a free limited warranty. While purchased extended warranties can cost up to a third of the price of replacement for the first year alone (when most manufacturers still cover the product anyway). Save your cash by reading the manufacturer’s warranty and doing advance research on new large purchases via consumer reports. Ask yourself- “Based on this data, how likely is this item to break?” “What’s covered under the existing warranty?” You’ll save a bundle before you leave the store by being informed.

Buy one, Get one @ 50% off- Depending on the item, these sales can actually cost you more than waiting for a better deal. You’re only saving 25% off each item after all. Retailers bank on the consumer hearing the magic “50%” and not considering the savings isn’t really that significant.  Many slightly off season sales start at 30% or more. Plus you’ll be buying two of an item, which might make you blow your budget- just to get the “special price”. Skirt the other sales in the store, ask if a coupon can also be applied, or wait for a better deal.

Applying for a Store Credit card just to obtain savings: With interest rates that usually surpass a major credit card by a fiscal mile, store cards are never a good idea, especially to get an extra 15% off that day’s purchases. Save more by shopping sales and using coupons. Plus, too many credit cards or ones that carry a balance can upset your debt to credit ratio and blow you out of the water when you need a major purchase- costing you in the end big bucks in interest rates or denial of loans. 

Buying a Membership: Some stores offer not a credit card, but a purchased discount card that gives you special prices or points. These aren’t a bad idea IF you shop there often. However, most people will    buy one and then never use it beyond that day’s purchases. Some like the Body Shop cost a mere $10, and save you on all future purchases. Be savvy and only buy a membership card if you really would shop there frequently without it. Otherwise nix the paid memberships.