When a Bargain is Not Really a Bargain
When is a bargain not really a bargain? Just a quick glance at the price tag, or at the price after rebate, isn’t always enough to tell you if you’re got the Deal of the Century on your hands. Here are some other things to consider.
Are shipping costs excessive? Often when you add in the cost of shipping, that great deal isn't so great after all. In addition, you have to keep in mind the cost of shipping the item back if it's defective, the wrong size, or the wrong color. I feel fairly comfortable shopping online with JCPenney because I know if I don't like my purchase, I can return it at my local store without incurring additional shipping costs.
What's the store's return policy? You need to know how the store handles returns, in case you do need to return it for some reason. Some stores will gladly refund your money...AFTER taking out a sizable "restocking fee." Many stores require you to pay the cost of shipping the return item back. Others, like Zappos.com shoe store, pay the cost of return shipping for you. Read the store's return policy before you buy, and beware of any store that says, "All sales are final." There's probably a reason they say that!
When does it expire? Yep, that is a killer deal on hot dogs, but are you going to cook them all or freeze them today? The reason you’ll find items in the clearance bin at the supermarket, or with those “Save $2 Now!” tags on them in the meat cooler, is that they’re rapidly nearing expiration. So don’t stockpile unless you have plans to eat or freeze immediately.
Will you ever use it? I’ve had a box of purses in my attic for 3 years now. They were a GREAT deal at 80% off, but they are dog-ugly! I’m too embarrassed to give them as gifts, and I wouldn’t be caught dead with one on my shoulder. Why DID I buy them? If you're paying ANY money for something you won't use and can't give away...it's not a good deal, is it?
Will you send in the rebate? Manufacturers count on the fact that a lot of people won’t go through the trouble of submitting the receipt, UPCs, rebate form, and whatever else is required to receive their rebate. They hope that the promise of a rebate will entice you to buy but that you won’t follow through. Don’t play into their hands; do the paperwork as soon as you get the product home!
Will the purchase even qualify for a rebate? Read the fine print! You may have to buy a computer to qualify for the printer rebate. Or you may have to buy from an “authorized dealer,” meaning the purchase from the really-cheap internet discounter won’t qualify.
Are you paying interest on the purchase? If you're putting your great bargain on a credit card on which you’re maintaining a balance, you’re going to pay interest on your “great bargain.” Maybe it’s not such a great bargain after all.
Is the product obsolete? A lot of great bargains are on closeout models being discontinued. So it may be a great deal right now, but what are you going to do when it breaks? Will replacement filters or cartridges or other consumable parts be available?
Are all parts included? Make sure you include the cost of purchasing any other requirements the product has for regular operation, including computer cables, power adapters, special tapes, or special paper. I got a killer deal on a travel cooler once, only to find that it didn't include the ac adapter...which cost almost as much as the cooler itself!
How much do the product's consumables cost? Ever notice how razors are fairly cheap but replacement blades are expensive? Businesses know they can almost give away the item because they make money on the replacement consumables. Same with printers – they may be dirt cheap now, but how many pages will the included ink cartridge print before it has to be replaced? And how much does that cartridge cost? You have to take all the operating costs into consideration.
Is the merchant trustworthy? If looks "too good to be true," often it is. That free download may come with spyware. The merchant may sell your credit card information to identity thieves. The store may close up shop tomorrow, without ever sending your purchase. You have to do a little legwork before buying from a merchant you're unfamiliar with. Good sources of information on online dealers can be found at BizRate.com, ResellerRatings.com, BBBOnline, and Ebay's feedback system. You can Google the company for more information, and you might also want to check the WhoIs information for the site's URL to see how long the site's been registered and where the owner is located. And you might want to use a "disposable" credit card number (one generated especially for that one transaction) if your CC company offers that feature.
Have fun deal-hunting, but please take these suggestions into consideration before you find out that you've just plunked down good money on a bargain that really isn't a bargain after all!
Becky Ford
CompareRewards.com
Posted by at April 4, 2005 08:55 AM
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