Cheapest Isn't Always Most Economical
Jul 27 '02
The Bottom Line Scrimp or splurge? Going to the fabulous bakery when they start marking down is using shopping strategies to have your cake and eat it too. Read on for more more.
Finally it was time to replace my 22-year-old dishwasher. I knew my neighbor had just bought a new dishwasher, so I went to see what he had. He gleefully told me how his $179 cheapie was doing the job for him.
Being a black belt shopper and bargain hunter, I looked into buying that model. I figured I didn’t need the most feature-most laden dishwasher around. After all, I don’t wash a lot of fancy crystal and most of my pots are non-stick.
After doing my research, however, I found that the least expensive dishwasher was not the most economical.
When I looked in Consumer Report, I found that the brand of that $179 model was the second most repair-prone of all the models tested. Additionally, it wasn’t an energy star which means that it used more power than many–an important consideration for someone with an all-electric home in power-short California.
With the assistance of a salesperson, I found an energy star model whose brand was top-rated by Consumer Report with self-cleaning filter and hard food disposal for only $100 more than that cheapie.
When you consider energy use and durability, I probably will pay out less than my neighbor for the dishwasher and all the costs associated with it (electricity, repairs, etc.) over ten years. Additionally, according to what I read in Consumer Reports, I will enjoy cleaner dishes.
I used the same reasoning when I bought a car two years ago. As I researched the various models, Honda kept coming up as solid and reliable. True, Hondas and Toyotas are pricy, but I reasoned that the reliability and the money saved on repairs would more than make up for the extra $1000 or so that I put out to buy the car. My is five years old (three years before I bought it, two years with me) and I have not spent one penny on it other than routine maintenance.
So how do you know when to skimp and when to spend? How do you know when you are paying extra for better quality and durability as opposed to paying for gingerbread? Here are a few considerations:
• Consider price in terms of price per year, use, etc. I am now on my second Honda. Until the last year or so, my first Honda cost almost nothing to maintain. I kept it for ten years, making many trips as well as doing the daily driving. Even though the car cost me more to buy than a lesser rated model would have bought, the rarity of major repairs made the car a real bargain. Likewise, my Ralph Lauren shirts last many years. When I get them on sale, they are a bargain compared to low quality clothing that fades with washings, falls apart, and just doesn’t look good after a number of wearings.
• Research features before buying After researching the features of various dishwashers, I knew which ones were important to me. Delayed starts, china and crystal settings, and the like were not important to me. An extra water arm to better clean the dishes, a brand with a good reputation, and low energy use were. With that in mind, I was able to find a dishwasher that fit my needs without going overboard.
• Consider gently used items when appropriate Most durable goods type items depreciate very rapidly and sometimes you can benefit from that depreciation. I have found that when buying cars and furniture especially, you will do much better with gently used quality than with a brand new item of lesser quality. A used top-rated car will cost about the same to buy as a lesser new car, but the good used car may cost you less in repairs not to mention what having a reliable car will do for your life. Likewise, buying really good furniture used will often serve you better than buying new furniture of low quality.
Gently used high quality clothing often works for rapidly growing small children. And, as one who wears ties only occasionally, I have found some great $60 museum ties on e-bay for less than $15.
Used is not always best, however. I considered a used dishwasher, but since I couldn’t really test it and since an installation was involved, I felt more secure going with new.
• Use timing to get quality at good prices Some of your high end department stores are so anxious to keep their clothing merchandise up to the minute that they practically give away off-season clothing during their sales. I recently bought a Tommy Hilfiger shirt for $14 because the store was so anxious to free the rack space for something new. Buy classic styles of good brands from upscale stores and you will find bargains.
Black belt shopping doesn’t always mean getting the cheapest item available. It does mean using the New Economy tools of timing, choices, and information to get the most out of your shopping dollar. Someone once said that the sting of poor quality is remembered far longer than the thrill of a low price. That person was right. Intelligent shopping strategies, such as going to that fabulous bakery at the time of day they start marking down, may allow you to have your cake and eat it too.
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Epinions.com ID:
mrlarry
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Member: Larry Wiener
Location: Alhambra CA
Reviews written: 64
Trusted by: 14 members
About Me:
II'm a black-belt bargain hunter. Check on my e-book at www.betterbudgeting.com/
blackbeltshoppersguide.htm
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