Purchasing Flashcards
Why going with the cheapest option doesn’t always pay off
Some charging cables or types of sunscreen are absolute garbage. Having a cheap one is just as bad as not having one at all.
When making a purchase, there is often more value in quality:
-Nicer hotels are often safer and have services that can save you time and money (but not always, you will want to confirm)
-Nicer objects are typically built from better materials/software and will not have to be replaced as often (usually the case with shoes/backpacks/implants/etc, but there are exceptions, ie: houses and electronics)
-High quality maintenance helps improve performance and extend the operating life of the hardware (example: using the recommended gas/oil type for a vehicle)
-If you insist on buying the cheapest option you can find, you open the door to ripoffs and scams
Guidance on quantity discounts
Quantity discounts are only worth it under three conditions:
#1) You KNOW the item can still be used after many years (even things like the ink in pens will dry out eventually)
#2) You have enough space to actually accept/store the product
#3) You are getting significant savings (there’s no sense in filling up your storage space with bulk orders that only saved you a few bucks when you could use that space for bulk orders that saved you a few hundred bucks)
*Exceptions can be made if….
Case 1) You can split the cost and share the product with neighbors or friends, that way you all get the savings
Case 2) You know that prices for that item are about to skyrocket
How to decide between renting and buying
It is often cheaper to buy than to rent/subscribe. Things to do before you rent or buy:
1. Do the engineering economy analysis, even if it’s just a quick thing in your head (have an idea of the resale value, capital costs, long term operating/maintenence costs)
2. Be honest about how often or how long you will use it (you are a busy person, be realistic)
-If you won’t get to use it often, it’s probably better to just rent it when you need it (or pause your subscription periodically)
-Understand that if it also requires a time investment, you should either buy or just rent right before you use it. It will take longer than you expect to get the value out of the product: DO NOT subscribe
3. Determine if the rate you would be paying to rent it is reasonable (did they recently jack up the prices? Can you find a discount code?)
4. Read the reviews. If they are glowing it might be safe to buy. If they are mixed, you may want to rent it first to see if you like it first hand.
5. Identify possible tax benefits associated with buying (deductions and credits, each of which will be conditional)
6. Consider your own needs
-Customization: Requires purchase
-Availabilty: Renting when needed comes with the risk that it may need be immediately available
Attitude towards warranties
Do not let them upsell you on the warranty. Planned obsolescence actually means “short-term reliability”: these products are specifically designed to last through the warranty period
Role of data
Buying things online allows the retailer to use your data in their pricing algorithms including your location, device, cookies, history, browser, search engine, date/time of purchase, and frequency of promo codes being used
*If you think your data is influencing the price you are being shown try looking at it from incognito mode
Clever ways to get discounts and promo codes
-find an excuse to call customer service, then mention that you are a loyal customer about to make a purchase (may have to specifically ask about promo codes)
-sign up for the company newsletter (there will occasionally be codes in there)
-add items to your cart, then fail to complete the purchase (let the retailers send you the codes)
-become a member (at a minimum you will get birthday deals)
-follow the brands on social media (they sometimes share codes or have them in ads)
-always take advantage of the opportunity to provide feedback (promo codes are sometimes issued as rewards)
-Use more than one email to attract promo codes. Engage with ALL the emails: engagement can sometimes trigger more offers/deals
*Be warned: some retailers can see in your data how frequently you use promo codes and adjust the prices you are being shown to offset potential/expected discounts
Importance of shopping at stores with a price advancement policy
(EXAMPLES?)
Keep an eye on the prices for the items you bought so you can take advantage of that policy whenever you can
Attitude towards ads
Anytime you see an ad for something that you genuinely want, they are not offering it at the lowest price:
-Assume the price you are seeing is not the lowest price available
-Backing out of the ad and going straight to the website (possibly on another device) sometimes gives you a promocode
On one occasion, you saw the exact same product offered at Walmart for a third of price
What to do when you see something out of retail store and you want it
-Most stores will honor the online price. If you are shopping retail, always scan the item on your phone and check the online price
-If it’s something you need, ask your friends/parents if they already have it for you to borrow
-Look at the reviews
-Can you find it online? If so, what are some clever ways you can get a promocode?
-Pricematch: try to find it at other stores to see which one is cheaper
Asking AI whether something is a good product
1) ask the AI broadly what that product does
2) ask it for alternative products that do the same thing
3) off these products, what separates a good product from a bad product
4) identify which of those products are good products and which of those are bad products and explain why
You can use chatGPT to identify the difference between good products and bad products (example: buying an “AB lounge” may sound like a good idea based on the advertising or even the reviews, but it’s been proven that it doesn’t provide stability, it doesn’t support good form, and it doesn’t engage multiple muscle groups)
Things to think about before you buy something you’ve never bought before
- what else do you need to buy if you buy it? (Does it need to be cleaned, etc?)
- are the storage requirements? (Do not buy something unless you know how it needs to be stored… Remember the carbon fiber you bought
- you need to know the specs. If something has specs, you need to understand what those specs are and how they relate to your actual goals. This saves you from realizing that you bought the wrong item and potentially being stuck with it (like the monitor… there were better options for your content creation goals)
-before buying something make sure that you understand the dimensions, and the quantity. If you just buy things on a whim, even with great reviews you could end up disappointed when you open the box and it’s not what you expected.
Rules when buying clothes
Always try them on before you buy them (unless it’s a specialty item you can only get online)
Importance of reading summaries and reviews
Always make sure you are buying the right thing. For some products, there are different types of that product. Some of them will be useful for you and others will not. If you bought the right thing you might not be able to get your money back
(Especially with books) read about what it actually is before you buy it. Based on the description, can you verify that it will be helpful for you
Role of FOMO
You need to avoid making impulse purchases…
THAT HAVING BEEN SAID, When it comes to opportunities to save money, like limited time offers, you could use a little bit more fomo. If you wait too long, you will miss the opportunity. This has happened a lot.
Importance of approaching vendors directly
Always see if you can approach the vendor or service provider directly. This is especially true when booking an experience. There are many affiliate programs out there that will make money off of selling something to you at a higher price.
- Unless they’re offering a “bundle”, assume you will be overpaying
