A simple strategy to improve the results of your regular shopping
As I write this piece the global economy is going through uncertain times. Careless behaviour is sanctioned drastically and we need to come up with a winning strategy to build and preserve our wealth.
The behaviour I want to discuss regards the trivial purchases – groceries, newspaper, office coffee, work lunch – we all know the lot. Now think about the big and important few – house/mortgage, car, insurance, pension, college, holidays abroad. Many of us would probably say that we follow different buying patterns on approaching each category – maybe rushed, impulse decisions for the groceries compared to well-thought and often recommendation-based ones for the house we want to settle in. This reminds me of the shock I went through when in 2007 the supermarket I used for convenience every other day “rewarded” me with a handful of coupons for my loyalty and returning business all year around. Considering that I got refunded about 1% of my total purchases, staring at a staggering €219 in coupons really set off the alarm in my head – I was definitely doing something wrong. Small repeated purchases total large amounts over time – think of them as the opposite of your savings account, only that you get no yearly interest there. Assuming you buy only the things you need and regular purchases are normal, you have to strive to improve the returns of your spending – making sure you get the most out of your money. Here are a few tips you might find useful:
Groceries
Balance time and effort versus cost: to save time and gas buy larger quantities whenever possible (especially when offers/promotions apply, but pay attention to expiration date); compare prices and shop in more than one store if you can avail of cheaper brands; do enrol in fidelity programs and keep those “client cards” at hand. Use a shopping list and do not give in to impulse buying. Time your shopping rounds and work continuously towards achieving the same results faster, for example by knowing exactly the opening and closing times of the stores.
Newspaper, coffee and lunch breaks
Do you buy your newspaper every day, from the street or the local newsagent? Did you know that newspaper subscription is generally 25-75% cheaper and generally comes with other deals that otherwise you would never find out about? Apply online; it will save you both time and money.
If you find yourself going to the same coffee place every day for your morning or afternoon energizer, ask the clerk about their fidelity scheme. Starbucks for example have the Starbucks Card, worth having if you are a regular customer. Same for lunches – if eating out, is there an “early bird” menu you could avail off? Well worth asking and befriending the personnel – it might not only get you a better pricing, but also a precious forewarning when to avoid the “today’s special”.
Shop around, when possible. Take your time and do your research – most of the information is available online, and people visiting the forums might be able to fill in the blanks. Make sure you know what your needs are and plan accordingly. Negotiate every time you are about to sign a contract – even better, negotiate every time you have to take your wallet out! I have two rules for you: remember first that every business wants customers (and they should make their offer attractive enough for you to buy in) and second, think the Sales Agents are there to help you – be nice, get their name, pay attention and express your doubts as much as rationally acceptable. If you can get a discount without asking, ask anyway – there might be a lot more to be had there, and once you sign it, you will pay for a year or more. One more mind-trick that works – when you do not know how to get more details, just ask “what would you do in my place?” and “what would you do then?” a couple of times – this is a good way to break from the Sales pitch/script and get some genuine information just by asking for it.
Let’s define some more actions:
Go check the prices in discount supermarkets like Aldi, Lidl or MiniPrix. Besides the good deals, they tend to be more Spartan – stacks of the same products are not playing hide-and-seek with you, once you learn where they are you will generally find them there. Especially useful to save time and to prevent being lured by the new shinny boxes your regular retailer cunningly placed next to the trolley alley. Also, did you know that you can save up to 20% by comparing supermarket prices from the convenience of your living-room?
Collect relevant coupons and redeem them in-store. Don’t keep that nappies voucher if you don’t have a toddler – this is what relevant means. Visit deals and coupons websites and register with those relevant to your address/location.
Register on forums dedicated to smart shopping and bargains – crowd sourcing is the ultimate resource when it comes to taking advantage of limited-time offers and market newcomers. Contribute your own findings to build trust and participate in a social network with other like-minded individuals.
When you need to renew or review contracts, always ask the other party “why should I continue doing business with you?” and if prepared to enter negotiations have factual examples of what went bad so far or how the competition is doing better.
Follow About.com’s Coupons/Bargains section, MSN.com’s Money articles and other similar resources for news, trends and advice regarding your regular shopping.
Once again – remember where we started – keep in mind one thing that can help you reshape your purchasing behaviour: every time you pay for goods or service, think in terms of the overall cost you are paying and the actual value you are getting; the very same you would do in order to get the best deal on your mortgage or insurance, which makes a huge difference to your yearly financial bottom line.
Save money every time – you deserve a better deal!
A simple strategy to improve the results of your regular shopping
As I write this piece the global economy is going through uncertain times. Careless behaviour is sanctioned drastically and we need to come up with a winning strategy to build and preserve our wealth.
The behaviour I want to discuss regards the trivial purchases – groceries, newspaper, office coffee, work lunch – we all know the lot. Now think about the big and important few – house/mortgage, car, insurance, pension, college, holidays abroad. Many of us would probably say that we follow different buying patterns on approaching each category – maybe rushed, impulse decisions for the groceries compared to well-thought and often recommendation-based ones for the house we want to settle in. This reminds me of the shock I went through when in 2007 the supermarket I used for convenience every other day “rewarded” me with a handful of coupons for my loyalty and returning business all year around. Considering that I got refunded about 1% of my total purchases, staring at a staggering €219 in coupons really set off the alarm in my head – I was definitely doing something wrong. Small repeated purchases total large amounts over time – think of them as the opposite of your savings account, only that you get no yearly interest there. Assuming you buy only the things you need and regular purchases are normal, you have to strive to improve the returns of your spending – making sure you get the most out of your money. Here are a few tips you might find useful:
Groceries
Balance time and effort versus cost: to save time and gas buy larger quantities whenever possible (especially when offers/promotions apply, but pay attention to expiration date); compare prices and shop in more than one store if you can avail of cheaper brands; do enrol in fidelity programs and keep those “client cards” at hand. Use a shopping list and do not give in to impulse buying. Time your shopping rounds and work continuously towards achieving the same results faster, for example by knowing exactly the opening and closing times of the stores.
Newspaper, coffee and lunch breaks
Do you buy your newspaper every day, from the street or the local newsagent? Did you know that newspaper subscription is generally 25-75% cheaper and generally comes with other deals that otherwise you would never find out about? Apply online; it will save you both time and money.
If you find yourself going to the same coffee place every day for your morning or afternoon energizer, ask the clerk about their fidelity scheme. Starbucks for example have the Starbucks Card, worth having if you are a regular customer. Same for lunches – if eating out, is there an “early bird” menu you could avail off? Well worth asking and befriending the personnel – it might not only get you a better pricing, but also a precious forewarning when to avoid the “today’s special”.
Gas, electricity, phone, broadband, TV, credit card a.o.
Shop around, when possible. Take your time and do your research – most of the information is available online, and people visiting the forums might be able to fill in the blanks. Make sure you know what your needs are and plan accordingly. Negotiate every time you are about to sign a contract – even better, negotiate every time you have to take your wallet out! I have two rules for you: remember first that every business wants customers (and they should make their offer attractive enough for you to buy in) and second, think the Sales Agents are there to help you – be nice, get their name, pay attention and express your doubts as much as rationally acceptable. If you can get a discount without asking, ask anyway – there might be a lot more to be had there, and once you sign it, you will pay for a year or more. One more mind-trick that works – when you do not know how to get more details, just ask “what would you do in my place?” and “what would you do then?” a couple of times – this is a good way to break from the Sales pitch/script and get some genuine information just by asking for it.
Let’s define some more actions:
Go check the prices in discount supermarkets like Aldi, Lidl or MiniPrix. Besides the good deals, they tend to be more Spartan – stacks of the same products are not playing hide-and-seek with you, once you learn where they are you will generally find them there. Especially useful to save time and to prevent being lured by the new shinny boxes your regular retailer cunningly placed next to the trolley alley. Also, did you know that you can save up to 20% by comparing supermarket prices from the convenience of your living-room?
Collect relevant coupons and redeem them in-store. Don’t keep that nappies voucher if you don’t have a toddler – this is what relevant means. Visit deals and coupons websites and register with those relevant to your address/location.
Register on forums dedicated to smart shopping and bargains – crowd sourcing is the ultimate resource when it comes to taking advantage of limited-time offers and market newcomers. Contribute your own findings to build trust and participate in a social network with other like-minded individuals.
When you need to renew or review contracts, always ask the other party “why should I continue doing business with you?” and if prepared to enter negotiations have factual examples of what went bad so far or how the competition is doing better.
Follow About.com’s Coupons/Bargains section, MSN.com’s Money articles and other similar resources for news, trends and advice regarding your regular shopping.
Once again – remember where we started – keep in mind one thing that can help you reshape your purchasing behaviour: every time you pay for goods or service, think in terms of the overall cost you are paying and the actual value you are getting; the very same you would do in order to get the best deal on your mortgage or insurance, which makes a huge difference to your yearly financial bottom line.