Thursday, December 1, 2011

Holiday Shopping Help - How to get the good deals.

Here's a cheat sheet for doing the math. In our household we do a lot of shopping (looking for the best deals). I have the ability to memorize prices items, quantities, and container packaging. Because of this I've noticed a bit of trickery. Around holiday time people are desperate for deals and sales and will unknowingly purchase things at a much, much higher price.  Some companies increase the prices a month or two in advance (in regard to Christmas, this can be as early as late September) to offer the item for the original price they are claiming is a new sale price. Here are a few of the phrases that companies uses that aren't always intuitive, but seem like a good deal.

Buy 1 Get 1 Free = 50% off of two.
You'll want to watch this, usually they've increased the price by double which makes it so you only get 25% off in the end. Not bad? Well, considering the items they do this to have a huge mark-up it's rare you'll get your money's worth.

Buy 1 Get 1 for $1 = 50% off of both plus $1.
Same as above, they've already increased the price astronomically and people are typically preoccupied with the plus $1 to think about what the original price was.

Buy 3 Get 2 free = 40% off of each. You're still paying 60% of the price for each. If it seems reasonable, then go for it.

Buy 1 Get 1 for 50% off = 25% off both.
Not a real deal if the place you're shopping is 25% higher than the competitor.

Be sure if you're going for a sale not to get lured into purchasing other items you might normally buy if they are going for a higher price. High sales also mean they have to make-up the cost, so that savings is spread around to other items in the store. Statistically, if you buy soda, and then Tuna Fish, Pizza or Toilet Paper, one of the items might be on sale, whereas the others will carry an inflated price.

It's a good idea to always look around for the best price before going out to shop.

Another trick I've noticed is varying quantity amounts. Some products (eg. Bullion Cubes) might be sold in 5 or 6 different quantity sizes at various stores. When you visit one store for price comparison, the price may seem lower, but you're getting a considerably less amount. Each package might seem like a scaled down version of the other and since the side-by-side counterpart offerings aren't available you might not be aware of the change in quantity. Sometimes this is a visual trick because although the front of the item is the same size and shape, the depth may have changed.

Another one of the tricks that companies do is when they change the package they've usually changed the quantity is some way or another. In regard to toilet paper, if there is a raised pattern on the paper this will cause less paper per roll. Toilet paper companies increase the diameter of the tube inside of the roll (to give you less paper), they change the sheet count so you get fewer sheets per roll in different arrangements, meaning if you buy 24 rolls you may be getting fewer sheets per roll than you do if you buy three 8 packs. Also look out for another change a shorter tube where they take up to an inch and a quarter off of one end of the roll.

Soda is bad for you and this year, they've introduced a new 20 pack instead of a 24 pack. They're still charging the inflated prices for the soda to begin with but it's harder for people to make the comparison. They also don't use the same measurements for comparison from one product line to the other (2 liters is 67 US Ounces) If you're comparing a 12-pack of soda (144 ounces) vs two 2-liters (134 ounces), then you'll get one fewer can. If the price for the two liter is 11/12ths (Price x .92) the price of the 12 pack then it's a deal. I always try to break down the price per ounce for a comparison in my head, but most phones have calculators as well.

If you're looking at the two prices for the comparison, consider the amount of gas and time it takes to shop at both places. If there is very little difference in price, then it might not be worth it to do a lot of comparison shopping.

The work around, buy items all year round. If you know you have special occasions to buy for, pick up the items on clearance after the holidays and put them in a safe place. If you are running a little behind, start shopping around August for December, you'll be well ahead of the price hikes. Also don't buy the latest technology Zero-day. Companies will usually drop the prices back down around May or June, so if you can live without it, you can save up to 25% of the cost in some cases.