Comparison-Shopping Made Easy

Comparison-shopping—comparing prices and quality of competing merchandise and services—is a very useful technique for reducing your expenses and helping you to live within your means. Doing so on a regular basis can save you thousands of dollars annually.

When your income and expenses in your household budget don’t add up, you can either increase your income or reduce your expenses. Most of us find reducing expenses more within our control than increasing income—especially when times are tough and second jobs and part-time work are hard to come by.

The Financial Specialists at our Consumer Credit Counseling Services (CCCS) agency offer the following suggestions:

Make the commitment. Comparison-shopping is time consuming. But, it can be a fun and rewarding challenge that pays off.

Determine the “value” of an item. When researching economy cars, for instance, you may opt for a Hyundai because it’s the lowest price. A Honda will cost a bit more, but it has better reliability and resale value, so over the years, it’s actually a smarter investment.

The quality of your purchases, especially large ones, should be a huge consideration. If in doubt, read reviews online and consult objective resources such as Consumer Reports. Amazon.com and epinions.com offer many user reviews of electronics and appliances while edumunds.com features professional and consumer reviews of new and used autos.

Take advantage of the Web. The rise of the Internet brought about a wealth of information for comparison shoppers. A few of the most popular sites include: bizrate.com, pricegrabber.com, and shopzilla.com. These Web portals are dedicated to retrieving information from online retailers’ sites and updating them automatically as the retailers drop or increase prices. Make sure to include shipping costs in your estimations.

It’s best to avoid sites that sell the products as not all companies offering a particular service or product are included in the searches—many times businesses must pay to be included.

Take the initiative. Go out and find the best prices. Don’t wait for them to come to you. From distributing flyers on our windshields, business cards on our front porch to sending junk mail and making phone calls—aggressive marketers are ready to nab you in a weak moment. When salespeople come to your front door or catch you by phone, for example, you won’t get the best deal on insurance, mortgages, tree trimming or construction work. To avoid being scammed, seek your own sources for information.

Consider buying used. We are familiar with the high depreciation of new cars. Kelley Blue Book, a website that tracks projected values of used cars, reports that most new vehicles are worth close to 50% of their original price after three years; the best, more than 60%. Their site, among others, will allow you to compare projected depreciation costs.

In addition to automobiles, used appliances and furniture can often be bargains. Craigslist is a excellent source for both while flea markets and yard sales are good venues for finding furniture. When families move, they are usually willing to sell their largest possessions dirt cheap.

It’s always wise to compare the cost of used items with the new version of the same thing. With research, you can make educated decisions for yourself on a case-by-case basis.

Don’t overlook service comparisons. The price of an airline ticket, cell phone service, cable television or Internet also vary greatly. Most companies, with the exception of cable companies, have steep competition for the delivery of their services. It’s worth taking the time to look into various service providers and you can do so on the Internet.

Insurance companies, Internet and phone services count on you to renew your annual contracts without shopping around. Others are often willing to give new customers great deals to switch. It’s worth re-evaluating your service contracts on an annual basis.

Comparison-shopping will allow you to reduce your expenses so they more closely align with you’re your income. See a nonprofit consumer credit counseling service, like those at our CCCS agency, for assistance creating your budget and managing your debt. Apply online or call 888.656.CCCS for an appointment.

Our Consumer Credit Counseling Services (CCCS) agency does not recommend or endorse any particular store or Web site. The examples given are for illustrative purposes only to demonstrate the skill of comparison shopping. We advise shoppers to determine the best places to source their own deals.