Price comparisons and loyalty

As I mentioned in one of my previous discussions, it is advisable for you to try making out a good detailed report about what the price of the product is at various outlets.  This would help you in various ways.  Some of the best places where you can try getting the prices of products you try to buy are online forums and auction sites where different companies vie with each other to try giving the best possible price for a particular product.  You can even try different retailers to catch a glimpse of the rates of products.  

But, while doing this you got to check at more than two or three shops to get a good idea of what each of the shops offer you.  Loyalty to a particular shop is good.  But, it is more important to try checking out with other shops regularly before deciding on retaining the loyalty to that particular shop.  This is due to the fact that certain shops would try to cash upon the loyalty you try to show to that particular shop.  Though you may continue buying from the same shop over the years, it is prudent to keep a check on other shops too!

Factors involved in the pricing of a product

From the previous discussion, you would have got to know what are the factors upon which the prices of products are based upon.  So, it is absolutely prudent to think of these before considering the spot and shop at which you intend to shop for your product.  So, the golden rule derived out of the discussion is:

“Consider the factors involved in the price of your product”

It is not mandatory that you should buy a product at a place which is located 4000 miles from the place of manufacture of the product. It is not necessary that you should stick to a particular brand when you decide to buy a product.  A particular brand of product may be costlier due to the fact that transportation would increase the price of the product by manifolds! Funny, but its absolutely true.  The transportation involved in bringing a product to a place would greatly affect its price.  So, just try finding out what brand of products are available in the shops near your home and try to choose the best brand out of them.  From these brands, try to figure out as to which brand is the cheapest and the most reliable.  

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The pricing secret

As discussed in my previous discussion, you must know the rates before trying to bargain with the retailer or the dealer. So how do you intend to know the rates of the product before going in to shop? Well, the golden rule for second hand shopping follows in the art of bargaining too.  You need to check out with more than a single shop to know the rates.  And also you must try to check out the with factory prices of the products. Because, the prices of products are determined considering into mind the cost of transportation, the cost of storage, the commission percentage for the retailer, etc.  so, it is best to consider the pricing at different places before deciding upon the final place to shop. 

For instance, you would find that the rate of a particular product would be lesser near the place of production than in a place far away from the production area.  The reason is quite obvious that the transportation charges would be given as “discounted price” for the customer.  But it is not our concern to bear the transportation charges. After all, the manufacturer considers all these factors before deciding the price of a product.  So, what is the golden rule derived out of this discussion? Let’s see in the next discussion!

Know the rates before bargaining

The fine art of bargaining is nothing new to any of us. We have been bargaining right from our school days.  Starting from the candy shop man to the ice cream parlor owner, we have been bargaining for an extra candy for half a dollar of an extra scoop of ice cream for a dollar.  The only difference which arises in bargaining for bigger deals is that the person whom you are bargaining with is a bit more seasoned and trickier to bargain with than the candy man or the ice cream parlor owner! The first rule in bargaining is:

            “Know the real worth of the product before bargaining”

The quote says it all.  The real worth of the product must be studied and you must immerse yourself in the cost of the product before trying to convince the retailer that his product is worth that much only.  I have quite often met retailers who try to sell off a painted football for $200 and confidently defending their price.  You must be prepared with correct rates and data to defend your price.  The stronger and confident you sound in your tone, the more convinced and fallible will the retailer be.