I always believe it is important for all of us to learn how to be a smart consumer to stretch our money as far as possible.
Thus, I share below some of the steps we can take to learn how to be a smart consumer.
Table of Contents
8 steps on how to be a smart consumer
Read the 8 simple steps below to learn on how to be a smart consumer.
Most of these steps are easily incorporated into our daily life.
1. Compare prices
Don’t go for the first option you find. Instead, compare prices from different retailers or service providers both online and offline. Consider the quality of the product or service, warranty or guarantees, and the reputation of the retailer or provider.
For example, I noticed that prices in some of my local supermarkets are much higher than the other supermarkets.
So, what I did was visit a different supermarket during the next weekly grocery shopping to survey the prices. In this way, I will be able to identify and avoid those supermarkets with expensive price tags.
As for online services, compare the total fees and charges involved in a transaction. For example, consider e-money providers such as Wise money transfer for sending money abroad. Compared to sending money through traditional banks, you get to enjoy significant savings when you transfer through Wise.
2. Look for deals and discounts
Take advantage of discounts, coupons, promotions and sales to save money. But make sure the deal is a genuine one and not just a marketing trick.
This is not only applicable to goods and services available at physical stores but also services online.
For example, investment platforms such as Luno are welcoming new customers globally with free Bitcoin rewards by redeeming through a Luno promo code.
3. Know your rights as a consumer
You can learn how to be a smart consumer by knowing and understanding your rights as a consumer.
Some consumer rights are as below:
- the right to accurate information (such as the price, quality, contents and guarantees of the product or service)
- the right to fair treatment (such as returning faulty or defective products)
- the right to protection against fraud to prevent from unfair and deceptive practices
For example, whenever you make a purchase, always ask for the official receipt. Look at the small prints on product vouchers. Also, check the expiry date on items before making the purchase.
If you feel something is not right – be it the service, the price, the quality of the products, ask for more details. If needed, speak up and seek assistance from your local authority.
4. Survey and gather information before making big purchases
Before making big purchases, do take time to survey either online or walk into stores to gather as much information as possible.
Some example of large purchases are:
- a new house
- furnishing a new home
- a new car
- planning for a wedding
- getting a good health insurance
If you are planning for a new house, look for the important considerations when buying a house.
It will be painful if later you realized that you had overpaid for what you bought or there’s a better
It is also important to always prioritize quality and personal satisfaction over price.
5. Support retails shop with good practices
This is super important. If all consumers practice this, we will be surrounded by happy consumers.
Try to avoid supporting those retail shops that are taking advantage of a consumer by offering overpriced products, providing poor customer service or deceiving customers.
Some of the things that you can consider are as below:
- read the retailer’s review (Google review, Facebook review, online store review)
- write a genuine review about your own experience (good or poor)
- be aware of product or service providers that earn good reputations through local media and social media.
Do take note of the timestamp of the reviews and the responses from the retailer or service provider (if any).
When consumers are cooperative and leave genuine reviews, this could create positive response and healthy competitions among retailers and businesses.
6. Plan your purchases
You also can learn on how to be a smart consumer by learning to plan your purchases.
For example, there is no need to go grocery shopping three times a week. This practice is not only wasting your time, but also wasting your money and your energy.
Plan for weekly grocery shopping instead.
Another example is to plan for your vacation. Avoid buying an air ticket or placing a hotel reservation just because the airline company or the hotel is having a promotion.
When you plan your purchases, you have sufficient time to prepare the required expenses and survey the available options as well.
This shall prevent you from impulsive buying is a good money management skill.
7. Think for long term benefits
Always think for long term benefits, not only for big purchase items but everyday items as well.
Sometimes a cheaper product may end up costing you more in the long run due to frequent repairs or replacements. While some products or services are more expensive but offer better quality over the long run.
Whenever possible, practice smart spending by looking for quality over price. Because you get more long term benefit by investing in a better quality item.
8. Be careful of the word ‘SALE’
Lastly, always be careful of the word ‘SALE’ or other promotional words.
Based on my experience, I noticed that some of the local departmental stores in my town (Kuching) are always on ‘SALE’.
From January through December, there are always sales – Clearance Sale, Mega Sale, Factory Sale, Crazy Sale.
But, I found out only some items are at a discounted price.
And for some clothing, they increased the price prior to the sale period. For example, the actual price of a blouse is RM80. But during the sale season, the price increased to RM100, with a 20% discount.
So, the price after the discount is still RM80. This means there’s no discount at all.
Thus, always be careful with the word ‘SALE’ or other promotional words.
Final thoughts
As a consumer, we have our right to choose where and how to spend our money.
We all must learn how to be smart consumers in order to create a place with better living quality.
As more smart consumers will also be able to create a better quality product with reasonable price and improved service quality.
photo credit: The shopping type via photopin(license)
