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How to Make Intelligent Buying Decisions |
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Written by Dean Norman
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Wednesday, 19 March 2008 |
In my article about how to efficiently find deals on Craigslist using Google Reader, I finished by talking about choosing the products you decide to buy wisely. I think this is a very important part of living a healthy life, really, but on a simpler level, it's about having nice things.
I enjoy having high quality things. I think most people do. I tend to value the things that I own if there was a degree of forethought that went into buying them. I also waste less money, which is a matter of perception, I guess, but the feeling of not wasting is important. I will be less likely to purchase a product I don't really need if I've put the forethought into the purchase - the novelty will wear off before I buy it instead of after the money is spent.
In this article I'm going to give you some ideas and tools to help you make your purchases of a higher quality. Do you have the patience to use them before making an important purchase and take the "impulse" out of buying?
Tool Number One: Sleep on it!
No, I don't mean buy it and put it underneath you while you sleep. I mean, in fact, don't buy current object of your desires and instead wait for at least one night. If, in the morning, you still want it and it's not an outrageous sum of money, buy it. If this strategy is invoked whenever the impulse arises you can at least cut down dramatically on the impulse purchases you make.
Teach it to your kids, as well. Begin by using it as an excuse not to buy something for them. Have a short sit-down conversation with the family and inform everyone of the new policy (be ready to have it rubbed in your face when you want something, as well - it's good for you). Then when you go out and the kids are begging you for something they only are temporarily interested in you can remind them that you'll instead sleep on it. This way it may never even come up again.
Tool Number Two: Consumer Reports (.org)
Huge tool. This is one purchase (subscription, rather) that you do not need to sleep on. Go there now: www.consumerreports.org and get a subscription. I have the online version and I think it's all anyone should need.
What it is: Consumer Reports is an online database of unbiased, accurate information about products available in the marketplace. They have very specific techniques of deriving the data that they have. In my opinion, their data is the highest quality available and that is why it is #1 on my list of tools.
How they get their information: There are two ways that I feel are most important. First, in the example of a vehicle review, they purchase a vehicle from a dealer without disclosing who they are. They actually buy it. When they are done they resell it. They act as if they are a consumer - just like you. They have an expert panel of reviewers that review standardized issues with each vehicle (ie they don't just talk about what stands out about each vehicle to them, they talk about the same points of each vehicle in every review. This way you can compare apples to apples and lemons to lemons. Also, there is absolutely no sensationalism in any review). These reviews are unparalleled for objective disclosure of initial quality and performance.
Secondly, they begin collecting data. To me, this is the most valuable thing they do.
Once a year, they ask their subscribers what kind of car they have and then ask what has gone wrong with it, if anything. This is done by asking highly specific questions that demand objectivity. The only subjective question is reflected in "owner satisfaction." This data then allows them to make records of reliability for every vehicle. It also allows them to project the reliability of new vehicles. They've been collecting this data for so long now that they can tell you quite precisely how reliable any production vehicle is and will be.
What they do well: Cars. Consumer Reports' data on automobiles is unreal. Graphs if you like them and numbers if you like those. You are given the ability to very directly compare everything about a car before you buy it.
Electronics. They are beginning to have some good reviews of electronic equipment from cell phones to TVs. The reviews they have of electronics is not as valuable to me as, say...
CNET is the long-standing first choice for reviews of electronic devices. They are not as unbiased and objective as Consumer Reports, but they are very insightful and comparably thorough in their reviews. Sometimes, if a particular vantage is not mentioned in the review, there is much to be gained by reading through the user reviews posted and accompanying each product review. Anytime I consider an electronic purchase, I consult cnet.
For example, woot.com has daily electronics for sale. Check CNET to see if they suck.
Tool Number Four: |
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Last Updated ( Thursday, 27 March 2008 )
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