How to haggle

With British businesses desperate to get some cash into the tills and more willing than ever to compromise, you can save a lot of money with a bit of crafty negotiation.

This article looks at how to negotiate down the prices of products and services so that you can get what you want at (or at least closer to) the price you want it.

Choosing the right products

With almost everyone tightening their belts, it's important to think carefully about the products we buy and be sure that they will serve us well, while at the same time getting the best value for money.

Whether you're looking to buy a new toaster or a new television, this article is for you.

The return of Christmas

With Christmas only weeks behind us, it seems almost inconceivable that it will ever return - or at least that it's much too far away for us to care.

Throughout January, Christmas stock is being sold at massive discounts everywhere. With foreseeable price rises to emerge throughout the coming year, there will never be a better time to prepare for Christmas 2013.

The rules of shopping

The high-street and the internet are packed with temptations and devious psychological tricks in an attempt to part you from your hard earned cash. The rules of shopping are there to make you stop and ask questions before you make purchases on an impulse.


The Rules
Whenever you're shopping and you see something that you want to buy, ask yourself the following questions:

Can I afford it?

Do I need it? / Will I use it?

Is it value for money?

When you ask yourself whether or not you can afford a particular purchase, you should be thinking about your necessary expenses like food shopping, bill payments, and any loan/credit card repayments. If you need to borrow money to do this, the answer is: NO!

When you ask yourself whether you need it or are likely to use it, try to be realistic. The item might not work as well as it claims, or might not last as long as you expect it to. Also think about what else you could afford to do with the same amount of money. There are also specific considerations dependant on the kind of product; for example, if you're attempting to body-build or lose weight, spending a lot on clothes that might not fit you for long is not a good idea. 

When considering whether something is value for money, think about similar items offered by competitors and what advantages are offered over them. Try to be objective and don't just look at the label. Designer clothing is particularly notorious for being poor value for money, because the quality is often (though not always) no better than much cheaper generic brands - even designer products are sometimes made in sweat-shops!

If your answer to ANY of those questions is 'No', walk away and don't look back. Congratulations, you've avoided an impulse buy.

If you answered 'Yes' to both of those questions, ask yourself:

Can I get it cheaper somewhere else?

Is it reasonable to buy a cheaper make / brand?

Can I get a discount?

What did other buyers think?

Where possible, you should price compare before committing to buy. You can find out how to do this by looking at our how to price compare article.

When considering whether it is reasonable to buy a cheaper make or brand, it's important to take an objective look at the advantages and disadvantages of one product over another. Try not to be swayed by superficial qualities if it is actually the function that is most important. For more information on cheaper brands, take a look at our going down a shelf article.

It is always worth asking yourself whether you can get a discount. The approach will obviously vary depending on the type of product you're looking to buy. 

• For grocery items, there may be coupons available either online or in supermarket magazines.
• For most other items there may be exclusive online prices available that are cheaper than those found in stores.
• For fairly expensive items (over £50), it is not unreasonable to attempt to haggle for a lower price. However, this can only be done face to face or over the telephone and does not typically apply to online purchases (with the exception of private sales).  Never be afraid to haggle: the worst they can do is say 'no'.
  

Finally, it's always worth taking a look at what other buyers thought of the product you're considering. There are an increasing number of forums and websites where customers can  leave reviews detailing their experiences with a product: from cans of soup to luxury holidays, you can find reviews on just about anything. These reviews vary in quality and it will usually be quite easy to see which you should be paying attention to and which should be brushed aside. Of course, not everyone has the same experience with a particular product, but be on the lookout for patterns such as common defects.

Conclusion

Think before you buy and don't be tricked into spending more money than you want or need to. Consider all the other options and find out what experiences other buyers have had. If you do decide to make the purchase, consider whether you can get it somewhere else or if you're entitled to a discount.

Couponing - Groceries

Coupons that offer money off particular products or for shopping at particular places can be a great way of saving money.

This article looks at coupons that you can use to cut the cost of your grocery shopping: both how to find them and use them.


Where to find them
Tracking down coupons can be a bit of a treasure hunt. You're never sure where you're going to find them or, indeed, what you're going to find. You can typically find coupons:

• In newspapers as part of an advertisement.
• In free supermarket magazines.
• On product websites.
• At specialist coupon websites.

With regard to the latter, Penny has been scouring the internet and came up with the following finds:

• Moneysavingexpert.com
• Beforeishop.co.uk
• Britainsgreatest.co.uk
• Groupon.co.uk

Check them out, but be sure to browse safely!


Putting them to use
Most coupons are very easy to use. Just hand them over to the cashier before they begin scanning your items. If you're using a self-scan machine, there will usually be a special page for entering coupons; if you have difficulties, ask a member of staff who will be happy to help you.


Location, location, location
Some coupons limit where they can be redeemed. This is especially true of those found in free supermarket magazines: typically the vouchers can only be used in branches of that particular supermarket. Sometimes even particular branches are excluded, so be sure to check the small print carefully. 


Time limits
Most coupons feature expiry dates. Some of these can be quite generous, offering several months for redemption. Others can last only a week or even just a day. If you're considering using a voucher, it's important to check that it hasn't yet expired.

If you take to couponing as a hobby and become a seasoned coupon collector, it can be helpful to file them away by reference to their expiry dates. 


Points to note
Saving money with coupons is all good and well, but there are a few things that should be borne in mind:

• Most coupons cannot be used 'in conjunction with any other offer'. If the item in question is on special offer already, consider whether the coupon is really worth using instead of that offer. 
• Don't be tempted to buy things that you wouldn't normally buy except as a replacement for something you normally buy.
  
  

Conclusion

Couponing can be a useful (and sometimes fun) way to save money on your groceries, but due to their very nature they are not an especially reliable method of cutting your costs. Find and use what you can, but don't go to more effort trying to find them than they are worth.

All about cash-back websites

Cash-back websites are popping up all over the place. This article looks at how you can save pounds and pennies without changing your shopping habits, simply by taking advantage of these websites.


What are they?
Cash-back websites partner themselves with traders such as Tesco and eBay and post links to their websites.  If you visit these traders through the cash-back website and subsequently make a purchase, the cash-back website will (typically) refund you a small percentage of what you have spent.


How do they work?
The partnered traders pay advertising and referral premiums to the cash-back website. In return, the cash-back websites can offer discounts for those traders to their own visitors, thus creating more advertising and referral income: it is a lucrative cycle for all involved.
Once you click on the link to the trader's website, any purchases you make during that visit are tracked. It takes approximately 14 days for the purchase to be acknowledged on the cash-back site, and often several weeks more for the payment to be authorized. As far as legitimate cash-back websites are concerned, these cookies are designed to record only details of your purchases.

Arranging insurance and other financial products through a cash-back website can be particularly lucrative, with some cash-back offers of £100 and above.

Almost all cash-back websites require you to sign-up as a member. Any cash-back you subsequently earned would then be credited to your member account. Membership is usually free, but certain cash-back websites (such as Quidco) charge a small annual administration fee.


Are they legitimate?
Conceptually, cash-back websites are legitimate. However, this doesn't mean that 'every' cash back website is legitimate. As with everything online, a degree of common sense is required: if something seems too good to be true, it probably is. Before signing up to a cash-back website, do some research and look for some reviews. Most legitimate cash-back websites are amiable to pay by Paypal or in the form of gift vouchers: DO NOT input your bank details without being absolutely certain of the website's legitimacy.
 


Some examples
Below you'll find links to some of the more popular cash-back websites. However, caution is still advised. 

• Top Cashback
• Quidco (charges £5 per year admin fee)
• Rpoints (Note: made a recent comeback following liquidation) 
  
   
  

Cautions

When dealing with any cash-back websites, the following cautions should be borne in mind:

• The cash-back is not guaranteed, so it should only be considered as a bonus. If one trader works out cheaper than another only by virtue of the cash-back, be aware that you are taking a risk.
• If a deal seems to good to be true, beware. 
• Earned cash-back as noted on the cash-back website only becomes yours once it is paid into your bank account. Most cash-back websites have a minimum earning threshold before they allow you to do this. If the cash-back website goes into liquidation, you could stand to lose any money that hasn't been banked (think of it like The Weakest Link!). 
• For the reasons above, you should bank any cash-back you have as soon as the threshold is reached. 
• Most cash-back websites work by using tracking-cookies. Clear your existing cookies regularly to make sure the website can make a clean track of your transaction. 
  
   
  

Conclusion

Used right, cash-back websites can save you hundreds of pounds without changing your shopping habits. However, not all cash-back websites are legitimate, and even those that are legitimate aren't 100% guaranteed. 

How to price compare

If we were to get the best deal for everything we buy, it's estimated that we could save an average of 25%.  Price comparing may take a little effort, but it pays dividends. This article looks at some of the most popular price-comparison tools for shopping on the web as well as some useful tips for finding the best prices on the high-street.

Net a bargain online

Price comparison websites have been popping up all over the place lately. These websites are free to use and they work by comparing prices of multiple retailers. They earn their money by referring you on to the website from which you ultimately make your purchase. 

These websites allow you to compare prices for virtually anything from car insurance to video games, and are incredibly easy to use: they work in very much the same way as a search engine like Google or Yahoo.

Popular price comparison websites include:

• Comparethemarket.com
• Moneysupermarket.com
• Mysupermarket.co.uk
• Pricerunner.co.uk
• Kelkoo.co.uk

Some of these websites provide a wide range of price-comparison options whereas others are designed exclusively for comparing particular types of products such as credit cards or supermarket groceries. 

Be warned that the search results are not always 100% accurate. There may be differences in the price or the product itself (for example, a search for The Sims 3 may link to a guide-book for the game rather than the game itself) so it is essential to double-check the necessary details with your chosen retailer.

Some retailers are exclusive to certain comparison websites, and some retailers have opted out completely. This means that certain retailers may not appear on price comparison websites even if they in-fact offer the cheapest prices. For this reason, it is always worth carrying out individual checks on retailers that you don't see listed in your price comparison search.

High-street saving

Following the recession, the high-street has become a war zone of competition between retailers. For any given product, there are likely to be at least two or three suppliers available for you to choose from along a half-mile stretch. Sometimes to get the best deals you will have to do a little legwork (literally) and check what each store has to offer before committing.

Some stores will be amicable to price-matching. Usually this is restricted to a certain distance from the store in question and excludes internet pricing; however, if you have seen a price cheaper elsewhere (even online), and can prove it, it doesn't hurt to challenge the sticker-price and ask if the store is prepared to compete. 

If you're wanting to try your hand at haggling, the best time to attempt it will be near the end of each calendar month: most stores are particularly desperate at this time to meet and exceed their sales targets.

Going down a shelf

This article looks at ditching the brand-name groceries in favour of cheaper and, often, better-value products.


The Consumer Trap
Brands are big business, and nowhere is that more apparent than in the aisles of a supermarket. But the important thing to take on board is that 'branded' doesn't necessarily mean 'better'. For example: you probably wouldn't notice the difference in cereals that were 30% (or more) cheaper just because Mr. Kellogg hasn't signed the box.

Branded products are often stocked at eye-level for instant recognition and easy accessibility. This is such a powerful consumer trap that many brand manufacturers pay supermarkets additional fees to provide them with pride-of-place on the shelves. If you want the cheaper varieties it may involve searching high and low - literally!

Further, lower-end products such as supermarket value ranges are designed to be as unappealing and as unattractive as possible. Don't let this put you off. Unless you intend to eat the packaging as well, or put it on display on your living-room wall, there are few, if any, logical reasons not to buy something just because it isn't wrapped in pretty colours.


How Does it Compare?
When shopping for food items, it is always worth checking the ingredients. Often the cheaper branded products will contain virtually the same ingredients, but sometimes the more expensive options will offer additional benefits such as being low in salt or fat, enriched with vitamins, or made with fresh produce rather than frozen. If this is the case, you will need to make a decision as to whether these additional perks make the more expensive option better value for you.

Whenever branded products become especially popular because of some notable feature or another, there are always copycats who will duplicate the product (sometimes almost exactly), market it under a slightly different name, and make the price just that little bit more attractive. This is very bad news for brands, but very good news for customers.

Take the Challenge!
When you buy certain types of products as a household staple, it is always worth road-testing cheaper variations of the same product. You may find:

• that the cheaper product isn't for you; or
• that the cheaper product is just as good, in which case you'll have reduced your average shopping bill from that point onward.
  

Anything is worth trying once... well, almost anything. For some types of products, quality can vary greatly. It's generally risky to go for generic brands of specialty items such as:

• wine, beer & spirits
• cheese & dairy
• meat
• fish
• shaving razors
  
  
  

Shop Smart
When shopping for cheaper items, also beware false economy. A false economy is an action that saves money in the short term but ends up costing considerably more in the long term. In the context of groceries, something  that appears cheap on the face of it may end up being much less so because you need to use more of it (in the case of kitchen-roll and toilet-paper etc) or it doesn't last as long (in the case of shaving razors etc).

Remember that it's the things we spend money on every day, week or month - our staples - that can have the biggest impact on our finances. Every £5 trimmed from your weekly shopping trip equals £260 per year, so it's worth at least trying to skim the fat where you can.