Bargain Shopping — Dave Ramsey Chapter 7 – Flashcards
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Getting the best deal on a purchase
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Involves Negotiating, Shopping around to find the best deal, Having Patience
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Good places to find a good deal
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Consignment shops, Online Auctions, Individuals
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What you should you do when selling an item
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Make it clear that, as a seller, you have walk-away power; Be armed with information so that you can be sure it's a win-win deal; Get antiques or collectible items appraised and sell them slightly below that price.
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To ensure the best possible store return process
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Familiarize yourself with the store's return policy prior to your purchase, Hold on to your receipt and keep the labels and price tags on the item, Return the item to the store as quickly as possible
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To make your money go further
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Negotiating for a lower price, Buying clothing at end-of-the-season sales, Comparison shopping
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When buying things at an auction
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Don't get caught up in the excitement and end up paying more than retail price, Set a limit on the amount you are willing to pay, Familiarize yourself with the item you want to purchase (quality, condition, age, etc.)
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"The Lucky Seven" rules
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Can get you incredible deals on the stuff you buy every day, but they only work if you use them.
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Consignment shop
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A retail store where people sell items and the owner of the shop gets a percentage of the sale
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cost-benefit analysis
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The process of quantifying costs and benefits of a decision.
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great deal
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Do not happen by accident.
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Auction
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A public sale in which property or items of merchandise are sold to the highest bidder.
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estate sale
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A type of yard sale with more items, usually the entire contents of a household.
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Barter
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The exchange of goods or services without the use of money.
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Based on a survey by the Federal Trade Commission, the most common types of consumer fraud
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bogus weight-loss products, nonexistent foreign lotteries, unauthorized buyer club enrollments, dishonest prize promotions and fraudulent work-at-home programs.
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Being a wise consumer
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Involves developing a variety of skills, from product research to careful comparative analysis.
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Being emotionally attached to a purchase
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Will cause you to lose bargaining power.
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Being the first in line for a new product
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Will not get you the best deal possible.
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Cash
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has immediacy.
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Cash
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is emotional.
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Cash
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is visual.
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Do NOT lie
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To get a bargain. Always tell the truth.
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Most countries excluding the United States
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most countries use negotiating as a way of life.
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Foreclosure
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The process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract.
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If negotiation is done correctly
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it will end up being a win-win deal.
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What you should to if you bargain at a store but are unable to negotiate the price down
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You should then just walk away.
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If you're trying to buy something, it's not your job to come up with a good price
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Make the seller work for your business.
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wise consumers
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Enjoy improved health and have a positive impact on the larger social and even global environment as well as In addition to economic savings.
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Integrity
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Has to do with a person's honesty and moral attributes.
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Just asking for a great deal
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doesn't always mean that you'll get one.
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Learning to be quiet
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a powerful tool in negotiation.
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Making informed choices as a consumer
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Will usually yield savings.
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Malls
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Generally not the best place to find a good deal.
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Markup
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The difference between the wholesale price and retail price.
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Most of the items at a pawnshop
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NOT stolen.
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Negotiate
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To bargain for a lower price.
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Negotiation
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Involves a conversation of back-and-forth, give-and-take.
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Researching a product prior to purchase
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Makes you an informed consumer.
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Good negotiators
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Are always armed with information about the product.
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Shopping for bargains
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Part of a healthy financial plan because it makes your hard-earned money go further.
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People who reported having more debt than they could handle
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More likely to be victims of consumer fraud involving credit repair and debt consolidation
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The good guy, bad guy technique
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A negotiating tool that you should be aware of.
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slightly outdated products
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There is very little difference in quality and performance but the price difference may be significant.
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This "IF I" take-away technique
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Involves negotiating the lowest price possible, then throwing something else into the deal.
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Using a cost-benefit analysis approach to your buying decisions
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Will make you a wise consumer.
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Using cash
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Gives you more bargaining power than using credit.
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Using cash is a great bargaining tool
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Because Cash is emotional, Cash has immediacy, and Cash is visual.
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Walk-away power
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The ability to walk away from a purchase when negotiating.
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When trying to make your money go further
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you should try to avoid buying only name-brand products.
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You must not get emotionally attached to the purchase
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Because it's only if you're prepared to walk away from the purchase that you will have the ability to negotiate.
