Business Price

How To Do Price Comparison

Introduction

People go shopping everyday for various needs. Some do it when the need arises and others shop as a recreational activity. Whatever reason people shop, price compariison as one of the shopping tips, is very important. With the many deals on offer in the market today, it is very easy to get overwhelmed. A good shopper should do prior comparison price practices before settling for a certain price. The following are ways to help a customer to do accurate price comparison.

Step 1

If possible, a buyer needs to avoid last minute buying. Last minute buying hurts the wallet and confuses the mind as far as what the buyer actually wants. To aid in price comparison, one should ensure they are not limited by time since effective price comparison is not a quick activity. One should think before buying.

Step 2

Also know as the price engine, a price comparison service allows individuals to see different price lists for specific products. Most of these sites do not sell the products but are only involved in price comparison. The best sites are those that display the Ofcom Price Accredation Scheme Logo, to make sure that the information they give is accurate and up to date. This is a logo awarded to websites that display audited prices. The auditor ensures accuracy, transparency and up to date information posted.

Step 3

A customer needs to have ample market information before buying the product. This information will assist him in knowing the market trends of certain products. Like when prices are down and when they are high and unfavorable to purchase. Market information also assists the buyer in taking advantage of promotions and other offers that lower product prices. Such information will also assist the buyer in knowing the right time to buy a product. A newly introduced product will cost more and a buyer should wait for some time to ensure that prices stabilize.

Step 4

Various stores offer varying prices for their products. To ensure effective price comparison, a buyer should create time to window shop in various stores or supermarkets so as to identify the one that saves his purchasing cost.

Step 5

This is where a buyer does price information gathering through people. One can rely on friends to assist him/her in price comparison from their previous experiences.

Step 6

A substitute good is one that takes the place of another. Two goods are substitutes in demand if the rise in the price of one good leads to the rise in demand for the other good. A good example of substitute goods is butter and margarine or tea and coffee. The rise in price of one will reduce its demand as the demand of its substitute rises. A conscious buyer should compare prices of the substitute good to know the right products that saves him the most money.

Step 7

A shop that allows bargaining and a price negotiation option is favorable to the buyer since he may get an option of buying the same goods at a cheaper cost if he has bargaining advantage. Quality price comparison will come in handy as the customer will have a good idea of the minimum price available in the market.

Tips

  1. Create ample time
  2. Price comparison services
  3. Analyze market information
  4. Visit various stores
  5. Crowd sourcing
  6. Know what you want
  7. Look for Substitutes
  8. Use the bargaining option

Sources and Citations

  1. Simon Clarke, Marx, marginalism, and modern sociology: from Adam Smith to Max Weber (London: The Macmillan Press, Ltd, 1982)
  2. Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall
By Ngari Njoroge, published at 02/29/2012
   Rating: 4/5 (11 votes)
How To Do Price Comparison. 4 of 5 based on 11 votes.

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