6 Times a bargain is not a bargain, and when you should not buy
In the words of writer Franklin Jones, “A bargain is something you don’t need at a price you can’t resist.” And we couldn’t agree more. There are times when you should not buy something, and here are the 6 times a bargain is not a bargain.
1. When you don’t need it
The price might be right. But, if the heavily marked-down item is one you don’t need, you’re just blowing money you could be using for savings or purchasing the stuff you actually do need.
2. When it’s a faulty product
Sometimes, it doesn’t pay to be cheap. If an item is retailing at a ridiculously low price, hold it up to this checklist to determine its quality:
- Where was it manufactured? If the product has a designer label and a “Made in China” tag, you’re looking at a cheap knockoff that isn’t such a bargain after all.
- Are there any noticeable flaws or missing parts?
- Does the item look worn out?
- Is the material cheaply made?
3. When it’s going to go bad before you can use it
Before buying food in bulk to snag a great deal, be sure it won’t go rancid or get stale before you can eat it.
4. When the “sale price” is the highest the item has ever been at this location
Retailers sometimes feature an item’s price as a “sale price” when, in reality, the store has never sold it for more than the tagged amount.
The store might be basing its sale price on an inflated Manufacturer’s Suggested Retail Price (MSRP). But, if the MSRP was artificially inflated, to begin with, you’re not getting a bargain.
Other times, the item will come with a pre-marked-down MSRP. For example, the manufacturer’s label might read: “Original price: $49.99. Our price: $39.99.” Of course, the item was never $49.99. If an item is marked down, you’ll see another price tag slapped on top of the manufacturer’s label with the newer, lower price.
5. When you need to mail in a rebate
Rebates are a retailer’s best friend. Unfortunately, we are too lazy or forgetful to mail them in. Instead, we pay full price, with the retailer getting the last laugh. Only pick up rebate items with an instant at-the-register rebate.
6. When it’s part of a liquidation sale
Avoid liquidation sales. While shoppers sometimes snag great deals, they mostly contain rip-offs. Retailers post signs claiming “Everything Must Go!” — but that’s where the honesty ends. The “Rock Bottom Prices” they advertise are often as high as the original MSRP — or even higher. The store owners depend on shoppers to assume that all items are bargain-priced because they’re at a liquidation sale. Stay away from liquidation sales or proceed with extreme caution.
Now you know when you should and should not get that bargain. With these 6 times, a bargain is not a bargain. You can keep your hard-earned money in your pocket. If you like this post, share it and check out our other posts on our MoneySmart Tips Blog.
