Bargain Basics

Bargain Hunting Basics is here to equip you, the intrepid bargain shopper, with the best possible information on the basics of bargain hunting. We believe not only on sharing with you where to bag a bargain but also how to discern when you are really getting a bargain or getting scammed. The more you know (knowledge is power), the more you can save.
Secret Insider Buzz Words
Smart shoppers pay attention to how stores and merchandisers run their businesses. The business of business is to make money… not be the consumer’s best friend. Most retailers walk the line between the two, banking on your busy, harried life to distract you from their marketing maneuvers. See if you recognize any of these.
Loss Leader
This is an item deliberately priced very low just to get you into the store. The terminology is not always accurate since the seller does not always take a loss. More than likely it’s a break-even situation.
Bait and Switch
Keep an eye out for “Bait and Switch”. These items are advertised at an extremely low price to lure you into the store. Once you arrive that particular advertised item is magically “sold out”. Chances are it may never have been there to begin with. You are then lead to a higher priced but similar item by the sale staff. This is much more deceptive than a “Loss Leader”, which is a legitimate item priced at a loss to lure you in the store. If you’re a sharp shopper you’ll start to spot combinations of the two practices. “limited amount”, “first 10 customers” and so on.
Off Branded Merchandise
These are items which are advertised at super discounts which were never intended to sell at the quoted original retail price. The super savings here are not true indication of value. Probably a cheap item at a cheap price. Tags usually say ” Values to”.
Hidden Models
Truly difficult for the consumer to out-maneuver are “special models”. These are different labeled models manufactured to make it impossible for the consumer to comparison shop merchandise from one store to another.
The only difference between models is usually cosmetic in nature. This practice is rampant in the mattress industry with the same mattresses by the same manufacturer having a dozen different names.
MAP
MAP is the Minimum Advertised Price that the manufacturer will allow the retailer to advertise the product for. It doesn’t mean the retailer must sell it for that price, just that they can’t advertise it for less. This adds to the difficulty in comparison shopping. Often the manufacturers will have an agreement with smaller retailers to help them pay for advertising costs in local newspapers. This helps the smaller guy compete with the bigger retail chain who can handle a larger overhead but makes it near impossible to compare prices without actually going into the store.
MSRP
Sometimes referred to as the List price, is the Manufacturers Suggested Retail Price. The price the manufacturer suggests the product to be sold for… It does not mean the product was ever sold at that price. It’s an offering price.
Unilateral Pricing
Ever seen the same appliance at a dozen different stores at the same price?
A loophole in federal law allows a manufacturer to tell a retailer that if they sell an item at below the Unilateral Price, that manufacturer will no longer ship them that product. This is a method of price control that is dangerous to consumers, since it allows the manufacturer to effectively set the prices for it’s products.
The retailer can discount the product if they want to but risk losing further shipments from that manufacturer. This puts a stranglehold on market competition. This practice is easily seen in large appliances, audio and video equipment, video games and other areas.
Private Labeling
Both major retailers and smaller upscale boutiques can have their own label. They often contract with the same companies that manufacturer for many other labels the only difference being that you can’t comparison shop. They all may be made of the same materials with the same level of workmanship but each “Private Label” may be priced differently depending on how valuable the brand or designer name put onto