Friday, April 13, 2012

How to Start Saving - Learn to Say No

Have you ever gone to buy something and ended up spending much more that you wanted to ?

Were you sold add on items from a persistent salesperson ?

I have, and I know many others that have as well.

The Real Truth

The simple truth is that these add on items that sales people push on their clients are very good for them. They normally pay out very high commission rates to the salesperson. Even worse, their employers rank their sales staff according to how many add on items they sell. They make their employers a lot of extra money as well.

Two items that seem to be common are extended warranties on electronic items and rust proofing on used vehicle purchases. Think about it ! Most electronic items sold today are obsolete a couple of years (or sooner) after you purchase them. Why would you pay for a warranty on something you are no longer using ? And rustproofing on a used vehicle ? Give your head a shake ! The rusting process has already begun the moment a new car is driven off the lot. What a scam !

When deciding on your purchase, just learn to say no to the extra add on items.

Take Control

The key here is to never surrender the control of your purchase to the sales person. Know exactly what you want before you enter the store. Say no to their add on items. If they keep persisting after you say no, simply walk out and take your business elsewhere.Most will, however, back off once you tell them no a couple of times.

Another approach is to ask them directly how much of a commission they make on the add on item. If they seem reluctant to tell you, then you know it's high. Beware. Above all else, always say no to the extra add on items.

Know Your Prices 

 Before you ever get close to entering the store, you should always have done your homework. You should know that the store you are entering has the absolute best price for the item you want to purchase.

If a store has the best prices consistently, it may be a sign that they are hoping to sell add on items on every purchase to boost their profits. They may even be offering what the industry calls loss leaders to attract buyers to their store in order to sell their add on items. Remember though, always say no.

Say No and Prosper

Remember, by saying no to the extra add on items you will be saving money. This extra money can be used to boost your savings. This will enable you to grow your wealth at a faster pace.

It may seem like a relatively small amount in the big picture.However, a lot of savings in small amounts will some day add up to a large amount. It is all about learning the habit of not throwing your money away on things you will never benefit from. Make sure to get good value for everything you buy.

As always, I welcome your comments and suggestions for future topics.

1 comment:

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