Assess True Value - for each purchase
If you know the true value of an item, you can assign a reasonable price to it. It's one of the ways that you can make price comparisons.
Another way is to be familiar with the cost of similar products in the marketplace. Knowing the typical price of things is most helpful when an opportunity arises to make a purchase.
Just remember that lower priced items are not always a good buy, especially if they have limited value.
Assessing the value of a product can be done based on quality and features. Not all products are created equal.
For example, the $50 vehicle emergency kit that includes thin wire jumper cables, a pair of pliers and an plastic orange flag won’t help you much when you have a dead battery. The cables are so thin that you can’t jump-start your car like you can with thicker more expensive cables that can carry the current necessary to overcome a drained battery.
Your $50 is better spent on a good set of jumper cables, or a new battery.
Also, different brands have different value, and that's important to understand. Good quality stuff generally lasts longer and is more functional, so it generally has a higher true value in the marketplace and it's going to cost more.
For example, common hand tools will be considerably less expensive than a set of hand tools which are guaranteed for life. The ones with the lifetime guarantee can be brought back for replacement or refurbishment at anytime, so you only buy one set for life. The less expensive tools generally won’t perform well under rigorous use and will need to be replaced more often.
In the above example, you pay more for the higher quality hand tools, but they last a lifetime, so they have higher value for a tradesman or anyone else who is serious about using tools. This is an important consideration for the smart shopper.
Done with Assess True Value, back to Frugal Shopping