Some companies are losing sales and are considering filing for bankruptcy or dissolving their business due to the recession. However, many businesses are thriving on increased sales and tapping into consumer needs. An example of this are companies that offer rental products with the option to buy. Many of these companies are doing more advertisements to attract customers. Aaron’s has 1,575 stores and had sales in the first quarter of 2009 of 474 million. Rent-A-Center also known as Rentway had sales in the first quarter of 2009 of 728.2 million. Just think that if half of those customers changed their lifestyle and spending habits and paid off their debt, which helps raise their credit score, that money could be used to open a savings account, a retirement account, shop a house or, more importantly, buying items with cash. Instead of going to a rental store in a center to buy a TV, you can go to Best Buy, compare prices online at Amazon.com, or go to a thrift store for a good deal.
Many rent-a-center stores know how to find their customers and customize the ads to attract the customers they are looking for. Managers sometimes attend local events with clients to help them determine if a client has lost their job. Some stores also ask for references to determine if the customer will make their monthly payments. Some managers attend their clients ‘churches, learn about their clients’ backgrounds, talk to their employers, or ask about their financial status. All of this information is used to help make a sale and ensure that customers can continue to make their monthly payments.
Buying items from a rent-a-center store can cost you 2-3 times the original cost of the item, and in some cases, the items are used or could be damaged. You can avoid all of this by buying only items that you can afford. Here are 5 ways to help you find the best deal without having to lease a purchase.
1. Research. Do your research on the item you want to buy. If you are looking for a TV, look up customer reviews or ask family or friends which brand they bought and if they are happy with their purchase. Use that information to find a brand that meets your requirements, so you can make a smart purchase based on quality, not just price.
2. Compare. Make comparative purchases at different stores: thrift stores, outlet stores, discount stores, or online. Take at least 20 minutes to compare prices. For every 5-10 minutes spent comparing prices, you save between $ 1-9. You can also buy used items to save money.
3. Buy later. If you see something you want to buy but are out of cash or have bad credit, save your money and then go shopping for the item. If it is absolutely necessary that the item when you see it, please wait a few days, return to the store. See if the item is on sale or ask a seller when it will go on sale. Then compare that price with other stores to get the best deal.
4. Use competitors. Go to a shop and comparison shop. Then go to a competitor’s store and tell them that you found a cheaper price at the competitor’s store and ask them to match that price or offer a lower price. Some stores do this, such as Room Store, Target, Wal-Mart, etc. See which store gives you the best deal.
5. Needs vs. wants. You should buy more needs instead of wants. There must be a balance, if you are buying more items than you want, re-evaluate your spending habits. Buy only items that you can pay cash for or are within your budget. That designer bag or that pair of designer jeans is not a necessity. The only 3 basic needs are food, clothing, and shelter, and I’m adding a fourth: a recipe.