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low prices” may be used to sell merchandise that is about to be replaced by a newer
model. If those product cycles are seasonal and predictable, you may be able to schedule
your purchase to take advantage of discounts.
Or you may decide to wait and pay full price for the newer model to avoid purchasing a
product that is about to become outdated.
The more the purchase process allows for negotiation, the more possibility there is for
consumers to enhance satisfaction. However, the negotiation process can go the other
way too: it allows more opportunity for the vendor to negotiate an advantage. The
better-informed consumer is more likely to negotiate a more satisfying purchase, so it is
important to be thorough in the prepurchase research.
A purchase may have transaction costs such as sales tax or delivery charges. For higher-
priced products such as durables and assets, those transaction costs can add up, so you
should figure them into your overall cost of the purchase.
Financing costs can also be significant if debt financing is used. Debt is long term and is
a significant commitment as well. It may pay to compare financing rates and terms just
as you would for the product itself, or you may be able to use financing costs as a
negotiating chip in your price negotiations.
After You Buy
Now you can enjoy your purchase. Some products require maintenance and periodic
repair to remain useful. You should research those additional costs before buying,
because after the purchase you are committed to those activities.
If you are not satisfied due to a product defect, you can contact the retailer or
manufacturer. If there is a warranty, the retailer or manufacturer will either fix the
defect or replace the item. Many manufacturers and retailers will do so even if there is
no warranty to maintain good customer relations and enhance their brand’s reputation.
An Internet search will usually turn up contact information for a product’s customer
service team.
There are also federal and state consumer protection laws that cover a seller’s
responsibilities after a sale. In the United States, the Federal Trade Commission (FTC)
Bureau of Consumer Protection has the most direct responsibility for consumer issues.
At the state level, the office of the attorney general usually has a consumer protection
division. Locally, you can also contact your chamber of commerce or Better Business
Bureau (BBB) for more information.
You can also resort to the judicial system for compensation. For limited claims, you can
file in small claims court. Claim limits vary by state, but range between $500 and
$10,000. Small claims court is a less formal and costly process than filing a suit. At the