Smart Decisions

Choices Forced –You must make a decision Not Forced –You can make a decision

3 Different Brands Generic (Prescription Drugs) Store Brand/Private Brand Name Brand

Generic (Prescription Drugs) Able to be produced after the patent runs out Cheaper –Don’t have the expense of developing and marketing it Identical to name brand in ALL ways

Store Brand Produced & marketed by store Cheaper –Not advertised Quality? Private Brand Produced & marketed by private company Sold in willing stores Cheaper –Not advertised Quality? Meijer Wal-Mart Great Value Malt-O-Meal

Name Brand Produced, marketed & distributed nationwide by large company Found in many stores Good looking packaging Advertising Higher price Coca-Cola Pepsi General Mills

Pricing Decisions Wheat Thins –$4.29 –10 oz Meijer Wheat Crisps –$3.59 –7 oz Firecrackers –$21.00 –Package of 7 Firecrackers –$25.00 –Package of 10

Computation Compute the price for 1 $21 ÷ 7= $3 each $25 ÷ 10= $2.50 each Which is the better deal? Package of 10 $4.29 ÷ 10= $.429 or 42.9¢ per oz $3.59 ÷ 7=$.513 or 51.3¢ per oz Which is the better deal? 10 oz box

Computations with different measures Which is the better bargain? 2 ½ lbs. of chicken breast for $4.48 OR 45 oz. pkg. of chicken breast for $4.30 each

Chicken Computation One is in lbs. and one in oz. so you must make them similar measurements There are 16 oz. in 1 lb. 2.5 lbs. x 16 oz. =40 oz. so $4.48 ÷ 40 oz. =$.112 or 11.2¢ $4.30 ÷ 45 oz. =$.096 or 9.6¢ 45 oz. of chicken breast is the better deal

Shopping Considerations Don’t Impulse Buy –Just because your friends have it –Grocery shop when hungry Pay Cash –If you don’t have the money for it; wait Timing is Everything –Christmas decorations just after Christmas –A 2014 new car towards the middle to end of the year as the 2015 models come out the last half of 2014 Don’t just buy the Name Brand –Research Quality

Clothing Considerations Durability—Will it last and Look Good Care—Dry Clean Only, etc. Color Embellishments/Decorations Fit Price

Cost Per Wear Jenny finds a cute black dress shirt on the sale rack for only $ She picks it up and quickly purchases it without examining the fabric or construction because it is such a good deal. After four washings, the shirt has faded and the sewing is unraveling. What was the cost per wear for the shirt? –$20 ÷ 4= $5

Cost Per Wear At the same time, Jessica was shopping for a black dress shirt. Jessica compared shirts at several different stores before she selected a classic cut, well constructed shirt made from a polyester/knit blend. The cost of the shirt was $ Jessica wears the shirt 23 times over the next 2 years. What was the cost per wear for Jessica’s shirt? $35 ÷ 23= $1.52

Federal Trade Commission FTC Federal government agency Created to protect consumers from –Unfair business practices False advertising Misleading pricing –Other consumer crimes Identity theft

Better Business Bureau BBB Nonprofit organization Contact to get business grade (rating) –Indicates the trustworthiness of a company Can also report problems you had with a business

Warranties Every purchase made is a contract— keep your receipt as proof of contract Purchases over $500 require a written contract All warranties are different be sure to read them