2. 1 PF6.01 Understand basic shopping options and effective shopping practices.

3. 2 When shopping for an item, no matter how big or small, there are several basic steps a person should follow to make a wise purchase.

4. 3 Some basic guidelines for wise buying include: Not buying on impulse. Impulse buying is when a consumer purchases an item without fully considering their spending plan’s priorities or alternatives. Always pay cash. Paying cash prevents the consumer from purchasing an item on credit. It is also more likely the consumer will stick to their spending plan when using cash preventing the ability to buy on impulse or spend too much money.

5. 4 Some basic guidelines for wise buying include: Buy at the right time. Knowing when to purchase items is another way an individual will save money. Certain items are on sale during different times of the year. For example, purchasing a swimsuit in the fall when swimsuit season is over rather than at the beginning of the summer when all of the lines are being introduced. Do not purchase items based upon a name brand. Some consumers feel a name brand indicates quality which is not always the case. A name brand cold medicine will sell for approximately $0.32 per dosage, while a generic brand sells for only $0.05 per dosage and has the same active ingredients.

6. 5 Some basic guidelines for wise buying include: Recognize the high price of convenience. Items such as deodorant and toothpaste should be purchased at a large discount store which provides a variety of options and prices compared to the supermarket. Food should be purchased at a local supermarket instead of taking daily trips to the local convenience store with much higher prices.

7. 6 Following these tips can help an individual save money, and will assist them in managing their budget. The tips apply to making any purchase, including clothing. Clothing shopping can be a very large part of an individual’s budget. People have very different traits when shopping for clothing. Some individuals will only buy certain brands because they believe they will be higher quality, others only buy discount clothing. Some items are purchased because they are trendy at the time, and other items are purchased because they are a neutral color which will be “in” for a long time.

8. 7 Clothing Evaluation Criteria

9. 8 There are several criteria an individual should consider when purchasing an article of clothing. Fiber content – Is the garment made out of a durable fabric which is comfortable to wear? –After the first wash, will the garment fabric still look new? –An individual should evaluate how long they think the fabric will last and the quality of the dye so the garment does not quickly fade. Care – How does the material need to be cared for? Is it something which can be washed in a washing machine, hand washed or dry cleaned? – Individuals need to consider their clothing care habits to determine how much time they will devote to properly caring for the garment. –In addition, dry clean only clothing increases future garment costs.

10. 9 There are several criteria an individual should consider when purchasing an article of clothing. Quality of stitching – Is any stitching missing? Is it straight? Is it durable? – Individuals should look at all seams of the garment to ensure the stitching is there so there are no holes, it is straight, and it is durable so holes will not appear after the first washing. Embellishments – Is there any special stitching using colored thread, painting, beads, etc. on the garment? – If a garment does include embellishments, a person needs to evaluate how well they are attached or sewn.

11. 10 There are several criteria an individual should consider when purchasing an article of clothing. Color – Is the color a traditional color which is nice any time of the year or is it a trendy color which will only be good during the specific clothing season? –When shopping, an individual should determine if a color is something which will match other items they already own or if it is a trendy color of clothing which will only be worn a few months.

12. 11 There are several criteria an individual should consider when purchasing an article of clothing. Overall fit – Is the garment flattering to the body type/shape of the person? –The more flattering a garment is on a person, the more likely they are to wear it more often. Price – Does the garment price fit within the budget? –An individual should not purchase clothing items on credit.

13. 12 An important factor when evaluating garment options is the cost per wear. Cost per wear is the cost of the garment divided by the number of expected wearings. An individual should consider how many times they feel they will wear the garment based upon the criteria identified above. After they have determined how often they will wear the garment, they can determine the cost per wear. Sometimes people will discover a garment which is high quality, fits well, and is very versatile may cost more initially but will actually cost less long term. Cost Per Wear

14. 13 EXAMPLE 1 Jenny finds a cute black shirt on the sale rack for only $20.00. 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. Therefore, the cost per wear for Jenny is $5.00 for each of the four times Jenny wore the shirt.

15. 14 EXAMPLE 2 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 $35.00. Jessica will wear the shirt 23 times over the next 2 years. Therefore, Jessica’s cost per wear is $1.52.

16. 15 CONCULSION Although Jenny’s shirt may have cost less at the time of purchase she would have had to purchase four of the lower quality shirts, at a cost of $100.00, over time to have as many wearings as Jessica did.

17. 16 Each individual’s needs, wants, and personal choices will determine which criteria they value the most. Some worry more about price than quality of stitching while others will value overall fit instead of price. Understanding how to evaluate personal preferences in clothing items will help students to properly choose a clothing item which they will wear and is in the right price range.

18. 17 In this lesson, students will examine wise shopping practices. They will examine personal shopping selection habits, evaluate wise shopping practices, and learn how to calculate the cost per wear of a garment. Then, they will determine what a person should look for when purchasing a pair of jeans.

19. 18 JOURNAL ENTRY Identify the last item of clothing YOU purchased. Write why YOU made the purchase. Write how YOU made the purchase. Did YOU buy on impulse, comparison shop between items or buy because of the brand? Were YOU pleased or dissatisfied with the purchase. List 2 reasons why YOU were pleased or dissatisfied.

20. 19 Elements of Wise Shopping a. No impulse buying. b. Always pay cash. c. Buy at the right time. d. Do not buy based upon brand name. e. Recognize the high price of convenience.

21. 20 Cost per Wear Concept Cost per wear is the cost of the garment divided by the number of times the consumer will wear the garment. Cost of the garment Number of wearings Understanding cost per wear is the proper way to assess the cost of a clothing item. = Cost per wear

22. 21 A garment which is high quality, fits well, and has versatile wearing characteristics will cost less long term.

23. 22 Key Terms retail store –Obtains goods from wholesalers to sell to consumers Wholesale –Obtains goods from suppliers to sell to retailers department store –Sells a variety of goods and services in a single store

24. 23 Key Terms warehouse club and super store –Offers price advantages and wide product selection to its members discount store –Sells certain lines of merchandise at below- average prices consignment store –Sells used merchandise at reduced prices

25. 24 Key Terms thrift –The quality of being frugal, using resources wisely specialty store –Sell goods and services for specialized purposes

26. 25 Key Terms door-to-door sales –Salesperson comes to home, either by invitation or not catalog shopping Shopper calls on telephone to buy goods listed in a catalog Telemarketing Seller calls on telephone to sell goods or services

27. 26 Key Terms T-commerce –Shopping in response to ads on television E-commerce –Buying goods and services on the Internet, including Internet auctions

28. 27 Key Terms Reliability –Being able to depend on a person or business to back up their claims Services –Special consumer features offered by a store or other seller impulse buying –Buying on the spur of the moment, without planning Warranty –A guarantee that a product will perform up to specified standards; four types are implied, written, full, and limited warranties

29. 28 Key Terms Estimate –A total expected cost, in writing, for performing a service work order –Gives authority to a service provider to perform services Contract –Legally binding papers signed by all parties in an agreement service warranty –Guarantees certain quality standards of performance

30. 29 Activity Appendix 6.01A, “Where’s My Money?” Allow students one minute to brainstorm names of stores/other places where they spend money and list in a bubble. Call time; have students list under each bubble types of items they purchase at each place.

31. 30 Activity Have students scan information about shopping options in 6.01 Unpacked Content under “Options in stores” and “Options at home.” (next slides) Give students copies of Appendix 6. 01B, “Shopping Options”

32. 31 Options for shopping in stores Retail stores obtain goods from wholesale sources and sell directly to consumers. Department stores sell a wide variety of goods and services from a single store. Warehouse clubs and superstores offer price advantages and wide product selection. Factory outlet stores are owned by the manufacturer or distributor of the merchandise. Discount stores sell certain lines of merchandise at lower prices. Consignment or thrift stores sell used merchandise at greatly reduced prices. Specialty stores sell specialized goods/services --- e.g., shoe shops and gas stations.

33. 32 Options for shopping at home Door-to-door---salesperson comes to home, either by invitation or not Catalog shopping --- shopper calls on telephone to buy goods listed in a catalog Telemarketing – seller calls on telephone to sell goods or services T-commerce – shopping in response to ads on television E-commerce – buying goods and services on the Internet, including Internet auctions

34. 33

35. 34 Pros and Cons The object of the Pros and Cons Auction is to classify the pros and cons of shopping in stores and the pros and cons of shopping at home.

36. 35 Pros and Cons Does this relate to shopping in stores or shopping at home? Does this sound like something positive – (a pro) or –something negative (a con)?

37. 36 Directions: Classify each in one of 4 categories: 1. Pros of shopping in stores 2. Cons of shopping in stores 3. Pros of shopping at home 4. Cons of shopping at home Handout available!

38. 37 Close to home for last-minute or emergency shopping

39. 38 Malls offer special attractions and promotions for customers

40. 39 Can obtain special orders

41. 40 Items are easy to exchange

42. 41 Limited space

43. 42 Takes time to buy costly items

44. 43 Picked-over merchandise

45. 44 Stores offer special services---e.g., gift wrapping

46. 45 Large crowds on sale days and weekends

47. 46 Must check seller’s privacy policy before giving personal and financial information

48. 47 Can try on clothes

49. 48 Has special prices with a membership card

50. 49 Can work with knowledgeable sales people

51. 50 Must keep a complete record of each transaction

52. 51 Offer store credit cards

53. 52 Offer payment plans

54. 53 May not understand exactly what you are buying

55. 54 Buy any time 7 days a week

56. 55 Can purchase on the spot with TV remote control

57. 56 Variety of merchandise in one area

58. 57 Must find a place to park

59. 58 Must check reliability, legitimacy, and security of sellers before buying

60. 59 Will deliver

61. 60 If the offer sounds too good to be true, then it probably IS NOT

62. 61 Can buy from the comfort and convenience of your own home

63. 62 Buy goods and services from a worldwide market

64. 63 Will have shipping and handling costs added

65. 64 May not know the physical location of the seller

66. 65 Must have a credit card to pay

67. 66 Must check exchange policy

68. 6.01- Shopping Options676.01- Shopping Options Effective Shopping Practices

69. 6.01- Shopping Options68 Note that knowing your shopping options is the first step toward becoming a smart shopper. The second step is to learn effective shopping practices. What do YOU think is meant by the word practices. – synonyms as habits, actions, and routines. Shopping practices are the things that a shopper does over and over.

70. 6.01- Shopping Options696.01- Shopping Options PLAN BEFORE YOU SHOP COMPARISON SHOP SHOP WISELY

71. 6.01- Shopping Options706.01- Shopping Options PLAN BEFORE YOU SHOP Decide whether to shop at home or in a store When there is a choice, decide whether to purchase goods or services Check reliability and services of stores and distance- sellers Decide when to buy

72. 6.01- Shopping Options716.01- Shopping Options Shop in stores or at home? Let’s review the pros and cons of shopping in a store Let’s review the pros and cons of shopping at home

73. 6.01- Shopping Options726.01- Shopping Options Buy goods or services? Sometimes you have an option of whether to purchase goods or services –Example 1: Buy a ready-made prom gown, or pay someone to make you a gown? –Example 2: Buy a new motorcycle or pay someone to fix up the used cycle you have?

74. 6.01- Shopping Options736.01- Shopping Options Buy goods or services? Goods have clearly identified prices, while prices of services may be harder to determine. Quality of goods can be reviewed and rated; quality of services is best reflected in performance.

75. 6.01- Shopping Options746.01- Shopping Options Check reliability and services Only respectable businesses back up their claims Services –Methods of payment accepted –Return/refund policies –Knowledgeable sales staff –Special services Gift wrap Special orders Delivery Repairs/maintenance

76. 6.01- Shopping Options756.01- Shopping Options Decide when to buy... Buy now with cash or credit Save for purchase at a later time When possible, wait for a sale Avoid impulse buying

77. 6.01- Shopping Options766.01- Shopping Options COMPARISON SHOP Products Research the product Compare products Understand warranties Talk to people who have made the same purchase Check the Internet

78. 6.01- Shopping Options776.01- Shopping Options Research the product Do your homework --- become familiar with the product Talk to people who have made the same purchase Check Internet for consumer information, magazines, other publications

79. 6.01- Shopping Options786.01- Shopping Options Compare products Brand names, store brands, and generics Size of package Other product features

80. 6.01- Shopping Options796.01- Shopping Options Understand warranties Implied warranty – product is in proper condition and does what it is intended to do –Example: Hair dryer blows and dries hair

81. 6.01- Shopping Options806.01- Shopping Options Understand warranties Written warranty – goes beyond implied warranty by providing a written guarantee –Full warranty – according to law, must provide all 5 standards stated by Magnuson-Moss Act –Limited warranty – provides 1-4, but not all, of standards in Magnuson- Moss Act Standards of Magnuson-Moss Act Warranty extends to any owner of product, not just original owner No cost for warranty Nothing to do to receive warranty Guarantees refund or replacement Does not limit time period of implied warranty

82. 6.01- Shopping Options816.01- Shopping Options COMPARISON SHOP Services Identify a person(s) or business(es) that provide the desired service Check qualifications Interview; ask for demos/samples Check references Check licensing, bonding, insurance Pay close attention to agreements

83. 6.01- Shopping Options826.01- Shopping Options Pay close attention to terms of agreements Estimate --- a total expected cost, in writing, for performing a service Work order --- gives authority to the provider to perform services Contract --- a legally binding agreement between a service provider and a consumer Service warranty --- a guarantee of quality standards for performance

84. 6.01- Shopping Options836.01- Shopping Options SHOP WISELY In Stores Consider the value of time and energy, as well as money Handle money, cash, and credit cards with care Get receipts and sales slips; file carefully Deal fairly and honestly with others in the marketplace Report unfair/dishonest practices to the proper authorities

85. 6.01- Shopping Options846.01- Shopping Options SHOP WISELY At Home Know name, location of seller Understand what you are buying Compare prices with other retailers Only buy from secure sites Check seller’s privacy policy Pay by credit card Find out delivery date, return and refund policy Check product promptly when delivered

86. 85 REVIEW Effective Shopping Practices Plan before you shop Decide if shopping at home or shopping in stores is more appropriate Where there is a choice, decide whether it is advisable to purchase goods (products) or services. –Goods (products) have clearly identified prices; prices of services may be harder to determine. –Quality of goods can be reviewed and rated before purchasing; quality of services is reflected after purchasing through performance.

87. 86 REVIEW Effective Shopping Practices Check reliability and services of stores and distance- sellers – Reliability --- only respectable businesses that will back up their claims – Services --- payment methods accepted; return and refund policies; knowledge of sales staff; special services (gift wrap, special orders, delivery; repairs/maintenance) Decide when to buy –Whether to buy now with cash or credit or save for purchase at a later time –When possible, wait for a sale –Avoid impulse buying

88. 87 REVIEW Effective Shopping Practices Comparison shop for products (goods) Research the product --- become familiar with various forms of the product Compare products --- brand name, store brands, and generics; size of packages, features

89. 88 REVIEW Effective Shopping Practices Understand warranties that guarantee quality standards of products –Implied warranty – product is in proper condition and does what is intended –Written warranty – goes beyond implied warranty, provides written guarantee –Full warranty – must provide all five standards stated in Magnuson-Moss Act –Limited Warranty –does not meet one/more of the Magnuson-Moss standards

90. 89 REVIEW Effective Shopping Practices Talk to people who have made the same purchase Check the Internet for consumer information, magazines, and other publications

91. 90 REVIEW Effective Shopping Practices Comparison shop for services Identify a person(s) or a business(es) that provide the desired service Check qualifications --- skills, reliability, and professional ethics Interview the service-provider; ask for demonstrations/work samples Check the provider’s references and his/her record with the Better Business Bureau Check to see if provider is licensed, bonded, or insured

92. 91 REVIEW Effective Shopping Practices Pay close attention to terms of agreements, and read carefully before signing –Obtain an estimate ---total expected cost, in writing, for performing the service. – Work orders ---give authority to the service provider to perform services. – Contracts--- signed by all parties involved in an agreement, are legally binding – Service warranties--- guarantee certain quality standards of performance

93. 92 REVIEW Effective Shopping Practices Shop wisely in stores Consider the value of time and energy, as well as money, when shopping Handle money, cash, and credit cards with care Get receipts and sales slips; file in an organized place Deal fairly and honestly with others in the marketplace Report unfair/dishonest business practices to proper authorities

94. 93 REVIEW Effective Shopping Practices Shop wisely at home Know name and physical location of seller Understand what you are buying, all details of sale, and description of product Compare prices with other retailers Only buy from secure sites Check seller’s privacy policy before giving out personal and financial information Pay by credit card Find out delivery date, return and refund policy Check product promptly when delivered

95. 94 Journal Entry Write a 5-sentence paragraph to respond to this question: – Now that I have completed this study of shopping options and practices, how will my shopping habits change? Have each student exchange papers with a partner and read what their partners wrote. Allow time for partner discussion. Partner must sign their name in journal.