Download - Smart Decisions. Choices Forced –You must make a decision Not Forced –You can make a decision
Smart DecisionsSmart 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 eachWhich is the better deal?
Package of 10$4.29 ÷ 10= $.429 or 42.9¢ per oz$3.59 ÷ 7=$.513 or 51.3¢ per ozWhich is the better deal?
10 oz box
Computations with different measures
Which is the better bargain?
2 ½ lbs. of chicken breast for $4.48OR
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 $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. 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 $35.00.
• 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 BureauBBB
• 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