Money Matters: The Value Equation

Understanding the vagaries of value is a complicated and subjective concept, Adele Trathan explores ways to extract value, as well as making it work best for you

Value is an interesting, if vague, concept in finance terms, so how do we agree on a set of rules that can outline the concept across a broad consumer demographic?

Firstly, value is a term that doesn’t rely on budgeting or a certain level of income or expenditure – there is potentially as much value in a multimillion-pound yacht as there might be a 10ft dinghy.

Value might also be expressed in terms of sustainability, or in the way a purchase meets consumer needs.

Mostly though, it’s a combination of all these things, and is totally subjective – what represents ‘value’ for one person may not to another.

With all that in mind, here are some routes by which you may be able to extract maximum value out of whatever it is you consume or purchase:

Shop around

Before making a purchase, research the market and compare prices from different retailers. You can use price comparison websites or shop around in person to ensure you get the best deal possible. Don’t just settle for the first price you see.

Look for discounts and promotions

Many retailers offer discounts and promotions on products, especially during seasonal sales or promotions. Keep an eye out for these and take advantage of them to save money on your purchases.

Use voucher codes and coupons

Online voucher codes and coupons can help you save money on your purchases. These can often be found on retailer websites or through online coupon websites. You can also sign up for loyalty programmes to receive discounts and special offers.

Consider buying second-hand

Second-hand items can often be bought for a fraction of the price of new items. This is especially true for things like electronics and furniture, which can be expensive when bought new. Check online marketplaces, auction sites, or better still, visit local charity stores or auction houses.

Plan your purchasesBy planning your purchases in advance, you can take advantage of seasonal and clearance sales. For example, buy Christmas decorations in January, or purchase summer clothes in the winter.

Check for quality

It’s important to consider the quality of the product you’re buying, especially if it’s something you’ll be using for a long time. Buying acheaper item that will need replacing frequently may end up costing you more in the long run than investing in a higher-quality, more expensive item.

Consider buying in bulk

If you know you’ll be using a product frequently, buying in bulk can usually save you money. This is particularly true for household items like cleaning supplies and dry food goods.

Negotiate

Don’t be afraid to negotiate the price with the retailer, especially if you’re buying a big-ticket item like a car or a piece of furniture. Many retailers are open to negotiation, and you may be able to get a better deal simply by asking.

Use cashback and reward schemes

Many banks and credit cards offer cashback and reward schemes that can help you save money on your purchases. By using these schemes, you’ll be getting back as you’re spending.

Avoid impulse buying

Impulse buying can lead to overspending and ‘purchase regret’ later on. To avoid this, make a shopping list and stick to it, and avoid buying things when you’re feeling emotional or stressed.

In conclusion, getting maximum value as a consumer requires effort and research, but done well, it’s a habit that will pay back many times over.