Prev | Next | Contents

19.0 NOW YOU CAN AFFORD LUXURIES? - CONSUMER CULTURE ARTICLES, FROM SAVVY-DISCOUNTS.com

Once you know how to find deep discounts, you may be able to afford luxuries you only dreamed about. I know that sounds odd, but it's true and can be a very smart way to buy. Here are a couple of examples.

Now that my wife and I are on the Time of Use plan from our local utility, we not only save $50-$100 each month in the winter, but we can afford to wash towels in hot water if we want. That's because we're paying only 3.3 cents per KWH off-peak instead of 7.8 cents.

Six years ago I bought a Ralph Lauren bathrobe at Filene's Bargain Basement for about a third of its original price ($65 instead of $200). Today it is still the most comfortable and warmest robe I have ever owned. And it looks almost new.

The same Caribbean vacation that goes for $799 in Jan., costs $375 in Nov. and Dec.

Last year my wife and I went to a resort on the coast off-season where we stayed in a suite for $29 a night.

How can luxuries be so inexpensive?

The most important reason is that we bought when the business was willing to sell at a lower price. Electricity is much cheaper off-peak. Last year's designer bathrobe might be sold at cost or below. The staff of an empty off-season hotel will gladly please a loyal customer.

Free Budget Calculators
Loans, Insurance, Cash Flow, Irregular Payments
Generic Vs. Name Brand Products
Brown Bagging Lunch

But there is another reason, especially for luxury items like my bathrobe. Top-of-the-line, name brand products have a high profit margin or markup. This is true for everything from coffee makers to automobiles, from sweaters to refrigerators. However, economy items have a low markup.

Let's take cars as an example. An economy car may have a 3% markup, whereas a luxury car might have a 20% markup. Other luxury items such as clothes have a much higher markup vs. economy items.

Luxury items are usually better made, last longer with less repairs, and are backed by better service.

So here's the secret: luxury items on sale will often be marked down as low or lower than a budget product, but the quality will be vastly superior.

If you can find a top-of-the-line sport coat or dress at a bargain price, you won't be sorry, even if it costs a little more than you'd normally pay. It is a $avvy discount because it's a better value.

Prev | Next | Contents