A Case for Cost Comparison

15 Sep

Photo by The Busy Brain via Flickr Creative Commons

Photo by The Busy Brain via Flickr Creative Commons

I’ve written¬†a lot about comparing prices on this blog (here, here and here) and in the advice I give as a Savings Expert for CouponSherpa.com. In fact, I would go so far as to say comparing prices is my top tip for saving money. Why? Because you never know how the cost of a product or service compares between competitors unless YOU do the research to find out.

Case in point: auto repair services. My parents recently discovered the alternator in one of their vehicles needs to be replaced. My dad called our local Toyota dealership who told him it would cost $1,200 to replace and he’d have to wait two weeks to get it done. He then called a mechanic’s shop he trusted, and they gave him a bid of $750 along with a one-week delay. Finally, he contacted another local shop (with whom he’s worked with previously) and they told him it would cost $450. What’s more, they could get the repair done immediately.

Bottom line? 20 minutes of phone calls resulted in $750 of savings.

Dealership prices are almost always higher – that’s a given. But not everyone understands just how much higher these costs can be, so taking the time to find out for yourself could result in a significant cost savings. I mean, $750? That’s huge!

Another tool I discovered during this process is AutoMD’s repair cost estimator. It helps you estimate auto repairs based on your vehicle’s make and model, and the zip code in which you plan to have the repair. My dad tried it and found the tool’s estimate to be very close to the mechanic charging $450.

As someone who knows next-to-nothing about cars, having a ballpark understanding of what a repair should cost is invaluable. Same goes for any purchase, really: if you know a product or service’s price history, it’s much easier to shop around and negotiate. It takes more effort, but the payoff can be huge.

Spill: what’s the most you’ve saved by comparing prices?

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