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