Money saving tips: Purchasing electronic and white goods

As featured in FHM Magazine, July 2008

You've heard Bing Lee's tag line "Everything's Negotiable", but in truth you'd probably get the same deal from Harvey Norman, The Good Guys and your local electronic and white goods dealer - you just have to be brash enough to ask for it.

Most of us feel more comfortable accepting a price tag, either because haggling seems cheeky or we simply can't be bothered, but bartering is still relevant on today's high street - as is offering hard cash (as twentieth century as that may seem). You might think that the larger brand stores are above seeing cash as more desirable than credit, but if you can achieve an extra 10% off the price, it's worth a shot. Here's an insider's tip: nearly all big brand stores work in a price shift of up to 20% to begin with. That is, many stores incorporate a means to negotiate (or alternatively a means to make maximum profit, of course) before you even walk in the store. Use it to your advantage.

A final strategy ("the low blow"): mention a store's direct competitor. It may seem like you're steering the fight in a dirty direction, but you may be surprised how quickly the seller comes round when you mention the deal on offer elsewhere (try not to stretch the truth too much in the pursuit of a few dollars off!). Just as car dealers have a "sticker price" (the price plastered on the car window) and an "invoice price" (the price they pay the manufacturer), electrical and white good dealers will also have two markers they can float between (the "zone of possible agreement"). If you dig deep to find out the invoice price of a product, and then aim between this and the sticker price as a rule of thumb, you could hit on a much improved deal. Bottom line: know your stuff. Do as much research as possible before demanding a deal; the Internet is increasingly the best place to start.

Mobile phones: How do you research a better deal?

You need a mobile phone, you don't want to get ripped off, but you're short of time - so how can you get to grips with the erratic mobile market?

Limited time is a major reason that research today is all about the Internet - but don't discount the benefits of hitting the high street. Chatting to objective mobile phone providers, given their detachment from mobile brand spin, can quickly bring your understanding up to speed. You may even find useful information from mobile phone service networks themselves, at the very least to compare what's available from each and then to see to which of them is most flexible when it comes to getting you the better deal. Sometimes, if you spell out what your budget is and what you expect from a mobile phone service, a dealer will be willing to match you. This kind of deal is much less likely via the Internet, even if exclusive deals are generally better. The Net can be invaluable for getting the opinion of other consumers in the same boat however (try the whirlpool.net.au forum, or phonechoice.com.au for free independent advice).

If one thing's true about mobile phone companies, they're not shy on advertising. You'll probably see more flyers and catalogues for mobile phones than anything else, so competitive is the market. If you don't get the hours online that you'd like, or you struggle to find time to visit your local mobile shop - get creative. If you have a long commute on the train or bus, grab a bunch of catalogues from phone companies and independent non-affiliated suppliers and sift through them instead of reading that book or snoozing. Maybe take them into work and study them at lunchtime instead of reading FHM (sorry!). Try to learn as much as you can about what's out there and figure out what phone features suit you; the first way a salesman will know he's onto a winner is if you don't know your 3G from your G String!

Cable TV: Where can you find the best deal?

Much like mobile phones and electrical goods, the keyword with cable TV is research, research, research. Don't just opt for the biggest brand because it's familiar, check out the competition to find the best deal. As you probably have worked out, Foxtel is the alpha male of Australia's cable world, but there are alternatives.

SelecTV offers competitive packages, undercutting Optus' Foxtel service and offering a diverse range of channels covering music, movies, news and sport. SelecTV caters for a more specialist market also by offering additional channels in Spanish, Greek and Italian. Optus' "Basic Plus" Foxtel package costs $54.95* per month including one additional extra channel pack, but this doesn't allow selection of an individual extra channel. Cable provider Austar, on the other hand, whilst offering a slightly more expensive basic package, allows you to select individual channel add-ons in some cases, such as World Movies for an additional $6.95 or the History Channel for just an extra three bucks. Those with quite specific needs might revel in this flexibility - and Austar's mini installation fee (compared with Optus).

Generally speaking, Australia's cable TV options are limited unfortunately. Channel line-up changes little from provider to provider and the basic rule is much the same across the board: the more you pay, you more channels (and variety) you get. Whichever provider you choose, the overall service will probably vary little and in some cases the service itself may not affect which provider you opt for; your choice might depend on where you live as some providers operate only in select parts of the country.

There's not much room to move in the cable market on Aussie shores currently, but if you're willing to divert from the "reassuring" route (of Foxtel via Optus), you could be lucky enough to find more variety and value budget packages elsewhere. The more time you spend looking for alternatives, the more chance you have of watching what you want.

Property Purchasing: Agency fees

As an extra point, as with essential electronic purchases you can look out for savings when purchasing a property. If you're taking out a mortgage, you'll already have certain legal fees and insurance premiums (not mentioning moving costs and any urgent property repairs), so you need to cut costs wherever you can. You may opt to enlist the services of a finance broker specialising in home loans. If this is the case, be sure to get a clear outline of their fees for the whole service - you don't want a nasty surprise when the bill hits.

Changes in the credit laws around ten years ago have generally brought about a bit more protection for home buyers. Now the "Consumer Credit Code" forces home loan providers to make information clear to borrowers. For mortgage contracts, you should have full details about fees up front (usually in the form of a "pre-contractual statement"). Your simple checklist of info that should be included is:

• the amount you're borrowing
• your rights and obligations
• the interest rate
• when interest is charged
• fees and how they're calculated
• how the provider will inform you of changes (to fees or rates).

When it comes to a mortgage contract, you don't have to sign anything on the spot and you should always be sure you understand what you're signing. It sounds like common sense, but under pressure it's not uncommon to forget this rule of thumb.

Bear in mind you'll already be paying state and government fees (stamp duty, mortgage registration, land transfer, council rates, water rates, etc), so you want to minimise extra "on top" costs. Valuation fees, "establishment" fees, legal fees, exit fees (should you wish to transfer your loan), and ongoing servicing fees should all be taken into consideration. Be sure to check with your lender what fees will apply before undertaking any loan.

* At time of going to press.