Professor Georgios Baltas provides a guide with practical ways for consumers to deal with punctuality.
Greek households are preparing for a difficult autumn. Fearing a worsening energy crisis and a new wave of price hikes in consumer goods, consumers are looking for ways to limit, as much as possible, the effects of inflation and precision in their daily lives.
ARTICLE CONTINUES AFTER ADVERTISEMENT
As Georgios Baltas, professor of the Department of Marketing & Communication of the Athens University of Economics and Business Administration, Director of Postgraduate Studies, explains to APE-MBE, “the large price increases in most goods and the unimaginable prices of energy lower the standard of living of consumers”.
The coming winter months, according to Mr. Balta, will be even more difficult as the family budget will be burdened by the expected worsening of the energy crisis and persistent consumer price inflation. In this context, consumers are looking for ways to limit, as far as possible, the effects of inflation and price increases in their daily lives.
“It goes without saying that there is no magic way to neutralize the effects of inflation. But we can, with changes in our purchasing behavior, mitigate the effects of inflation and contain as much as possible the reduction in the standard of living, which is inevitable when prices rise and income is not adjusted”, Mr. Baltas emphasizes speaking to APE-MPE .
How consumers can mitigate the impact of inflationary pressures and accuracy on their lives
Professor Georgios Baltas quotes in APE-MPE a guide with some practical and effective ways:
ARTICLE CONTINUES AFTER ADVERTISEMENT
- We compare the prices of alternatives that exist in the same product category. It is pointed out that the prices of competitive products belonging to the exact same category may differ more than the amount of annual inflation. There are not a few cases where we notice that the prices of competing brands of the same good differ by 10-20% or even more. In addition, suppliers of standard consumer products have not made equal mark-ups and some have tried much harder to hold down the prices of their products.
- We compare the prices of different stores. We often see significantly different prices for the same or almost the same product at different points of sale. Price differences reach double-digit percentages even between retail outlets located in the same area and equally accessible to local customers. In addition, retailers have not passed on supplier markups to retail prices in the same way, and some have absorbed some of the increases in wholesale prices.
- We look for lower prices online, where some goods are sold significantly cheaper and above all price comparison is easier, faster and more organized. In many cases, searching for the best price online results in double digit savings for the consumer.
- We plan our purchases. When consumers make a list of the products they need, they avoid impulsive, unplanned purchases, achieving significant savings. But it is not enough to remember what we want to get. What counts is the writing and existence of the list that delineates the upcoming purchases and plans the expenditure. The shopping list can be written or digital. The savings achieved by the systematic use of a shopping list can amount to 25%-30% of the monthly household expenditure in sectors such as food and supermarket items.
- We change habits and try new brands or variants of the product we are interested in, as long as they are offered at more competitive prices and meet our requirements. Obsessing over older options can rob you of the ability to reduce spending on a number of product categories that have appreciated significantly. The same can be done by looking for new and more profitable options in services.
- We control the final cost per unit weight, volume or piece of the product. This information is written on the price tag of each product and is an important criterion for products that we buy to meet constant and lasting consumer needs, such as detergents. This criterion is obviously less important for products that satisfy a momentary desire or occasional need, such as an ice cream, in the sense that we do not buy a larger quantity for gradual use.
- We look at the recurring charges generated by subscription services of all kinds. Often these charges are made automatically each month and may not attract our attention. Canceling subscriptions that we do not need or can no longer pay can give a significant reduction in monthly expenses.
- We postpone unnecessary purchases especially in cases involving a large expenditure that burdens the family budget. Postponing a large, unnecessary expense can save a lot of money by ensuring that more pressing needs are met and avoiding the accumulation of new debt. This mainly concerns high-cost durable goods, such as appliances, vehicles, furniture, etc.
- We take advantage of offers and discounts. This means that we choose an advantageous offer or discount for a product or service that we wanted to buy. But it’s not a good idea to buy a product or service we don’t need just because it presents itself as a bargain. Caution is needed here given the innate tendency of people to be attracted to similar stimuli and to act impulsively because of them.
- For the products we consume systematically, it is worth waiting for the next time we find them on sale. Most products in the supermarket carry out repeated promotions and when we systematically buy them at the lowest promoted price we significantly reduce their long-term consumption costs.