TIPS ON HOW TO COPE WITH PRICE INCREASES ON BASIC FOOD ITEMS

The Consumer Affairs Commission (CAC) is aware of the difficulties consumers will face with the current price increases on certain basic food items, allegedly stemming from a weakening of the Jamaican dollar, but give advice on ways to maximise the use of their financial resources however meagre it may be.

Careful planning can be very useful at this time. It allows you to better understand your household needs, your spending patterns and your financial constraints. Armed with this information, you will be able to ensure consumption of certain basic goods and services over a long period and maintain a reasonable quality of life. There are no substitutes for the benefits that can be derived from careful and cautious planning.

Avoid impulsive purchases. Refrain from buying items at this time merely because they appear inexpensive and you think you will get a good deal. Buying an extra pair of shoes at this time when you already have sufficient may rob you of funds that can otherwise be used.

Buy in bulk. Consumer goods usually cost less when bought in bulk and more when a single item is purchased. This manner of shopping offers another source from which savings can be generated. Whenever possible, always try to get the wholesale and not the retail price charged on consumer products. If your income or your needs at any specific time does not allow you to buy in bulk then consider pooling funds with close friends and relatives who have similar purchasing needs.

Trim your expenditure. Examine your expenditure and determine whether there are items in it that can be taken out without any significant adverse effect to the quality of life you chose to lead. Food and clothing for example is vital to your well-being but an extra bike for your son at this time amounts to a avoidable erosion of your personal finances. Every effort should be made to buy only those goods and services that you consider necessary for your day-to-day survival and to shun those that are not

Shop for cheaper substitutes. Increased prices provide an opportunity for consumers to shop around for cheaper substitutes. Corresponding substitutes exist in the market for a number of basic food items and in most cases are usually more affordable. Educate yourself on what these substitutes are and if necessary include them as part of your shopping list permanently.

Shop around. The power to keep prices competitive and reasonably low lies in the concept of shopping around. Conduct telephone surveys or talk to friends to garner price information and shop were you will get value for your money.

If you find yourself with Unexpected Income, do not spend it frivolously by using it to buy a new DSL system that has two more features than the one presently have. Use it instead to pay off outstanding debts or put it away for a “rainy day”.

Do not incur unnecessary debt. It is amazing how shopping on credit can put consumers in financial binds. Cash purchases are always cheaper than credit. If you can do without that extra appliance or furniture for the next two or three months until you are able to save, then do just that….wait! Also, credit card balances if not paid on time attract very high interest rates.