Four Ways to Be a Savvy Consumer

Last Updated on June 5, 2025

Four Ways to Be a Savvy Consumer

The consumer, fighting tears, sits on one side of the table. The business representative, on the other side of the table, strives to maintain a professional demeanor while defending the new car he sold her. Like many arbitration issues, this is an expensive product – a dreamy new car that ended up being a lemon. The stakes are high for both parties.

As a professional arbitrator for the Better Business Bureau, I’ve seen many arguments at this table. Usually, the two parties have used BBB’s mediation services but were unable to agree. Hence their seat at my table.

I’m glad to provide the opportunity for the parties to come together to resolve the dispute before they have to take it to court. But the best option? Use a thoughtful approach to shopping to increase your odds of getting an excellent product.

What are some ways you can be a savvy consumer, so you never have to see me at the arbitration table?

Reduce Your Consumption

Before you purchase a product or service, consider whether you should buy it, especially if the purchase is expensive. Here is a process from Trent Hamm you can follow each time you consider a significant purchase.

Questions to Ask Yourself Before Making a Purchase

1. Do I already have something that can do the job? I find tools can be addictive. For example, I know someone who has an avocado slicer. A knife works fine.
2. Can I borrow it from someone?
3. Can I trade someone an item or a service for it?
4. Have I asked my social network about it? This is good advice because friends on social media love to share information.
5. Can I make it myself? Even if you are not crafty, you may be able to find a homemade alternative. And you’ll feel quite satisfied that you did.
6. Can I delay it? Sometimes that urge to buy goes away. Wait it out.
7. Have I looked for lower-cost alternative solutions? Renting a piece of equipment rather than buying is perfect for those rare times you need something like a power washer. I know this from experience because I fell into the trap of buying one rather than renting. I hardly ever use it, and in the meantime, I have to store and maintain it.
8. Have I looked at a thrift store or discount grocer or consignment shop for it?
9. Have I looked online for discounts for it?

Follow this list, and you will save money and decrease clutter in your home.

Make a Savvy Purchase

Okay, sometimes, even if you’ve used the questions, you must make a purchase. How can you do this in a way that increases your chances of getting a great product?

Check Reviews

My go-to place for product reviews is Consumer Reports. Because they do not accept manufacturer funding, their reviews are unbiased. Each year they survey their customers about the life of their cars and major appliances so they can measure and report on product and brand reliability. Finally, they are consumer advocates.

“We have won important victories for consumers to ensure that the cars, food, and other products we buy are safe, raise the standards for financial services, and improve health and well-being. Our campaigns have already helped lower credit card rates, expand access to health insurance, and remove dangerous products from shelves.”

My online subscription allows me to see detailed product reviews and recommendations, which include new cars as well as ratings of the most reliable used cars. During the holidays, they help with ideas, such as Holiday Gift Ideas For Every Budget. And I appreciate their educational articles such as Staying Safe when Using Ride-Hailing Services.

Another option is to explore company ratings at the Better Business Bureau. Some companies take the extra step of getting BBB accreditation, which means the BBB monitors them on several factors related to how they resolve complaints.

Finally, before you buy, check in with your friends and family to understand their personal experiences with the product or service.

Shop Carefully

Once you know which brands and products are most reliable, shop carefully. Consumer Reports has a link on recommended products so you can see sample prices at stores. If these prices don’t appeal to you, wait. I keep a ‘looking to buy list’ list on my phone in case I run across good deals for products I want.

Although getting an unbiased product review is a significant first step, it can’t eliminate the possibility of getting a lemon. In that case, understand your rights.

Understand Your Rights as a Consumer

Be a savvy consumer of advertising. Companies bombard us with advertisements designed to make us believe we need that new phone to be cool or that new outfit to look our best. There is a lot of science behind advertising, to encourage you and to stretch the advantages of a product.  If you have purchased a product that does not live up to its hype, that is false advertising. Documenting this is a way to resolve this issue with the company.

Take a moment to understand the product warranty. Read a vendor’s contract before you sign it. Please.

If you must finance your purchase, don’t do that from the vendor. You are much more likely to get a better rate from a credit union. Start at the credit union before you car shop and get preapproved for a loan. They will guide you through the purchase process so you understand what extras are rip-offs.  And they will tell you a fair price for the car, which is likely well below the sticker price.

Resolve the Problem

If you have a problem with your product or service, understand your rights. But getting an issue resolved can be frustrating.

Keep notes of every attempt you make to resolve the issue. That will come in handy later.

Contacting the company is the first step. That sounds easy, but we’ve all experienced the ways a company makes you run the gauntlet. For example, being put on hold, or directed to the Frequently Asked Questions, or being told, kindly, that you are out of luck.

Social media has changed the way we contact companies. We can reach a company through their Facebook or Twitter accounts.

“Smart consumers know that if they contact a company on Twitter or Facebook, they’ll get a better response and a faster response than they will if they call customer service,” says Sunil Gupta, co-chair of the Driving Digital Strategy executive program at Harvard Business School. “No one else knows when you call a company with a problem, but on social media a lot of people see the complaint, which is exactly what companies are worried about. It certainly is a way to get a company’s attention.” – Consumer Reports

I’m a fan of complaint letters. Here is an article on how to write one that includes a sample letter you can use as a model.

If you are unable to get a resolution from the company, consider the right person to contact next. That might be an industry regulator, such as the insurance commissioner for your state.

Another option is to file a BBB complaint. Their process is to help the consumer and business share concerns. If that doesn’t work, they offer mediation in hopes of resolving the dispute in a way that satisfies both parties. If that doesn’t work, arbitration is the next step. It is a great tool, but I hope I won’t have to see you at my table.

[Learn more about being an everyday consumer activist.]

Enjoy Your Purchases

Marie Kondo tells us that our possessions should ‘spark joy.’ I like her philosophy. An article can spark joy for different reasons – because it is beautiful, or ingenious, quirky and fun, or comforting. I’ll leave it to Marie to describe how you measure whether something sparks joy.

What sparks joy for you?

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