Computer Shopper magazine's March issue has some great ideas for alternative paths to saving. Among them, saving money by buying refurbished.
Refurbished products are those that have been returned to the manufacturer for one reason or another. Maybe it wasn't working when the original owner plugged it in. Or maybe the original owner opened up the box and realized it just wasn't the system he/she really wanted and decided to send it back and exchange it. The manufacturer will test and repair it if there is a problem with it and then put it back on the market at a discounted price.
Direct sellers such as Dell, Apple, Gateway and Sony all sell refurbished products. And by buying from a well-known manufacturer you can feel even more comfortable purchasing one. For example, on Dell.com you can find a refurbished 17-inch flat panel monitor for $299 that usually costs about $430.
When buying refurbs make sure to take a look at the warranty. Warranties can range from just a few days to a year. Usually the big name companies will have warranty details on their sites.
Also, Computer Shopper says don't confuse refurbished products with used products. Used or pre-owned products may not come with the same guarantees and you could end up taking more of a gamble. One last tip: be careful of third party refurbs which are not sold by direct sellers.
2. Make a bid.
Consider making a deal at either an in-person or online auction. In-person auctions are usually advertised in the classified section of your newspaper. And because they are regional, the bidders usually have less competition than an on-line auction.
Make sure you take some time before the day of the auction to get information on how it works and see if there is a list available of the products for sale. This way you can plan ahead and not walk in there cold.
Have an idea of how much you are willing to bid. Some auctions even have an open house a couple of days before the auction to allow bidders to come in and see what is available.
Computer Shopper warns consumers that sometimes items sold at an in-person auction are sold "as is, where is." Meaning it is your responsibility to get the item home that day and there is never a guarantee it is in perfect working condition.
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If you don't have time to bid in person, make an offer online. Online auctions continue to grow in popularity.
eBay.com is among the more popular Web sites with a large number of technology products for sale. When we did a search on eBay under "technology" over 1,300 items popped up.
Among the other online sites are auctions.amazon.com and ubid.com. Bidding online is also a good option for small companies or for those starting a business.
Dovebid.com auctions off equipment from businesses that went bankrupt or are closing operations. For example, Dovebid is a great resource for computer equipment from all those dot-com companies that went bust. As another example, though not technology related, Dovebid was the company that auctioned off the Enron "E" for $44,000 last year.
One thing to keep in mind when buying online is that you are most likely buying from an individual rather than a well-known company. Therefore, take advantage of the customer feedback sections which many online auction sites provide. This feedback system rates sellers. Did they send the item in a timely fashion? Was the item in good condition? Sometimes listening to others is the best resource.
3. Get friendly.
The person-to-person marketplace is another option for finding tech deals. Just like an auction, there are sites available that link buyers and sellers.
The difference between this and an auction is that sellers come up with a fixed price and as a buyer you can choose to purchase the item for that price and avoid the waiting and wondering that a bidding war can often create.
Among the more popular person-to-person Web sites is Craigslist at Craigslist.org. It's an online community that gets about 650 million page views a month and represents over 30 U.S. cities.
When you click on a particular area there is a "For Sale" section that includes technology items. Computer Shopper also recommends going to computer trade shows and conventions in your area. Manufacturers will often offer special deals available only at that particular show.
4. Understand the language.
When shopping in alternative venues for deals, chances are you'll hear some terms you've never heard before. Computer Shopper listed several.
Among them is "New old stock" or NOS. This is equipment that has never been used but wasn't recently manufactured. This could mean it has been sitting in a warehouse for some time.
We mentioned the term "As is, where is" earlier. This is merchandise that includes no guarantees, and the purchaser is responsible for getting the product to its proper location.
"Off-lease" refers to hardware that was previously leased to a business.
"Factory reconditioned" means the manufacturer has refurbished it. At the end of the lease, the equipment is often sold. And if you hear the term "lot," this means there are several pieces of hardware being sold as a single unit.
5. Bottom line: be careful.
Since several of these alternative shopping paths are online, you'll want to be careful.
Do your homework to know whom you are buying from and understand what you are getting for your money. Try to shop with those you know. Anyone can set up a shop online under almost any name and try to sell you a deal. Check the site's customer service page, where you should find policies on ordering and shipping.
It also helps if the company has a seal of approval from a privacy enforcement organization such as the Better Business Bureau Online Reliability Seal. Log onto www.bbbonline.org for more information. Reselleratings.com is another good source that reviews thousands of sellers.
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As we've mentioned before, paying with a credit card for online purchases is among the safest ways to go. Your transaction is protected by the Fair Credit Billing Act. This law gives you the right to dispute charges and to withhold payment until the problem is resolved by the creditor.
And finally, Lance Ulanoff of PC Magazine says make sure you shop around. Have as much information about the product you want to buy as possible so you don't get taken.
Gerri Willis is the personal finance editor for CNN Business News. Willis also is co-host of CNNfn's The FlipSide, weekdays from 11 a.m. to 12:30 p.m. (ET). E-mail comments to 5tips@cnnfn.com.
CNNfn's Gerri Willis shares five tips on getting a good price on tech products.
