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How Exactly Do Price Comparison Websites Save You Money?

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Home GENERAL English

How Exactly Do Price Comparison Websites Save You Money?

globaltelconews-admin by globaltelconews-admin
1 August, 2012
in English
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These days the internet is awash with adverts offering the best deals and tips for saving you money. Try to think of a web page without advertisements and of the hundreds of pages you browse every day only two are likely to spring to mind: The Google Homepage and Wikipedia.

However, there are legitimate websites which can help you save money especially if you know the best ways in which to use them to your advantage. A YouGov survey recently carried out by Saveitbuddy.com estimated that price comparison websites earn over 650 million in annual commission from consumers. While this may seem like a lot of money around 10.1 million British adults used price comparison websites last year because these sites can save you time and money.

There are a few important points to take into consideration when using a price comparison website. Firstly, work out what the most important costs and aspects of any product you are looking to buy are. For example if you are purchasing a loan, you will want to make sure that the Representative APR is within your budget and how long you are able to take out the loan for. If the comparison site you are using does not have the information you need in a clear and easily understood way then use a different website. Price comparison websites should be easily accessible and if they do not make your life easier then there is no point using one.

It is also extremely important for the browser not to select the first thing which they see. This may sound obvious but it is all too common for those purchasing event the most serious financial products such as loans to purchase the first item they come across. It is worth taking time to analyse the products which are displayed in order to find the best deal for you. When looking at loans for example the cheapest loan may seem to be the one with the lowest Representative APR, but the period of time you have to borrow for may not suit you.

Price comparison websites offer a service designed to save you time and money by listing the most important facts about products which you want to purchase. In some cases due to the volume of customers sent to a company by a price comparison website the deals offered may be cheaper on that site in comparison to elsewhere. Even where this is not the case comparing the prices which different companies offer on loans, foreign exchange, credit cards, insurance and many other financial products which affect our daily lives is a sensible thing to do.

Like all other company price comparison websites have to yield a profit in order to survive. How do they make this profit? Most price comparison websites generate profit through advertising revenue from the merchants listed on their websites. The companies running the price comparison websites are often paid by charging third party product or service providers a fee and/or commission for introductions made. It is also common for price comparison websites to permit advertising outside the comparison tables in order to gain more revenue.

Some sites such as http://www.whichwaytopay.com do not permit advertising outside of the comparison verticals as they believe that as an affiliate and introducer, the purpose of their website is to compare, review and sell financial products. Advertisements outside the verticals would confuse and distort the purpose of the website compromising the brand.

In conclusion price comparison websites can save you money but they need to be used properly. Do not purchase the first item you see displayed. Time must still be taken to compare different products and to assess the advantages and disadvantages of anything you are interest in. If a price comparison website is not providing you with the information you need then its purpose is redundant and you should move on. Price comparison websites are there to make your life easier and to save you time and money. Absorb the information available in order to get the best online deals available.

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