5 things that are always on sale

Whether the purchase is as small as an earring or as big as a house, there are some items you should never pay full price for. Here's how to shop smartly.

By Liz Pulliam Weston

On many purchases, it's pretty easy to tell whether you're getting a good deal. Often it's as simple as consulting a shopping search engine, like MSN Shopping or Google Product Search (yup, looks like I paid too much for my copy of the latest Harry Potter).

With other transactions, though, comparison shopping is incredibly difficult. Either the item is unique, or it's made to seem that way by the sellers. Constant sales can offer further confusion: You know that other people aren't paying list price, but how much less should you really pay?

Here are five things that can be incredibly tough to shop for, and some suggestions for getting the best deal.

Mattresses

Most mattresses are relatively simple boxes made of springs, foam and fabric. That should make them commodities -- in other words, basically interchangeable -- and thus ideal for comparison shopping.

But manufacturers and retailers deliberately make comparison shopping for mattresses extremely difficult for consumers. The same mattress, perhaps with slightly different trim, fabric or quilt pattern, will have different model names at different retailers, making it tough to know if you're comparing apples to apples.

• Talk back: What items do you never buy at full price?

Prices are extremely fluid, which means the same basic box-spring-and-mattress set can cost hundreds of dollars more or less depending on the sale, the persuasiveness of the salesperson and your own negotiating prowess.

Here are some basics from Consumer Reports to help you navigate the minefield:

• Reliability and durability of all brand-name mattresses -- Sealy, Serta, Simmons and Spring Air -- are typically very good. What matters most is comfort, and that's an individual thing.

• Spend at least 15 minutes lying on any mattress you're considering buying to make sure it's comfortable for you in all positions.

• Specialty mattresses from Duxiana, Select Comfort and Tempur-Pedic are rarely discounted, but you should be able to get 50% off the list price of a conventional innerspring mattress if you wait for a sale or bargain hard.

Jewelry

Jewelry often has such huge markups -- 100% to 200% is routine -- that even seemingly blowout sale prices still leave plenty of retailer profit intact. Because of that, jewelry typically isn't an investment. Try to sell a piece back to a jeweler and you'll be lucky to get one-third of what you originally paid (if the jeweler will buy it at all).

There are also no rules about how much to spend on jewelry -- including engagement rings. The notion that people should spend two months' salary on a ring was a creation of clever marketers.

Also, few gemstones are entirely without flaws. An ethical jeweler should be able to point them out and discuss their effect on the stone's value.

• Video: The recipe for bargain shopping

To shop wisely for jewelry:

• Understand that the big markups mean there's usually room to haggle down a price. Shoot for at least a 10% discount.

• Buy from certified gemologists who belong to the Gemological Institute of America, American Gem Society or Jewelers of America.

• Make sure you're allowed at least 30 days to return jewelry for a refund.

• Pay to have expensive jewelry evaluated by an appraiser not affiliated with the jeweler. Make sure the appraiser is certified by the American Society of Appraisers.

College educations

Most people don't pay the list price for college educations anymore.

About two-thirds of those who attend college get some kind of financial aid, and many colleges tweak their aid packages to benefit the students they most want to attract. If the marching band needs a talented flutist, for example, someone who fits the bill may get a financial-aid package loaded with "free money" -- grants and scholarships -- while a less-desired student with the same financial need might get loans.

Continued: What discounts to expect

The College Board says the typical private school discounts its costs by about a third, and public universities offer an average break of 14.7%. (See "Don't pay sticker price for college.")

"It is important to consider not just the net college cost, which is the difference between the cost of attendance and the financial-aid package, but also the out-of-pocket cost, which is the difference between the cost of attendance and grants and scholarships," said Mark Kantrowitz, editor of FinAid.org. "Out-of-pocket cost is a more realistic measure of the actual amount the college will cost you."

To avoid overpaying for a college education, you'll want to:

• Learn about the financial aid process and how to arrange your finances to get the best possible package. Some resources to check: MSN Money's Saving for College and Managing College Costs Decision Centers, FinAid.org's financial-aid calculator and the book "FastWeb College Gold: The Step-by-Step Guide to Paying for College." Never assume that you won't qualify for aid, Kantrowitz said; the formulas for aid are complicated, and how they're applied can vary by school. Also, changing family circumstances and congressional changes to available aid can have a big impact on how much you get. Even if you don't have financial need, you'll need to fill out the Free Application for Federal Student Aid (FAFSA) to qualify for federal student loan programs.

• Cast a wide net when researching and applying to colleges so you can uncover the schools that really want you (or your student). You can start with MSN Money's College Search engine, but also check out the Managing College Costs Decision Center, which includes articles on good values in public and private colleges.

• Make sure that if you do have to borrow money for school, you exhaust all federal student loan options first before resorting to private loans (read "How did student loans get so sleazy?" for details).

Cars and houses

Almost nobody negotiates half off a house or a car, but almost nobody pays sticker price, either. And because these are two of the biggest purchases most people make, it's worth going over the ground rules.

• Video: The recipe for bargain shopping

You know you shouldn't pay sticker price for a vehicle, but figuring out the "right" price -- and keeping to it in the face of an industry that specializes in getting people to overpay -- is a tall order. The second you drive a car off the dealer's lot, for example, it's worth only what someone will pay you for it, regardless of how big a rebate you got or how big a discount off sticker you negotiated. The closer you come to that price, the better the deal.

And even that swift bit of negotiation can be quickly erased in a few short minutes in the dealer's finance department. Similarly, you're not likely to make a bigger purchase than a home -- or have more of an opportunity to overpay.

Continued: Create a strategy

So, a few reminders on strategy:

Cars. Dealerships "know you're focused on the price of the car," said Philip Reed, consumer advice editor for Edmunds.com and editor of the book "Strategies for Smart Car Buyers." "You need to know about the charges that are bogus or inflated at the many other steps of the deal."

If you really want to make sure you get the best deal, don't walk onto a car lot until you've:

• Considered all your alternatives. The fewer times you buy a car in your lifetime, the more money you'll save. You may be able to get a few more years out of your current car or even do without a vehicle for a while. If you've decided you "need" a specific car, or even a car at all, you may be setting yourself up to overpay. Read "The real reason you're broke" for details.

• Set up your financing. A credit union is typically a good place to find low-cost auto loans. Limit your loan term to four years with a 20% down payment, if at all possible, and make sure you can swing all the costs of the car (such as higher insurance payments).

• Done your research. MSN Autos, among other sites, offers information about performance, reliability and safety. Edmunds.com also has a "True Cost to Own" feature that can show you how much a vehicle is likely to cost you over five years. You can get detailed reports on vehicles, including how much the dealer paid, with Consumer Reports' auto price reports.

• Prepared to walk out. The typical dealership will do everything in its power to keep you on the lot until you've signed the deal. They're hoping you'll fall in love with a car or be convinced the dealership is offering a one-time-only deal that will soon expire. Sometimes your most powerful negotiating tactic is the willingness to call their bluff, Reed said, and walk out the door. The deal may suddenly improve -- and if it doesn't, there's always the next dealership.

"Car sales (are) based on control. They want to know they control you," Reed said. "Any time you show the ability to walk out, you're taking back control."

Houses. Your two biggest enemies are your own emotions and a lack of information. You can help cure the latter with (as always) good research.

"Spend your weekends visiting open houses. Then, find a great agent, who really knows the neighborhood and its housing stock, and see even more properties that are for sale," advises Ilyce Glink, author of several books on real estate, including "100 Questions Every First-Time Home Buyer Should Ask." "Track the sales prices of these homes and use that information as a tool to help unlock the value of other properties."

You also need to consider which way the market winds are blowing in your area: whether prices are going up, down or flattening.

"Once you figure out the direction the neighborhood is going," Glink said, "you can start to compare the value of one house to another, taking into account the differences in size, amenities, and specific location."

• Video: The recipe for bargain shopping

With this information, you can craft a bid. When multiple buyers are after the same property, you may have to make your best offer first; when home sales are slow or prices are dropping, it's often best to start with a bid that's lower than what you're actually willing to pay.As for your emotions, I won't advise you not to fall in love with a property. Love is too tricky a thing to predict or prevent, and once it hits you you'll know how tough it is to keep your head. Just try to keep in mind that there's more than one "right" house for you, and you won't have to bankrupt yourself to get it.

Columns by Liz Pulliam Weston, the Web's most-read personal finance writer, appear every Monday and Thursday, exclusively on MSN Money. She also answers reader questions on the Your Money message board.

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