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Comparison shopping on the Internet

Using the Internet to find consumer information has its pros and cons. On the one hand, there's plenty of information out there, including much that's extremely useful. But finding the specific nuggets you're after is becoming more difficult as search engines and directories feature bad links, outdated information, and websites that are downright cheesy. Here are the main criteria we used to sift through the clutter and uncover the premier consumer-oriented sites:

  • Comprehensive. There must be enough products or services covered to provide adequate comparisons.
  • Updated frequently. Look for sites updated at least weekly and preferably daily, depending on the subject.
  • Easy to navigate. The best sites will feature clear tabs and a hierarchy at the top that keeps you from getting lost.
  • Unbiased information (with judgment exercised). We've categorized sites into two groups: those that offer unbiased reviews and consumer information and those that offer pricing and where-to-buy details. Naturally, some overlap can't be avoided. It's difficult to shop on the Web without being inundated with ads, but if you ignore the flashing icons and evaluate the usefulness of the information, much of it is unbiased and very useful.
Product reviews and buying guides

Clients in the market for computers, cameras, exercise equipment, diamonds, and other big-ticket items can benefit from the Web's extensive research information to decide on features and find the best products in their price range. The following sites feature (mostly) unbiased product reviews. Some also offer price comparisons, but a separate section below presents the best sites for price comparisons; go there after you've narrowed your product selection.

  • Consumer Search is one of the best consumer sites on the Web. It features product reviews from more than one source and rates the reviews on credibility, timeliness, and qualifications of the reviewer. It also analyzes the reviews and picks the best products. However, the "where to buy" links are limited to only a few retailers, so clients will probably want to buy locally or go to one of the shopping sites listed below once they've armed themselves with product and pricing information.
  • WhatsTheBest.net says the typical person who is looking to purchase a lawn mower will spend between eight and 12 hours walking through stores and reading brochures before he makes a purchase. It offers buying guides that identify features to look for and forums where members post their questions and answers about specific products. It does not yet offer product reviews, but plans to do so in the future.
  • Epinions features product reviews by people who have bought and used the products. Note that they are not expert opinions like those at Consumer Search, but these consumer opinions can also be useful. The site also offers price comparisons and evaluates the stores where the products can be found, although store selection is limited.
  • The online version of Consumer Reports features the same thorough, quality reviews for which its print magazine has long been lauded. A subscription to the site costs $26 per year or $19 for magazine subscribers. The $4.95 per month plan is convenient if you want to check reviews for a specific purchase.
  • Best Stuff features a roundup of articles and forums where people talk about products.
  • ConsumerReview.com offers very comprehensive reviews, buying guides, and discussion forums on the following products:

CNET is the premiere site for computers and electronic gear, featuring product reviews and price comparisons on more than 15,000 products, updated daily. ZDNET is similar, but directed more toward business customers.

Price comparisons

The Web can also help you scout out the best price for the product you're researching. Here are some of the best "shopbots," which also rate the stores on ease of ordering, on-time delivery, and customer support. Ratings are supposed to be based on customer feedback, but that doesn't stop some of the sites from giving preferential placement to stores that pay them a fee. Caveat emptor!

  • BizRate.com offers price comparisons on thousands of products. For example, a search for treadmills turned up 287 products at 19 stores (you can narrow the search by price). The site's best feature is its store-rating guide that evaluates hundreds of stores based on ease of ordering, price, on-time delivery, and whether or not the product met expectations.
  • Yahoo is similar to BizRate. The treadmill search turned up 372 products at 50 stores. Yahoo's store rating system is also pretty good.
  • DealTime isn't as big as the other two—a search for treadmills turned up 183 matches at 12 stores—but it included some stores not featured by BizRate or Yahoo (though these smaller stores were not rated).
  • When you know the exact model of the electronic item you want to buy, StreetPrices.com will give you the best prices and even offer to e-mail you when the price drops below the lowest amount. Stores are not rated, but an info link provides detailed information about each store, such as how long it's been in business, return policy, whether or not it's a member of the Better Business Bureau, and the toll-free customer service number.
  • MySimon was one of the first shopping robots on the Web, but its store rating system is inadequate (it gives stars, but doesn't explain its system) and its searches are more limited than the others. However, it might come up with some stores the others don't have, which is why it's listed here.
Other ways to save

The above sites focus on consumer goods, but there are many other ways you can use Web information to help clients save money. Check out the following sites.

Prescription drugs

PillBot.com
Destination Rx
Price Rx

Long distance calling plans, Internet access, etc.

CheapRates
Telecommunications Research & Action Center
TeleBright
AB Tolls
My Rate Plan
Get Connected
Call Sense
Let's Talk

Travel

Expedia
Orbitz
Travelocity
CondeNast Traveler
Home exchange
Home exchange for seniors
Cruise reviews

Financial services

The following list is by no means complete and is not meant to intrude on your business. Use it as you see fit.

Insurance quotes and company ratings on various types of insurance

Inlinia
InsWeb
Insure.com

Credit card deals, home loans

Bankrate
Cardratings.com
Cardoffers.com

Reverse mortgages

Reverse.org offers unbiased information in association with AARP.

Miscellaneous savings

Here are some other sites that may help clients turn up a dollar:

  • Frugal living. Dollar Stretcher offers hundreds of tips for clients on a budget.
  • Tax deductions. The Salvation Army lists the value of clothing donations for tax purposes.
  • Unclaimed pension directory. The Pension Benefit Guaranty Corporation lists pensions of companies that have gone out of business.
  • Relocation salary calculator. This calculator compares salaries in different cities based on cost of living.
  • Treasury hunt. The Bureau of the Public Debt provides information on savings bonds that have stopped earning interest.
  • Unclaimed assets. States and government agencies hold billions in unclaimed assets from lost bank accounts, missing stocks, forgotten U.S. savings bonds, uncashed checks, unclaimed refunds and settlements, lost life insurance policies, and unpaid benefits.
  • Calculators. These calculators at ifigure.com and interest.com can help you and your clients add up all the savings. There's even a "lunch savings" calculator that tells how much you'll save by taking your lunch every day.

This column is produced by the Financial Planning Association, the membership organization for the financial planning community, and is provided for members in good standing.

 Securities and investment advisory services offered through FSC Securities Corporation, member NASD,  SIPC and a registered investment advisor.  Additional investment advisory services offered through Future Finances, Inc., a registered investment adviser not affiliated with FSC Securities Corporation and is not a broker-dealer.



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