Pay Close Attention to Prices When Shopping For Mother's Day

As Mother's Day comes around the corner experts recommend comparing prices of products and interest rates offered on financing.



A comparative study on appliances, electronics and kitchen aids shows prices increase in the days ahead of August 15 and prices on identical items can differ up to 400%.

Washing machines, refrigerators, flat screen televisions and coffeemakers are some of the popular gift items for mom. And while some pay with cash others are enticed by the "quotas", the monthly and bi-monthly payments.

The report by the Ministerio de Economía, Industria y Comercio (Meic) - Ministry of Economy, Industry and Commerce - by way of the Dirección de Apoyo al Consumidor (Office of Consumer Advocacy) found a price difference of ¢79.900 colones on a 32" LCD flat screen, between 78% and 92% on identical fully automatic washers, which could increase the price difference of up to 4 times if financed.

The majority of retailers offer financing with enticing repayment plans.

The report indicates differences in the financing plans offered by retailers, either by direct financing by the retailer or through a third party like a bank or finance company, which in many cases has a direct tie to the retailer.

Credix (Credix World), for instance, is a Costa Rican company created to provide innovative solutions to businesses, customers and suppliers of the retail system.

In the case of Credix, they have direct deals with the retailer where the consumer can purchase with a Credix card and finance up to 48 months with a monthly interest rate of 4.33% (http://www.credix.com/personas.php). Unlike most of the other finance companies, Credix publishes its contract and interest rates and terms online.

"It's important for consumers to analyze and compare the differences that exist when purchasing an item in cash or credit and the various financing plans offered", said Luis Alvarez, Deputy Minister of Economy.

The price comparison study was conducted from July 11 to 24 at 46 stores in San José, Alajuela, Heredia and Cartago.