2. How open is retailer about cost of their insurance? Is cost of warranty displayed alongside goods?

3. Does warranty include a 1-2 month money-back guarantee if you don't make a claim in that period? And after this, would you be entitled to a pro rata refund?

4. Is there an information booklet explaining your statutory rights? This should state that you have right to cancel and that warranties are available elsewhere.

On that last point, did you know that warranties bought in-store can be up to 40% more expensive than those available from other insurers and outlets?

And if you're a credit card holder, many cards now cover your goods for a year beyond retailer's offer.

Mmm...suddenly that 'insurance' isn't looking so great a deal after all.

So, next time, don't feel pushed into an immediate decision.

One final tip: If you have cash to pay, then why not make sales assistant work for sale? You'll often find their commission has already been 'priced in' to item they're trying to sell you.

Haggling is common practice in many countries, so don't feel embarrassed! You'll find many stores prepared to do so to win business - particularly if surrounded by a lot of competitors!

So, There you have it...the next time you go shopping for that new washing machine, try shopping around a little first. That way, you can stop your 'insurance' becoming a costly luxury.

© 2004 Colin Mc Caig

RESOURCE BOX: ============================================================ Want to know how some beat debt trap and master their money with ease? You can find out by grabbing Colin's 'Debt-Busting Secrets' mini-course. Send a blank email to: =======>>>> mailto:colind@demandmail.com ============================================================

Thus, successful equity investment, as a reinvestment tactic, in a private company should increase revenues and reduce risk of failure, but it won't increase owner's percentage of sale of company in twenty years.

Acquiring cash-producing assets, a winning bet

It is usually cheaper to buy a business than create it. An existing business has customers and products. Purchased by an operating company, especially if it is in an aligned business, acquisition can expand client base of both companies and factor potential of sales for both product lines.

The company owner with gross revenues of US$1,000,000 and a reinvestment annual profit of 20% buys a company with revenues of US$1,000,000 and a reinvestment annual profit 20%. The buyer doesn't discount revenue and pays US$1 million for acquired company with 20% down and previous owner taking back a four-year note at 7%. The company is now grossing US$2 million with a repayment budget of $400,000/year. The buyer should be able to payoff acquisition debt in less than 2.5 years. Assuming that our repayment interval is 2.5 years and that our company owner wins every bet over twenty years, their M&A strategy, will result in a company with US$256 million in annual revenues.

Why This Explanation Works

The mathematical reason that a twenty-year M&A strategy results in thirty two times greater revenues is that M&A strategy is based on a geometrical progression and reinvestment tactic is based upon an arithmetic progression. Also, you can use statistics to show that M&A strategy is less risky than reinvestment approach.

The use of publicly traded shares in this M&A strategy reduces time interval in our M&A geometric progression. If we assume a public company with a million dollars in annual revenue and a 20% reinvestment profit making acquisitions using 25% cash and 75% shares, public company would need seller to hold a $50,000 note for two months. Thus it would take about 8.2 years for a public company, using their shares, to achieve gross annual revenues of US$256 million.

Math models are a signpost

Math Models do not necessarily reflect reality. Usually, there are far more variables in any business equation than can be accurately represented in a Math Model. However, Math Models can be useful in comparing relative benefits and risks of two strategies where factors being compared are held constant. In this case, they show that any M&A strategy is wisest strategy for any business owner intent upon effectively growing their company, over an extended period of time.

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