Have you found a way to start using the 7 tactics to get discounts at Home Depot yet? If so, please share your experience in the comment section. If not, let me share my plan on how I’m going to reduce my landlord expenses by more than $40 each month.
The $100 Expense Reduction Challenge is still on. If this strategy works, it will bring my total saving up to $70 per month!
If you’re a hands on landlord like me, you may be using your Home Depot credit card to make purchases and not thinking much about it. Even if you are paying off your balance each month, unlike me, there is a HUGE opportunity to save money by using discounted cards.
Confronting the Brutal Facts
As the graph shows, over the past three years I’ve spent an average of $1,588 each year ($17/month/unit) at Home Depot. And since I wasn’t being diligent about paying off my balance each month, I racked up an average of $163 per year in finance fees as well.
It’s safe to say this purchasing trend will likely continue as long as I own my 8-unit apartment building. I do, however, need to sober up about the finance fees. It is time to wean myself off Home Depot credit and their 25%+ interest rates.
A Plan To Save $40 Each Month
Now that I’ve accepted that I’m going to spend around $1,588 each year, I’m going to be proactive and buy $1,588 worth of discounted gift cards. I’ve seen them sold on Craigslist at 20% to 40% discounts and that is a fantastic investment to make!
Running the numbers, this strategy would save me $29 to $58 each month (this assumes I’m not paying finance charges anymore) which averages to a little more than $40.
Four Steps To Buying Heavily Discount Cards
I’m testing this technique, but here’s the information I have gathered so far. You can buy gift cards directly from sellers on Craigslist. People sell their unwanted gift cards and store credit at $0.50 to $0.80 on a dollar. Try doing the following:
1 – Place an ad or respond to a seller’s ad on Craigslist.
2 – Meet the seller at the Customer Service booth at a Home Depot
3 – Confirm the card’s value
4 – Make the exchange
When is the Best Time To Buy
I have already bought a couple discounted gift cards from an online brokerage called ABC Gift Cards. According to Jeremy Levi, ABC Gift Card’s Marketing Direct, they see the volume of cards they receive triple during Christmas time but the demand triples as well. Therefore there is no need for them to increase the discount they offer on their Home Depot cards. ABC typically offers 7% discounts (10% for purchases greater than $1,000) with a 45-day guarantee. Mr. Levi went on to say they have to increase they discount during the summer months because that’s when demand is the lowest and they have an ample supply of cards.
Based on this tidbit, I’m going to try to collect my cards over the next couple of months; summer is almost over.
Let the Savings Begin
I’m excited to see how everything comes together once I combine this tactic with coupons and other saving strategies. I’ll keep you posted on my progress. Please leave a comment and share your experiences with discounted gift cards. Also, I welcome your advice as I embark on my new procurement plan.