From an email I sent to my PC's some time ago:
Did you know that the identify spell isn't the only option you have to find out what a magic item does? In fact, it may be among the worst methods available due to limited information and cost?
ID only reveals the most basic property of an item, so you could go your entire adventuring career thinking that a holy avenger is no more than a +2 longsword. If you must use ID, try using detect magic in combination with it to see if the strength of the aura matches the power that ID reveals. Also note that clerics with access to the magic domain can cast ID as a 2nd level spell without needing the 100gp pearl.
For potions, try an alchemy skill check. DC 25 and costs a whole GP to try, or 20 gp to take 20. Admitedly you do need an alchemists lab though.
Scrolls can, of course, be understood by either a spellcraft check (DC 20 + spell level, one try per day) or read magic. Note that arcane casters CAN interpret a divine scroll (and vice versa), they just can't use it!
If the party has one, there is a bard's lore ability to call upon... although this will only be really usefull with the most powerfull of items. Knowledge arcana and spellcraft skills may also give some information, although the difficulty class for these skill checks is quite high (30), but what do you want for nothing!
Fully 30% of rings, rods, staves, wands and wondrous items have marks on them that suggest their powers. So simple examination may tell you what an item does (technically a search check DC 15 to find these clues... just take 20).
Their is also experimentation. hehehe...
The ultimate in item identification is the Analyze Dweomer spell (wizard 6th level). It gives detailed information on the item you are studying, and needs no material component. It does require a 1,500 gp focus, but that is re-useable so that should be no major problem.
The only bitch about ananlyze dweomer (and ID for that matter) is that they do not function on artifacts (either major or minor). For this situation, if you have no access to a sage, drag out the old legend lore spell, or try a comune spell.
This "did you know..." has been brought to you by the 'Save the Pearls!' campaign and the letter G.