The Shop Cop - Jennifer Litwin

By: Sonja Haller
For: The Arizona Republic

Most Americans will pay down their debt. Some will sock it away for a rainy day.

But about 24 percent will use their tax refunds this year to buy something pricey, such as a big-screen TV, car or vacation, the National Retail Federation reports.

Of course, financial planners wince about taxpayers getting refunds at all.

“I’m a firm believer that we should not be allowing the government to borrow our money throughout the tax year, interest-free, by ‘giving us’ a big tax refund at the end of the year,” said Victor Encinas, a Phoenix financial coach. “If we have the money throughout the year, we can build an emergency fund, strengthen our budget or save more for retirement or education.”

This isn’t news to Eldon Stetson, 36, of Glendale. If he and his wife “were doing our homework like we should be, we’d try to balance things out that way.”

Life happens, though, and soon another year has passed and the formula for owing nothing and receiving nothing on taxes hasn’t been worked out. So this year, Stetson is putting a portion of his tax refund toward a $2,500 mountain bike.

Like Stetson, 70 percent of Americans will receive tax-refund checks – and marketers will try to get them to part with them. The average tax refund is $2,150, the IRS reports.

Encinas suggests that people negotiate all major purchases.

“When you have ‘cash power’ mixed with ‘walk-away power,’ you become a force for retailers to reckon with,” he explained.

If you plan to make a major purchase with your tax refund, here’s some advice on making the most of your money:

Airplane tickets

• Consider calling travel agents to book flights. They often have access to consolidator fares, involving tickets bought in bulk at a discount. “Even with a seller’s mark-up, the cost of the ticket may be cheaper than you can find online,” said Chris Elliott, National Geographic Traveler’s ombudsman.
• Take advantage of Internet airfare-and-hotel packages, which can be cheaper than if you book those items separately.
• The best savings for buying and traveling in the same week is the first week of January, Elliot says. Some other weeks also offer discounted airfares: the week after Thanksgiving, to anywhere in the United States; the week of Thanksgiving, to Europe; and the two weeks after Labor Day – when most people have gone back to work or school – to anywhere in the United States.

Appliances

• For the best prices, services and selection, the mom-and-pop store is likely to beat the big-box store, says Lisa Lee Freeman, editor in chief of ShopSmart magazine. “Most people think the big-box stores are cheaper, when, in fact, we found that’s not the case. The reason is that the (mom and pop) owners will bargain.”
• Check appliance manufacturers’ Web sites. They will post rebate and sale information that the stores selling the appliance may not tell you about.
• If you’re going to buy an appliance at a bigger store: Sears got the highest marks in customer satisfaction in a 2006 ShopSmart survey. (However, a University of Michigan American Customer Satisfaction index showed that Costco led in overall customer satisfaction, followed by Target.)

Cars

• Don’t shop for a car based on monthly payments. “It’s the oldest trick in the book,” said Jim Prueter, AAA Arizona senior vice president. “New- and used-car places want to talk about payments. Almost always, people who look at that instead of the overall cost of the vehicle will overpay.”
• If you want to lease a car instead of buy, don’t use your tax money as a down payment. In fact, don’t put any money down on a leased car, Prueter advises. Though a monthly payment can still be reduced, if the buyer totals the car early in the lease contract, the down payment is not refunded.
• Don’t be suckered by dealerships that offer loans against a person’s expected refund check weeks before the IRS sends them out. Such loans usually come with high fees. Some car dealerships have even offered to do a customer’s taxes if he will use his refund as a down payment.

Cruise tickets

• Book through travel agents specializing in cruises, Stewart Chiron of cruiseguy.com advises. They have access to upgrades and discounts not available on the Internet.
• Mention that you’re from Arizona when booking. Some cruise lines offer regional discounts for passengers of Caribbean cruises, for example, because the cruise tickets and the price of airfare could be prohibitive to Arizona residents because of the distance.
• The traditional booking season runs from January through March 31. Usually, 75 percent of the cabins will be booked then for the calendar year, Chiron said. During this period, cruise lines tend to price more aggressively, meaning that consumers may be offered reduced rates, bigger upgrades, shipboard credit and free or reduced prices for children.

Electronics

• Quiz retailers and consult trade magazines or review sites, such as cnet.com, about when new versions of an item will be released.
• No matter how big the hype, trust friends and family to tell you about their experiences with a particular brand and what they know now but wished they knew then, advises Sean Wargo, director of industry analysis at the Consumer Electronics Association.
• Buy big-screen TVs during the weeks just before the Super Bowl. Buy audio equipment in the spring, as retailers try to woo buyers into outfitting their vehicles for road trips. Other electronics purchases are best made during sales over the holidays. But the best way to benefit from a significant price drop is to wait until the new-and-improved version is released, then buy the old version, Wargo says.

Exercise equipment

• May, June and July are the best time to buy, says Jon Stevenson, owner of treadmilldoctor.com, which repairs and reviews treadmills and elliptical machines. People in the Midwest and Northeast buy exercise equipment during the winter, so by late spring and early summer, the equipment isn’t moving out the door. That’s when places such as Sears put it on sale nationwide, Stevenson says.
• During the summer, buyers can negotiate up to 35 percent discounts on the suggested retail price.
• Dealers often are willing to throw in a floor mat and waive delivery fees if requested.

Furniture

• Purchase furniture online after finding a piece you like in the store, and you may receive up to a 40 percent discount, says Jennifer Litwin, author of the Best Furniture Buying Tips Ever (House of Collectibles, 2005, $14.95).
• Make sure that a sale is really a sale. An industry tactic is to mark up the price of furniture so it can be put on “sale,” she says, adding that regular retail prices for furniture should be about 40 percent above wholesale.
• Haggle for free delivery and assembly. Salespeople don’t want you to go elsewhere and often will throw this in, which can save you 10 percent of the total price.

Once, it was normal for Americans to loll around their yards and patios on cheap plastic lawn chairs. No more. The outdoor aesthetic now means elaborate, even upholstered furniture made of luxurious teak or heavy wrought iron. And none of it is cheap.

“What’s going on in the backyard is more a reflection of what’s going on inside the house – and everything is more upscale than in the past,” says Jennifer Litwin, author of Best Furniture Buying Tips Ever!

So how to find attractive patio furniture that can survive outside all winter and won’t break the bank? Litwin says this “transitional” type of outdoor seating – better than plastic but not quite as expensive as, say, teak – is an expanding market niche. “You can get decent furniture at Costco and it’s a lot more affordable.”

Already, there are examples made with new kinds of high-tech coating. “Look for furniture with weather-proofing that prevents it from deteriorating or rusting,” she says, pointing to an eye-popping green bench made of polypropylene with glass fiber over galvanized steel (Sussex straight bench, $805 at Orangeskin.com).

“It’s worth paying for and you can hold on to it for years.”

By: Emily Shartin, Globe Correspondent
For: The Boston Globe

Edgar Dworsky would like to update the rules on gift-giving etiquette.

“I think Emily Post should have a new etiquette rule that says every gift-giver should put a gift receipt in the box,” says the Somerville consumer advocate.

Because even though gift-givers mean well, there are still some people who are going to want to bring gifts back to the store this holiday season: A recent Consumer Reports poll shows that 16 percent of consumers plan on returning some of the gifts they will receive.

While many retailers offer a longer period to make returns around the holidays, the process still tends to become more difficult without some kind of receipt. “If you don’t have a receipt, many stores won’t give you your money back,” says consumer affairs specialist Jennifer Litwin. “You have to just hope for the best.”

Toys “R” Us, for example, states that it won’t accept any returns without a receipt. Other stores, such as Sears, may accept the return but only offer a merchandise credit for the lowest price the item has sold for.

But even if you have a receipt, you may still be in for some surprises at the return counter. In recent years, many stores, such as Best Buy and Target, have begun charging “restocking fees” for returns on items such as camcorders and digital cameras.

Those fees — typically around 15 percent — usually only apply to items that have been opened, so Dworsky advises keeping boxes sealed unless you’re certain you’re going to keep the gift. The same goes for items such as CDs, DVDs and software, which many stores won’t accept once they’ve been opened because they can be copied.

Many other stores, including Wal-Mart, have also tightened their return policies in an effort to prevent fraud. According to the National Retail Federation, retailers expect to lose $3.5 billion from return fraud this holiday season, usually through the return of stolen merchandise.

Some stores have begun to track returns, and may limit the number that a person can make within a given period. Target, for instance, will only allow two exchanges per year without a receipt. The Express clothing chain states that it will accept up to five returns within a 90-day period with a receipt, and $300 in returns or exchanges without a receipt.

“Some of these secret policies are being made known,” says Dworsky.

To limit frustration, consumer advocates simply advise familiarizing yourself with the return policy before you head to the store. If you’re outside of the policy’s terms — say you’ve opened the package or missed the 90-day window — it’s still worth politely asking for an accommodation. Just remember that the store may have the upper hand.

“Recognize that you’re asking for something that’s against the rules,” Dworsky says.

By: Joy Kraft
For: The Enquirer

The countdown begins to Christmas. Home furnishings expert Jennifer Litwin, advises homeowners to jump into action and start getting houses into shape for the onslaught of holiday guests.

“As soon as you know how many are coming, you can plan sleeping and eating arrangements,” she says. “What’s hot now is dual-purpose furniture. I also recommend having easily portable or inflatable items that can be stored in the closet.” Litwin’s top five “must haves”:

Sleeper sofa. A couch or chair that also serves as a bed is a necessity. Inflatable mattresses have replaced stiff bars in couches. Cost Plus has an oversized chair that turns into a sleeper sofa for $699 and a studio sofabed that sleeps one for $399 (cushion sold separately).

Tray Tables. Tray tables are great for overflow when your kitchen and dining room tables are filled. Some of the more decorative ones can be used year-round and are great accent pieces for the home. Target’s tray table sets are in walnut and beechwood and cost $69.99.

Folding Chairs. The trend today in folding chairs is a chair that doesn’t look or feel like the older-models. Many look good enough to leave out year-round. Ikea boasts folding chairs in durable plastic for $8.99 a piece and Terje folding chairs in beechwood for $12.99 each.

Dual-purpose ottomans/coffee tables. Ottomans can provide storage for items and can serve as tables, foot rests or extra chairs. “I love the leather ones that open up. I use them to store extra coffee table books and magazines.” she says. Target has a brown leather storage ottoman for $69.99.

Air Mattresses. Air mattresses are stored in closets and can easily be blown up for beds. “We use them to sleep several kids in one room. The kids feel like they’re having a slumber party,” she says. Litwin recommends buying a good electric pump. Walmart’s Coleman Queen-size double air bed is only $49.32 and includes the pump.

By: Brice Wallace
For: Salt Lake City Deseret News

It’s that wondrous season. Special sights. Special sounds. Special people. Special times.

And what would the holidays be without those busy public relations elves from companies and organizations across the country who have been cobbling together holiday-related information the past few months in anticipation of Christmas?

OK, don’t answer that one.

Still, being the fine Santa types that we are, we’ve gladly accepted their offerings. We’re editing them a little, “regifting” them and putting them under the tree – OK, in the driveway – for all the good girls and boys out there in the business world to enjoy.

Bless us, every one.

Survey says

So, what do adults want this Christmas? Suffice it to say, stay away from buying your wife an electronic hair removal system or grabbing deodorant for your teenager.

That’s according to a BMH Worldwide survey of 605 people who ranked the best and worst gifts they’ve received. Also on the “don’t even think about it” list are diet books, gym memberships, recycled gifts, holiday sweaters and pairs of socks. Thirty-nine percent of respondents cited an item of clothing as the worst gift they’d ever received.

What did they like? Twenty percent said electronic gifts, 13 percent said fine jewelry, another 13 percent cited gift certificates or cash. Twenty-three percent said they liked a personalized gift or a present for their home or family.

But be careful about jewelry. Twenty percent of women said it was their favorite, while 8 percent said it was their worst. Diamonds ranked highly, but cheap or tacky stuff? Not so much.

And who wins the prize as the most difficult people to shop for? The BMH survey indicates that 44 percent said it is parents.

But note this observation from one woman respondent: “My husband is the hardest person to shop for because he already has a television.”

Kid stuff

Then there’s the younger set. A Weekly Reader Research poll of children between 5 and 18 confirms what many oldsters suspect: what they want for Christmas is a video game console.

Nineteen percent of the 2,866 youngsters polled responded that way. Thirty percent of boys said that’s what they want, while only 9 percent of girls did.

Coming in a distant second among desired consumer electronics was an MP3 player (8 percent), a computer (6 percent), video games (6 percent), a handheld video game set such as PlayStation Portable (5 percent), a cell phone (5 percent) and a camera or video camera (4 percent).

Still, you might be better off sending money or gift cards, which 9 percent would like. Only 5 percent indicated they want clothes.

When it comes to holiday buying, youngsters are much more likely to shop at stores than online. The Weekly Reader poll indicates that 70 percent of respondents were planning to shop “mostly” at stores. Only 9 percent figured to do most of their holiday shopping online, and 22 percent expected to be split between stores and the computer keyboard.

Low-tech holidays

Chief information officers deal with technology every single day at work, but don’t expect them to fork over a tech-related gift this year.

Two-thirds of 1,400 CIOs in a recent Robert Half Technology survey said they will not give computers, electronics or other tech gadgets as Christmas gifts this year.

Hold out hope, though. Three percent weren’t sure.

Avoiding trouble

Remember McGruff the Crime Dog? He’s still around, and the precious pooch runs a Web site about cyber crime. This despite the lack of opposable thumbs.

Tips on http://www.bytecrime.org/ include:

• Before online surfing, secure your personal computer and keep security software updated and the firewall in place.
• Check for a small “lock” icon in the status bar of Web sites, an “https” in the Web site URL (the “s” stands for “secure”) and a seal from VeriSign or TRUSTe as indicators that a Web site is secure.
• Install Web site rating software that can warn of possible unsafe sites and bad downloads.
• Be wary of providing private information.
• Create complex user names and passwords for credit card accounts and when registering at e-commerce sites.
• Scan credit card bills carefully for suspicious activity and get regular credit reports to ensure the bad guys haven’t opened fraudulent accounts in your name.

Real or Memorex?

Nice Systems, based in New Jersey, has a nice suggestion for people who want to be sure the gifts they purchased by phone are actually what was ordered.

Anytime a caller hears that their call “is being recorded for quality assurance purposes,” odds are that the call is being recorded by Nice, a call recording technology company that helps three-fourths of the Fortune 100 companies and claims to “capture” 50 million customer interactions each day.

Nice digitizes and stores customer calls for companies, usually so those companies’ services can be monitored and improved. Recordings can be e-mailed as sound files to company managers, for example.

But customers can ask that a copy of their call be sent to them through e-mail or even have it attached to their customer record. They also can request copies of calls so they have a record of promotional offers, refund promises or the date and time of a repair visit.

Party on!

Think the best way to climb the corporate ladder is to get knock-down drunk during a Christmas party at the office?

No? Well, you’re ahead of the game.

For people who think of the office party not as a chance to have fun and enjoy life with workmates but rather as a chance to brown-nose, “business success coach” John McKee suggests keeping schmoozing and boozing separate.

“Imbibe and socialize with caution,” McKee says. “There is no quicker career-killer than public displays of drunkenness at a business function. Don’t embarrass yourself by dancing like a crazy person or like a predator at a club, get caught necking or act aggressive in any way.”

McKee, author of the book “21 Ways Women in Management Shoot Themselves in the Foot,” nonetheless says office parties can help fast-track a career if handled well.

And by “well,” he means making sure any guest you bring acts accordingly, arriving early and thanking the boss and host of the party, exuding self-confidence and a “comfortable demeanor” despite any anxious moments, maintaining visibility, doing homework such as studying current events in order to minimize awkward silences, passing out business cards and being available after the party.

As for party “don’ts,” keep bragging at a minimum, keep party talk focused on the person you’re speaking with instead of yourself and find somewhere else to air grievances, pin problems on others or vent frustrations.

Travel travails

Zero Halliburton, a North Salt Lake-based company that specializes in producing high-profile aluminum cases, knows holiday travel can be tricky and that lost luggage is one potential hazard.

Now it wants to hear the horror stories.

The company is sponsoring an essay contest throughout December, online at www.zerohalliburton.com/holidaysweepstakes06.jsp. Just let the company know, in 200 words or less, your lost-luggage, swapped-suitcases or damaged-contents story and you could be in line for a prize.

A panel of judges will consider originality and creativity and the top entrant gets a $1,500 travel voucher. Ten others will get their choice from a pair of Zero Halliburton pieces.

Happy returns

Jennifer Litwin, described as a “shop cop,” wants people to be aware of store return policies, which she described as “tougher than ever.”

Among her suggestions:

• Check each store’s return policy because some have a time limit for returning the goods.
• Don’t open the box unless you’re sure to keep the gift. Some stores won’t accept returns for computers, laptops, digital cameras and camcorders, books, CDs and DVDs that have been opened.
• Realize restocking fees for some items can be as high as 15 percent.
• Ask for a gift receipt and tape it to the gift or box, allowing the recipient to get a full credit instead of a post-holiday sale price.
• Realize that some stores don’t give cash or credit-card refunds, opting instead to provide store credit.
• Know that gift cards may have expiration dates.

Litwin gives high marks to Nordstrom and Costco for their return policies. Nordstrom, she notes, takes items back with no time limit, clerks tag on coded receipt stickers to help customers who lose receipts, and returnees can always get cash back or get a refund on credit card buys.

Costco gives cash back or a refund on credit cards with receipts. No receipt? The store will give a refund for the current cost of the item.