The Shop Cop - Jennifer Litwin

As the vacation season heats up, we are all looking for a way to get a good deal on nice hotels. The larger hotel chains are offering perks not available at boutique hotels, like the ability to earn rewards and get upgrades at thousands of hotels across the world, and even points that can be used towards time shares, or time shares that can accrue hotel rewards points.

HOTTEST TREND IN HOTEL CHAINS: TIME SHARES

With the economy in a slump, time shares, popular at hotels since the mid-80’s, offer little “investment” for a return of possibly luxury accommodations at first class hotel resorts. A few things to watch out for:

1. Don’t think of as way to get a return on investment. Paying today for future vacations during the course of your life, and ability to stay at hundreds of different locations throughout the world. For however many weeks per year you want. The idea is to save money on future vacations.
2. Annual fees add up.
3. Black-out dates during peak season, (Saturday-Saturday rentals; weeks not split up to accommodate your preference), or difficulty getting into a resort you want to go to, without paying more money; book out only 12 months in advance at some resort properties.

HOTEL REWARDS PROGRAMS AT THE CHAINS

Trends: Hotels like Marriott teaming up their rewards points with luxury chains like the Ritz (can use Marriott points at the Ritz—not the other way around), like the airline companies are doing—ability to use points on merchandise at retailers.

• MARRIOTT: - Positives: Points can be accrued at retailers like Golfsmith, Sears, Sky Mall; also car rentals, like Hertz, and other hotel chains: Ritz, Hilton, Starwood, InterContinental, Hyatt. Every dollar you spend translates into points.

  - Negative: Like the airlines- blackout dates—watch out!!! Can gift or buy points.

• HYATT:- Positives: As a great write-off, can donate 5,000 points to Make-a-Wish Foundation. Seniors: Great discounts of up to 50 % for seniors.

  - Negative: the better hotels cost more points for upgrades, obvious customer service expectations with platinum level (like the bed type you request is available upon check-in, and early check-in allowed, etc.)

• HILTON:- Positives: no black-out dates. Only hotel chain that allows you to earn both miles and points in same stay. Great for families—can use points at Disney, Universal, get points for donating to charities, get up to 500,000 points when you buy or sell home, even when hiring a moving service! Can use points at your favorite retailers: Bloomies, American Airlines, Diners Club, FTD, Nike, Montblanc.
• STARWOOD: - Positives: No black-out dates, can get gift cards from favorite retailers with enough points.

  - Negative: May be costly to stay at hotels just to be able to shop at the retailers—benefits may not outweigh costs.

TAKE A LOOK: BENEFITS OF AAA FOR TRAVEL DISCOUNTS

Like hotel rewards programs. Great if you are NOT frequent traveler, but still want discounts every time you travel. Also, huge discounts on retailers, like Target.com, Lenscrafters, Dell Computer and Geek Squad.

If you’re shopping for airline tickets, thinking about Spring Break, or even figuring out which airlines to start flying frequently to rack up miles there are some new frequent flier trends you need to know about!

3 OF THE LATEST FREQUENT FLIER PROGRAM TRENDS

1. 1/10 people purchase tickets with miles now—flights sell out quickly, causing blackout dates, or dates you can’t travel usually occur during peak travel seasons—airlines can charge double miles (instead of 25,000, i.e. 50,000 miles—United)
2. Option to use miles now to buy things like electronics, flowers, hotels…
3. Can buy miles now as “gift cards”, just like you would at a retail store for up to 250,000 miles! (costs around $6,000)

WHAT FREQUENT FLIER STATUS GETS YOU ON THE MAJOR AIRLINES

UNITED: Become Premier when fly 25,000 mi. per year, helps you get off standby list, every 10,000 miles gets you 500-mile upgrades or you can purchase upgrades, even allowed now to check an additional bag if you have a lot of miles. Can transfer miles to another person. Aside from earning miles at the major hotel chains (Marriott, Hyatt, Hilton, InterContinental, Starwood), and car rentals ((Hertz, Alamo Budget, Avis, Dollar and National), get huge miles when you shop for groceries. At Dominick’s, can get 50% miles back for each dollar you spend. Must apply. Earn huge miles when investing for your retirement: 25,000 miles with Ameritrade, when buy or sell or finance home—earn miles with Chase, ELoan and Fidelity— form necessary to earn miles.

SOUTHWEST: Good for families or couples. If you fly 50 roundtrips in a year you get a free companion pass for an unlimited number of trips. Can change your companion 3 times/year. If fly 8 roundtrips within 24 consecutive months get free ticket.

NORTHWEST: Good program with retailers who give miles, and good for shoppers. Promotional miles (or double or triple miles), like earning 600 miles when buy flowers at FTD, through Valentine’s Day, or jewelry stores giving 3-10 miles per dollar spent. But don’t be ready to jump into the program for less than 1,000 miles…not worth it.

DELTA: Can charge up to double the miles during blackout dates. But the good news is that companions are eligible for upgrades with frequent flier member. You can earn up to 100,000 if you get a Chase Home Equity Line, or 7,000 miles for each $10,000 borrowed?

AMERICAN: Great for gifting miles to another. Can give 40k miles per year to up to 3 different people. For $6,000 you can buy, yes buy, 250,000 miles for someone—great gift. Can accrue miles by donating to charities. Can use miles to stay at hotels, rent cars and even buy electronics. Also use miles at Amazon.com. Cost to redeem miles, though, is $25.

Caveat:  Avoid airline credit cards as a means for collecting miles.  Typically, the interest rates on those are very high.

Many of us think that the really good deals on our favorite items come after a holiday is over. But according to the National Retail Federation, the time leading right up to the holidays is when you can get the very best discounts…retailers want to create sales to generate revenue, and use targeted marketing campaigns to lure in shoppers. Many of us think, for example, the price of jewelry must go up before Valentine’s Day, but it’s just the opposite.

APPLIANCES

Best time of year to get deepest discounts on electronics: when models change over—typically, every 6 months. When models change over you can get floor models deeply discounted or promotional pricing on new items. In July, big sales in refrigerators—more rebates, because more heat breaks down refrigeration that month. Save money year-round on energy-saving appliances that cut down on utility bills. Typically, in February, March and November there are promotions. But best day for discounts on electronics is the day after Thanksgiving.

MAKEUP/COSMETICS

• Department Stores: During and after the holidays is the best time to get deals on makeup in department stores: Gift merchandise from the holiday season is unloaded because stores know that the holiday packaging is not “in style anymore”. Sales in makeup aren’t necessarily going to mean discounts, but instead may mean complimentary makeup, free shipping, or gift with purchase. Don’t discount discontinued makeup at most department stores, but specialty stores do.
• Sephora: Rarely has sales. Sales only on private label items at end of holiday season. Discontinued products sales. Rewards program. So if you spend $100 you get a deluxe-sized free sample (on top selling products). Certain products within a manufacturer’s line are only available to someone who is a member of the rewards program.
• Ulta: After Christmas, sales on makeup. July also a good time—middle of year, when new makeup colors are introduced into the market, special packages, rewards program (with every $50 purchase you get coupons for free gifts—a list of gifts that you can choose from—not stuck with some makeup that you would never wear).

LADIES/MEN’S CLOTHES

• JC Penney: Deepest discount in Spring (march 5—sales)—extra 15% off if you have a JC Penney credit card, cookware included. Usually monthly sales. 70% off now on many products (after Christmas), 15% off on fresh merchandise in the Spring. Free shipping offers throughout the year, based on how much you spend (if you spend $50 or more), during the Christmas season, you get gift cards if you spend a certain amount of money.
• Nordstrom: Only 3 sales a year: Have woman’s and kids’ half-yearly (June and November, clearance on seasonal items that just preceded that period). Men: half-yearly sale (June and December). Anniversary sale: in mid-July. Pre-season savings offered during this 2-week period. Good for back to school clothes, shoes, accessories. Men’s sale: 25-33%
• Bloomingdale’s: Once a month sale on weekends (usually 40%), and during Christmas time, every week through New Year’s. 30% off sale price on clearance, if you spend $100 you get $15 towards a purchase, if you spend $300 you get $45 back. If you have a Bloomies card, you get 15% additional off.
• Macy’s shoes: best sale prices: 25-75% off, right after Christmas, (week long), June (20% off), October (20% off). Before holiday sale, newer merchandise marked down for just a few days, then goes back up in price.
• Paul Stuart: 2 Men’s sales: After Xmas (varies on how much off), next sale after Father’s Day
• Athletic Apparel: Best time to buy in May, just before the summer

MEMBERSHIPS TO WEIGHT LOSS CENTERS AND GYMS

After Christmas best deals. Next is just prior to the summer, when you have to start thinking about putting on that bathing suit. Fitness clubs and weight loss centers the same sale periods.

• Bally’s: Free programs offered after Xmas. 70% after Xmas want to lose weight—discounts—free classes in January. Also free classes on Thursdays as an intro to their system. All classes free in January. No monthly payment or initiation in month of January. January free.
• Crunch: Promotions: This month: work out 7 times a month and get a free month of membership—$49-79/mo. Initiation is $49-159.
• Equinox: New Year’s, and beginning of the summer (dues aren’t discounted, but 0 initiation fee). Initiation fee normally costs $395.
• Jenny Craig: Trial deals, but different prices all year, 20 for 20 (best deal is 20 pounds for $20 plus cost of food); (Jan, Feb, Mar), (Jun, July, August): all 20 for $20.

While you are resting up from the holiday festivities, you need to start thinking about how and when you will return those unwanted gifts.  We’ve all received them.  According to the NRF, 80% of all retailers are keeping their return policies from last year, but there are some important changes happening you need to know about when returning gifts or using those gift cards.

TRENDS IN RETURNS

• Retail Stores:  Good news: Between this year and last year retailers have become more flexible, allowing you with items purchased online to return items directly to the stores.  Gift returns are down because more than 75% of the population is giving gift cards.  Most retail stores are being more lenient about expiration dates, and eliminating them.  Bad news: 1) the store return lines may be a little long, 2) if you try to return your gift without a gift receipt you may not get to return or will only get a portion back, 3) same goes for packaging-keep original packaging and don’t open anything or else you may only get back 50% in some cases (Amazon and the electronics stores–$16 b in retail losses for one-time users so very strict this year).  Example of store that won’t allow you to return online purchases in the store: Target. 

• Retail Gift Cards:  $80 billion spent this year. This year, paper gift certificates were replaced by beautiful-looking cards, with special packaging (Starbucks gift cards came inside woven mittens!).  Also, this year, card balances are able to be updated right at the cash register.  Most retailers are allowing unlimited time to use the gift cards now. Tip: Over $8 billion will be lost this year because of unused gift cards.  We have all received gift cards from stores we would never shop at, so check out http://www.swapagift.com/.  For only $3.99 you can trade your unwanted gift card with a different gift card.  The price is low; when you might not otherwise use the card you were given.
• Online Gifts: This year, you need to ask if the gift given from a website can be returned to the store, or if you will have to send the gift to a 3^rd party location.  Also, check to see what shipping charges you will incur.  Many sites still won’t pay to ship returns.
• Bank Gift Cards (Visa, MC, Amex): Some problems 1) can’t find out your balance on the card at the cash register 2) store registers can’t handle multiple forms of payment (if you only have $5 left on your card, and you need to add another $10 w/ your own credit card-out of luck), 3) NEW TREND: Charges of $15 to call an 800 number just to find out what your balance on the card is-something you can’t find out at the store, 4) monthly fees after usually 6 months of between $2.50-3.50 for unused balances, regardless of how small…so basically, 6 months expiration dates-much quicker return policies than typically with retail. 5) NEW TREND:  recipient pays $15 to get bank to issue check on balance!

KEY: Find gift cards that are good for at least a year.

THE RETAILERS (BY INDUSTRY):

BIG BOX:

• TARGET: 90-day return window, bad for recipient b/c less of an opportunity to get to a store than with a gift card.  This year: must have the physical receipt, or gift receipt.  Generally can’t return online purchases at the store.
• KMART AND WAL-MART: Different from Target-can return items bought online in the stores.  Returns by mail may take weeks to process and may only be credited to the gift-giver’s credit card, not to the recipient.

DEPARTMENT STORES:

• MACY’S: (GOOD) 6-month return policy.
• BLOOMIES: (BAD) Must ship all online gift returns to a 3^rd party location.
• SAKS: (BAD) Watch those shipping costs: each additional recipient costs you $5 more in shipping when shopping online.  $4 charge for shipping gift cards.
• JC PENNEY’S: (GOOD) No expiration of gift cards, and no hidden charges.
• GAP: (BAD) Though no charge for shipping gift cards, store credits only, and only if you have receipt.
• NORDSTROM: (GOOD) Gift cards never expire, and free shipping label in each box.

HOME FURNISHINGS STORES:

• In general, the home furnishings stores are offering free gift card shipping and most don’t expire…(Pottery Barn, Crate & Barrel, Z-Gallerie)

Home shopping expert and Random House author Jennifer Litwin announced today five things consumers should consider when shopping for the holiday season. Litwin also researched name brand store credit/gift cards that achieve the biggest bank for the buck for the consumer.

“Holiday shoppers are always thinking about finishing their homes in time for the holidays, accommodating guests, and doing it all on a budget, ”said Shop Cop and Random House author Jennifer Litwin. “What consumers don’t realize when finishing their homes in time for the holidays is the varying degrees of ‘pay for play’ benefits each name brand store credit and gift card will offer when making purchases. Some holiday shoppers may spend just a $100 to finish their home while others may spend $10,000; so knowing what store credit/gift cards can save them money and give them great deals can make all the difference in the world.”

5 Things to consider when shopping this season:

1. If shopping online, look for free delivery. Many stores are offering free delivery as an incentive. Otherwise, there is typically a charge of about 10% for shipping big ticket items like furniture.
2. Beware of store credit card rebate/savings programs because most only offer a 1-2% savings on the cost of your purchases, but you will still incur financing charges, just as with a typical credit card.
3. If a price seems too good to be true, ask to see an assembly sheet to find out how difficult it will be to actually assemble the piece.
4. Buy gift cards for your loved ones that can be used both in the store and online. Many egift cards can only be used for online purchases, and then merchandise needs to be returned to a non-store location.
5. If making a lot of purchases try to do it with a store credit card that offers good discounts for large purchases, or free, desirable gifts.

Wondering where to shop this season? Here’s the lowdown on the red flags and nice bonuses of shopping in your favorite retailers:

BED BATH & BEYOND: Offers college savings plan, Upromise, which when you make purchases 1% is given to your child’s Upromise college savings account. Upromise doesn’t offer such a great reward as an incentive to shop here, but one benefit of shopping at Bed Bath & Beyond is that anything you buy online can be returned at anytime either in the store or by mail. This is great.

BEST BUY: Best Buy’s store credit card has a caveat: your interest rate will be “determined upon review of your credit history and application.” It works like a regular MasterCard, requiring the holder to pay a minimum amount monthly. Like Circuit City, Best Buy offers a Rewards Program, but only credits you 4% of your purchases instead of 5% offered at Circuit City. Not a huge benefit. Online gift card purchases offer free shipping.

CIRCUIT CITY: The Rewards Program here allows you to get back 5% of your purchases in the form of a coupon that can be used online or in the store. Doesn’t seem like a great deal, unless you are buying big ticket items. Gift cards purchased either online or in the store may be used online or in the store. Free shipping on gift cards.

COST PLUS WORLD MARKET: There is no shipping charge for gift cards. However, cards purchased online must be used for online purchases. Huge downside of shopping online: shipping costs can run more than 10% of the purchase price for a standard delivery of 5-7 business days—very expensive. The World Market Credit Card offers perks such as 3-6 month free financing, from time-to-time, and you can earn Rewards Coupons for each dollar you spend.

CRATE & BARREL: Free shipping on standard delivery gift cards. For 2 business day rushes, shipping charge is only $6. The low shipping charge is a great option for a rush-order gift. Housewares and furniture items can cost 10-25% of the purchase price—this is no deal. Any item purchased online can be returned by mail or in the store. 90-day return policy for credit or refund, but must have valid receipt. Without a valid receipt you will get a store credit only.

ETHAN ALLEN: 3-6 month free financing term. This is a good plan for new homeowners, but at the end of that period, though, pay in full or be subject to accrual of 23-27% APR interest (ouch). Don’t finance here unless you can pay at the end of your free financing period.

HOME DEPOT: Credit card has no annual fee, and even offers perks like discounts on travel and store products. Points accumulate to earn discounts and freebies. No interest for 6 months on purchases of $299 or more—good holiday shopping perk.

LOWE’S: Gift cards can be used both in the stores and online. Volume discounts are offered.

MENARDS: 2% Rebates on Menards purchases (doesn’t add up to enough of a savings to apply for their credit card), but $10 in-store certificate when you make your first $100 purchase on your Menards card. No annual fee. Returns for items purchased online through a gift card may be returned at the store (a perk).

PIER 1 IMPORTS: Quantity shoppers will love the rewards that come with shopping here. Accumulating points gets you special cardholder discount days, and becoming a cardholder gets you 10% off your initial purchase(s).

ROOM & BOARD: On unlimited purchases of furniture, a flat-rate shipping fee, ranging from $69-199, on small items $15 flat fee on unlimited items, on larger accessories and small furniture: $25-79 flat rate. Good shipping rates.

ROOMS TO GO: Their store credit card is currently offering no payment, no interest payment and no down payment until January, 2009, and many items come with free UPS ground shipping. These are great benefits as the holiday season draws near.

TARGET: 2 Kinds of gift cards. The ecard can only be used for online purchases. The store-bought gift cards can also be used online. It pays to buy gift cards in the store. Save 10% when you open your Target credit card account. Another great perk of the Target credit card: get 10% off on pharmacy purchases.

WAL-MART: Free shipping on gift returns—very generous. However, return your items within 90 days to get a refund. One benefit of buying online is that you can have free shipping on items that can be shipped to a nearby Wal-mart. Thousands of items can be shipped directly to their stores. A HUGE perk. You will get an email telling you that your items have arrived and are ready for pick-up within 7-10 days, on average.