WalletPop

More discounts at Wal-Mart benefit consumers across the board

Tracy Coenen — 2008-05-14T10:00:00+00:00

Filed under: Shopping

Whether or not you shop at Wal-Mart, the company still helps you pay lower prices for lots of things your family buys. How can that be? When Wal-Mart lowers prices, other stores tend to offer more discounts too in an effort to lure in shoppers. And it works!

Consumers feeling the pinch of higher gas and food prices are looking for more sales than ever before. Wal-Mart is using this to their advantage by lowering prices of key items. The company reports that in the first quarter of 2008, prices were cut on thousands of items. Some of the price cuts were as high as 30%.

I'm not a fan of Wal-Mart stores, but whether we love or hate the company doesn't matter. We benefit from their price-cutting. So you might be ticked off that Wal-Mart was able to grow company sales by 10% in the first quarter. Who cares! Consumers benefit whether they recognize it or not, and those lower prices at Target, Costco, Walgreens, and CVS are in part thanks to the price slashing of the mega-retailer. Happy shopping!

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Flash shopping sites: where bargains are a game!

Josh Smith — 2008-05-14T09:30:00+00:00

Filed under: Bargains, Shopping

Ready, Set, Shop! Fast paced and limited quantity sales are the new hotness when it comes to brand name luxury goods. Several sites have popped up recently to cater to bargain hungry consumers. These sites often send out alerts as emails and text messages when a new sale on Prada or Gucci gets kicked off. Just like in the wild, the fast are rewarded while the slow go home empty handed. Such is the nature of the high end online discount sales machine.

Flash sales or one item sale sites have been around for several years in the tech industry, Woot! for example which provides a one deal per day closeout pricing on technology items. Many of these discount luxury goods dealers heighten the elegance of purchasing from their online store by going members only. In several cases the only way to become a member is to know a member, adding to the exclusivity. Sites like Ideeli cash in on the shopping frenzy further by charging an additional $100 for exclusive access to text message alerts.

I wouldn't want to be standing in between a member of Gilt and her computer when her cell phone lights up with the deal of the day! While I enjoy the game that is presented by these one item or limited time discount sites I find that despite the multitude of offerings, I can never find what I am looking for. This is one area in which the clothing and accessories stores may have a hand up on the technology flash sales sites, with varied styles and items the selection may be broad enough to attract even demanding clientele. I guess when it comes down to shopping; it isn't what you know, but who you know!

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eBay seeks to strangle its Australian sellers

Gary E. Sattler — 2008-05-13T17:00:00+00:00

Filed under: Entrepreneurship, Ripoffs and Scams, Shopping, Technology, Fraud

We should be used to this by now. Yet another money grubbing directive has surfaced from mother eBay Inc. (NASDAQ: EBAY), As covered in a story in The New York Times, eBay has decided to test market the strategy of allowing payment for transactions on its site solely through its wanton money portal, PayPal. The company intends to run this test on Australian eBayers. I wonder if our mates Down Under would be willing to tell us how they feel about this strategy?

eBay is claiming that this change in operating procedure will lower the incidences of fraud on the site. That's funny coming from them, when you consider that the worst eBay fraud nightmares generally run through its own PayPal system. I can believe that eBay's own fraud exposure might be cut by funneling everything through PayPal, but that's about eBay's bottom line. It's not about the bottom lines of its loyal patrons. The matter is further examined in this Associated Press article.

BloggingStocks reports that, as it stands right now, PayPal collects 2.9% from every sale which runs through its system in the U.S., plus another .30 cents for any sale under $3,000. The picture gets even gloomier for Australian eBayers, where PayPal charges 4.4% on sales, plus the additional .30 cents. What percentage of eBay Australia's sales currently run through alternate payment means? That's what I want to know.

If this change is enacted by eBay against the entirety of it's operations, it will be just one more step in the inevitable creation of "Wal-Bay", a site where large volumes of foreign made junk will be peddled by a thin crust of well protected sellers. In the meantime, alternate online selling strategies continue to take hold and grow as eBay's own growth has stalled. eBay can fake revenue growth for just so long. It's only a matter of time before things really start to get ugly over there.

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Cheap earrings may not be a good deal after all

Tom Barlow — 2008-05-13T14:00:00+00:00

Filed under: Shopping, Health

A recent study of inexpensive earrings conducted by a pair of scientists at UC-SF found that almost a third of the under-$50 pairs they tested contained nickel. Why does this matter? In my years as a jeweler I became acutely aware of just how many people are allergic to the metal. Nickel dermatitis results in very sore, red and swollen ears and eczema-like symptoms.

The study found that a higher percentage of earrings on American shelves targeted to younger wearers contained nickel. They didn't find an correlation between the country of origin and the propensity for nickel.

Fortunately, there is a simple fix for many cheap earrings. If they are dangles, replacing ear wires made with nickel with those made with surgical steel should fix the problem. Fixed posts can also usually be swapped for stainless steel ones, although the cost of having your jeweler do so may exceed the value of the earrings.

Gold and platinum jewelry doesn't contain nickel.

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Mortgage Confidential: Re-qualify yourself

David Reed — 2008-05-12T17:30:00+00:00

Filed under: Real Estate, Shopping, Mortgage Confidential

Mortgage expert David Reed invites Walletpop readers to ask him questions about real estate financing. leave your questions in the comment section of this post.

Rates over the past few months have been volatile, to say the least. I recall one day where mortgage rates on a 30-year fixed rate loan went up nearly 1/2% in one day. That's a rare occurrence, but not unheard of. Rates can move throughout the day based upon a variety of economic or political factors but the fact that they do move requires a portion of prudence when it comes to qualifying.

Realtors, lenders, even your beer buddies acknowledge the importance of getting pre-approved by a lender before you go shopping for a home. When you do so you can shop in confidence. That is unless you were pushing debt ratios to begin with while mortgage rates hovered near 5 1/2%, like they did last March. Now, rates are closer to 6% and if you got pre-approved for a home loan a couple of months ago and are still shopping you might want to contact your lender and make sure you can still qualify.

This is especially true for those who might have been pre-approved for a mortgage to buy a brand new house but the builder isn't finished with your new abode. A lot can happen over several weeks, shoot, a lot can happen in the course of a business day. If you're pre-approved, it pays to contact your lender to find out how high rates can go and still keep your pre-approval. If you make an offer on a house and rates have gone up, you might be in for a sad surprise.

Real estate finance expert David Reed is president of CD REED Mortgage Bankers in Austin, TX and author of Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You and Mortgages 101: Quick Answers to over 250 Critical Questions About Your Home Loan.

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Take my beer, really: Beer prices rising on cost of hops

Gary E. Sattler — 2008-05-12T16:15:00+00:00

Filed under: Extracurriculars, Food, Shopping

The recent upward surge in commodities prices has left no corner of the globe untouched. That includes the bastions of the beer drinkers.

Changes in global climate, a decline in hops growers and a recent fire in a hops storage facility have worked in concert to reduce the world supply of that most important of beer brewing ingredients. According to a story published by Wired, these events have breweries both large and small adjusting their beer making processes and ingredients in an effort to curb rising brewing costs. The Wired story quotes brew master Donald Gortemiller as saying, "When hops were $2 a pound, compared to $20 or $30 a pound now, it didn't matter. We'd throw them into the boil at various times. That was an inaccurate way of doing things. We're modifying recipes and using about 20 percent less hops."

Walletpop blogger extraordinaire, Bruce Watson recently brought to light the mounting concern over hops deficiencies in the brewisphere. He wrote: "I imagine that the hot nights of a post-global warming future will be particularly unbearable without the benefit of a nice cold one." Bruce has vowed to do everything he can to "Save the Ales." For my part, I have chosen an alternate strategy to Bruce's proactive beer saving efforts. I have surrendered my boarding pass to what was for me; "The one way aluminum train to Stupidville."

Believe me when I say that my self imposed abstinence from beer will leave plenty of the cold foamy beverages for the rest of you to share and enjoy. Let's just hope that the remaining hops growers are the people who are benefiting from these unfortunate beer ingredient price increases.

Buying your wife a Mother's Day gift: How to avoid disaster

Bruce Watson — 2008-05-09T17:30:00+00:00

Filed under: Extracurriculars, Shopping, Relationships

A few years back, I decided that Mother's day was no longer a concern for me. My mother died a long time ago, I wasn't married, and I had no plans to become a baby daddy. Moreover, as I was staring down the barrel at 30, it didn't look like my situation was going to change anytime soon. I decided that Mother's day, like Washington's Birthday and the Feast of the Epiphany, was among the many holidays that I could more or less wipe off the calendar.

Needless to say, things have changed.

I now find myself the father of a two-year-old. Quite apart from the other little stresses associated with having a daughter in my life, I'm reliving the joy of buying Mother's day presents. When I was a kid, Mother's day was easy -- I'd pick up some bath salts, a kitchen tool, or some other innocuous item that my father told me to buy. I'd wrap it, pass it on to Mom and revel in her thanks. I'd get to feel like a big guy, my mom would get a little appreciation, and we'd both ignore the fact that the little present was hardly payback for the endless things that she did over the course of the year.

Now, however, I find myself in the tough position of trying to pick out the perfect gift for my wife, a task for which I'm amazingly unprepared. You see, as good as he was about Mother's day, my father never really taught me how to handle this problem. Every year, he'd give my mother a gift, but the exchange happened behind closed doors and I was never allowed to see the present in question. I always imagined that it was something boring, like socks and, in spite of all evidence to the contrary, I'm going to cling desperately to that belief.

On the one hand, my wife is really pretty cool about helping me pick out her gifts. This year, for instance, she's been hinting very broadly that she wants me to buy her a bottle of Cannabis Rose perfume, which, she's pointed out, is available at Sephora in a very nice gift set for under $50. As she imparted this information when we were talking about going out to see Iron Man, I assumed that she was trying to be subtle. When she pointed it out again while we were shopping for toilet paper, I decided that it was important, and that I'd better commit it to memory.

While I definitely see some perfume in my wife's future, I also like to pick out my own gifts. For me, the key to buying Mother's day gifts for my wife has been to listen closely when she lets things drop (if you employ this trick, your wife won't have to write "Cannabis Rose at Sephora for $45" on the blackboard). In fact, sometimes I even manage to surprise my wife with a gift that she really wanted but hadn't mentioned, leading to the magical phrase "How did you know?" I really love hearing those words.

Another key element that I've discovered is that a husband's Mother's day gifts probably shouldn't have anything to do with motherhood. Cooking paraphernalia, cleaning tools, aprons, housecoats, curlers, and the like may be handy, but they can also convey the message that the blushing gal who used to get your hormones a-raging, has now turned into Mom. While some women might revel in that transformation, my wife isn't one of them. Her first Mother's day gift, in fact, was a full-sized Mace Windu lightsaber.

Seriously, she loved it. My wife is kind of a sci-fi geek.

Mother's day doesn't have to be an opportunity to remind your wife that she's getting older and turning into a matron. In fact, with a little imagination, it can be a celebration of your relationship, the women that she was, and the woman that she still is. Find something that reminds you of your early dates. Schedule an activity that you can do together. Buy her a CD that will bring back memories. For God's sake, man, pick up some red roses, not white lilies!

Bruce Watson is a freelance writer, blogger, and all-around cheapskate. He wants to buy his wife a shrunken head, but he hasn't found anyone who's willing to sell. In the meantime, he's probably going to pick up some Cannabis Rose. It's only $45 at Sephora.

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Where's my economic stimulus check?

Julie Tilsner — 2008-05-09T14:00:00+00:00

Filed under: Borrowing, Budgets, Debt, Shopping, Tax, Relationships

I hate sitting by the phone, so to speak, but my mail carrier came and went today and there is no sign of my economic stimulus check.

I was a loud and bitchy critic of the economic stimulus plan from the start. It always seemed more politics than fiscal responsibility (but then when was this Republican administration ever about smaller government and fiscal prudence?). What's $600 going to do for the average debt-burdened consumer? Buy a month of groceries? Notch down one credit card? Yeah, I rolled my eyes and ranted and raved.

And then I figured out that I would be getting $1,800. That's $1,200 for being married and filing jointly, and $300 for each kid. My husband and I looked at each other sheepishly. Then we launched into the Happy Happy, Joy Joy dance.

According to the IRS, I should be receiving this windfall no later than today, May 9. This, I gleaned from the site, because of the last two digits of my Social Security number, the fact that I filed electronically in March and had my return direct deposited into my account.

And so we waited. "You'll probably see it earlier," my husband told me. "There were news reports that the first wave of people got theirs earlier in the week than expected." He then optimistically did his part for the economy by spending his half on a new laptop, since his old one had just died.

"President Bush thanks you for being a good American" I sneered. Then I went out last weekend and let myself get carried away at the mall, spending $160 on clothes I wouldn't otherwise have spent, all because I knew my economic stimulus check was coming the next week to cover me.

But where is the money? As a freelance writer, I'm used to the proverbial "check is in the mail" waiting game. But I also know that radio silence is cause for suspicion. So this morning I went back to the IRS site, and clicked on its tool, "Where's my stimulus payment?" I plugged in my information.

I don't expect much when it comes to forthcoming government information. But hope springs eternal. Alas, up pops this message: Not any information on this taxpayer."

Then I notice this cryptic note, "If filing or preparation fees were deducted from your 2007 refund, or you received a rapid refund, you will be receiving a check instead of a direct deposit."

So...the $30 electronic filing fee I paid Turbo Tax means I won't be getting my money today? That's the first I'd heard of that stipulation. I check the paper check payment schedule.

June 20.

I feel a little like a jilted date. He said he'd call and he didn't. Really, I should know better by now. Monies promised should never be anticipated or waited on. And I'm feeling a little foolish because hey, I thought this was a bad idea to begin with. That didn't stop me from quickly spending more than was in my budget though. I guess that makes me a "better" American than I thought I was.

So have you gotten your stimulus money yet? What are you doing with it. Really...

Ideas for spending your stimulus check:

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Stimulus check sales

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A magical Mother's Day without much money

Gary E. Sattler — 2008-05-09T12:00:00+00:00

Filed under: Kids and Money, Shopping, Simplification, Relationships

A good friend and coworker of mine was having trouble finding the right Mother's day gift for his mom. He dearly loves the lady, and wanted to get or do something very special for her. His problem was that available cash was in short supply. After careful consideration he came up with the perfect Mother's Day gift.

He shaved off his beard and cut his hair, something she had been asking him to do for a number of years. His mom is joyous about the change.

I think I'm safe in saying that most mothers couldn't care less about whether or not we spend any money on commemorating their government-declared special day. Moms want sincere hugs and kisses. They want babbling grandchildren close at hand. They want their hands held firmly as you tell them how special they are to you. They want to know how the lessons they taught you still serve as guides in your daily life. Moms invest their whole lives in their kids. The dividends of motherhood should be just as sincere.
While diamond pendants and bouquets of roses are fine, and pretty paper cards with sentimental jargon may suffice, these things seldom reach the heart in the way a facial caress might. A big envelope stuffed with refrigerator art from the kids can carry more weight than a disinterested porcelain figurine. A sip of tea over conversation about family history may be appreciated more than dinner at a fancy restaurant ever would be.

Think hard about what your mom might appreciate for Mother's Day. Think from your heart, not from your brain or wallet. When you come across that idea which puts a lump in your throat or a tear in your eye, you have probably come across the inspiration for the best Mother's Day ever.

May God bless mothers everywhere. You are all truly awesome.

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High gas prices benefit some businesses beyond the fuel industry

Geoff Williams — 2008-05-08T12:00:00+00:00

Filed under: Shopping, Recession

Years ago, I was reading an Archie comic... yes, you can now either nod in appreciation or start mocking me... and earlier today, one gag that has long stuck in my head flashed back to me. Archie Andrews is going to the movies, and he sees a sign at the theater advertising something along the words of: Attractive Prices.

He goes right up to the ticket booth and discovers that the price is something shocking (given this was the 1970s, it was probably $3). Archie is indignant, asking how they could possibly advertise these prices as attractive.

And the woman at the booth smiles and says, "Well, we like it."

I thought of that when I was reading about a Harris Interactive study that was released earlier this week by iCongo, a business to business web e-commerce company. One third of American adults say that they are more likely to shop on the Internet, as opposed to going into a store, because of high gas prices.

And seeing the survey and thinking of the Archie comic is when it hit me -- not for the first time -- that what's bad for one person's wallet is usually good for another. Online retailers probably are making out better than usual right about now due to some folks thinking twice before driving out to a book or toy store. In fact, maybe some of the public are giving online grocery stores a second look. And crummy as the economy may seem, I'm betting that certain industries and niche markets are growing very nicely right now. Especially companies that conduct surveys about the shaky economy -- they must be making a killing.

Geoff Williams is a business journalist and the author of C.C. Pyle's Amazing Foot Race: The True Story of the 1928 Coast-to-Coast Run Across America (Rodale).

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Consumer Complaints: None at Home Depot!

Tracy Coenen — 2008-05-08T11:30:00+00:00

Filed under: Shopping, Consumer Complaints

I'm a firm believer in using the power of the internet to keep retailers and service providers honest. And I think consumers owe it to each other to report those companies that provide poor or dishonest service to their customers. But it's equally important to let the world know what you've have a great experience. Let's reward the good companies with our business!

How do I love Home Depot? Let me count the ways... I cannot remember ever going into a Home Depot and getting anything less than superb customer service. Even when they've been very busy and clearly shorthanded, I was still treated with kindness and the sales people made sure I had everything I needed (without feeling rushed).

Chalk up one more gold star for Home Depot this week. Over the weekend I found a cool refrigerator for my office. I don't need a full size refrigerator, but I wanted something a little more substantial than the typical "dorm room" model compact refrigerator. The only problem with this medium-sized refrigerator that I found at Home Depot? It doesn't fit in my car.That's where the Home Depot delivery service comes in. $59 seemed a little steep for an item that doesn't weigh much and is only dropped off "curbside." But it seemed to be the best option. So I paid and scheduled a delivery day and time, and I waited. And waited. And waited. The delivery truck never showed up.

I called the store and was directed to the manager, who offered to have the item personally delivered immediately. Or at any other time that was convenient for me. Are you kidding me? I can basically pick the time to have it delivered??? And that's not all. For my troubles, the delivery fee will be refunded in full (without me even asking!). Now that, my friends, is customer service.

Have you been cheated, scammed, or otherwise disappointed by a company? WalletPop wants your real life consumer complaints and scam stories Email us with your story...

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

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Last minute gifts for Mother's Day

Michele Turk — 2008-05-08T11:00:00+00:00

Filed under: Bargains, Shopping

Not only is my mother is really hard to buy for, she's a bit ungrateful to boot. She told my sister yesterday not to get her a gift for Mother's Day because she was probably going to have to return it anyway. Nonetheless, I can't show up at her house empty-handed, so I began to look though my emails for ideas for last minute Mother's Day gifts that might pass muster. Here's a roundup of what I found:

Flowers: I recommend 1800flowers, where you can opt for fresh flowers or plants. I'm considering the gardenia (mom's favorite flower) in a green planter for $29.99. If you order-and have them delivered today-there's free shipping although some products are not eligible. Also, you can save money by ordering bouquets without a vase, which most moms have plenty of.

Chocolate: My inbox has several notices from Redenvelope with Mother's Day specials like a lily of the valley bulb kit in a bamboo box for $38 and the Queen for a day chocolate set, reduced from $38 to $28. At this point, you'll need to use 2 day shipping to get it there in time.

Gift baskets: Wine country gift baskets has a collection to suit moms with a variety of tastes-spa-goers, tea drinkers, coffee lovers and of course, oenophiles, to mention a few. They'll charge you an extra $10 for shipping but it's guaranteed delivery by Mother's Day. They ship wine to 39 states but alcohol-free baskets can go anywhere.

Gift certificates: Stop by the local nail salon or spa and pick up a gift certificate-or go to Spafinders, where you can send a gift certificate to participating spas nationwide.

Clothes: It's really hard to buy clothes for most moms, mine included, but I know where she shops, so I may just stop by the local mall and pick up something at Coldwater Creek. Lord & Taylor had some beautiful summer sundresses I might check out too. Otherwise, I received an email from Appleseed's - which let's just say appeals to a certain demographic, which encompasses my 73 year-old mother. They have apparel that looks like her style for up to 70% off! Aside from the flowers, this option might be the best suited for my mother, although I'll have to look into the return policy.

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What do you see in those clouds? A giraffe? Or a Nike ad?

Julie Tilsner — 2008-05-07T16:30:00+00:00

Filed under: Extracurriculars, Shopping

Is nothing sacred?

Madison Ave. apparently doesn't think so.

A special-effects entrepreneur has come up with a way to fill the sky with lush clouds as large as 4 feet across shaped like corporate logos, according to Wired. He calls them Flogos. Great. How clever.

Francisco Guerra, who's also a former magician, has developed a machine that produces tiny bubbles filled with air and some helium, forms the foam into shapes and pumps them into the sky.

You'd think a magician would know better. Aren't they supposed to hold the imagination sacred?

Naturally that biggest corporate dream maker - The Walt Disney Co. will use one of the machines next month to send clouds shaped like Mickey Mouse heads into the air at Walt Disney World in Orlando, Fla., Guerra told Wired.

After that, no doubt, the floodgates will be open. No more laying on a grassy knoll picking out whales and cars and palm tree-shaped clouds with your kids or partner. It'll be "Hey! It's Coke!" or, "Look Mommy, Apple Computers!"

May the winds of change blow fiercely.

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Time is money: How bargain hunting can wear a hole in your pocket

Bruce Watson — 2008-05-07T16:00:00+00:00

Filed under: Saving, Shopping, Simplification

Soon after my wife and I decided to move to the big city, I realized that I would have to leave my beloved washer and dryer behind. On the bright side, though, I discovered one of the wonders of urban living: drop-off service.

For a small amount of money (in my neighborhood, it's $0.65 per pound), someone else will wash, dry, and fold your clothes. Given that my wife, daughter, and I generate between 20 and 30 pounds of laundry per week, this ends up being a fairly cheap luxury.

A few months back, however, I switched to a lower-paying job and began looking for ways to cut fat out of the household budged. One of the first things to go was the drop-off service, as I realized that I could wash my family's clothes for roughly half the price that Lula, the Albanian lady at the drop-off service, charges. Feeling self-righteous and fiscally responsible, I began toting my family's clothes to the local laundromat.

While I enjoyed the extra hours of reading and got a kick out of flirting with the Dominican and Puerto Rican ladies, it soon became apparent that, between washing and drying, I was wasting three or four hours a week. With some quick calculations, I realized that laundry, which used to run me roughly $20 a week was now eating up more than $60 a week.

You see, the time that I spent at the laundromat was time away from my computer, where I can earn somewhere around $20 an hour. What's more, I am not a very good launderer, as I have a tendency to melt fuzzy synthetic fabrics. In fact, were I to calculate the value of the slippers, coats, and various other items that I destroyed, my return to laundering probably ran close to $100 bucks a week, at least before I ran out of clothes to melt.

When I realized this, I quickly returned to the wonderful Lula, who seemed to feel that my wife and I had been cheating on her, but nonetheless welcomed us back with open arms.

As I've mentioned a few times before, I'm a little...frugal. I pride myself on my knowledge of the best stores, willingness to endlessly comparison shop, and general ability to sniff out bargains. Sometimes, though, I have to wonder if my desperate attempts to shave nickels and dimes off my household budget come with a pretty heavy price. For example, when I lived in Southwest Virginia, I discovered that one of my local gas stations consistently charged about five cents less per gallon. For months, I would resolutely drive 10 minutes out of my way to buy gas at the Kroger gas plaza, cackling over my wisdom and the fact that I was such a good consumer. Finally, however, I totaled it up and realized that I was only saving between 50 and 75-cents per fill-up. When I factored in the time and stress involved, it was clear that I was probably costing myself money.

Admittedly, I get a serious thrill out of bargain hunting, so it isn't completely honest to weigh all the time that I spend searching for the best deal against any additional profit that I make. Moreover, my wife also enjoys wandering through stores with me, so this can, officially, count as family time. If you add in the joy we get out of making fun of the clothes that other people are wearing, this also counts as entertainment, which increases the profit that we reap from our bargain excursions. In fact, if I were to take this far enough, I could probably convince myself that my wife and I are, effectively, paying ourselves to shop!

Self-delusion aside, though, there are times when I just want to buy something and get it over with. While it's nice to know the best places to pick up various items, I also need to balance the cost against the savings. My new resolution is to take all the time I need in my search for the perfect leather jacket; on the other hand, the next time I need to buy cough syrup, I'm just going to go to Walgreen's and call it a day!

Bruce Watson is a freelance writer, blogger, and all-around cheapskate. He once spent six months drooling over an Ed Wood Box Set that came with a fake-angora case. It was totally worth it.

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Inside a cash register-free business

Brandon Barker — 2008-05-07T14:30:00+00:00

Filed under: Entrepreneurship, Food, Shopping, Simplification

The City Café Bakery in downtown Kitchener, Ontario serves hot coffee, bagels, croissants, tarts and brick oven pizza with a quirky, outgoing staff and a neighborhood atmosphere. However, it does not have a cash register.

According to Bakers Journal, owner John Bergen, a former ceramics designer, wanted to open a bakery where he could "walk in anytime and it's a place where I can belong." For Bergen, that kind of business would involve simplicity and the honor system.

Bergen says. "What irritated me about going into [other bakeries], for example, was waiting in line for something as simple as getting a donut and a coffee. So the thought was, someone can pour his own coffee, grab his own bagel, cut it himself, throw the money in, and walk out. We don't touch 60% of the transaction."

Customers order their items, tally up the total and put their money in a fare box from an old bus. To make things simpler, prices are rounded off to the nearest quarter with taxes included. They do not take credit cards.

Every six months they check the numbers, and only once did they come up short. But, Bergen believes that customers are more likely to overpay than underpay. "Some people come in and want a $2.75 loaf of bread," he says, "but they see we're busy so they throw $3 in and walk out." The City Café Bakery also discourages tipping and they don't answer their phone, so that customers won't have to wait for service while an employee is on the phone. Woo hoo!

But, how's business? According to Bergen, every week the City Café Bakery dishes out 3,000 bagels, 1,300 croissants, 1,000 desserts, and an untold number of pizzas, sandwiches and loaves of bread.

Not too shabby.

B. Brandon Barker also writes for Political Machine.

[Thanks to Kottke.org]

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Lipstick sells when economic times are tough

Tracy Coenen — 2008-05-06T10:00:00+00:00

Filed under: Shopping, Recession

Mary Kay ladies are notorious for citing all sorts of phantom statistics to recruit anyone and everyone into their cosmetics "business opportunity." To hear them tell it, Mary Kay has made more female millionaires, has more women making $50,000 or more, has given away more free cars,.... and on and on and on. (Yes, all these statements are pure fiction with no hard facts to support them.)

Amazingly, one often cited "fact" might just be true. It's been said that during difficult economic times, women buy more cosmetics. When money is tight they might not be able to justify buying a new outfit or handbag, but a relatively small purchase of an "extra" like makeup will boost her spirits.The New York Times cites the theory pitched by Leonard Lauder, the chairman of Estée Lauder Companies. He said that during tighter economic times, lipstick sales surged, and so lipstick sales can be one way to gauge the economy. And economists agree, saying that during tough times, small indulgences like lipstick often sell well. Yet no economist in their right mind is going to use lipstick sales as a primary economic indicator.

Cosmetics are seen as a small indulgence for the shopaholic who uses "retail therapy" as a boost for her spirits. Stores like Sephora and Ulta, which feature a variety of cosmetic lines are primed to capitalize on these impulse buyers. I admit it.... Cosmetic purchases are fun, feel-good buys. And I can never have too many shades of lipstick. The newest one is always a little bit different. Except, of course, when it is accidentally a duplicate of a color already in my lipstick drawer.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

More cheap prescription drugs coming to Wal-Mart

Tracy Coenen — 2008-05-05T18:30:00+00:00

Filed under: Shopping, Health

When Wal-Mart first lowered the price of certain generic prescription drugs to $4 for a 30-day supply, consumers wondered how they could do it. Wouldn't they lose money? Of course they would lose money on the prescription, but the master of merchandising knew they'd more than make up for those losses on what you'd purchase while you were waiting for your prescription.

Now Wal-Mart has announced that it's going to make even more drugs available for $4 (30 day supply) or $10 (90 day supply). These aren't your newest, fanciest drugs. But they are common generics that many people take daily. They will now have over 1,000 prescription drugs available at bargain basement prices.

And there's another bright side for consumers: Even if you don't shop at Wal-Mart, you might benefit. Consumers filling their prescriptions at Target also receive the same bargain pricing, in an effort to compete with Wal-Mart. And I'm sure there are other chains that have also followed suit, giving consumers several options for extremely affordable prescription drugs.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

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Home Depot closing 15 stores

Tracy Coenen — 2008-05-05T16:30:00+00:00

Filed under: Home, Shopping

Last week, Home Depot announced that it would be closing 15 stores that it considers "underperforming." The closures will affect 1,300 employees. On the flip side, Home Depot said it will continue with plans to open 36 stores that are already under development. Another 50 stores were "in the pipeline," but those plans are being scrapped for now. Consider this a move to weed out the bad stores, and open ones that are expected to do better.

The closings are mostly in Wisconsin, Indiana, New Jersey, and Ohio. I took a look at the list of stores in my area, and never realized that there are eight Home Depots within about a 20 mile radius of me. It's no wonder they're closing one of them. Even with metro-Milwaukee's population of something around 1.3 million people (city and suburbs together), eight stores still sound like a lot to me.

Home Depot has had a strategy of adding more stores to an area in order to increase total market share in that area, even though additional stores may cut into the sales of Home Depot stores already standing. This latest announcement suggests that the chain is going to be a bit more strategic about its store openings.

Obviously, new store openings are very expensive, so management wants to put its expansion dollars into those stores that will bring the best returns. Sounds good to me. I love Home Depot and have had nothing but good experiences with it. I like the idea of changing things up in order to be more profitable and protect the brand.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

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Middle East terrorism: Now fueled by nicotine

Bruce Watson — 2008-05-05T16:00:00+00:00

Filed under: Bargains, Extracurriculars, Shopping, Tax

Emphysema, heart disease, lung cancer, necrosis, crib death, bad smells...smoking has been accused of causing an almost endless list of problems. Recently, however, New York's outrageous taxes have added a fresh one: funding terrorism.

Because of recent tax increases, cigarettes currently cost approximately $9 a pack in New York city. On the other hand, they cost roughly $3 a pack when purchased at Indian reservations on Long Island. For years, New Yorkers have used reservations to help fund their habits by purchasing cartons of cigarettes, either in person or via the internet. The recent tax hike, however, has made cigarette smuggling an easy and relatively safe way to make a lot of money.

According to a recent report, the Bureau of Alcohol, Tobacco, and Firearms is currently investigating over 300 smuggling rings that are purchasing cigarettes from Indian reservations or southern states with lower taxes and reselling them in New York City. Some of these smugglers supposedly have links to Hamas, Hezbollah, and Al Qaeda.

In an opinion piece in the New York Post, Congressman Peter King (R-NY) cited the case of cigarette smuggler Mohamad Hammoud, who allegedly made $8 million from 2000-2002 and donated $100,000 to Hezbollah. Congressman King noted that the operational cost of the 9/11 airstrikes was approximately $500,000, a sum that could be generated with only a few cigarette runs. Of course, from the perspective of international terrorists, this is a win/win situation: if the Camels don't get ya, the fundamentalists will.

While I'm sure that cigarettes will end up bearing the brunt of outrage over this issue, it might be a good idea to look beyond the obvious. Congressman King is calling for a repeal of the "forebearance" that allows Indian reservations to sell cigarettes without charging tax. As a student of history, I feel like we've cheated the Indians enough, but I agree that something must be done about this. May I humbly suggest that we stop using cigarette taxes as a way of dictating our health policy, try to treat smokers like humans and, perhaps, find another way of filling our public coffers?

Bruce Watson is a freelance writer, blogger, and all-around cheapskate. As a former smoker, he doesn't like the smell of cigarettes, but tries to not be a jerk about it!

Beat the first-class mail cost increase

Tom Barlow — 2008-05-05T14:26:00+00:00

Filed under: Bargains, Shopping

Are you penny-wise? If so, this is a perfect time to save some Lincolns. On May 12th, the US Post Office is raising the price of the first-class stamp by one cent, from $0.41 to $0.42. I can only conclude they make a killing on one-cent stamps.

Luckily, I've been buying Forever Stamps, which sell for the same price as the current first-class stamps, but remain valid for first-class postage no matter how much it increases. Given the stock market results over the last few quarters, my stamps have out-yielded my index stocks by a considerable margin.

I'm mystified by people that still buy priced stamps. The post office apparently sells a lot of $0.41 stamps, though, and will probably sell as many $0.42 ones to those who value the appearance of the stamp enough to offset the annoyance of keeping a stock of one-centers. Me, I'm buying Forever Stamps, and doing it before May 12th.

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