Retail Rip-Offs & Sneaky Tricks

So-Called "Liquidation" Sales

With so many retailers going out of business these days, you see the 'Liquidation Sale' signs everywhere. These sales are a great place to get big bargains, right? Wrong! In fact, you may have actually saved more before the sale. Take the close-out sale that Linens 'n Things advertised recently. It looked like a bargain shopper's dream -- discounts of 10 to 40% off. However, a peek under the "Sale" sticker showed that the prices were actually marked up so that the "liquidation" price was the same or even higher than the regular price! Don't assume you're getting a great deal just because the retailer's going out of business.
Next: Retail Trick No. 2

Tricky Changes to Cut Costs

Good things do come in small (and getting smaller) packages. Here's a new sneaky trick to watch out for: Your favorite brand of peanut butter or box of cereal may look the same, but thanks to some brilliant design changes, you may be getting several ounces less than you did before! Many cereal brands have reduced their contents per box by simply making their boxes skinnier. The boxes still appear the same on the shelf, but they're not as deep as they used to be. Some peanut butter jars are being made with a higher dip in the bottom -- the jar looks the same, the price is the same, but you get less peanut butter. Buyer beware!
Next: Retail Trick No. 3

Heavy Discount, No Rain Checks!

Some retailers seem to deliberately carry a very limited quantity of an item offered at a huge discount ... only to sell out of that item without offering a rain check for it. The store then offers another similar item you can get at full price. (Convenient, eh?) As retailers become more and more desperate to get people into their stores, look for this technique to become even more common.

Next: Retail Trick No. 4

The Price Isn't Right

No doubt you've experienced this rip-off, maybe without even knowing it. You pick up an item at the grocery store that's been marked down significantly -- the big sign in front of the item tells you so. When you take it to the cashier at the register, though, it's a different story. The full price rings up. Mistake? Maybe. But here's what happens most of the time. Either the customer never even notices the error, or they don't notice it until they get home and it's simply too much of a hassle to go back for that 50-cent savings. Either way, you end up paying more than you should.

Next: Retail Trick No. 5

"Sale-Like" Signs

Here's an interesting statistic for you: Grocery industry studies show that a full 60 to 70% of grocery purchases are unplanned. And that's in good times and bad. Why? Great merchandising. Everything about a grocery store is designed to make you put something in your cart. Here's a common trap to look out for: eye-catching signs that display prices in bright colors and big letters to create the illusion that the item is on sale. But all the store is doing is showcasing a slow-selling item or some other product they want to get rid of that week. Don't be fooled!

Next: Retail Trick No. 6

Disclaimer-Filled Discounts

We love a good sale, but not if it comes with all kinds of disclaimers and caveats and other requirements. That's what some stores (and online shopping sites) do -- they lure you in with 20% off in big print. Then when you get to the register (or your online shopping cart), that's when they hit you with "this" extra charge or "that" exception. Before you know it, you're paying 20% more than you would anywhere else! Before you go to pay, be sure to read the fine print. Then get ready to walk away, if need be.

Next: Retail Trick No. 7

Super-Sized Shopping Carts

Have you noticed that shopping carts -- and the store aisles that accommodate them -- just keep getting bigger and bigger. Studies show that shoppers buy more with bigger carts than they do with a smaller cart, which looks full more quickly. So a larger cart actually prompts more impulse buys (and many of them not so healthy). Instead of using a large cart, consider either carrying a hand basket, or bring your own re-usable bags and load them up as you shop. When your bags are full, so is your shopping!

Next: Retail Trick No. 8

Better-Than-They-Look Rebates

In concept, rebates are a great way to save. But here's the hitch: More than $500 million in rebates go unclaimed each and every year. Kinda tells you something, doesn't it? So, you buy a more expensive cell phone than you planned because that $50 rebate seemed like a great "savings" at the time. That is, until you realized you never did mail in the rebate -- so no $50 "extra" for your pocket! Even for those of us who are less forgetful, companies that offer rebates intentionally make it difficult to redeem them. Be sure you read the fine print before you make a purchase based on a "great rebate" deal.
Next: Retail Trick No. 9

Outlet Centers

There used to be a time when an outlet store was the proverbial red-headed stepchild of the retail world. You could pick up discontinued, overstocked and even slightly damaged or irregular brand-name merchandise for a song.Those days are long gone. According to a recent Consumer Reports survey, the majority of outlet shoppers say that outlet merchandise quality is the same as the full-price stores. Unfortunately, the prices at the outlets aren't necessarily lower than their traditional mall counterparts. Bottom line: Don't assume you're getting a good deal just because you're at an outlet mall.
Next Series: 10 Mark-Ups to Avoid

Wine in Restaurants

Restaurants charge 100-200% more than what you would pay for that bottle of wine at the store if you buy by the bottle. It's a whopping 300-400% markup if you buy wine by the glass! To make it even worse, the highest markups are on the lowest priced wines. Either bring your own bottle and pay a small fee for the restaurant to open and cork it for you (if your state/restaurant allows it) or find out if the restaurant has an "off premises" license that allows you to take open wine bottles home with you. If so, then you'll save money if you buy the full bottle even if you don't plan to drink it all. Simply cork it and bring it home.
Next: Pre-Cut Produce

Pre-Cut Produce

Pre-cut fruits and vegetables didn't even exist 10 years ago, but we spent more than $600 million on prepared salads alone last year. While grabbing pre-cut fruit and vegetables can help cut down on your time in the kitchen, that small convenience carries a big price. It's safe to say you are paying at least double the cost for pre-cut produce vs. buying their whole counterparts. Another negative -- you aren't getting all the vitamins you think. Tests have shown that pre-cut vegetables, for example, start losing their Vitamin C once they are cut!

Next: Popcorn at the Movies

Popcorn at the Movies

You don't need us to tell you that the price of popcorn at the movie theater amounts to highway robbery. But it might be even worse than you thought. According to a professor at the University of California-Irvine, you're paying a 1,300% markup on that tub of buttery popcorn! When you do the math, $5.50 for that bucket of popcorn makes an ounce of popcorn more expensive than filet mignon!

Next: Anything Eye-Level

Eye-Level Grocery Items

Here's a great inside tip that we got from a store manager: you'll pay more for items at eye level on the grocery store shelves. Products with the highest markups get that prime shelf space because the grocery store gets a share of those fat profits. Less profitable products get high and low shelf space at the grocery store, so that's where you are likely to find the best bargains.

Next: Brand Name Meds

Brand Name Medication

Next time you are shopping for an over-the-counter medication (such as Tylenol or Nyquil), give a closer look to the generic versions next to them on the shelf. A general rule of thumb is that you'll pay 30-40% more for name brand medication vs. generics. Most of that cost difference is because of the money that brand name companies spend on marketing and packaging. Check the active ingredients on each box or bottle to be sure they are the same ingredients at the same dosages. If so, save big with the generic. If you have any questions, ask your pharmacist or doctor.

Next: Bottled Water

Organic Produce at Grocery Store

You'll pay 30-50% more for organic produce -- sometimes more if something is not in season. Now, that may be completely worth it to you, but if you are looking for ways to save, here are a few ideas. First, shop at your local farmers' markets and look for farmers growing organically. They likely won't be charging big markups at the farmers' market. Next, consider not buying organic when you are shopping for types of produce that use very little pesticide. These have the lowest levels (starting with the lowest): onion, avocado, sweet corn (frozen), pineapples, mango, asparagus, sweet peas (frozen), kiwi and bananas.
Next: Non-Organic Produce

Non-Organic Produce at
Organic Grocery Stores

Just because produce is being offered at an organic store, this does NOT mean it's organic! Be sure to check the signs and labels before you buy. Non-organic produce often still carries a hefty markup at specialty stores. You could end up paying 30-50% more for the same non-organic apples or tomatoes you could get at your regular grocery store. Buyer beware'read the labels!

Next: Restaurant Coffee

Restaurant Coffee

Coffee markup is insane. And we're not just talking about the fancy "mocha grande latte with soy" kind of coffee. A plain ol' cup of joe can carry an absurd markup. A plain 16 oz. cup of coffee at Dunkin Donuts costs $1.75. You'll pay at least that much for a much smaller cup at most restaurants. Consider that a plain 16 oz. cup at home will cost you about $0.55. We're not telling you not to enjoy that occasional coffee run. But just one cup of coffee a day at home rather than buying it out could save you $438 a year.

Next: Restaurant Fries

Restaurant French Fries

French fries are a big profit maker for restaurants. A 10 ounce potato makes about 90 french fries (that's about the serving size for large fries at a fast food restaurant). That potato costs about 30 cents, but brings the restaurant about $1.75.

Next: More From the Dolans

More From the Dolans

Let personal finance experts Ken and Daria Dolan of Dolans.com help you save big bucks on necessities. Then go a step further and check out their smart money moves for 2009.

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