Consumer

Living It Up… At the Library?

by FruGal on November 19, 2009

Over the next couple of weeks, six finalists will be auditioning for the opening of “staff writer” at Consumerism Commentary. Each will be providing two guest articles to share with readers. After the six writers have shared their guest articles, readers will have an opportunity to provide feedback before we select the staff writer.

This article is presented by FruGal, a consultant for a prominent online educational program.

From the time I was a little girl, I can remember making regular trips to my local library. The sights, smells, and sounds are still with me as if it were yesterday. It’s all still fresh in my mind – everything from climbing up the dark, cobweb filled stairwell in the old building in town, to wandering aimlessly throughout the shelves, trying to find a R.L. Stine horror novel that would keep me up late at night, reading in bed with a flashlight.

Fast-forward twenty something years, and you’ll still find me at my local library. However, I’m immersed in an experience that has been completely transformed from what it was decades ago. Long gone are your old-fashioned, wooden card catalogues to help guide you through the endless shelves of books, and other more traditional fixtures of the public library. Today’s modern library is truly an infinite supply of resources, knowledge, entertainment, and more. And best of all, it’s all completely free!

I could talk for hours upon hours about the different services and materials that are available to you at your local library, which chances are, is probably only miles from your home. However, for the interest of this post, I’ll be highlighting my favorite things you can find at your library today.

I’ll get started with the “what” of the library. Books, DVD’s, and CD’s are definitely at the top of my list. Next time you think about heading to your nearby bookstore, or paying the exorbitant cost of going to the movies (plus popcorn, a drink, etc.), consider heading out to the library. The library is home to an endless wealth of new (and old) releases that are available to community members such as you. I visit my local library about once a week, usually on the weekends, and pick up a wide variety of materials that are of interest to me. Take DVD’s for example. At the library, you’ll have everything from blockbuster comedies that just came out of the theater, to documentaries from around the world. You can even find materials such as Audiobooks, which are great for long drives, or perhaps to share with a friend or family member who, for whatever reason, may not be able to read.

Now, let’s explore the “how”. Your local library has an online catalogue system, called an Online Public Access Catalogue (or OPAC) which has replaced your traditional card catalogue. Within the OPAC, you can search through your library’s inventory of multi-media resources. But to take it a step further, you have the ability to reserve items through the system. This is as simple as securing your library card number, which is located on the back of your card, and establishing a pin if you don’t have one already. If you need help, a library staff member will surely lend a helping hand. Once you’re logged in to the online system, you can search for, and place a hold on the latest and greatest books, DVD, and CD titles, plus lots more. At my library, I can place a hold on up to 15 items at a time, and I’m simply sent an email when my request has been filled. The library has a system where materials are transferred from one branch to another for your convenience. With less popular or older items, you’ll only have to wait a few days, whereas with new releases, it may be a few weeks. Either way, if you keep your “hold” list full, you’ll constantly have a wide variety of materials ready to be picked up and enjoyed. Or, if you choose, you can simply wander the shelves and discover whatever may catch your interest.

Last but not least, let’s talk about the “why”. With today’s economy, every penny really does matter. If you add up the total of just one book, one CD, and one trip to the movies, it’s probably around $50.00 or more. To me, it’s much more practical to take advantage of a free (and fun) resource that so many people have tapped into. Plus, it truly is an enjoyable experience. The other day while I was leaving the library, I smiled as I glanced through the glass that peeked into the children’s area, and a father was sitting in a miniature chair, reading to his son. While the library is constantly changing and evolving, some things never change – which is a good thing.

With this all being said, as a lover of books, I realize that there are some must-haves for your collection. I’m not saying completed deprive yourself of these items, but rather, make an effort to be more conscious in your spending habits. Also, I would be remiss if I didn’t mention how you can help the library. After all, it’s done so much for you. Consider becoming a “friend” of your local library, which could include anything from helping to raise funds through book sales, or shelving books. More information about this can be found on your library’s website, or by inquiring in person.

Phew, all this and I’ve barely touched the surface! The library is home to special events, classes, story time for children, author talks, arts and crafts… need I go on? I’ll guess I’ll have to save the rest for another time. For now, if you aren’t already, I encourage you to visit your library and explore the many opportunities that are available to you, as well as your family. I guarantee you won’t be disappointed AND you’ll have some extra money in the bank.

I’d love to hear from Consumerism Commentary readers about your experiences with the local library. How often do you visit? What are your favorite materials?

This is a guest article by FruGal, one of six finalists interested in being Consumerism Commentary’s staff writer.

Photo credit: (Erik)

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Federal Reserve Wants Your Opinion About Gift Card Fees

by Flexo on November 17, 2009

The Credit CARD Act of 2009 instructed the Federal Reserve to enact new regulations for gift cards. I have a love/hate relationship with gift cards; they’re convenient gifts to give when you know the recipient is a fan of a certain store. Unfortunately, the past few years have seen restrictions added to gift cards which make them unappealing. Some gift cards expire if not used within a certain amount of time, rendering the money spent to buy the card worthless. Some gift cards come with a monthly fee or an inactivity fee.

It makes more sense to simply give cash rather than a gift card, eliminating the third-parties like stores and payment processors and eliminating any limitations to its use. This avoids the issue of whether fees should be charged for these products. But some people consider the gift of cash inappropriate, more than those who consider the gift of gift cards inappropriate. Thus, the Congress and now the Federal Reserve wants to protect those who choose to buy and those who receive gift cards.

The new regulations call for an elimination of inactivity fees (until the card has been inactive for a year) and eliminations of fees for balance inquiries and transactions. All of the changes to gift cards by law do not need to be made effective until August 22, 2010.

The Federal Reserve is preparing to accept comments from the public for thirty days. You can read the full proposed regulation and in the next few days, you can begin to submit your comments to the Fed here. (Look for Regulation E, R-1377.) Here are some questions to consider as you formulate your comments:

Are these restrictions necessary when consumers can easily choose not to purchase gift cards?
Would better disclosure be better than restricting fees?
There is a cost to offering gift cards; how should stores pay for those expenses if not with fees?
Should all gift card fees be eliminated, so gift cards are as good as cash in all cases?
Why wait until August 22? Can the new regulations be implemented sooner?

Photo credit: _rockinfree

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How to Spend Smarter This Holiday Season

by Kelly Whalen on November 13, 2009

This article is presented by Kelly Whalen, a mostly stay-at-home mom who writes about personal finance at The Centsible Life.

News that the recession may be over has many retailers hoping that American consumers will open their purses and wallets and spend more this holiday season.

Frugality has been popular during the recession, so retailers are targeting your frugal side to make sales. This holiday season will see a rash of new promotions and coupons aimed at your frugal side.

Several retailers are starting to offer “Pre-Black Friday” deals. Amazon.com for instance offered several electronics deals on November 7th. Even upscale retailers such a Pottery Barn are offering more items with free shipping, and a larger selection of sale items to draw more consumers. While many retailers, like Crate & Barrel, have free shipping on purchases over a certain dollar amount. Crate and Barrel’s offer is free shipping on orders over $100 between Oct. 15 and Dec. 22, 2009.

Despite the draw of deals, most Americans will be spending less this year on holiday gift giving. Of those I informally polled, no one said they would be spending more than they had in the past, and the majority of people had 3 methods for reducing spending this year:

Shorten the list: Shopping for fewer people topped the list of ways to reduce holiday spending. Co-workers, hostess gifts, and other small gifts can really add up.
Handmade gifts: Most people will understand your budget is a tight, and would rather have your award winning brownies than $20 worth of too pretty to use speciality soaps.
Smarter spending: The best way to save money this holiday season (and year round) is to spend smart. I’ll share 10 ways you can be giving this holiday season without sacrificing your savings.

10 ways to spend smarter

I’ll share my top 10 ways I shop smarter, which are helpful for the holiday season and beyond.

Make a list whenever you leave the house. Make a list, check it twice, don’t leave home without it!
Use coupons and discounts, but only for things you need. Coupons are a great way to save money, but look for coupon codes or discounts for things that are on your list. You are NOT saving money spending on things that you don’t need.
Create a “sale mail” email account. Set up an email account and sign up for emails from your favorite or most frequently shopped stores. Ignore it unless you are shopping, and check it before you make a purchase.
Plan ahead for big purchases. Use this list as a guideline to find the best time of year to purchase most goods.
Eat before you shop. Pack snacks or a meal if you will be out for a long time. Make sure to pack water as well. This not only saves money when food shopping, but also when you are doing other types of shopping as well!
Choose quality over quantity. Use Consumer Reports, or other reviews to find a product that will last you longer than a cheap one.
Institute a waiting period. Whether it’s a 30 day waiting period for larger purchases or a day long waiting period for small purchases, a waiting period is a great way to control your budget.
Use your budget. Shop within your means. Simple, I know but difficult for some people (including me) to practice.
Look online before you buy. Knowing the price of something online saves you time (no running from store to store), and you can guarantee you’ll know the cheapest price. Many stores offer price matching, so it’s a great incentive to spend 5-10 minutes searching the web.
Don’t be afraid to bargain. Flexo had success bargaining, and saved $85 on a computer. It may seem difficult to do, but it’s worth trying, and could save you a ton of cash.

What’s your holiday budget this year? What ways do you save on holiday shopping?

To keep track of deals online for the holiday season, keep track of current Black Friday Deals at black-friday.net and find out about free shipping day, or find free shipping deals on freeshipping.org.

This is a guest article by Kelly Whalen, one of six finalists interested in being Consumerism Commentary’s staff writer.

Photo credit: stevendepolo

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How to Create Your Own Extended Warranty

by Flexo on October 15, 2009

In my article the other day about the deal I got on a new computer despite my immediate need, I neglected to mention something important: I refused the extended warranty that the salesperson offered numerous times. Any extended warranty is almost always a bad deal.

When I was a teenager, I had a short-lived job at a ubiquitous electronics store; let’s call it “Transistor Hut.” This was the only job in retail I ever had, and I can’t say I was a fan. Our bonuses were determined by our success in selling the “TSP,” an extended warranty. Let’s say that stands for the “Candy Service Plan (with a T),” and I don’t know whether this is still in existence.

The price of the TSP depended on the price of the item, and TSPs were available for almost every product. If you buy a $19.99 pair of headphones, you could spend another $9.99 for unlimited replacement, no questions asked (other than your phone number). If you buy a $299.99 DVD player, $79.99 (or so, keep in mind this was fifteen years ago) would allow you to bring the broken device into the store, have them ship it to a repair facility, and fix or replace it. That’s a process that would likely take several weeks.

The TSPs and any other store’s extended warranties are pushed hard by salespeople because they are often rewarded for them, and they are rewarded because they are very profitable for the store. Most people who buy the warranty will not use it, so the funds become significant income for the company.

Most credit card companies automatically double the manufacturer’s warranty on products purchased with the card for up to one additional year, so that automatic, free protection is often more than enough. Check your credit card’s terms to see if this is available to you. I knew it was available to me on my American Express Blue Cash for Business Card when I purchased the new desktop computer for Consumerism Commentary’s multimedia production.

Perhaps a smarter way to deal with the possibility of broken items — besides not buying anything — is to self-insure. Rather than spending an extra $50, $300, or $2,000 for an extended warranty depending on the product, put that amount into a new savings account designated for your own personal warranty extension. Do the same for all the products you buy for which a salesperson attempts to sell you the extended warranty. What you have created is a pooled funding source for repairs. It is unlikely that all of your products will break or stop functioning, so you can withdraw from this fund to pay for repairs for the one item that fails.

With this strategy, you keep all your money if nothing goes wrong, and if the money is sitting in a high-yield savings account, it’s working for you rather than lining the pockets of major retail chains.

Here is the step-by-step process.

Step 1. When you purchase an item, make note of the cost of the extended warranty. Don’t buy it.

Step 2. Transfer this amount to a special savings account that you will not touch until one of your “protected” items needs to be repaired. ING Direct lets you create sub-accounts, one of which you can name “My Extended Warranties” or “Warranty Fund.” Don’t create a sub-account for each item. One for all of your items will do. Thus, the “Warranty Fund” is pooled.

Step 3. Repeat steps 1 and 2 using the same Warranty Fund you already created for all products you buy that might break or are associated with an extended warranty. This will build up a sizable Warranty Fund in your own name at your own bank earning interest for you.

Step 4. When one of your self-insured products breaks or otherwise needs repairs, dip into your Warranty Fund. Try to avoid using your Emergency Fund unless the Warranty Fund doesn’t cover the full expense and the product must be fixed or replaced.

The strength here is that you are pooling your own funds. This is what the retailers do to ensure warranties bring significant profits to the company. Just like not every customer will take advantage of their purchased extended warranty, not every product you self-insure will break unless you are extremely unlucky or extremely careless. In addition, the best benefit of self-insuring is that you will never have to argue with a store representative about whether certain type of damage is “covered.”

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Always Try Bargaining: Here’s How it Worked for Me

by Flexo on October 12, 2009

Tom Dziubek, the producer of the Consumerism Commentary Podcast, and I have been having some difficulties with the Acer Aspire desktop I purchased earlier this year. I believe the problem can be fixed, but it will take some time. The problems have unfortunately affected our recording and interview schedule, so when an interview on Friday was cut short due to yet another glitch and more interviews were scheduled for today that were already postponed due to technical difficulties, I wanted to resolve the problem this weekend.

At this moment, it is somewhat difficult to get a powerful desktop computer on short notice. Retail stores are gearing up for the release of Windows 7 and manufacturers aren’t providing the stores with much. The belief here is that consumers would rather wait for Windows 7 to be installed at the factory rather than buy a computer whose operating system will be out of date within weeks, even if it includes a free upgrade.

I spotted one major regional chain electronics store that not only had something better than eMachines, it had the exact desktop model that I probably would have purchased online, with a few modifications, if I had more time. Most of the computer’s specifications were excellent, but the only drawbacks were a 5400 rpm hard drive — too slow for audio recording — and an integrated graphics chip. The graphics chip was probably fine for what we needed but I prefer discrete graphics.

The salesperson and I spoke for a long time, and I eventually got a discount on the purchase — a larger discount than I asked for. Here is how I won this battle of money.

1. I was very knowledgeable about what I wanted. I have been researching the best desktops currently on the model for the past few weeks, ever since the first sign of problems with the Acer Aspire, even though I believed and still believe the problem can be fixed. I knew exactly what I wanted and the price range I wanted to pay for the features I wanted.

The salesperson knew I was knowledgeable because I discussed the system in detail with him and explained my other options. I could tell he wasn’t as technically inclined as I am so I didn’t try to show off; I kept the conversation on his level but I was able to express that I had done my research.

2. I pointed out the flaws. It is true this machine had the two drawbacks I mentioned above. I made sure the salesperson was aware of my observation that these factors were detrimental to my choice and might hold me back from buying.

3. I asked for a discount. On the basis of the machine not matching my expectations exactly, and knowing that a 10% discount is common in retail electronics, I asked for 15% off. The salesperson explained that they cannot offer discounts on computer systems, but they could offer me a rebate if I purchased a printer or possibly some other accessories. I considered this; I didn’t need a printer, but if I could get a good discount on a replacement hard drive or graphics card, I might take that option.

The particular store I visited does not sell these types of computer components, so I wasn’t going to find something I needed. The salesperson did work very hard as we thought about different options that might satisfy me.

4. I was patient. When we couldn’t find a good route for a discount other than, in my mind, the computer itself, the salesperson went back to his manager. Still, the word was that they could not and would not offer a discount off the price of the desktop. We looked online, the salesperson on the store computer and me on my BlackBerry, to try to find other stores offering the system for less.

The store’s system of price matching is designed to wear the customer down. The salesperson has sixteen competitors’ websites bookmarked in Internet Explorer, and the process calls for searching for the product on each website in order to find a store with the product in stock and for sale at a lower price.

As I mentioned above, this is a very bad time for buying a computer with stores keeping not much in stock, so I knew this search would be fruitless.

On my BlackBerry, I did find a better price on NewEgg.com, but as expected, the store would not match an online-only price. The price at NewEgg was $30 better than the price in the store, which would have been a discount of less than 5%.

5. I made my final offer. After about thirty minutes in the store, we still weren’t going anywhere. The sales manager wasn’t ready to budge, and I wasn’t going to pay full price yet, even though I knew I needed a new computer by the end of the weekend. I didn’t let the salesperson know that I needed the computer immediately. In his mind, I could just buy the computer online. I told the salesperson that unless they can give me $30 off, that is exactly what I would do.

6. And then I walked out the door. But I didn’t get very far. As I was walking towards the door, I could see the salesperson and the manager in a frantic discussion, and as I stepped outside, I was called back into the store. There were going to make a deal on the desktop.

Patience still played a key role. I waited for what was probably another twenty minutes as the salesperson was in the back of the store, bringing the computer out. There were obviously some more problems because he came out twice without a computer and spoke to the sales manager.

Eventually the salesperson brought out the computer. The box had been opened, but the machine had never been used. It was not a display model or a customer return; the box had been opened because another customer’s keyboard was defective. They took the working keyboard from this computer and gave it to that customer, so mine was without a keyboard. They gave me the working keyboard from the display model and knocked $80 off the price.

That was more than my final offer, so I accepted. My discount in total was more than 10%. I spent more time in the store than I had originally planned but I got what I wanted for a price that was better than I thought I could have received. Even considering the replacement hard drive and the graphics card I purchased later, I talked my way into a great deal.

In the end, I got what I wanted, and so did the salesperson. Everyone wins.

I am not a very persuasive or aggressive person, so it’s a bit against my nature to work so hard just to save $85.59 including tax. I definitely think it was worthwhile. I always suggest at least trying to bargain, even when faced with resistance.

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Friday Discussion: The Need for and Cost of Health Care Reform

by Flexo on October 9, 2009

in Health

I visit a doctor once a year at the most, and I hardly require prescription medicine. The cost of my health insurance premium is about $800 this year for my HMO plan. My employer pays a larger percentage of the total premium, but the prices increase each year by a percentage much higher than inflation. A similar HMO plan, if I were to quit my job and buy individual health insurance in New Jersey, I would pay more than $800 a month, though there are less expensive options.

I’m lucky I don’t have any dependents.

The more individuals in the world with access to good and affordable heath care, the healthier the world will be in general, so I am in favor in reform that brings better care to more people. While reduced costs for me would be nice, that would be just an ancillary — and selfish — benefit. Will any of the various sets of proposed legislation succeed? I don’t know anyone who can answer that question with any sort of definitive answer. Health care is a monster, a complicated system with many moving parts that won’t be fixed right away.

The Congressional Budget Office released their cost estimates for the version of the legislation that is up for a vote within the Senate Finance Committee, and the numbers look better than expected: The bill would could $829 billion over ten years and actually reduce the budget deficit by $81 billion over the same time period. This bill doesn’t include a government-run plan, but it also leaves more people uninsured than some would like.

This legislation has a long way to go. The version of health care reform offered by the Senate Finance Committee needs to be combined with the version being considered by the Senate Health Committee. The Senate then needs to vote on and pass a bill. The House of Representatives also needs to vote on and pass its version of the health reform bill (H.R. 3200). Eventually the bills that pass both the House and the Senate need to be combined, voted on, passed and presented to the President.

None of this will happen without more changes and compromises, and even then it may not gain the votes needed to succeed.

Please share your thoughts and join the discussion. What issues should health reform address? What are your experiences with health care?

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Podcast 23: Haggling and Negotiating From Hostage Crisis to the Grocery Game

by Flexo on September 27, 2009

in Podcast

Our theme for today’s podcast is haggling and negotiating. The first guest in today’s Consumerism Commentary Podcast is Herb Cohen, author of You Can Negotiate Anything and adviser to Presidents Jimmy Carter and Ronald Reagan. Herb speaks about the experiences that led to his work in high profile negotiations and offers tips for everyday haggling based on these experiences.

Also appearing in today’s Podcast is Teri Gault, author of Shop Smart, Save More and creator of The Grocery Game. Teri Gault proved listeners with specific advice for negotiating in retail stores and finding the best coupons online.

To listen, use the player above (Adobe Flash required), download the podcast here, subscribe to the podcast RSS feed, or use the iTunes link. Note: open links in a new window (Ctrl-click or Command-click) to avoid interrupting the podcast.

[00:00] Introduction from Flexo
[00:51] Interview with Herb Cohen
– [01:27] Herb Cohen’s history as a negotiator
– [04:46] Herb’s work as an adviser to Presidents Carter and Reagan
– [12:33] Understanding the needs of both parties
– [20:30] The right mentality for haggling
[23:31] Interview with Teri Gault
– [23:45] The Grocery Game
– [24:07] Negotiating with store employees
– [25:14] Using leverage
– [28:40] Uncommon places for negotiation
– [31:48] Haggling with professionals
– [32:58] Teri’s favorite haggling story
– [34:29] Finding coupons online
[36:54] End

We always welcome feedback from listeners. If you have any comments for this episode or for any other, or if you have suggestions for future episodes, please leave us comments here or email us at podcast at this domain name.

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