Buzzword: Recalibration

What it means. Calibration is typically associated with things like measuring instruments and electronics gear, which need to be tweaked for optimal performance. And President Barack Obama got into the calibration game after he reviewed his initial response to the July 2009 arrest of Harvard professor Henry Louis Gates Jr., saying, "I could have calibrated those words differently." When it comes to the U.S. economy and consumers, the key phrase these days is recalibration.

"We're in a state of recalibration," says Edward Farrell, a director of the Consumer Reports National Research Center, which produces the monthly Consumer Reports Index, the latest installment of which came out this week. His observation came after several months of uninspiring consumer sentiment in the CRI, a monthly telephone poll of a nationally representative sample of American adults.

Why the buzz? While green shoots might hint at a stabilizing economy, a full recovery hasn't arrived yet, and during this time of recalibration, American consumers have adjusted to that new economic by changing how they spend. "We've seen a loss of confidence by consumers in the old rules, for example, that they'll have more money in their house 10 years from now or that their 401(k) will help carry them through retirement," says Farrell.

Paco Underhill, retail consultant and author of Why We Buy: The Science of Shopping, agrees. "We are never going back to the we way were," he says. "Americans have had a considerable financial shock. Virtually everybody has traded down, and conspicuous consumption is now viewed as bad manners."

None of this bodes well for holiday sales. But neither Farrell nor Underhill is predicting a bloodbath from now through Black Friday and beyond. "A rally might actually be under way for retail heading into the holidays, with personal electronics leading the charge," says Farrell. He notes that according to the latest CRI, a quarter of consumers plan to buy personal electronics this month, up 5 percentage points from October.

Underhill anticipates healthy sales for comfort gifts, such as food baskets, fine wines, and beauty products. "I think this holiday season will be better than many retail pundits are predicting because people want to show compassion in troubled times." For his own gifts, Underhill says, "When people ask me what I want, I tell them one pair of black cashmere socks. They are warm, they are eminently practical, and I wouldn't buy them for myself because they're expensive. But for $20, it's the ultimate answer of what to get an aging male."

Farrell would like to see continued stability in the Consumer Reports Sentiment Index, which captures respondents' attitudes regarding their financial situation. "Yes, we want people to spend and save responsibly," he says. "But we also need there to be a feeling of optimism."

Without that, instead of talking about recalibration we could be discussing a lost decade. Also check out our growing roster of Buzzwords.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: Follow all the news related to holiday shopping by following Tightwad Tod on our Money blog.

Buzzword: Pop-up store

What it means. "A store that opens in an empty retail location and then deliberately closes after a few weeks or months," writes Paul McFedries, of Word Spy: The Word Lover's Guide to New Words. McFedries cites a couple of references to pop-up stores in recent articles in the Los Angeles Times and the Chicago Tribune and indicates the earliest citation is from 2004, although jeans giant Levi's is credited with having pioneered the pop-up concept in 1999 with temporary digs in New York City.

Why the buzz? While pop-up stores are nothing new, you'll likely see more of them thanks to the proliferation of vacant retail locations brought on by the recession. Michigan-based Halloween USA, for example, currently has more than 250 pop-up stores nationwide. Expect to see more pop-up shops between now and the end-of-year holidays.

Many major chains, including the Gap, Target, and Toys "R" Us, have signed short-term leases in empty spaces, hoping their pop-up emporiums will generate buzz about a new product or be a cost-effective way to venture into a new market. "It's something that's just getting bigger and bigger every day," Marshal Cohen, chief industry analyst at market research firm NPD Group, told the Los Angeles Times.

The pop-up model has even gone green. BoHo Bodega (shown), which was located on the border of the Lower Manhattan neighborhoods of SoHo and NoLita during its recent October 21-25 run, called itself the "world's first eco-educational pop up shop." The store, done as a partnership with the Council on the Environment of NYC, sold eco-friendly versions of household products, food, and beverages. The items were marked down considerably in the hope that once shoppers go green, they won't go back.

Pop-up stores are often able to offer their merchandise at discount because of their generally low overhead. So if one appears in your neighborhood, it might be worth popping in.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: Seen any cool pop-up stores in your area? Let us know by leaving a comment below. And with the $300 million State Energy Efficient Appliance Rebate Program expected to go live later this year, maybe some manufacturers or retailers will open up cash for clunkers for appliances pop-up stores.

Photo courtesy of Makemakes.com

Cash for clunkers could help appliance industry . . . but companies might have to wait to see benefits

Year-over-year shipments of major appliances dipped 6.7 percent in September, according to the Association of Home Appliance Manufacturers. This decline keeps the recession-ravaged industry in the red for the year compared with 2008, but following steeper drops in shipments the two previous months—9.4 percent in August; 19.1 percent in July—the outlook for appliance makers might be improving.

The Consumer Reports Index for September showed a similar uptick in "majaps," industry lingo for major appliances like refrigerators, dishwasher, ranges, washers, and dryers.

Amid the industry's cautious optimism over the upswing is concern that the nascent recovery could be squashed by the U.S. Department of Energy's $300 million State Energy Efficient Appliance Rebate Program, otherwise known as cash for clunkers for appliances. That's because many states won't roll out the rebate program until early 2010, keeping prospective buyers on the sidelines.

The appliance industry yesterday held what it labeled the "Federal Appliance Rebate Media Briefing." During the teleconference, one reporter asked representatives from Bosch and Sears whether they're concerned that sales will be hurt by the delay in launching cash for clunkers for appliances. "Half of appliance purchases are based on upgrades or people moving into new homes. Those sales might be delayed. But you really can't delay a broken washer or a refrigerator that's not working," responded Doug Moore, president of home appliances for Sears.

John Farley, senior brand and environmental-marketing manager for Bosch Home Appliances, conceded that promotion of cash for clunkers for appliances might be a bit premature. But he added that it "has driven a lot of conversation in the press to raising awareness of the benefits of high-efficiency appliances. As awareness is raised, consumers go online and find out that there are [other] rebates available right now." Farley plugged the Bosch Rebate Resource Center, which includes special offers from Bosch alongside details about individual state incentives. One example: Bosch is offering a $100 to $200 rebate (in the form of a prepaid Visa card) on the purchase of any eligible Vision series washer. (We're expecting  manufacturers and retailers to introduce pages on their sites where you can find information on rebates related to cash for clunkers.)

Whether you're going to buy new appliances now or wait for the cash for clunkers kickoff, we recommend you consider not only how efficient a product is but also its performance, reliability, and cost.

For example, the Bosch Vision 500 Series WFVC5440UC front-loader, earned an excellent score for energy and water efficiency. But the $1,100 front-loader's washing performance was just middling—most front-loaders deliver much better washing performance. What's more, based on its vibration and noise test results, you might not want to install this model near main living spaces or on a second story with standard wood-suspended floors.

As always, we'll keep you up to date on the new models we've tested in our Inside Consumer Reports Test Labs posts and the latest news surrounding cash for clunkers for appliances.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: Lean about the best places to buy appliances and visit our appliance-reviews page to find links to free buying guides for appliances large and small.

Get the best deal on a new mattress

"They say the media doesn't report good news, but I come before you today with three nice-sounding numbers: 7, 12 and 15. Those are three estimates of how much growth the mattress category will record next year. Yes, you heard us correctly. We said 'growth.' That's not a word that has been heard in Mattressville in recent years."

That's how David Perry, executive editor of Furniture Today and the writer of the Bedding Today blog, started a recent post about the latest mattress-industry forecast by the International Sleep Products Association. The projections Perry mentions represent a 7 percent growth in the dollar value of mattress shipments in 2010 and a 12 to 15 percent dollar gain for the industry.

Unless you're a mattress maker or retailer, your interest is not in industry trends but in getting the best deal from a reputable dealer on the right mattress. Our October 2009 survey-based report, "Would You Buy That Mattress Again?" can help you find the best mattress brands and the top mattress retailers (ratings available to subscribers).

Essential information: Before you buy, also check out our free buyer's guide to mattresses.

Tip of the Day: Find the best freezer for your home

Freezer sales rose last spring, as more Americans apparently made bulk to purchases to stretch their food-buying bucks. But an inefficient freezer that delivers inconsistent temperatures will melt away your savings through higher electric bills and damaged food.

Our new video buyer's guide to freezers (right) details the strengths and weaknesses of some popular models of chest and upright freezers we tested. For more details on these appliances, check out our latest report on freezers, free buyer's guide, and ratings of 20 models (available to subscribers).

Once you've chosen a model, find the best places to buy appliances. Also be sure to take advantage of federal, state, and local governments tax incentives and rebates for freezers and be on the lookout for details on the $300 million State Energy Efficient Appliance Rebate Program, commonly called cash-for-clunkers for appliances.—Gian Trotta | e-mail | Twitter | Forums | Facebook

Essential information: Follow these easy instructions for freezing food.

Shake On It: Bartering booms during tough economic times

In these tough economic times, more Americans are bartering goods and services. In fact, barter postings on Craigslist have tripled in the last 24 months, according to Craigslist spokesman Doug Kohl.

If you need work done around your house—be it landscaping, painting, or carpentry—and have a service or product to offer in exchange, bartering might be a good way to save yourself some money and/or get rid of goods you no longer need or use.

New bartering sites have popped up, including the Hudson Barter Exchange (HBX), covered in this recent WCBS Newsradio 880 report. The exchange hopes to make bartering goods and services easier and more flexible for individuals and businesses in the New York City suburbs.

"We're passionate about what we're doing because we're helping small businesses conserve cash, sell their extra capacity, and get incremental business in these tough times," says Kevin Brown, cofounder of the Elmsford, New York-based exchange.

The exchange currently has more than 170 small- and midsized businesses and service providers, with plumbers, lawyers, printers, and massage therapists among its members. Members log on, see what services are available, and agree to perform them in exchange for trade credits that they can redeem with any other member. (The screen shot from the site shows the page of a landscaper who's a member.)

So a plumber who fixes a leak for a dentist can swap services with that doctor. But if the plumber has excellent dental insurance and doesn't need to swap with the dentist, he can instead barter with another exchange member to, for example, mow his lawn or handle legal matters. "Everybody works at their customary price; if a massage therapist normally charges $90 for a massage, that's the barter value," Brown notes. "This helps businesses avoid the common problem of undervaluing their services in a one-on-one barter exchange."

But the main benefit, Brown feels, is the chance for members to convert exchange clients into cash-paying ones and tap into new territories. "We introduce you to firms that you're probably not doing business with," he says. "A landscaper, for example, is not going to get a call from six towns away, but if he does an exchange job in a dentist in that area, people will see his truck and might use him for cash-based business." (Use our resources to find and vet a contractor and read our post on Sears' ServiceLive contractor-referral service.)

HBX members can also offer unused new merchandise for exchange. "Some of the lawn-care places can trade some fertilizer they won't be using this season for advertising or printing services they will need when they get busy again in the spring," Brown says.

The Hudson Barter Exchange charges a $295 membership fee, a 7 percent transaction fee on all sales and purchases and a $38 monthly administration fee (half in cash, half in barter credits). In return, members benefit from the site's marketing efforts, including promotions via e-mail and fax and networking events. Eighty members attended a September 15 networking event at a restaurant. "They were very enthusiastic about meeting like-minded people they could sell to," Brown says.—Gian Trotta | e-mail | Twitter | Forums | Facebook

Essential information: Visit the International Reciprocal Trade Association Web site to find or form an exchange in your area. Learn more about selling, buying, or swapping goods on Craigslist and make your garage or yard sale a successful, lucrative one.

Forum Friday: Readers sound off on how to find the best mattress

As part of our latest report on mattresses, more than 17,000 Consumer Reports and ConsumerReports.org subscribers rated the best mattress brands and retailers (available to subscribers). Check out these discussions on our Home & Garden forum to share your opinions on mattresses:

• Successful mattress shopping: Read about one commenter's positive experience with the Original Mattress Factory, one of the top-rated brands and retailers in our survey.

• Caveats when comparison shopping: "It is common knowledge that virtually identical mattresses have different names at different stores," noted one commenter (our own research confirms this situation). He revealed how shopping around saved $500 off the price of a $1,899 mattress and how one manufacturer made slight changes to a model to avoid having to honor price-matching guarantees. Another required additional fees for delivery.

That message was followed by dozens of others in which people discuss common mattress myths and share their own positive and negative experiences with other mattress brands and retailers.

• Water beds? Although we did not include them in our survey, one commenter did share his experiences with a $500 model.

Essential information: Our free buyer's guide to mattresses and our past comparisons of high-end mattresses from Duxiana, Select Comfort, and Tempur-Pedic and two different models from Sealy can help you find the right mattress.

Q&A: How do I recycle my old cookware?

I just bought a new set of cookware. What's the best way to get rid of my old pots and pans?

Selecting the right cookware is easy, but getting rid of an old set, especially a 10-piece ensemble, isn't so obvious. You can donate usable pots and pans to Goodwill or the Salvation Army or list them on Freecycle. If the cookware is unusable, contact your municipal department of public works to ask about recycling.

Now, if you buy Calphalon's new Unison cookware, you can send your old set, no matter its condition or manufacturer, to Calphalon for free recycling. You pack your old set in a box that comes with your new cookware, attach the prepaid mailing label, and drop it off at a FedEx location.

Calphalon will take nonstick and uncoated cookware. (Glass and plastic items are not accepted.) After sorting, the pots and pans are sent to a company that processes the metal for reuse. 

Among other corporate recyclers, some Walmart stores collect used auto batteries, tires, and motor oil; Costco recycles electronic items; and Home Depot and Ikea take used compact fluorescent lightbulbs.—Kimberly Janeway | e-mail | Twitter | Forums | Facebook

Essential information: Check out our latest ratings of cookware (available to subscribers), which covers nonstick, uncoated, and green cookware.

Weekend Project: How to hold a successful garage sale

National Garage Sale Day will take place this year on Sunday, August 9, and my family will observe the event by taking part in a multifamily sale near our Connecticut home.

We know we're going to face some competition. The recession has spurred a recent rise in yard sales, with Craigslist seeing a 200 percent increase in yard-sale listings over the past two years. (The photos show people in Clarkrange, Tennessee, seeking deals at a stop on what's been called the "World's Longest Yardsale," which is wending its way over 654 miles from Alabama to Ohio from August 6 through 9.)

Follow this advice if you're planing to hold or shop at a garage, yard, tag, estate, or stoop sale this weekend or any other time of the year:

Don't buy a summons. Check with your local municipality to see whether you need a permit to hold the sale and whether there are restrictions on the types of signs you can use and the places and periods during with you can display them.

Aim for peak traffic. Schedule your sale for dates when other local events boost road or foot traffic near your home.

Use effective signage. Create some eye-catching, long-wearing signs; Microsoft offers some templates. Corrugated cardboard and plastic signs resist inclement weather better than cardboard or posterboard signs, and you can reuse them for future sales.

Build buzz online. Post notices on free classified sites, including Craigslist. "Mention big-ticket and 'hot' items such as toys and sporting goods in your ads to stir up interest,' says Donna Smallin, a professional organizer and the author of The One-Minute Organizer: A to Z Storage Solutions: 500 Tips for Storing Every Item in Your Home.

If you're a pack rat and want to organize your home, read our "10 Questions for . . ." interview with professional organizer Katherine Steiger.

Price items to sell. "Place yourself in the position of the buyer and think about what someone without an emotional history with the item would pay, not what you want to get for it. If you can't think about the item that way, maybe you're not ready to part with it," says Tobie Stanger, a Consumer Reports senior editor who covers personal finance.

Don't sell unsafe products. It's now illegal to sell any product that has been recalled, as the experts on the Consumer Reports Safety blog have reported. Check out this booklet from the U.S. Consumer Product Safety Commission (PDF) or www.recalls.gov for more details.

Sell items with a broad appeal. Place a mix of your most compelling items for men, women, and kids closest to the street to turn passers-by into buyers. Hang and sort all clothing by type (men's and women's and, or shirts and pants and sweaters), and keep a mirror handy if you're selling accessories.

Turn out the tables. Use easily transportable fold-up tables to display your wares, then sell the tables themselves as they get cleared of goods during the sale.

Also place fresh batteries in items that require them and keep a live source of electricity handy so shoppers can turn on/off equipment and try it out. For items for which you have the original boxes, display them outside their boxes. If you have the owner's manual and product reviews (say from Consumer Reports), place them in plastic bags taped to the boxes.

Keep change on hand. To speed transactions, be sure you have a supply of one- and five-dollar bills and change as well as a calculator on hand.

Buzzword: 3/50 Project

What it means. The 3/50 Project is a campaign to support local merchants. The concept has spread to communities nationwide, and its premise is simple: First, choose three local independent brick-and-mortar businesses—clothing shops, food stores and restaurants, and for the home, independent appliance retailers, hardware stores, and garden centers—that you find essential and want to keep from going under during the recession. During tight times like these, independent retailers suffer since budget-minded consumers are more inclined to shop at chain stores and big-box behemoths.

Then spend $50 or more among those places each month. If enough people in a town make the pledge, the theory goes, the pooled-together funds will prop up mom-and-pop enterprises and help sustain local business districts.

Why the buzz? What started out as a passing thought by retail consultant and blogger Cinda Baxter late last winter quickly spread throughout the blogosphere and onto Main Street. Buy-local campaigns are now in 100 U.S. communities, according to The Wall Street Journal, and the 3/50 Project Web site says 8,500 businesses are participating in the program.

“Most consumers don’t realize that so much more revenue stays in the community when they buy locally,” says Baxter. For every $100 spent at independents, she says, $68 comes back through taxes, payroll, and other expenditures. At national chains, the return falls to $43. Not that Baxter wishes an end to every Home Depot, Costco, andPetSmart . “It’s not an all-or-nothing message,” she says, adding that there are some products that you might only find at chains. “It’s about balance.”

There’s another reason to frequent local retailers: You might have a better all-around shopping experience. In a recent survey by the Consumer Reports National Research Center, 25,000 subscribers told about their latest experience buying appliances. (Read the entire report to find the best places to buy small and large appliances.) In terms of overall satisfaction, independents were the highest-rated retailers of major appliances and second only to Amazon.com for small appliances. Respondents were especially satisfied with the service, checkout ease, and staff knowledge of their local retailers.Walmart, by comparison, received some of the lowest marks in these categories.

Prices do tend to be higher at independent shops, but negotiating a better deal can be easier at independents, especially if you pay cash, since these stores will appreciate not having to pay a transaction fee to the credit-card company.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: Before you hit the (local) stores, use our recently updated Kitchen-Planning Guide to find the best appliances and materials.