Cyber Monday sets record for online sales

For everyone who thought Cyber Monday, touted as the kickoff to the online shopping season, was a gimmick concocted by Internet retailers to piggyback on all of the Black Friday hoopla, here’s a bulletin. Consumers spent more money on Cyber Monday, Nov. 27, than on any other day in the history of e-commerce, according to comScore Networks, which tracks all things digital.

Spending reached $608 million, up 26 percent versus the same day last year, comScore reports. It was also the first day ever in which online sales topped $600 million. Business wasn't shabby on Black Friday either: online retailers racked up $434 million in sales, up 42 percent from last year. The cyber trackers at comScore said they expect even bigger sales records to be set within the next few weeks.

Cyber Monday is the day most people return to the office after the long Thanksgiving weekend, and start looking for bargains online. Apparently, there was more shopping taking place last Monday than actual work.

Extended warranties remain a hot topic

Two weeks ago, around the time our special report on extended warranties was released, Consumers Union’s Public Policy & Advocacy Office (for the uninitiated, Consumers Union is the publisher of Consumer Reports) sent a few questions to their list of E-activists (425,000 people who regularly receive Consumers Union emails on timely advocacy topics), asking them about their extended warranty experiences and attitudes. As of earlier this week, over 5,100 E-activists had gotten back to us. Their take is interesting and illustrative of the wide difference of opinion people have about extended warranties. And they come with a pretty big disclaimer: Take the results with a large grain of salt. They’re not scientific or subject to any sort of rigor. It’s not a survey nor does it even rise to the level of a poll. Our Advocacy folks simply wanted to get a sense of what a select group of people are thinking.

Not surprisingly, the answers reflect a split in public opinion about extended warranties, despite persuasive evidence that they usually don’t pay off. (Even many of us on the inside here at Consumer Reports have been tempted from time to time because the sales pitches sounded too good to pass up. We won’t name names, but you all know who you are.)

Next time temptation strikes, think about the following anecdotes, both pro and con, from those who wanted to share their stories. Most interesting are the comments from people who claim to be current or former retail employees who sold the warranties.

“I used to make an average of $100 a week in cash by selling extended warranties! Sometimes, during Xmas, we would get a party or a night out for the biggest sellers. I won a lot, which I am not proud of. I felt bad selling them to older people on fixed incomes. Today, it is a different world for me. If I worked now, I wouldn't ever let anyone buy one.” – Tustin Ranch, Calif.

“I worked for a company that used them (extended warranties) to bring more money to the bottom line. (They) very rarely benefited the consumer.” – Chula Vista, Calif.

“My manager bought a DVD player from our store (part of a national chain), along with the extended warranty. When her unit died, she followed the instructions to claim her replacement item. Eight e-mails, seven faxes, and at least 10 calls to the help center, and after 3 months, she still didn't have her DVD player. After going up the chain of several supervisors, she finally told them that she was an employee of the company and would take this claim to the vice president. She finally got the replacement item after almost four months of runarounds and aggravation. Needless to say, I don't offer the extended warranties to the customers that come through my checkout lane anymore. It is now my store's policy to ‘make it right’ for the customer whenever they come in with a return”. – Magnolia, Ky.

“I work at a boat dealership, and extended warranties for marine engines make sense. The extended coverage might cost $200 or $300, while a typical major marine repair can easily run $1,000 or $2,000. Our customers who purchase them (warranties) often end up relieved that they did. A standard joke in the boat business, regarding the cost of maintenance is that the word ‘BOAT’ is an acronym for "Bring Out Another Thousand!" – Vancouver, Wash.

“When I bought my riding mower from Sears, I bought the extended warranty for around $299 for 3 years. I had three tires replaced; with the service calls that would have cost over $299. I had a new carburetor put on, and they also included oil changes and other to keep the mower running smoothly. I figure I saved over $600 over those 3 years.” – Fort Myers, Fla.

“We purchased a Maytag Neptune front-loading washer and dryer when they first came on the market. The salesman included in his presentation the fact that other relatively new buyers had leaking problems in the door seal. By virtue of the substantial savings in water and electricity, we made the purchase and included the extended warranty. Two years later, the door seal was bubbling and discolored from mold. The service technician cleaned the soap filler tube and replaced the door seal. Watching what was involved in taking apart the washer made the extended warranty worth the money.” – Menomonee Falls, Wisc.

“I do buy extended warranties, but only after negotiating the price of the warranty to 50 to 60 percent of the original offer price. If the retailer won't budge, I won't buy. I bought an extended (5-year) warranty on a new Canon multi-function printer in 2001, negotiating the warranty price. The unit broke in year four, and I received a brand new in exchange. Of course, there are other warranties that I've bought and not received value from, but I always paid much less than the offer price on the warranty. Consumers have a right to negotiate.” – San Marino, Calif.

“I recently purchased from Best Buy a new DVD/RW drive for my computer. The drive was $49.95. When I was checking out, the clerk chuckled and said, ‘I'm required to ask you this, but it seems rather silly. Would you like to purchase a 3-year extended warranty for $49.95?’ I laughed and declined. ” – Austin, Texas

“Over the years I have purchased two or three extended warranties. Either the product didn't break or I misplaced or forgot the warranty. I don't do it anymore.” – Albany, Calif.

Many happy returns?

Electronics prices are low everywhere, but return policies vary by retailer

By James K. Willcox

As we’ve been reporting for several weeks now, many consumer electronics items, such as flat-panel TVs, are at all-time low prices, and it’s become almost a game to see how cheaply you can get the TV you’re looking for. But after examining how various retailers are handling electronics returns, you may want to look beyond the cheapest price and consider what will happen should you need to return or exchange your holiday purchase.

That’s because with prices so competitive, many retailers are tightening up formerly liberal return policies, and are charging fairly significant restocking fees -- typically 15 percent to 25 percent -- on opened items. In addition, many dealers are now using computerized systems to monitor and limit returns, so if you’ve returned several items to a store previously you may find yourself on a black list that could make it tougher to return items in the future.

To help sort out how product returns can differ from retailer to retailer -- and even how online and in-store purchases are handled differently within the same company -- we took a look at the return policies of several prominent electronics retailers. The paragraphs below are only a summation of a store’s key return policies as they pertain to electronics -- we suggest visiting the company’s Web site for a complete listing of the terms and conditions for product returns.

Here’s what we found:

Amazon.com
For the holidays, Amazon.com has extended its normal 30-day standard returns, so that any item shipped by Dec. 31st can be returned by January 31st. To receive a full refund, new, unopened items should be returned in their original packaging, and the company pays shipping costs if the return is a result of their error or if the product is defective. Amazon won’t accept: computer returns more than 30 days after their delivery; any product missing a UPC code or serial number; or items purchased from sellers (i.e. affiliates) other than Amazon.com. Partial refunds are given for most items returned after 30 days, or for items that have obvious signs of use. There is a 15 percent restocking fee on any opened laptop or desktop computer if returned within 30 days. Any unopened electronics item returned more than 30 days after delivery (or after Jan 31st for Holiday Returns) will be charged a 20 percent restocking fee, and any returned electronics item that are damaged (by the user) or missing parts may be charged a restocking fee of up to 50 percent. TVs 27 inches and larger are handled in two ways: if defective, the shipper, Eagle Freight, will contact the customer to make pick-up arrangements and deliver a replacement; if unwanted, Eagle will contact the customer to pick up the returned item, with cost of return shipping (generally $150) deducted from the refund amount. Additional charges may be levied for missing items, such as a remote, manuals, etc. Third-party sellers on the Amazon site are handled differently, depending on whether they're part of the Amazon Merchant program (such as Macys), an Amazon Marketplace seller or an Amazon Auction.

Best Buy
The chain requires store returns to include the packing list/receipt, and you to have a form of ID. The item has to include all accessories, packing materials and manuals to avoid additional fees. Online purchases need all the above (minus the ID), plus the packing label that was included with the purchase, along with the reason for the return. Desktop and notebook computers, monitors, printers, projectors, camcorders, digital cameras and radar detectors must be returned within 14 days of the date of purchase; other items, including online and in-store TV purchases, have a 30-day return period. However, the company has an extended return and exchange policy for the holidays (January 8th for 14-day items, January 24th for 30-day products), but desktop and notebook computers are exempt from it. The customer pays for return shipping, except for incorrect or defective items. A 15 percent restocking fee is charged on the above items if opened; a 25 percent restocking fee applies to special-order items and appliances. TVs aren’t charged a restocking fee if returned with all the original contents and packaging intact. Online orders of televisions cannot be returned to the store for a refund. A return pick-up must be scheduled within the 30-day return period, and you’ll receive a credit back to the original method of payment. Best Buy will cover all return shipping charges if the unit is found to be damaged, defective, or the wrong item. BestBuy.com does not support exchanges. If the TV is defective, you can use (within the 30 days) a Quick Service Advantage) program offered to customers living within 30 miles of a Best Buy store. Call the company and it will send a technician to your home within 48 hours (customers further away can get the service, but not the 48-hour turnaround time). There are no restocking fees for TVs, but there will be charges for lost or missing accessories and documentation. Free promotional items bundled with products must be returned with that product, or their value will be deducted from the refund amount. Installation services are not refundable.

Buy.com
All returns have to be accompanied by the original packaging, all accessories (remote controls, batteries, cables, software, etc.) and documentation (owner’s manuals, warranty cards, etc), intact UPC bar codes, a return Authorization (RA) number, and the original packing slip. The RA must be written on the return label or shipping box (not the manufacturer’s packaging or box). You have 14 days from the date the product left the warehouse (not the delivery date) to get a valid RA from the Web site and get the product to a shipper. Unless the item is defective, you’re responsible for shipping charges. All products are subject to a 15-percent restocking fee if opened or in a non-factory-sealed box. There is no restocking fee for defective merchandise. If the merchandise is accepted by Buy.com in “like new” condition, the purchase price will be credited to the card used for the purchase. Defective products can be exchanged for the exact same product, but must be returned within 14 days of the date the item left the warehouse. Special Return policies apply to certain items, including “over-sized TVs” (27 inches and larger), which may not be returned at all. You must inspect the TV prior to the shipper leaving, and refuse damaged goods at that time. After that, you have to deal with the manufacturer and its warranty. “Deal of the Day" and Clearance Store items are returnable only if defective.

Circuit City
Most returns/exchanges are covered by a 30-day return policy, but many electronics items -- including digital cameras, camcorders, desktop and notebook computers, printers, scanners, projectors, PDAs, portable video, GPS and Radar detectors -- must be returned within 14 days of the sale date; opened/non-sealed boxes are subject to 15-percent restocking fees. The chain is running an extended holiday returns policy, so that items purchased up until December 25 can be returned until January 25^th (computers and other 14-day items have through January 8^th). Home theater seating products must be returned within 14 days of the sale date, and are subject to a 25-percent restocking fee if opened or in a non-factory-sealed box. There are no restocking fees for open-box items, or for defective products returned in exchange for the exact same item. All items can be returned to a store; mail returns require a Return Authorization (items sent without one will be refused). To receive a full refund or exchange, you’ll need the original receipt (or record of purchase), and the item must be in its original condition and include the box with UPC bar code intact, along with all packaging materials, any accessories, and manuals and documentation (the cost of missing items will be deducted from the refund). Installation services aren’t refundable.

Costco
Costco has the most liberal return policy we’ve seen. All merchandise is “100-percent guaranteed” for its life, except for desktop and notebook computers, which have to be returned within six months of purchase (after that, the items are covered by the remainder of the manufacturers warranty). And shipping and handling fees are refunded. Items can be returned to the nearest warehouse location, or you can contact the company to make other arrangements.

Crutchfield
Another retailer with a liberal return policy, Crutchfield allows you to return any product within 30 days of receiving it; just make sure it’s in “like-new” condition, with all items and accessories in the original packaging. Call Crutchfield to receive a Return Authorization and the company will “gladly” exchange or issue a refund for full amount of the merchandise (not including original shipping). Crutchfield will pay for return shipping during that 30-day “evaluation” period, and no restocking fees apply as long as all the original materials are included and the item is returned in good condition. Some larger items, such as TVs or tower speakers that require freight shipping (versus UPS) are excluded from this free shipping offer, but there is no charge for returning damaged/defective merchandise.

J&R
J&R offers a 30-day exchange/refund policy for mail order and Web customers, except for TVs 20 inches and larger. For these larger TVs, you’d need to inspect the TV while the shipper is still there and refuse delivery if it’s defective. Once you accept delivery, J&R will deal with the situation “on a case by case” basis, a representative said, with the company either making an exchange or asking you to deal directly with the manufacturer. As long as the product and all accessories, inserts, manuals and packing materials are included and are in “new” condition, there are no restocking fees. You need to include the original invoice and a Return Authorization number, and nothing should be written on or taped to the manufacturer’s carton. The package and its contents will be inspected, and you could be charged for replacement of damaged/altered/missing contents. All items need to be shipped back freight prepaid (i.e. you pay for return shipping), and packages without a valid Return Authorization will be refused. Mail order and Web purchases can be returned to the company’s New York City retail store.

Sears
Returned items need to be in their original packaging, accompanied by the original packing slip and a Sears.com order confirmation email. There is a 30-day return window for home electronics, although it is extended to 60 days for holiday purchases made through December 20^th. There’s a 15 percent restocking fee for home electronics not returned in the original box, unused and containing all the original packaging, accessories and materials.

Target
In-store returns should be accompanied by a receipt, and need to be in as-new condition and include all accessories, manuals and packaging for you to receive a replacement, exchange or refund. At Target.com, full refunds are issued for most items returned within 90 days if in as-new condition. Most items can be returned to a store if you prefer, if accompanied by a receipt or gift receipt and a form of personal identification. Damaged or defective items will be replaced, but not exchanged. Camcorders, digital cameras, portable DVD players and MP3 players purchased from Target.com are subject to a 15 percent restocking fee, and TVs 40 inches and larger can’t be returned without the original packaging.

Wal-Mart
Everything in the store can be returned within 90 days with a receipt, except: computer components and accessories (45 days); camcorders and digital cameras (30 days); and computers, cell phones, digital music players, GPS units and portable video players (15 days). Online purchases, accompanied by the invoice and all original packaging and accessories, can be returned to a store’s Customer Service desk for an immediate credit or store credit (including the sales tax). Some oversize items, including TVs, can be returned to a store or sent back via freight, and there are some circumstances under which you’ll be charged for shipping. For incorrect or defective items, you’ll get credit for shipping and gift-wrapping.

Where to find Cyber Monday deals

If you didn't get your fill of shopping on Black Friday, the day after Thanksgiving, you've still got today, Cyber Monday, to hunt for bargains. But don’t tell the boss. Just as Black Friday symbolizes the beginning of the overall holiday shopping season, Cyber Monday is the day many people return to work and start their holiday shopping in earnest on the Internet. And it’s one of the busiest shopping days of the year. Overall, an estimated 61 million people are expected to shop from work during the winter holidays.

To attract customers to Web sites on Cyber Monday, many merchants offer special promotions and sweeten their deals by offering free standard shipping, deferred interest payments, and bonus discounts.

The National Retail Federation, which coined the term Cyber Monday, has established a helpful and well-organized Web site, where you can easily check out the carrots being dangled by nearly 400 well-known retailers specializing in everything from apparel, electronics, and recreational equipment to toys, pet goods, and jewelry. Some of the offers expire on Tuesday; others are good for a lot longer. Also, you may have to enter a special promotion code to get the deal, and not all purchases qualify. So be sure to read the fine print.

Don’t forget to check out the bots

Has there ever been a word more overused than “sale” is this time of year? Promises of double-digit discounts are so common that it can be difficult to tell if you’re really getting a bargain – unless you have something to compare it to. When retailers tout big price reductions you need to remember that those generous discounts are based on the percentage taken off the full list price, not necessarily the price the product ever actually sold for. Paying list price for most goods is like paying sticker price for a car. Few people do so.

So how can you tell if you’re really getting a great deal? Enter the shopping “bot.” Online shopping bots can connect you to dozens of retailers selling the product you seek, sometimes at significantly different prices. Among the better-known bots: BizRate, DealTime, Froogle, MySimon, Shopping.com, Shopzilla, and Yahoo Shopping. BizRate and Shopzilla are affiliated, as are Shopping.com and DealTime, and you’ll generally get the same results in each of those pairs. (ConsumerReports.org offers a Shop Online tool in conjunction with Yahoo, but neither it nor Consumers Union, its nonprofit publisher, receives any revenue from merchants or from Yahoo.)

We haven’t formally rated bots, but recently one of our reporters did a little digging, shopping at each for the same digital camera and plasma TV. We found you’ll have a more successful bot experience if you follow these steps:

• Try more than one. Different bots scan different sets of retailers, which sometimes overlap. If you use two or three bots, you’ll find results from dozens of merchants
• Sort by price. Bots often make their money by charging the stores they search a per-click fee, and some put retailers that pay a premium at the top of the results list, whether or not they have the best deals. So check whether the bot lets you sort by price.
• Get the real deal. Shipping and taxes can add substantially to your bill, especially on big-ticket buys. And not all retailers calculate shipping the same way. To compare what you’ll really pay, use bots, such as MySimon and Shopping.com, that calculate both based on your ZIP code and then let you re-sort by total price. Also, check on guarantees. Most bots make no guarantees regarding price, product quality, or even the reputability of the merchants. Once you decide to buy from a listed retailer, the deal is between the two of you.
• Know what you’re buying. Read the listing carefully to see whether you’ll be getting new or refurbished merchandise. If one retailer’s price is inexplicably lower than everybody else’s, it might be a refurb. Also check whether the item carries the full manufacturer’s warranty. Some gray-market electronics, not intended for sale in the U.S., will lack one, and you’ll have to deal with the retailer if something goes wrong.

Is the D40 the SLR for the rest of us?

Nikon says that its newest model “brings digital SLR cameras to a whole new level of simplicity.”
 

By Jeff Fox

If you're looking to pick up a digital SLR (single-lens reflex) this holiday season, but have balked at high prices, bulk and a confusing array of buttons and dials, Nikon has you firmly in its sights with its recently announced 6-megapixel D40 for (available in December for $600, including the lens).

At 5x2.5x3.7 inches and 1 lb. 1 oz. (without battery, memory card, or lens cap), the D40 is smaller and lighter than most SLRs. Its size and weight are virtually identical to Canon’s new 10-megapixel Digital Rebel XTi -- but that camera sells for about $750 to $900 online, including the lens.

The D40 has been designed to target frustrated owners of compact cameras who want to break away from problems like shutter lag, poor low-light performance and limited lens options, but don't want to deal with the added complexity that can come with owning an SLR. Nikon points out a range of features designed to appeal to first-time SLR owners (many of which, of course, are common to all SLRs):

• On the D40, controls and displays from Nikon’s higher-end cameras have been streamlined and accompanied by an intuitive user interface.
• There are eight preset modes (like those found on compact cameras) that automatically set exposure for subjects like landscapes, sports, and close-ups, including a “flash off” mode that turns off the flash while increasing the ISO setting.
• There are virtually no delays when you power up, after you press the shutter button, or between shots.
• You can shoot continuously for up to 100 shots (for images stored as JPEG files).
• The ISO range is 200 to 1600.
• There’s in-camera image editing that includes red-eye correction, brightening, cropping, and filter effects.
• As with most SLRs, you can do spot metering, save images as RAW files, and use the built-in flash at distances far greater than most compact cameras.

Of course, the D40 does have a few limitations. While most Nikon lenses are compatible with the camera, autofocus will work only with AF-S and AF-I series lenses. And automatic exposure won’t work with some other types of Nikon lenses. And unlike some other Nikon SLRs, there's no status LCD on top of the camera’s body.

From its initial announcement, the D40 appears to be a promising SLR that offers lots of big-camera features at a price and size competitive with sophisticated point-and-shoots. And you shouldn’t agonize over the fact that it doesn’t offer 10 megapixels like the Rebel XTi, Sony’s DSLR-A100 or Nikon's own D80. Having shot with a 6-megapixel SLR for more than three years, I’m certain that, for most people, 6 megapixels is enough.

 

Happy Black Friday!

Yes, after having our fill of tryptophan yesterday, we decided to sleep in today, so we don't have any reports from the front lines. However, that doesn't mean you can't find them elsewhere on the Web. Consumerist braved the lines so you wouldn't have to, and also culled a number of Black Friday specials, some of which are good all weekend. Oh, and if you've already had enough of the whole holiday shopping thing, we'd be remiss not to point out that, for some at least, today is also Buy Nothing Day. We'll be back Monday (assuming a weekend of bingeing on leftover turkey doesn't do us in) with our Cyber Monday tips for online shopping. -- MP

Let's call it Black Thursday

Don’t be so fast to loosen that belt and plop down in front of the TV after Thanksgiving dinner. There’s shopping to do.

Pity the poor retail employee. Not only do these hearty souls rarely get to enjoy an entire holiday off anymore, but now more and more must report for work soon after Thanksgiving dinner. We’ve never seen so many ads for sales at bizarre hours as we have this season.

For the first time, Comp USA and BJ’s Wholesale Club will be open on Thanksgiving day (yes, that's today) itself to give shoppers a jump on Black Friday. At many Chelsea Premium, Prime, and Tanger manufacturers’ outlet centers around the country, stores will open at soon as the clock strikes midnight Thanksgiving night, while the rest begin welcoming customers before the sun comes up Friday morning. Best Buy will open its doors at 5 a.m., but an hour earlier will hand out a limited number of tickets entitling those lucky few to remarkable deals on products like a Panasonic 42-inch plasma TV (model number TH-42PX60U, a Consumer Reports Quick Pick) for $999 -- $1,100 less than the price we cited in our report.

Wal-Mart decided to give its employees Thanksgiving off, but come Friday at 6 a.m., it’s back to business as usual. In an act of showmanship worthy of P.T. Barnum himself, Target hatched a promotion with magician David Blaine, who was hoisted by crane 50 feet above New York City's Times Square and shackled to a three-ringed gyroscope, where he’ll spin in all directions in full view of passersby and try to escape in time to usher in Target’s two-day sale early Friday morning.

With 63 million people expected to hit the malls sometime this holiday weekend, traffic, crowds, and long lines are inevitable. Are the sales worth it? That’s a tough call. Aside from those unbeatable “doorbuster” deals featuring a scant number of must-have products on a first-come, first-serve basis, you’ll probably to do just as well if you wait until the crowds subside a bit. So far this season, there has been a staggering amount of discounting online and in stores, as merchants make a grab for your business before the competition does. The minute one sale ends, it seems, another begins.

If, however, you view shopping as a social activity, a chance to immerse yourself in the holiday spirit and go elbow-to-elbow with fellow bargain hunters, we have a few tips to make your journey more rewarding:

• Before leaving home, visit the retailer’s Web sites for store hours, to download coupons for additional savings, get the scoop on unadvertised specials that won’t appear in any flyer, and learn about return policies and restocking fees. You can comparison shop and check to see if the item you want is available online, possibly sparing you a trip.
• Preview Black Friday specials online Thursday. Chains such as Wal-Mart, for instance, will be sharing a sneak peak at “secret” specials about to be offered.
• Ask if the merchant offers a low-price guarantee. If you’re planning a substantial purchase, like a high-definition flat-panel TV, you’ll have the peace of mind knowing that if the product goes on sale within 30 or so days of purchase, you can get a refund of the difference between what you paid and the lower sale price.
• Order online for in-store pickup. This can be a real time-saver. Circuit City and Sears, for example, allow you to place your order via the Internet, then arrange to pick it up locally. At Circuit City, your order is guaranteed to be ready 24 minutes after you place it. Sears promises your order in 5 minutes of showing your receipt at its merchandise kiosk. If they can’t fill it that quickly, you’ll get a $5 coupon toward your next store purchase.
• Use your store credit card. This is the time of year retailers typically reward customers who use their proprietary charge cards with bonus discounts. The discounts tend to be more generous if you buy online. Macy’s cardholders, for example, can save an extra 20 percent on clothes, shoes, and jewelry when buying online with the Macy’s charge card through Thanksgiving. Just be sure to pay off the balance immediately to avoid finance charges.
• Be wary of zero percent finance offers. The ads say buy now and make no payments until 2008 or so. While the terms seem attractive, be aware that if you miss a payment you may be charged the highest allowable interest rate and the interest may be retroactive to the date of purchase. Some of these offers also require you to pay off your purchase in a shorter-than-normal time period once payments commence. Read all terms and conditions carefully.

Our TV guide for Black Friday

If you intend to use Black Friday as your springboard to high-definition television, here are 10 Quick Tips for making your shopping experience a rewarding one

1. Read the fine print. Ads for Black Friday are out now, so scour them for hard-to-meet terms and conditions. Many deals stipulate that you have to be shopping at the store during specific hours, require special coupons, or make you pay the full price up front, then file for a rebate (which can involve an arduous redemption process). Also, check the ads to see if the item you want is only available “in limited quantities,” which will likely be sold out by the time you get there. And “limited time” offerings may only be available for a very narrow window of time.
   
   
2. Ask if the store’s 30-day price guarantee is in effect for sale items. If so, you’ll be protected against any price drops either by that store or its competitors for that period of time. It’ll help you sleep better at night.
   
   
3. Weigh the difference in prices between respected, high-quality brands and lesser-known models, and compare Black Friday prices to the TV’s regular selling price. You may be able to get a better deal on a higher-quality set, even though its purchase price is higher.
   
   
4. Don’t let a low price be only reason for purchasing a TV. Decide on several models you’d like to own -- and the features you think you’ll need -- before you start your Black Friday shopping. That way, you’ll get the best deal on a set you’d really like to own, not just one that that’s comparatively cheap.
   
   
5. Value your time. If a store requires you to get up at 4:00 a.m. or stand in line for hours, it may not be worth saving an extra $100.
   
   
6. Check the store’s Web site to see if the in-store deals are available online, enabling you to avoid the hassle and crowds. Some retailers may even offer the Black Friday specials a few days early (as in right now). Some, like Wal-Mart, may have Web-only specials not available to in-store shoppers.
   
   
7. Check the store’s return policy, and make sure that Black Friday specials aren’t exempted, or shackled by high “restocking fees.”
   
   
8. If financing the TV through a store’s “no payment, no interest” promotion, make sure you pay off the set within the allotted time. Most of these programs will back-date interest to the time of purchase, and charge very high interest rates, which could easily wipe out any sales savings.



9. Pay with a credit card, but pay it off immediately if you can. Some credit card companies will mediate on your behalf if there’s a dispute. Also, some credit cards will double the manufacturer’s warranty.
   
   
10. Try and negotiate for a non-sale item. While many of the Black Friday promotional sets will be at all-time lows, there may still be some wiggle room on other -- often better -- sets that aren’t included in the promotions. The retail margins may be better on these sets, so the store could shave a few dollars off the price and still do better than with one of the promoted models. – James K. Willcox

 

The latest brouhaha over extended warranties

The trade association representing the extended warranty community misinterprets Consumer Reports’ data about product failure rates, painting a misleading picture on why you should buy these costly service plans.

I guess we could have seen it coming. A week after Consumers Union took out a full-page advertisement in USA Today to dissuade Americans from purchasing extended warranties for most household products as largely a waste of money, the Service Contract Industry Council fought back with a similar ad of its own. In the ad, published on Nov. 20, the SCIC, which boasts more than 30 members including Sears, General Motors, Ford, and various companies that market, administer, and underwrite the insurance plans, exhorted consumers to give your loved ones and yourself “the gift that keeps giving” and the peace of mind that goes along with that.

That’s certainly the SCIC’s prerogative; after all, the association owes its very existence to the continued promotion and sale of these protection plans. Peace of mind -- not to mention heavy-handed sales tactics and overzealous salespeople overstating the risks of product failure -- are doubtless reasons people are expected to spend an estimated $1.6 billion on service plans for appliances, home electronics equipment, computers, and the like this holiday season.

But just as the SCIC has its position on the merits of extended warranties, we have an opposing point of view, based on years of surveying tens of thousands of readers about their product repair experiences.

In extolling the virtues of extended service plans, as the warranties are sometimes called, the SCIC cited Consumer Reports product repair data to help prove its case.

“According to a Consumer Reports Product Reliability Survey, 23 of 25 product types tested had double digit failure rates and needed repair within three to four years.”

While this may be true, the SCIC is playing fast and loose with our data. For the first two years of ownership, most products were extremely reliable. That’s an important distinction. And most extended warranties end after three years. If a product breaks in year four, you're out of luck.

Additionally, product breakdowns are not rampant, as the SCIC implies through its use of the words “double-digit failures.” It’s misleading because there’s no context. Product failures ranged from a low of 10 percent (digital cameras) to 43 percent (laptop computers), the latter being much worse than any product other than side-by-side refrigerators with icemakers and water dispensers. Most products had a repair rate of no worse than one in four or one in five, and remember, that’s after three or four years of ownership. You can improve your chances of getting years of dependable service by purchasing brands that have proved reliable in the past. That’s why Consumer Reports publishes Frequency-of-Repair data for big-ticket goods.

All of these details, however, only partly tell the story of why extended warranties don’t make economic sense most of the time. In order to cash in, the moons must be in perfect alignment. When you purchase an extended warranty, you’re placing a long-shot bet that a product is going to break and that it’s going to do so after the manufacturer’s warranty has expired but when the extended warranty is still in effect. Extended warranties don’t last forever; most average around three years (and take effect immediately, overlapping with the original coverage provided by the manufacturer). That’s a fairly narrow window of opportunity. Second, you’re betting that the cost of the repair will exceed the cost of the warranty. Most of the time, the readers we surveyed spent as much on the extended warranty as they did on the repair job.

We understand, of course, that a small percentage of people will get stuck with a lemon or be confronted with an unusually expensive repair job. Statistically speaking, someone is going to draw the short straw. But those are the exceptions rather than the rule. And it simply doesn’t make sense to let the tail wag the dog. Not only that, but think about this: Retailers now offer extended warranties for almost everything under your roof. We’ve seen them for $30 cordless telephones. Does it really make sense to purchase extended warranties for your dishwasher, television, DVD player, washer, dryer, stove, computer, and so on?

Insurance, be it for your car or for your home, is designed to protect you from catastrophic losses you can’t easily cover out of pocket. Product repairs simply don’t rise to that level.

If you have a low tolerance for risk, you can take one of two paths. We suggest you set aside the money you would have paid for a warranty and put it into a rainy-day repair fund that you can tap into in the unlikely event something breaks. If you’re still not convinced, you can go the extended warranty route. If you choose the latter, be sure the plan covers things like in-home servicing or pickup for heavy and bulky equipment, and ask whether you can get a loaner if your product is out of commission for a while. Some plans will automatically replace a broken product if they can’t fix it. So ask if there’s a replacement provision. We also advise against paying more than 20 percent of the product’s cost for a warranty. Another tip: Use your credit card to purchase big-ticket items. Many cards, particularly gold and platinum ones, automatically extend the length of the manufacturer’s original warranty for up to one year. Check with your card company for specifics.

Another point to remember: Extended warranties don’t generally cover damage from misuse, abuse, or normal wear and tear. So if you drop your laptop or camcorder, you may be out of luck. Read the fine print before signing, to see exactly what is or isn't covered; don't be intimidated by a salesperson to sign anything before you've had a chance to read it in full.

Shhh. Get ready for "secret" sales

Wal-Mart, Best Buy offer non-advertised "doorbuster” items

Think the Black Friday "doorbuster" prices on TVs we posted last Friday were crazy? Well, expect things to continue heating up right until the last minute. In an effort to thwart competitors who have seen leaked versions of their Black Friday circulars and adjusted prices and selections accordingly, several retailers will be offering secret, last-minute deals they hope will drive traffic to their stores on Friday.

For example, Wal-Mart is holding back some Black Friday specials, which it will unveil via its Web site on Thanksgiving, hoping the extra specials will send post-prandial purchasers scurrying back to the stores the next morning. The chain will also be offering some 60-odd items from their Black Friday circular to online customers beginning at 5:00 a.m. EST on Friday. 

Joining the fray is Best Buy, which has sweetened its Black Friday offerings with seven extra "secret items" that weren’t listed in its Black Friday ads. Among the items is a real shocker: a $999 price for Panasonic's 42-inch HD plasma (TH-42PX60U), which Wal-Mart will be selling for $1,294. That particular model is one of CR's Quick Picks as a top choice for a 42-inch plasma HDTV. (Ratings and recommendations are available to ConsumerReports.org subscribers.)  Also, note that the prices for many of the TVs mentioned in the Shopping Guide are now lower than listed due to the aggressive promotional  activity around HDTVs this time of year.

The other non-advertised items, all available only in limited quantities, include: 

• A $249 Toshiba Laptop
• A $129 Samsung MiniDV Digital Camcorder 
• A $129 Kodak EasyShare 7.1-Megapixel Digital Camera
• A $49 Samsung neXus 50 XM Satellite Radio and MP3 Player (YP-X5Z)

The 42-inch Panasonic model is the biggest brand we've seen hit a sub-$1,000 price, but it won't be lonely. As we previously noted, Wal-Mart is offering a Viore-brand 42-inch plasma model for $988, and Costco just announced it would have a one-day $999 sale price on a Vizio 42-inch HD plasma (VP42HDTV).

If LCD HDTVs are more to your liking, check out MicroCenter, which is getting hyper-aggressive with several Syntax Olevia high-def LCD models. For example, Black Friday specials include a 42-inch model for just $799, a 37-inch set for $599, and a 32-inch LCD HDTV priced at $369. All require rebates to hit those prices. -- Jim Willcox