Tips from a super shopper

Anne Galletta doesn’t shop for a living, but she has all the requisite skills to be a card-carrying professional. By day, Galletta is the senior administrative assistant to Consumer Reports’ Editorial Director, Kevin McKean. Outside the office, she’s a mall maven — outlet mall, that is — sniffing out killer deals like a $500 Jones New York dress suit for $160 or a casual pullover shirt for 97 cents. 

“I’m not a shopaholic, but a bargain hunter,” say Galletta, who does 80 percent of her shopping at manufacturers’ outlet stores because she can pile coupon on top of coupon and walk away with unbeatable bargains. On Dec. 26, Galletta began gathering half-price gifts, which she’ll stow in her attic until next Christmas. Her serious holiday shopping begins during the summer, and her rallying cry is “I have a coupon.” 

Does she ever. With careful planning and a determined attitude – Galletta is never afraid to challenge a sales clerk about a questionable price – our intrepid shopper has been able to roll up some impressive finds: 

• A Calvin Klein men’s leather jacket, $249 list, for $100. The sale price was 50 percent off retail, and she got another 20 percent off by printing out a coupon from the mall’s Web site at home. 

• An Izod hooded winter jacket and sweatshirt for $26. The jacket was originally priced at $60, the sweatshirt $30. Having provided her e-mail address to the chain, Galletta got a $10 coupon off her next purchase of $15 or more. She downloaded another coupon from the store’s Web site for an additional 15 percent off “any one item,” and used a third, for a 10 percent bonus, from a coupon book she picked up at the mall customer service office as a member of a frequent shopper club. 

Here are Galletta’s tips for saving time and maximizing savings at the outlets: 

Who should benefit from unused gift cards?

When we discovered that consumers were sitting on as much as $972 million in unused gift cards, we knew we'd cause a stir. And judging from these reactions, we certainly did. One thing we didn't expect, however, was the answer to the gift card glut suggested by Wisconsin legislator Fred Kessler. Citing our data, the Milwaukee Democrat has proposed an expiration date on gift cards of one year after their issue date, after which 80 percent of the unused value would go to the state, with the remaining 20 percent going to retailers to cover administrative expenses. Kessler's proposal is a new spin on escheatment laws, which allow states to recover unclaimed assets — including unused balances left on gift cards — after a set period of time. A number of states already have similar laws on the books. Iowa and Indiana, for example, take 60 percent of the balance left on expired gift cards, with the remainder going to the card issuer. While we have no doubt that Kessler feels he's helping his state, we still think the best solution is for consumers to choose only those cards that have no expiration date, purchasing fees or dormancy fees. And if state legislators want to help out, we'd encourage them to follow the examples of California, Connecticut and Montana, all of which have laws that ban expiration dates on gift cards. The card is yours forever — or at least until you lose it at the bottom of the sock drawer or the retailer goes out of business.

— MP

Let the regifting begin!

Unhappy with your holiday gifts? You've got several options. The most traditional is to just keep them. That's what basements, closets and storage lockers are for. Who knows? At some point, you may actually find some use for that mashed-potato-scented candle. Or you could return them — as long as you're prepared to run the gauntlet of rules retailers have set up for would-be returners. Another option: regifting. In a recent poll, the Consumer Reports National Research Center found that 13 percent of consumers consider regifting an option. And according to the editors of Consumer Reports on Health, unloading some of your gifts is just fine — at least if your gift is of the Harry & David or Mrs. Fields persuasion. "When it comes to food, consider it sharing. Bring decadent cakes, cookies, or other treats you’ve received to the office or get-togethers so that everyone can enjoy a small amount," our health mavens commented in a recent report. For other gifts, the etiquette is less clear. While the standard-bearers at the Emily Post Institute take a hard line that "regifting should be done only rarely," other experts are a little less strict. Ethics at Work president Bruce Weinstein, quoted by CNN, says that "there is no reason to feel guilty for regifting. The purpose of giving a gift is to give pleasure, to bring joy to someone's life." Weinstein adds that it "would be wasteful" to keep a gift that duplicates something you already own (the Post Institute also says it's OK to hand off duplicates — as long as you treat them as "unofficial" gifts). In the end, your personal comfort level — along with the amount of space you've got left in the basement — is likely to determine your own regifting strategy. In the meantime, can someone pass me one of those decadent cakes, before they're all gone?

— MP

Gearing up for gift returns

OK, so you didn't get everything you wanted on Christmas morning. Maybe the hot pink sweater from Aunt Millie wasn't exactly what you had in mind or that digital camera courtesy of cousin Fred didn't have enough megapixels. Whatever the reason, 16 percent of Americans plan on returning some of the gifts they received this season, according to Consumer Reports' final holiday poll.

If you're one of those estimated 33.6 million people, here's what you need to know to get what's coming to you.

• Time is on your side. Most retailers and Web sites waive their usual deadline for product returns, typically a week to 30 days, and give you until Jan. 31 to seek a refund. If you're unsure of a specific store policy, examine the bottom of your receipt or check the store's Web site.

• You'll need a receipt. Despite longer grace periods, about one-quarter of retailers are tightening return policies, according to the National Retail Federation (NRF). Merchants have in the past been fairly generous in taking back goods without a gift store or gift receipt -- offering shoppers who can't produce documentation at least store credit for the lowest price the item sold for -- but now we're seeing more chains, such as Toys R' Us, announce that they won't take anything back without a receipt. For online returns, you'll probably need a packing slip, and return authorization number as well. When giving a gift, it's a good idea to keep all original packaging and tags.

The stricter requirements are no doubt motivated by the growing number of fraudulent returns cutting into retailer profits in recent years. An NRF study estimated that phony returns will cost businesses $3.5 billion this holiday season. According to the NRF survey, the most prevalent form of fraud is the return of stolen merchandise, goods bought with counterfeit money, and items returned with fake receipts. "Wardrobing," the industry's term for the return of used merchandise (the dress worn to a single party, for instance, or camcorder purchased to commemorate a special occasion), is another problem.

Last, last (really last) minute gifts

If you can read this, you're too close. Too close to the deadline for holiday shopping, that is. But, of course, it's never too late, if you're willing to be creative. And with the growth of convenience stores, gas-station minimarts and other never-closed businesses, the choices open to those who've waited until Christmas Day to buy their gifts now go far beyond online gift certificates (though that, of course, is still an option). Here are a few ideas if you've just checked the calendar and realized that St. Nick has come and gone, and the stockings you're expected to fill are still empty:

Blockbuster - Christmas has become a popular day to go to the movies, and the big video chain apparently wants a piece of that. Though most stores don't open until Noon, you should be able to find at least a handful of good DVDs and video games available before you sit down for Christmas dinner.

Drug Stores - Many branches of chains such as CVS, Walgreen's and Rite-Aid will be open on Christmas day, and offer a range of gift cards, perfumes and cosmetics, along with greeting cards, wrapping paper and other accessories. These stores also frequently stock inexpensive toys, low-end electronics and other items suitable in a pinch. Just don't be surprised if pickings are slim, and you end up buying things like blank recordable DVDs or disposable digital cameras.

Convenience Stores - Yes, you may just find yourself thanking heaven for 7-Eleven, if it's along the route you take to your holiday gathering. Of course, you'll also have to hope the neighborhood store hasn't been cleared out of all of its higher-end merchandise; a Big Gulp and chili dog combo just won't cut it as a gift.

Supermarkets - Some chains will have at least a few branches open on Christmas morning, giving you a chance to throw together a last-minute food basket or bouquet of flowers, pick up a small appliance or grab one of the ubiquitous gift cards (of course, if all the premium cards are taken, it's up to you whether or not you want to show up at mom's with a Winn-Dixie gift card).

Ethnic Businesses - Not everyone celebrates Christmas, though many businesses run by those who skip the holiday will still be closed. However, from New York's Chinatown to San Francisco's Jewish Contemporary Museum, you'll find some businesses open on the 25th. (Many ethnic restaurants are also open on Christmas, so if you were supposed to bring dessert and forgot to bake, you may just be able to pick up a plate of egg tarts or almond cookies for the family.)

Of course, it's the thought that counts. Which means that if you're just thinking about your gift-shopping needs on Christmas morning, you shouldn't expect a lot of options. Check back here on Boxing Day (so named, we assume, because it's the day when people box up all the gifts they didn't want) for some tips on post-holiday returns.

Don’t get burned buying jewelry

With all due respect to gift cards, which women cited as number one on their holiday wish list in a recent Consumer Reports poll, it’s tough to get excited about unwrapping a piece of plastic. For those of you considering more traditional baubles, the stress of making such a significant purchase can be enough to keep you up at night. There’s plenty at stake. Jewelry and watch sales have been rising dramatically, to $59 billion in 2005. Of that total, $3.4 billion was spent online, a figure that’s expected to reach $4 billion this year. 

It’s one thing to buy books or clothes sight unseen over the Internet, but quite another to invest in high-priced diamonds and colored gemstones. So how do you assure you’re dealing with a reputable source and getting good bang for your buck? 

The American Society of Appraisers (ASA), an international organization of trade professionals, says it’s essential to do your homework before purchasing fine jewelry, and research prospective dealers – whether you’re buying online or in a store. 

Martin D. Fuller, a Master Gemologist Appraiser with the ASA, told us that the biggest mistakes people make are spur-of-the-moment impulse buys from unfamiliar dealers they haven’t bothered to check out, as well as ignorance of return and refund policies. Word of mouth and personal referrals are critical, Fuller says, because buying jewelry is all about trust. 

Membership in organizations such as the American Gem Society or Gemological Institute of America, and certification as a gemologist are positive signs, too, indicating professional commitment. 

CR Survey: Thirty percent of shoppers won't be finished by Saturday

If you've been putting your holiday shopping off until the last possible minute, you're not alone. In the latest holiday shopping survey by the Consumer Reports National Research Center, 30 percent of shoppers said they wouldn't be finished shopping until December 23. However, nearly as many -- 28 percent -- said they were done with their shopping, and presumably will spend the next few days chugging egg nogs and chuckling as they drive past packed mall parking lots (hopefully not both at the same time). We have to admit that we're with the 11 percent of extreme procrastinators who said they'd stretch their shopping out until Christmas Eve. We might even wait a little longer. After all, nothing says "I care" quite like a gift certificate purchased online just before you get in the car to drive off to Grandma's for Christmas dinner. Just make sure to blank out the date of purchase before printing it out.

Read the full survey results here.

-- MP

Last-minute shipping: expect the unexpected

Though we couldn’t try this experiment at the very last moment and still have time to report back to you, we wanted to get a real-world idea of how long it takes for an order to arrive using different shipping methods.

So last Saturday evening (December 9), I logged onto Amazon.com and placed three different book orders, each consisting of two identical titles: “Heat,” by New York Daily News sports writer Mike Lupica, and the new, updated 75th anniversary version of the kitchen classic, “The Joy of Cooking.” I submitted the orders minutes apart.

Shipping was free with my first order because I spent more than $25 in eligible purchases. I had the second order sent via standard shipping ($4.98), and requested one-day service ($20.47) for the third.

The results were somewhat surprising in terms of the overall speed of delivery and, particularly, the sequence in which the shipments arrived. Predictably, the first package to land on my doorstep was the rush order, arriving Tuesday morning December 12. Next came my free Super Saver shipment the following afternoon (December 13). Last to arrive was the package sent standard delivery, on Thursday afternoon. Was it worth paying for premium service? Probably not, in hindsight. But with an unforgiving deadline looming, the risk may not be worth taking. If you read the fine print about shipping on most Web sites, you’ll quickly realize that deliveries are estimates based on multiple factors. And you never know when the unpredictable is going to happen.

Because, after all, we were placing our orders relatively late in the game, we requested gift wrapping, at $4 and $5 per book. (The larger “Joy of Cooking” cost an extra $1). The books were draped in pale green wrapping paper with or without stripes (it wasn’t holiday or seasonal wrap), and topped with a 1 ½-inch wide satiny ribbon. A small personalized gift card was attached to each book. I was somewhat disappointed at the condition of the wrapping paper on two of the orders. The paper on the corners of four books – those ordered with free and standard shipping -- was torn slightly because the plastic shrink wrap was too tight and dug into the edges as the books shifted in transit. There was no bubble wrap, peanuts, or other cushioning material in either of those boxes; the two books were simply shrink wrapped together on top of a slab of cardboard. The books in the expedited shipment arrived unscathed. They weren’t shrink wrapped, but instead protected by air-filled bags. Does this mean that express shipping includes white-glove service, and you can always expect your packages to arrive in better shape? Unlikely. Large merchants like Amazon use multiple warehouses and drop shippers, so discrepancies likely have more to do with where the package originated than how much I paid for shipping. However, based on this experience, it may be worthwhile to consider doing your own wrapping -- unless your folding and taping skills are so poor that even the ripped wrapping sent by Amazon would be an improvement.

Should you pay for priority shipping?

Time is running out to take advantage of free delivery deals.

If you haven’t completed your online holiday shopping by now, you’re probably beginning to worry whether the orders you place within the next few days will arrive in the St. Nick of time. You have a little breathing room, but only a bit.

The deadline for free shipping offers from major retailers expires soon. December 17 or 18 is pretty much your last chance. Standard shipping remains an option with many merchants through the 19th, but you’re cutting it close. (For some, the game is already over; Buy.com's deadline for free shipping was Wednesday, and the company's cut-off for standard shipping is tomorrow.)

Order later than that and plan on digging deep into your pockets for one-day service, which can add $20 or more to the bill. Most stores will let you order through December 21 for guaranteed Christmas arrival (to all but a few states), though several chains such as Nordstrom, JC Penney, and Victoria’s Secret have extended the ordering deadline until the 22nd. By contrast, Toys R’ Us has a cutoff of December 20 for holiday delivery. Be aware, however, that you don’t have the entire day to place those last-minute orders. Deadlines vary by merchant; most of the sites we checked require you to act by early afternoon on either the 21st or 22nd.

Just because you pay for expedited delivery doesn’t guarantee you’ll get your package within 24 hours of clicking the “place order” button. You’ve got to factor in processing time, which can add two or three days to the timetable. The estimated arrival date is calculated from the moment the package is shipped from the warehouse. Also keep in mind that packages aren’t usually delivered on weekends, and Christmas falls on a Monday this year. That helps explain why Thursday December 21 is the drop-dead date for placing most orders (one exception: some members of Amazon.com's premium Amazon Prime service, who can order some products on the 22nd for delivery on Saturday, December 23).

If you’re a serious procrastinator who can’t make up your mind even at this late date, we have one final alternative to the dreaded Christmas Eve trip to the mall: An e-mail gift card. Many retailers will let you purchase a gift card online and have it e-mailed directly to the recipient. That way, you don’t have to show up at the in-laws empty-handed, so to speak. Just don’t tell anyone you heard this one from us.

On Monday, we'll share some details about our recent informal shipping experiments with Amazon.com. But don't wait until then to order your gifts. Today is the last day Amazon will guarantee delivery by the 22nd if you use the site's free "super saver" shipping. And Monday is the deadline for Christmas deliveries for orders with standard shipping.

Refurbished products can be great deals -- and good gifts

If you've spent any amount of time shopping online recently, you've no doubt noticed that the market for used products that have been repaired by manufacturers or third party shops is booming. Whether they're called "refurbished," "reconditioned" or "remanufactured," the concept is the same. Products that were demo models or sent back to a manufacturer, either because the original buyer didn't want them, or due to minor defects or cosmetic damage, are spruced up and resold, often at substantial discounts over the cost of a similar item purchased new. For example, Apple Computer's online store sells a "Certified Refurbished" 30GB iPod for $179; the model originally sold for $299. If you're looking to refurbs to cut costs this holiday season, here are some tips to make sure that great deal doesn't turn into a disaster:

• Buy directly from a manufacturer if possible. Many refurbs are sold by third parties via eBay or other venues. Third parties may offer little in the way of support or protection if something goes wrong; manufacturers, on the other hand, have a vested interest in protecting their brand's good name, even when selling refurbs.
• Stick with brands that have proven reliable in the past. Remember, you're buying a product that, in some cases, has already broken once. You want to minimize the risk that it'll happen again.
• Get a warranty. Many manufacturers provide coverage of 90 days or longer on refurbs -- some even offer warranties on par with those offered with new products. That's important, in case the repairs didn't really fix the original defect. Some manufacturers, such as Apple, even offer extended warranties on refurbs (though, of course, the usual caveats about such plans still apply).
• Don't count on your credit card for extra protection. Many of the automatic warranty plans offered by card issuers specifically rule out coverage for refurbished products.
• Get as much information as possible about the product's previous life. Some companies, such as Dell, let you choose from among several categories of used merchandise, including refurbs, new products that were shipped out but never opened, and equipment with "cosmetic blemishes."
• Know what you're buying. Refurbs are often older or discontinued models, so factor that in when checking to see if you're really getting a good deal. In the iPod example above, the model being sold is not the current version, and lacks some recently added features. Not only that, but the latest 30GB iPod goes for $249, not $299, so you're actually only saving $70 by buying a refurb, not the $120 touted by Apple. It might still be a good deal if you'd rather have an extra $70 and can live with last year's technology, but it's not quite the bargain Apple makes it out to be.
• Don't expect perfection. Refurbs sometimes have scrapes and scratches, and often come in stripped down packaging; hard drives might not have been completely wiped of the original owner's data. And you should assume that any parts that tend to wear out over time, such as hard drives, batteries or camera shutters, may have an abbreviated lifespan.

Finally, if you're planning on giving a refurbished product as a gift this holiday season, you're in the clear. No less an authority than etiquette expert Amy Dickinson has given refurbs the thumbs up:  "I think it's wonderful," she says. "It probably enables people to get more gift for the money. Who wouldn't appreciate that?" Just make sure that you really are giving a better gift -- and not just cutting corners by getting a discount on a discontinued product your recipient doesn't really want. 
-- MP