Why Confessions of a Shopaholic will Bomb

January 30, 2009 · Posted in Hollywood, Shopping, entertainment, fashion, movies, retail · 2 Comments 

Welcome back!

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Hollywood has long been out of touch when it comes to the average American. The glitz and glam, are something that is reserved for that kind of life. We don’t see women in big elaborate gowns going to the grocery store everyday, nor do most of us have the dramatic elements in our lives that Hollywood would like to make so common. I like movies as much as the next person. I am not slamming all movies. I am however very critical of the new film Confessions of a Shopaholic.

These are some of the hardest economic times since the Great Depression. 62,000 jobs were cut on Monday. Foreclosures are rampant, and there are those out there who cannot afford to feed their families. Movies have long been a way for audiences to escape the realities of daily life, but this movie goes too far.

What person in their right mind would put out a movie about a woman whose whole live is made up of shopping? The book, which the film is based upon was written in a different time. A time when conspicuous, no questions asked consumption was perfectly acceptable to most people.

In the preview, the character played by Isla Fisher, she actually battles other characters over a sale for boots. I ask the question, how out of touch can Hollywood truly be with their general audience? Don’t get me wrong, I like a chick flick as much as the next girl, but this film makes me want to vomit. I have absolutely no desire to see some spoiled rich girl indulge herself in an unsustainable lifestyle, in front of audiences that cannot even afford to keep their homes!

I personally will be boycotting this film. I do not support a materialistic society at all; which is exactly why the economy is in its current state. The character seems to think that money is not a realistic, tangible object and has absolutely no thought of what she is actually spending it on, nor the damage that it is doing to her future.

The movie may actually be good and it may have a good lesson about honesty and living within your means. But that’s not how the marketing is portraying this movie. All the ads show is a woman (and other women) going crazy over purses and using credit cards.

I have heard from so many people who feel that the timing of this movie release is just in bad taste. I hope that this movie flops and shows Hollywood, that we as the American public do not want to see people have absolutely no regard for money and spending it like it grows on trees. When we are losing our homes and jobs.

We don’t need movies from Hollywood showing us an unattainable lifestyle when our economy is having the troubles that it’s having. Especially when it’s materialistic people like the main character of this movie, that have brought us down.

Trailer of this Travesty:

Family Emergencies On a Budget

January 29, 2009 · Posted in austerity, family, money, personal finance, work · Comment 

 

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Picture from Flickr

This past month I have had two major family emergencies which have required me to travel. As we all know, travel is not cheap. However, when duty calls, one must go. My husband and I live on a very limited budget, but we’ve managed to squeeze in the funds to go and be with our loved ones during these difficult times.

It is very easy for last minute trips to become very expensive, if one is not careful. In both cases, I made a budget and stuck to it. I also tried to ride with other family members to reduce my travel costs. I was lucky enough to live within an eight hour drive. I chose to travel by car because it was cheaper than a plane ticket. I did my homework on which way would be easier to travel. I also kept in mind that if I flew I would need a rental car.

I find that in a family emergency, that I prefer to stay in a hotel. Please do not misunderstand me, my family is wonderful and they have very nice homes. I find that when I stay in a hotel in times of crisis, my hotel room can be my place of solitude. I require this time to myself, and I find that it gives me time to decompress after a stressful day. I am also able to get a good night’s sleep. Which is vital to staying healthy during difficult times. Hotel stays do not have to be pricey. I found that in both cases staying at the chain hotels on the outskirts of city limits offers a much better room rate.

When setting a budget for a crisis, keep in mind that you have to eat. Depending on where you are, food prices can vary greatly. Just because you are on a budget, don’t eat fast food the entire time because it is cheap. When the body is under stress it is important to eat well. Budget good food into your trip costs. In driving across the country, it is important to keep in mind that a healthy diet should not go out the window, just because you are on the road. I found that I could make healthy, low cost food decisions on the road. Eat well while you are in times of great stress, you will be thankful to yourself. Eating well will keep you healthy and better prepared to handle stress.

Emergencies do not really allow time for the unexpected. Many have saving accounts for this reason. With the tough economy that type of saving seems harder and harder. With this past month, I have learned how truly important it is to have this kind of safety net of funds. I was able to make it on our income, but that is not without taking a financial hit. When family crisis hit, one would like to think that money would not factor in one’s ability to help and be there with family, but as I learned this past month, money factors very greatly. So, do yourself a favor, put a little money aside for an emergency fund, even if it only $100 bucks, every little bit helps. That $100 bucks could cover your food budget while you are gone. I will be trying to put away more that $100. so I am not caught off guard next time. But times are tough and people do the best they can.

On an ending note, while setting a budget is important while going, it is also important to understand that crisis holds the unexpected, and may require more funds than you had originally set aside. Be willing to roll with the punches but, still keep your head about you. I found on my first trip that I had set a strict budget for myself which I stuck to but, I found a needed additional expense during my trip. I was hesitant to spend the funds but, now in hindsight, I am so happy that I listened to my gut instinct and spent the money. Emergencies do not give the luxury of time to plan each dollar spent. So, if you need to spend a little extra, don’t beat yourself up about it, trust your gut and spend the money if necessary.

How to Save Money on a Date; Have it at Home

January 28, 2009 · Posted in austerity, common sense, entertainment, family, home, money · Comment 
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Photo From Flickr

Date night just seems to be getting more and more expensive, to share a nice night out with a loved one. My husband and I have ditched the traditional date route, of dinner, dancing and a movie. Instead we have decided to have our date nights at home. To many this could sound lame, but it’s actually really wonderful. Date night at home really does have its benefits, especially when the weather is really nasty. We started our at home date nights about a year ago, when we were so stretched for cash, that we could not afford to go out.

Home can be the most romantic setting with a little effort. Set the mood, light some candles. When my husband and I do date night at home, we usually refrain from cooking, unless we cook a special meal for each other. While there is still a cost for ordering in, it is much less than dining out. Plus, we don’t have to go out in the cold weather. We can also have a bottle of wine with dinner at a much more reasonable price. Plus, there is the added benefit of not having to drive home after enjoying a bottle of wine with our dinner.

We will usually rent a movie, pick one from our on-demand from our cable provider, or watch one of the favorites that we own. Keep your romantic evening going in front of your television. Think of your living room as your own personal movie theater. Make popcorn and pick up candy to make it feel more authentic. Even though the movie and snacks may cost money, it will still be less that one would spend on one ticket at the movies. Sometimes we’ll even move our movie night into our bedroom so we can snuggle up together, which you can not do at the movies.

Date night at home allows a lot of freedom to do whatever you like, with your special someone. However, when you are having a date night at home, it is important to remember that you’re on a date, let the dinner dishes soak in the sink. Would you get up and do the dishes at a nice restaurant on a date? If you have children, see if they can stay at a friend’s house for the night. Date night at home, is still a date.

Be flexible with date night at home. Sometimes my husband and I will watch a move, or television. We have even slow danced during nice dinners in our own living room. We’ve also had mock picnics in our living room. Why not? Dinner and a movie doesn’t have to be the order of the evening, do whatever you and your spouse enjoy.

Date night at home can be so much fun. Some of my best dates with my husband have been at home. I actually prefer to have a home date night with my husband than go out. With the current rescission, things just seem to keep getting more expensive. I would prefer to save the money. When I actually think of the value of a dinner and a movie, out, I often don’t feel that it was worth it. So, give it a try, a date night at home. See where it takes you.

The Over Materialization of Parenthood

January 27, 2009 · Posted in Shopping, austerity, common sense, family, home, retail, saving · Comment 
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Photo From Flickr

 

 

In these difficult economic times, everyone seems to be cutting back in one way or another. We as a society are really being pushed to ask, what do we really need. American society is materialistic to it’s core. For decades, people have been judged by many, by what they have not who they are. As this trend grew, so did the cost of “keeping up with the Jones.’”

I think that this upward trend of materialization is very prevalent in parenting culture here in the United States. Just like in the wedding industry, women and some men, are sold a dream of how things should be, and that dream is really expensive. However, many do not realize how expensive this dream is until reality hits them.

My husband and I have been discussing starting a family. We know that raising a child is not an inexpensive endeavor, but it does not have to be as expensive as society lets on. In realistically looking at what we would actually need to take care of a baby, their needs are relatively simple. I wondered what the basics would run, crib, bottles and other basics. I was shocked how expensive things were. My mom had my youngest sister when I was a teenager, and I did quite a bit of shopping with her. I was amazed at how much more expensive baby things are today.

Many couples are victims of up-selling, this is where the couple chooses an item and are talked into buying a more expensive item instead. Many are guilted into buying what they cannot afford. Every parent wants the very best for their child, but does that mean that one has to spend $2000. on a crib? Since when did the money that parents spent on a child, measure the degree of love that they have for their child? I know that there are certain items that are expensive, and there is no way around it. Some items must be bought new, due to safety regulations and hygiene issues.

I just do not understand why anyone would overpay for basic items, just as a status symbol. Why is the $600 stroller better than the $100. stroller? What does not make sense to me is that new parents are shelling out ridiculous amounts of money on items that could be bought more economically. With the prospect of raising a child for the next 18 years or more, why not try to be frugal from the beginning?

As for my husband and myself, we know that starting a family will be the most expensive thing we probably ever do. But, we will not be bullied by society that we do not care for our child because we do not have the newest designer clothing on them, or the hottest new car seat. I think it is too over complicated, as long as the product does the job that it is meant to do safely, then why over pay? To me it just does not make sense, why not save the money on the designer stroller and start a college fund for that child?

In this tough economy more and more couples are stepping back and really analyzing what they need to raise a baby. I have come across numerous youtube video on how to save money while raising a child. Having a baby does not have to be as expensive as society lets on. As long as a couple realistically look at what they will actually need, buying all of the needs for a baby does not have to bankrupt new parents.

Like all major purchases, do your homework before you go out and start shopping for your new bundle of joy, do your homework. Ask other new parents what they actually used. So many people over-buy stuff that they will newer even use. When you go into a store to make purchases, set a budget and stick to it. Do not let anyone guilt you into buying something more expensive, that you really don’t need. The prospect of raising a child is costly at best, but don’t let that scare you away, just know what you need and stick to it.

Austerity Guide to Menu Planning – Menu Planning 101

January 26, 2009 · Posted in Shopping, austerity, common sense, family, grocery store, home, retail, saving · Comment 
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Photo From Flickr

I’ve discussed how to save money at the grocery store before. One of my biggest tips is to plan meals BEFORE you go to the store. When you plan your meals, extras will not find their way into the cart as easily. There are some out there who are meal planning pros, and others who are not so hot at it. Menu planning is so essential to saving money, that I chose some of the best menu planning sites that I have come across. The sites range from expert advice, to directions of how to begin making a meal plan.

Learning How to Make a Meal Plan

Ehow has set up a page that gives step by step directions to setting up a menu ahead of time. The page is laid out very simply and the directions are very easy to follow. I think this is a great starter for those of you who are unsure of how to go about planning a menu.

Menu Planning Instructions From Ehow.com

How to Make a Few Items Work Throughout the Week

Mill Musings is a blog written by another budget conscious blogger. I chose this blog because it illustrates how a few items can last through out the week. In the sample menu that is shown, certain ingredients are used many times during the week, but they are done in a unique and tasty looking way. I also liked that this menu incorporated pictures of the made food.

Mill Musings’ sample menu

Menu Ideas for Everyone

Budget 101 is a wonderful website for many different types of services for those who want to get a good deal. I chose this website for the more experienced menu planners or those who want to give planning a try. I like this site because it gives many different types of menu options, whether it be vegetarian or simply feeding 2 people. This is a wonderful database for budget meal planning.

Database of Menus

A Wonderful example of a Pro menu planner

The hillbillyhousewife is another great sight for planning meals. I was really impressed at how organized her meal plan was. I was also happy to see that her meal plan was extremely healthy and filling. I think that this is a wonderful example of how to plan a menu. I also like her use of a grid at towards the bottom of the page, which clearly lays out all meals and snacks. I use this technique myself.


Menu, tips and full layout of meal planning

Menu Planning Service

Dine without whine is a menu planning service. Some people out there are just not planners. I am not necessarily saying that this is a good option to save money, because this service does cost money. However, it could be a good start for beginners to see how menu planning is done, or for those who simply do not have the time.


Menu service planning

Menu plan is essential to saving money in the grocery store. Sit down have yourself a cup of coffee, get yourself a pen and paper and start planning. I always like to include some of my favorite foods for the week. Don’t plan your menu so cheaply that you don’t like what you put on it. Buy food that you and whoever you are feeding likes. Once you know what you want to eat, start you list for the store. It is much harder for unneeded extras to work their way into your grocery cart when you have a list in hand. Happy Planning!

A Sarcastic Take on the Rotten Economy

January 24, 2009 · Posted in austerity, austerity humor, bad economy, videos · Comment 

I was doing some research for the blog, when I came across a video that reminded me to laugh in this tough economy. With current economic situation the way it is, it is so easy to get so serious that on can’t look at the funnier things in life. Now, I am not saying that someone who is having their house repossesed would and should be laughing.

I like this video because it reminds us all not to take everything too seriously all of the time. Remember to laugh every now and then. It is said that laughter is the best medicine. Now, regarding the video, I do not agree with the tips that are given to save money but I really do get a laugh out of the sarcastic approach. So enjoy, and remember it is okay to laugh.

The Austere Dinner Party, Yes it can be done!

January 23, 2009 · Posted in Shopping, austerity, grocery store, home · Comment 

Fifites housewife

I love to entertain in my home, and since the recent economic depression, many people believe that the days of doing dinner parties are over. I say, quite the contrary. I have hosted more dinner parties in the past 6 months than in the past year. When my husband and I wanted to get together with friends and family, we used to meet them out at a restaurant. Those days are long gone. The prices in restaurants just keep going up. Now the get together spot is usually in someone’s home.

Many think that entertaining is too expensive, but it is not if it is done correctly. There are plenty of inexpensive meals to serve at a dinner party. The one-pot dishes seem to be the least expensive to make. These can range from chili. to lasagna, to chicken in a wine sauce. If you are going to be having a dinner party, watch the sales fliers after you have planned a menu. Get you ingredients on sale. The beauty of a one pot meal is that in most cases, a loaf of french or Italian bread makes a great side dish, and is very inexpensive.

Whenever I entertain, I always try to put out finger foods before the dinner. I have found that this part of the meal tends to be the most expensive. When it comes to appetizers, I shop at stores like Aldi, for crackers and cheese and other tidbits. Keep in mind when buying this part of the meal that this is not meant to fill your guest, but only wet their appetite.

I also feel that depending on the guests that are coming, it is okay to ask a guest to bring something. I would not recommend asking someone that has never been over to your home before. The pot-luck dinner is back in a big way. A pot-luck, for those of you who don’t know is when each guest brings something do the dinner. I often ask guests that I know will be big alcohol drinkers to please bring a bottle of their favorite drink. I find that I save a lot of time and money this way.

As for setting my table, I set it based on the occasion, obviously. I have invested in some neutral colored cloth dinner napkins, which I bought on sale. I love my dinner napkins because they go with everything and they add a really nice touch. I also went to my local resale shop and purchased some inexpensive table cloths. I always keep my eye out for candle sticks when I go as well. I picked up a lovely pair of silver candle sticks at my local resale shop about two years ago, I use them constantly to entertain.

When it comes to setting a table, it can be done on a austere budget, but it doesn’t have to look like it. Use your imagination. Take for instance, I held a Christmas dinner and I did not have anything to decorate my coffee table with, so I cut a large piece of leftover wrapping paper into a funky shape and put that on my table and then put my hors d’oeuvres on top of it. It looked great!

Keep your dinner parties fun and relaxed, and people will want to come back. Just remember that a dinner party does not have to be super expensive. Dinner parties allow you to do what you want when you want, and you are not rushed like you can be in a restaurant. So, relax and enjoy!

The Austere Wedding: 10 Tips For a Cheap Wedding on a Budget

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Photo from Flickr

Every little girl dreams of the most special day, her wedding day. For many women, their imagination has painted an unrealistic image of the day. Images of insanely expensive weddings are pushed on females of all ages. Books, magazines and movies show elaborate weddings, usually ignoring what the cost of these events actually is.

Just because it’s a tough economy doesn’t mean that you still can’t have a nice wedding. Tough times will require you to pare back your elaborate plans and create some realistic expectations.

I got married two years ago and managed to do it on the cheap. People still tell me that I had the nicest wedding that they had ever been to. I saved a lot of money and I have helped a lot of friends do so as well, and now I want to help all you brides out there that are looking to save a few thousand dollars. Here are my Top Ten Ways of Saving a Money on your Wedding Day.

Top Ten Ways to Have a Wedding on a Budget:

1. Lower Your Wedding Expectations

I know this may seem harsh, but this is a harsh lesson to learn. I had all of the wonderful images of the big white wedding, memories of beautiful movie weddings. I had never given much thought to what a wedding would actually cost. What a slap across the face, when the realization of what the type of wedding that I had grown up seeing in movies and magazines would actually cost. Now, in saying lower your expectations, I am not saying you’ll have cheap looking wedding, I am just saying be realistic about what things really cost.

2. Wedding Photographers Can Be a Huge Waste Of Money

This was the biggest sticking point in my wedding planning. I was shocked to see how much wedding photographers actually charged just to shoot the wedding, which is really only a cople hours worth of work. I shopped around, a lot. My first choice was extremely expensive, but once I lowered my expectations, I chose another wonderful photographer. I was able to negotiate a deal to shoot the wedding.

The pictures were great but I soon realized that the wedding pictures were so expensive that I couldn’t afford to buy any of them! This was when I realized what had really happened, the shooting fee was cheap so that the money would be made in picture sales. I wish I would have realized this before hand. Honestly, I feel that my photographer was a waste of money. Member of my family shot many great pictures themselves while the photographers shot mostly the same photos. I could not tell the difference between the two.

So ask yourself, do you really need a professional photographer? Is there a few family or friends that can shoot the day for free?

3. Wedding Flowers and Wedding Decor

Let’s face it, flowers make the decor to many brides, myself included. There are a few money saving options when it comes to flowers and decor. First of all, try to think rationally. I know it can be hard, being swept up in the spirit of it all, and the florist is counting on that. Know what you want before you go to a florist and be firm on what you had pre-decided. Also, if you tell the florist that you are having an event besides a wedding, you’ll save a ton of money. There is a wedding mark-up, it’s true. Many services hear the word wedding and they know they can charge more. Another tip is, think about doing the flowers and decor yourself. This can save a ton of money. If you’re not talented enough, see if there is a friend or family member who is. Flowers are insanely cheap from a wholesale florist.

4. Wedding Music

There are so many ways to save money here. My husband and I burned a CD with our ceremony music on it. We did not pay to have someone preform. Honestly, the music on the CD was wonderful. We made sure to bring a back up just in case the original CD did not work. The reception music can easily be done with an I-pod. Most DJ’s use I-pods these days. When searching for music for the reception, look for a deal. Watch out for that wedding mark-up. Make sure to ask around, ask other brides who they used and if the entertainment was a good value for the money.

5. Wedding Reception Venue

There are so many ways to save money when it comes to where to hold the event of your special day. First of all consider how many people you have to accommodate, and what will you be feeding them. The options range from all inclusive banquet halls to the local VFW post. My husband and I originally found a great deal by asking a locally owned eatery to host the reception. Just keep in mind, some facilities have kitchens on site and others do not. If you choose a venue that is not equipped to accommodate a dinner service, you may have to rent equipment and hire a caterer, so beware because that can add up quickly.

6. The Wedding Guest List

This can be such a touchy issue for many brides. If you plan on having a reception where you will be feeding guests, it comes down to the simple question of, how many people can you afford to feed? I know this seems harsh but you must look at this issue practically. Also make sure to take into account how many people your venue can accommodate. Don’t go broke feeding people that you don’t even know! You’ll need to make some tough decisions about who needs to be there on your special day. You don’t need to invite your friend from second grade that you haven’t seen since, well, second grade.

7. Wedding Contracts… Always Leave a paper trail!

I cannot stress this enough! This is the most important money saver when planing a wedding! When I walked down the aisle, I was so naive. I did read about how to plan a wedding and thank God that every book said leave a paper trail. This piece of money saving advice came in handy twice for me during my planning. The first time, with the bridal shop where I bought my dress. and the second time when my reception venue pulled out 5 weeks before my big day. Remember signed contracts are legal documents, and in case you do have to go to court, you are going to need those. Make sure to keep all receipts and contracts organized and in one place. The more paperwork that shows that you held up your end of a contract, the better it is for you if something does go wrong.

8. Do Your Wedding Homework

Research your vendors. Get recommendations from other brides. Word of mouth is very important. I bought my wedding dress from a terrible dress shop, that was notorious for bad service. I had found out after the fact that everyone in the area knew not to do business with that particular shop. Luckily, I had my contract and a rather large paper trail to save my ass and my dress. I would also recommend reading up on saving money on weddings. There are some really great books out there, so start reading.

9. Saving money on the Wedding Dress

For many brides this is the most exciting and important part of the wedding, with the exception of marrying the spouse of your dreams. Again be so careful here. I hear constantly of brides that have been put through the ringer by the dress shop they chose. Check up on the practices of the dress shop that you choose. Make sure they aren’t letting others try on your dress (my personal experience). Also, look other places for alterations, but when looking else where make sure to get references. Also, some dress shops will discount dresses if the bridesmaids get their dresses there too, which can be a good deal.

10. Think With Your Head Not With Your Heart

I know this is so hard to do for the excited bride, but it is a necessity. Think about what you are really paying for. Really think about the decisions that you are making. Do not let people pressure you into decisions. Many vendors expect brides to be irrational, and that makes them easy to persuade and manipulate. Stand your ground, this will be your day after all. In retrospect, I was able to do this and it saved me thousands of dollars. Wedding planning can be a fun thing, just try to keep emotion out of it as much a possible.

Do you have any tips on holding an Austere Wedding? Please post them in the comments below!

An Attitude of Gratitude

January 20, 2009 · Posted in austerity, family, home, people · Comment 
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Photo from Flickr

These days with the economy in trouble, we hear more and more how people are having to go without. The news paints the bleakest picture possible. Stores are reporting weak sales. The notion that people are not out shopping means to many that people are just going without, and are suffering because of it.

I could not disagree with this idea more. Although this economy can be scary, there is a slight beauty to it. We as a nation are being brought back to the most basic necessities of life, and to me, that is not necessarily a bad thing. The average American’s life is so over complicated with things that we do not need, that is time for us our society to get back to basics and realize what we do have, not what we do not have.

So many people made New Year’s resolutions to lose wait, or cutback on certain things, but I resolved to be truly thankful for what I do have. When I really think about it, I am so blessed. I don’t own a house, money is super tight for me and things are not totally rosy in my life right now. But I believe that you must recognize what you do have and be thankful for it to be ready to receive more.

This past December, my husband and I really had a hard time financially, we were having to cook the stuff in the back of the cupboard, the stuff that you never actually cook. As I was making another bag or Ramen soup, feeling so broke, a thought came to me, I am so lucky to have this food. I am blessed to have a stove to cook it on, and natural gas to heat the stove. When I started to think about my measly Ramen dinner in this way, I was grateful and happy that I had it.

I started to apply this attitude of gratefulness to all aspects of my life, I have a car that is 10 years old, it’s not as beautiful as it once was but, it runs. When I have to stand out in the cold to pump gas, rather than grumble about how cold it is or how much gas costs, I am grateful for the car and grateful that I have money to buy gas. The most grateful thing that I think of is how wonderful it is to have that technology, thank God we do not travel on horseback! We can be somewhere instantly in a car, not take half a day to get somewhere.

I know all of this sounds a little “pollyannish” but really take a step back, examine your life, if you look around all of you, you really do have a lot to be grateful for. I think the biggest thing to be thankful for is the people in your life. I will never stop being thankful that I have my husband, he is a great partner and I know that we can make it though anything together. I am even grateful for the people that cause stress in my life because they make me stronger as a person,

So, don’t feel so badly, everyone is having some type of struggle right now. Struggles are character builders. Be grateful for what you do have, and forget about what you do not have. In the grand scheme of things, think about what really DOES matter, prioritize. I promise that if you really do this, life will be much happier and this recession will be much easier to get through.

Like my mother always said, ask yourself one question: “Is it going to matter in 20 years?”

If it won’t, then it’s not really that important.

Beware of Liquidation Sales

January 19, 2009 · Posted in Shopping, austerity, bad economy, bankruptcy, retail · Comment 
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Picture from Flickr

With the bad economy, major retailers are dropping like flies. Circuit City is the latest company to close it’s doors and liquidation sales are becoming a common sight in many communities. Usually, people think that this means that you can get a great deal.

You usually can’t. Here’s why.

When a store liquidates, it hires an outside company to close the store. The outside company pays the bankrupting company for the right to do this (this money goes to the creditors). In return, they close the store and sell off the remaining stock until it’s all gone. Sound good so far, right?

Well, it’s in the best interest of the liquidator to extract as much value as possible from the remaining stock. So how do they do this?

They raise all prices back up to Manufacturer’s Suggested Retail Price and THEN starting discounting for the liquidation. This means that some items can cost as much as 50% more than they did before the store was liquidating.

Generally, retail stores always have their goods on sale and occasionally cut prices a bit more to move stock. Also, very few retailers actually charge the Manufacturer’s Suggested Retail Price for anything – the price is always too high.

So, while you may think your getting a deal when you go to a store in liquidation, especially when you see signs that say 20% to 50% off. Prices are actually around where they were initially.

Most people don’t know that they’re not getting a deal and think they are. So, they swamp to liquidation sales to ‘save money.’ Well, you’re not saving money. As a result of this kind of consumer thinking, all the good items get picked clean from the store and when the store finally actually lowers prices to ‘deal’ levels, all the good stuff is gone and you’re left with saving 75% on a roll of toilet paper.

An Office Depot opened up in my town about six months ago. Despite the fact that it had not even been open a year, Office Depot decided that they should close it down. So, there’s been a liquidation sale going on for the last month. Have there been any deals?

Not really. I saved a few bucks on some pens and blank DVD’s. I’ve been back several times as they’ve lowered prices. I’ve noticed they haven’t been lowering the prices on expensive things like computer monitors, hard drives and printers. They’ve been lowering the prices of the office supplies but not the stuff with any actual value. Even some office supplies are still overpriced. The goal is to make you THINK you’re getting a deal.

Sorry but $200 for a 19″ monitor I could get for $100 as Wal-Mart is not a deal.

There is one possibility for a good deal during a store liquidation and that’s buying store fixtures. The liquidation company has no need for the store fixtures (shelves, displays, registers etc…) so when the store is in it’s final days, you can usually pick up this stuff as great prices. So, if you’re opening your own retail store, head down to the local store going out of business.

5 Things to Keep in Mind about Store Liquidations:

1. Don’t expect staff to be friendly or helpful – they’re losing their jobs so at least be nice to them.

2. Use your store gift card before the store closes or else it’s worthless.

3. They won’t take checks. Cash or Credit only.

4. They won’t accept returns.

5. All Sales are Final.

6. What you see is what you get – don’t expect there to be items in the storage room.

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