Rounding up
The ubiquitous .99 typically tacked onto prices may be going the way of the gas station attendant and the credit card imprint device. Consumers Reports Money blog notes that a couple of news organization have reported that some British retailers are shunning the .99 for the “round pound.”
There appear to be a number of reasons behind the switch, a major one being that consumers are no longer fooled into thinking that £1.99, for example, is really significantly less than £2. The higher price may actually seem more honest.
Seems like a great idea. Let’s bring it across the pond. And the first place to implement it should be on the 9/10 of a cent we pay on each gallon of gas.
Don Mecoy
Business Writer
How to kill a car
The Cash for Clunkers program requires that vehicles that auto dealers receive be sent to the scrap yard. But before the clunkers are squeezed, slammed and sliced, the engine should be destroyed — preferably with sodium silicate.
Here is the wording from the National Highway Traffic Safety Administration Final Rule document:
The agency has determined that a quick, inexpensive, and environmentally safe process exists to disable the engine of the trade-in vehicle while in the dealer’s possession. Removing the engine oil from the crankcase, replacing it with a 40 percent solution of sodium silicate (a substance used in similar concentrations in many common vehicle applications, including patching mufflers and radiators), and running the engine for a short period of time at low speeds renders the engine inoperable.
Generally, this will require just two quarts of the sodium silicate solution. The retail price for two quarts of this solution (enough to disable the largest engine under the program) is under $7, and the time involved should not substantially exceed that of a typical oil change.
If the dealer removes vital parts, such as the heads, this procedure isn’t necessary.
The agency also testing drilling a hole in the engine block and running the engine without any oil as methods of destruction. That must have been a fun week to work at the NHTSA.
Don Mecoy
Business Writer
Vision quest
The Wall Street Journal tries out a couple of online sites that sell cut-rate prescription eyeglass frames and lenses. Buying glasses online takes some time, and a leap of faith that some consumers may not be willing to make. However, the prices are incredibly cheap compared to what it costs to buy at a bricks-and-mortar shop.
In 2008, sales of vision-care products and services at optical retail outlets topped $25.8 billion—a modest increase of $73 million from the previous year, according to the VisionWatch trade report. But some retailers that specialize in discount eyewear are enjoying robust growth: EyeBuyDirect, an online retailer based in Bethesda, Md., that offers prescription glasses for as little as $7.95 a pair, reports that its sales have risen 900% since its inception in 2006.
Last week, I bought my second pair of prescription glasses from an online retailer. I paid $18. I’ve been happy with both pairs of glasses I bought online. However, my wife is not as pleased with her bifocals, which cost about $30. While they correct her vision properly, she’s not entirely satisfied with the size and fit.
Don Mecoy
Business Writer
McDonald’s meat, straight from the OKC
Ed Sanchez, president of Oklahoma City-based Lopez Foods.
Lopez Foods, a longtime provider of meat to McDonald’s, also has been a fixture in Oklahoma City for years. The company produced a video showing the inner workings of its plant. While watching chunks of meat become ground beef isn’t the most appetizing experiences, the place does appear to be very clean — tidier than most McDonald’s stores that I’ve been in.
Lopez Foods also supplies the Canadian bacon that McDonald’s uses in its Egg McMuffins. And here’s how an Egg McMuffin is created. I have to admit that I’ve never tasted one (are the yolks supposed to be broken or not?) The McDonald’s Web site also answers submitted questions about its offerings, including some sarcastic ones. My favorite question: “What is Chicken McNuggets?”
McDonald’s response:
Chicken McNuggets® are made with white meat chicken, lightly coated in a tempura batter to ensure that they are crispy on the outside, and juicy and tender in the inside.
They also address the eternal question of which came first, the Egg McMuffin or the Chicken McNugget? (It was the Egg McMuffin, by 10 years).
Don Mecoy
Business Writer
Haggling works in down economy
A Consumer Reports survey finds that bargaining works better during a recession. Sometimes all you have to do is ask.
CR’s nationally representative poll found that most consumers who asked for a discount were successful. Among those who haggled, 83 percent negotiated better deals on hotel rates, 81 percent reduced their cell phone bills, and 81 percent went home paying less for clothing.
Consumer Reports offers these tips for successful haggling:
1.Be patient and be nice.
2. Time your haggle. Late in the month, when salespeople are trying to meet their quotas, can be a good time to bargain for big ticket items. Evening or early hours are usually less busy, so clerks have time to talk.
3. Haggle out of earshot of other customers.
4. Research prices and store policies.
5. Learn to read the ticket.
6. Offer to pay cash.
7. Be prepared to walk.
Don Mecoy
Business Writer
Oklahoma: pioneer outpost for retail giants
From Flowing Data, the same folks who bought us the WalMart growth map, comes the Target growth map. Among the lessons learned from this visual data display: Get to Oklahoma early.
Don Mecoy
Business Writer
My $40 eyeglasses
I recently bought a pair of prescription eyeglasses on the Internet. I had read that many consumers were satisfied with the products produced by cut-rate companies operating online. I figured that even if I didn’t like my glasses, I could use them as spares, and it only cost about 40 bucks.
Turns out, I’m pretty happy with what I got. Granted, my prescription is a simple one. No astigmatism. No bifocals.
My wife says the glasses look fine. I don’t look at them, only through them, so that was important.
Total price, after a $5 coupon and including shipping, was $40.05. Next up, some cheap prescription sunglasses.
Don Mecoy
Business Writer
Circuit City liquidation disappointing
I ventured out to a local Circuit City a few days ago to see if there were any bargains as liquidators sell off the company’s inventory. I didn’t find much. Most of the merchandise is reduced by 10 percent, but the mark-downs are based on full retail prices. Prior to its forced liquidation, Circuit City regularly offered good sale prices.
I bought a Panasonic HDTV at Circuit City in November for $799, which was such a good deal that the guy who checked me out called over a manager to double-check the price. On Saturday, it was marked at $1299. Even with the 10 percent discount, it was no bargain.
Our retail reporter, Jennifer Palmer, visited Circuit City last week and found shoppers unimpressed with the prices. Several news organizations have produced stories showing similar disappointment with the lack of deals.
CNN reports that liquidators, who buy out the company stock and then sell it off, don’t give the stuff away.
Because the liquidators don’t want to lose money, it’s not uncommon for clearance sales to begin at 10% to 30% off for the first few weeks, with deeper discounts staggered over the period closer to the end of the closeout sale.
However, (George) Whalin (president and CEO of Retail Management Consultants), said liquidators sometimes set those discounts based on manufacturers’ prices – which can be 10 percent to 15 percent higher – rather than the price at the store when it closed.
Consequently, he said, consumers could end up paying more than they would have just before the “out-of-business sales” signs went up.
The key for bargain hunters is exercising patience. Liquidators will offer deeper markdowns.
Don Mecoy
Business Writer
Touch it and buy
A new study suggests that the mere act of touching an item makes it more desirable to consumers. According to a report at livescience.com, people who held a mug for 30 seconds were willing to pay more in an auction than those who held the mug for just 10 seconds.
Previous studies have shown that many people begin to feel ownership of an item — that it “is theirs” — before they even buy it. But this study, conducted by researchers at Ohio State University, is the first to show “mine, mine, mine” feelings can begin in as little as 30 seconds after first touching an object.
“The amazing part of this study is that people can become almost immediately attached to something as insignificant as a mug,” said study leader James Wolf, who began the work while he was a graduate student at Ohio State. “By simply touching the mug and feeling it in their hands, many people begin to feel like the mug is, in fact, their mug. Once they begin to feel it is theirs, they are willing to go to greater lengths to keep it.”
The study lends confirms the value of practices used by many retailers for years. Test drives of vehicles and the freedom to play with toys in a story lead to higher sales. It’s also more ammunition for consumers to know when they may be subject to manipulation.
Don Mecoy
Business Writer
Dig deep for discounts
So the after-Christmas season is upon us. I, like many, had a few things to return, a few sales to check out and expectations of huge post-holiday discounts.
Friday afternoon, I ventured out to some of the larger retailers such as Walmart and Target. I had returns to make at both and was pleasantly surprised there was no one in the return lines. I expected to have to wait in long lines, herded by store personnel to open return registers, similar to last year. But it is as obvious now as it was a month ago, that consumers were just not spending money this holiday season and therefore now have less to return.
The economy also has another obvious effect. Discounts, on top of discounts. I made today my non-return day and took some time to peruse through my favorite stores to see if the sales were worth the wait. Stores did not disappoint. At Quail Springs Mall, where shoppers came out in droves, there was no mistaking that retailers had intentions of clearing out their merchandise. The biggest discounts hovered around 75% off. Others offered deals like buy 1, get 1 free, 50% off, and 20% off already reduced clearance.
The rub: Shoppers have to be willing to dig deep for merchandise. Shelves were ransacked or bare, clothes were more mixed than matched, and items that were left look a bit … handled. Shoppers looking for Christmas season merchandise may already be too late. Most trees are gone, and ornaments and gift-wrapping will soon be gone for the year.
Overall, sales truly rivaled those of Black Friday, but the treasures just a bit harder to find.
Above: Shoppers kept Quail Springs Mall busy well into Saturday night.
Above: Department stores’ shelves are now bare where seasonal merchandise was stocked and heavily discounted.
-Erica Smith, Copy Editor
