MONEY-SAVING MOMENT: We've all seen the ads running constantly on late-night TV that promise to turn your unloved gold jewelry into cash. But is it really worth it?
Consumer Reports' Money Adviser weighs in with some tips and pointers to help you get the most for your gold.
The reality is that most of those ads only pay about a dime on a dollar up to about 20 percent of the daily market value for your gold. Talk about a terrible deal for you!
There is an easy way to figure out the real intrinsic value of gold in your jewelry. Start by looking for the carat, which will be stamped directly on the gold. Then use a kitchen scale to weigh the jewelry and an online calculator to convert the weight based on the carat to determine the value at today's market price.
Now, no one will pay you full retail market price because they've got to make a profit. But this will help you avoid being ripped off. The TV buyers are a joke, according to Money Adviser.
Go with jewelry stores and pawn shops instead. But don't deal with those who won't tell you how much they're paying for gold over the phone. Chances are they want to lure you in to low-ball you.
Finally, remember that jewelry's greatest value is for the design and sentimental value, not the value of the gold contained therein.
Summer officially started June 21, but the deals on seasonal goods at retail are already in effect. The stores have begun focusing on fall; retail always works one season ahead.
So here we are in the height of summer and we already have great markdowns on summer clothing, beach gear and more. People simply are not buying. But now may be the time to pry your wallet open just a little bit.
Clark recently got new golf shirts for $7 each because they were post-season goods!
The consumer champ also has a special strategy for back-to-school shoppers. Don't buy clothes until after school is already in session where you live. Kids' clothes go on deep discount the very moment the school year begins.
And it's not just clothes that get marked down. Clark was in a discount store last year right after school began. He found packages of 12 ballpoint pens for a dime per box, so he bought 10 boxes.
Thank goodness he only paid a fraction of a penny per pen; they turned out to be horrible quality!
William Shatner has the right idea as the Priceline Negotiator. How good of a negotiator are you?
Consumer Reports reveals that you can get a better rate on hotels 83% of the time just for the asking. Remember Clark's mantra: "Wow, that much? You don't have anything better?"
Turns out it's not just hotels where you can reap the benefits of negotiation. You can get a lower cell phone bill and better prices on clothing and jewelry about 80% of the time. Ditto for new cars and air fares.
Then you have a 75% of negotiating a lower rate when buying an appliance, and a 71% chance when you purchase electronics and furniture.
Credit card fees can be lowered about 60% of the time through deft negotiation. Of course, that particular figure may drop radically in the near future when you consider today's anemic credit market conditions.
One area where people try to negotiate but usually fail is with medical bills. Yet even so, Consumer Reports says it will still work more than half the time.
Polite persistence is the key to taking advantage of negotiating power. As Consumer Reports says, "Be patient and be nice. Demanding a discount rarely works." Here are a few additional tips from the magazine:
• Learn how to read the inventory tag on items. This will let you know the date when an item went on the shelf. Stores will be more likely to negotiate on items that have been sitting around. • Offer to pay cash on the spot and to take the item with you. • Be willing to walk if you don't get the deal you want.
MONEY-SAVING MOMENT: Sales of diamonds have dropped precipitously during the global recession, according to recent separate reports in The Financial Times of London and The Washington Post.
This trend has particularly affected the mass market for diamonds, which are at 1.5 carats or less.
Diamond dealers are upset that some sellers are doing sales on diamonds. For example, one English retailer called BrandAlley.com sells diamonds online like you would in a discount market. However, you need a local address in the British Isles to be able to register for their sales.
But as The Financial Times wrote, "Discounts may mark the end of the myth." There's a perceived value around diamonds that makes them worth more than an appraisal suggests.
So the deals are out there, but how to know if you're getting a deal or if you're being had?
Clark suggests only buying from a source that allows you to return the diamond for a full refund. After the purchase, you can take it to a certified gemologist to assess the clarity, cut, color and carat (the Four Cs) to make sure you were sold what was promised.
BlueNile.com and Costco Wholesale are among the retailers that allow full refunds on diamonds.
Meanwhile, Christa weighed in with a woman's opinion and said that many women look at the size of the rock, so guys can forget all about the Four Cs. She also suggests it's acceptable (and thrifty) to buy at a pawn shop -- instead of at a brand-name retailer -- if and only if you first make it clear to the woman that you'll be buying second hand.
Retailers have to get increasingly more creative to keep customer count up during a down economy. There's no "one size fits all" formula for it, but Clark wants to share a few reports that have caught his eye.
One small boutique in Arkansas hired a fortune teller to give free readings during a sale, according to the Associated Press. Another boutique brought in a nurse practitioner to do health screenings on customers.
Of course, the traditional approach to capturing customers entails lowering your prices. Clark is seeing a lot of that at boutiques that his wife shops. But if you discount in tough times, you'll look bad when you try to raise prices to their "normal" level when things recover.
In big retailing, the companies doing the best are the ones who are "vertically integrated." An example of this would be Zara, a European clothing retailer that has a relatively low profile in the United States. Zara designs, manufactures and sells their clothes -- they're the whole package -- and that's what makes them vertically integrated.
The average ticket price at Zara is $27, according to The Wall Street Journal. Zara is particularly good at monitoring runway fashions in Paris and elsewhere, and then designing, manufacturing and selling similar garments in about 2-3 weeks. Wow, that's fast!
Have you heard of a "closet boutique"? This is a new phenomenon that The Weekend Journal recently reported on where women open up their closets at home to sell designer clothes. Closet boutiques are typically advertised on Craigslist.
Last month, there were 715,000 postings for closet boutiques on Craigslist -- more than double the amount than last year at this time.
One caveat here, obviously: You'll certainly have some crazies come into your home if you have a closet boutique sale. Be sure to store away all your valuables, and make sure you have enough eyeballs on hand to ensure that people don't wander around your home and shoplift.
For buyers, of course, a closet boutique offers the opportunity to pick up designer duds at a tiny fraction of their new cost.
In related news, Amazon has announced it's getting into the used gaming market with a new trade-in service. Those who have old games to trade in will get Amazon credit to spend.
Clark has been raving about Steve and Barry's for years. This innovative retailer offered private designer lines at the cheapest prices possible. They were almost like a poor man's version of H&M or Zara.
Most of everything Steve and Barry's sold was around the $10 price point -- and that included clothing and shoes from the lines of tennis player Venus Williams, actress Sarah Jessica Parker and NBA basketball player Stephon Marbury.
But right now, Clark needs to eat some crow. Steve and Barry's finally has given up the ghost. In fact, it was their cheap prices that drove them out of business. You'll recall that the retailer initially filed for bankruptcy months ago, but they found a white knight investor to keep them going. Unfortunately, it didn't work. A liquidator is reportedly being hired to finish the job off.
The Steve and Barry's story will likely be replayed across the retail industry. The Chicago Tribune is now reporting that even Sears -- formerly the world's largest retailer -- is in trouble. So there will be newer and older players alike going bust. If you have credits or gift cards, now is the time to use them up.
One effect of the recession is that hairdressers are getting clobbered. People are either trading down from spas to discount chains or they're cutting their own hair! Clark knows a man who cuts his own hair using a Flowbee and he always tries to get the penny-pincher to become a convert. However, Clark doesn't have a stylish bone in his body, so cutting his own hair wouldn't be very pretty.
Is it money wise or money foolish to cut back on getting your hair professionally cut? Clark thinks it all depends on what you do for a living. If you're seeking work or appearances are important on your job, you might want to think twice about cutting back. But if it doesn't matter if your hair is a little too long or too short on the job, this could be a great place to trim your budget.
Clark's wife gets mad whenever he gets a haircut -- because she thinks he gets it cut too short. Of course, that's intentional on Clark's part. He only wants to pay for a cut 6 or 7 times a year. His wife, however, would rather he just get a minor trim every 3 weeks or so. Now she's taken to advancing her agenda by telling him that not getting short haircuts will conceal his thinning spot better. But Clark doesn't care; he'd rather save the money!
Used clothing stores are experiencing record numbers of sales in this down economy. That includes giants like Goodwill and the Salvation Army, along with smaller boutique-style shops like Plato's Closet.
People are also selling their belongings on Craigslist or eBay. Sporting goods are especially popular for sale whenever the economy gets rough. Even in a recession, you may get more money now as a seller than ever before; after all, there are so many more buyers competing to buy your wares.
Just know that people searching Craigslist expect to use a price as a mere starting point for haggling. Also, be wary if any out-of-towners contact you saying they want to buy. It could be a scam.
One major impediment that some people have to buying used clothing is the pride issue. If you think it's beneath you to buy used, that's fine; there are others who love snatching up the savings of 75% or even 90%. Clark himself has bought a few pieces of used formal men's wear for between $1 and $7 a piece!
Being out of style -- like Clark -- is in style again! Shopping at second hand stores is gaining in popularity. The goods they have are of a higher quality than just a few years ago -- thanks to the waning fortunes of some who were living high on the hog and now have unloaded their wardrobes.
The Los Angeles Times now reports that 80% of second-hand stores are experiencing a jump in traffic over the last 12 months. Meanwhile, people are even buying used wedding dresses on eBay, according to the report. One woman bought hers for $20 on eBay!
To those who turn their noses up at wearing used clothes, you've got to realize the clothes are laundered. And did you ever stay at a hotel? That bed has been used by strangers night after night. The sheets are fresh, of course, but you're sleeping in the same bed.
So don't be afraid of used clothes. Our senior producer Kim buys 60% of her clothes used and only pays single-digit prices.
New rules governing the safety of children's toys, cribs and more are set to go into effect by Christmas 2009. While parents won't get the benefit of the legislation immediately, there are a couple of free-market solutions that will cover upcoming holiday season purchases later this year. Read on for further details.
Under the new rules, there will be mandatory third-party testing of products for kids up to age 12. That's before the products make it to market. Other provisions include tougher standards for lead in toys -- which was a problem with imports from communist China. Meanwhile, there will finally be whistleblower protection. Previously, those insiders who blew the whistle risked being fired without any compensation whatsoever.
Fines of up to $15 million will be permissible if children do get hurt, whereas before there was essentially no fining permitted at all.
The new rules beg the question -- when should government get involved? If an industry monitors itself, Clark believes government should stay out. But the toy industry did not govern itself. So they brought the heavy hand of government into their world.
No legitimate business gets up in the morning with the intention of harming children. Yet there's a diffusion of responsibility throughout the industry. You have contract factories, final-assembly factories, wholesalers, distributors, retailers and more in the picture. The responsibility for safe toys gets lost in the mix.
But to the credit of the retail world, both Wal-Mart and Target have come out with their own stiff standards that importers and manufacturers have to meet. The Wal-Mart and Target standards will be effective this coming Christmas. Clark loves such free-market initiatives.
CLARKONOMICS: The latest retail sales figures are in and show the warehouse clubs and discounters including Wal-Mart are booming. On the other hand, Target and mid-priced clothing retailers are not doing so well -- except for maybe Kohl's.
These sales stats highlight a basic fact: We are completely driven by the goal to spend less for whatever we buy. High gas prices have really chilled retail spending.
But there is a silver lining here for those interested in fashion. September should be a month of great deals on fall clothing. This has always been true, but Clark is expecting the deals this coming season to be unreal.
Of course, clothing sales don't mean much to Clark. His usual "Clarkiform" consists of a free station golf shirt, $9 shorts and socks and underwear for about $1 each. He usually aims to have his whole outfit for under $20.
Yes, some listeners may be thriftier than that because they only buy used clothing. But Clark's bias is against used casual clothing for men. He finds it's usually too threadbare for his taste.
Sanyo has invented a washing machine that cleans your clothes with no water. The Wall Street Journal reports this product is already being sold in Asia and will be marketed here in the future.
The device uses high-powered air to wash, disinfect and remove stains from clothing. The best part of all? You don't need a dryer; your clothes never get wet in the first place! That means you'll only use about one-fifth of the normal electricity required for laundry. The bad news is that the retail price is around $2,000 right now.
Meanwhile, Mitsubishi has a new home air conditioner that senses when people are no longer in a room and automatically shuts off. This has obvious implications for your wallet. The AC works with sensors that detect body heat.
Clark loves the creativity involved with these kinds of inventions and the way they could potentially save you money. The only disappointment is that they're made in Japan. How come we're not doing this stuff??
We're sad to report that we may soon have another addition to the graveyard.
This is an unfolding story involving Clark's beloved Steve and Barry's. This innovative clothing retailer has been running an $8.98 or less promo on hip, fashionable threads for several months now.
Steve and Barry's got popular on the strength of their cheap prices and celebrity fashion lines. But they expanded too quickly throughout the United States, which may partly account for their impending failure. The Wall Street Journal and other sources report a bankruptcy announcement may come within a week.
Clark thinks it's a shame.
They were one of the only viable options for cheap and ultra hip sneakers. Steve and Barry's Starbury sneakers -- the signature shoe from NBA player Stephon Marbury -- sold for a mere $14.98. Compare that to upwards of $200 for a pair of Air Jordans!
Have you been paying extra for supposed "green" products in the cleaning aisle at the supermarket? Consumer Reports has found that such labels don't really have any meaning.
In fact, the conversion of familiar, non-"green" products to allegedly eco-friendly ones has become known as "greenwashing." So beware the next time you see an old product that's been repackaged as an earth-friendly choice -- with a higher price tag.
Likewise, "natural" is just another marketing term, according to The San Francisco Chronicle. There's no government definition of the term. Some tests have even revealed that petroleum-based products are being called "natural." Sure, fossil fuels are "natural" because they came from dinosaurs, but isn't that a bit of a stretch?!
Clark's company graveyard page keeps a running tally of all the businesses we've loved before that later went bust. Today, the penny-pinching guru would like to share a bit about his latest entry.
Some businesses don't "scale" properly, which means the economics of opening one store isn't the same as opening 10 or 100. That's precisely what happened to a company called ZOOTS that tried to operate a high-volume dry cleaning business in this traditionally mom-and-pop industry.
ZOOTS was started about 10 years ago by one of the key players in Staples. Among the features ZOOTS offered was 24-hour service, easy online scheduling and pick up and delivery.
But the reality is that the dry cleaning business is a very personal one. Clark's wife has gone to the same dry cleaner for 12 years. The owners have watched their kids grow up and are like family friends. People develop a relationship with their local dry cleaner, and a chain like ZOOTS couldn't really offer that personal touch.
The company is being disassembled piecemeal, so you may still see select locations with the ZOOTS name.
Another factor also conspired against the success of ZOOTS -- what we wear has changed. Americans generally don't get dressed up for work anymore. In fact, managers have had trouble explaining appropriate attire to some workers in corporate America.
Clark typically wears shorts and a golf shirt to work. This outfit has been termed the "Clarkiform" by his staff. When he isn't completely dressed down, Clark will wear stain-and-wrinkle resistant slacks or a wash-and-go suit jacket that doesn't require dry cleaning.
Finally, many dry cleaners have been squeezed by the added expense of hangers. Imports of cheap hangers are all but banned. That's why your local dry cleaner may try to get you to return yours.
Clothing is not selling, especially some of the upscale brands. A lot of aspirational lines are being discounted, which means you can buy big-name designers for less. Markdowns are happening earlier and shipments are being diverted to off-price retailers like TJ Maxx, Ross Dress for Less and others.
The Wall Street Journal reports that people of all income levels are cutting back on buying clothes, except for the ultra-rich.
If you're looking for deals on brands like Prada, Fendi, Gucci and more, Clark suggests you check out BlueFly.com.
Clark has been out of style forever and usually has no idea about what's going on in popular culture. But right now, he's actually in vogue because so many people are concerned about being extra thrifty!
If you pick up any general interest magazine, you'll probably see articles on shopping on a budget or frugal fashion. Newspapers are filled with stories about saving money on everyday purchases. In fact, the media blitz is so intense that people are now getting tired of stories about high gas prices.
Some sectors of the economy are actually benefiting from people's wallets getting pinched. Thrift stores are one example.
Clark is fond of picking up dress clothes at thrift shops. They're usually in great shape because few men dress up for work anymore. Instead, today's standard office outfit usually includes khaki pants and a golf shirt. On the other hand, Clark typically won't buy casual clothing at a thrift shop because he finds it's usually too threadbare.
For women, there's a new gold standard for saving on clothing: Steve and Barry's. This retailer is selling all clothing for $8.98 or less for a limited time only. They even have fashion lines from famous folks such as actress Sarah Jessica Parker, tennis star Venus Williams and others. (Editor's note: This retailer has since gone out of business!)
Clark has been excited for years about Steve and Barry's because of their Starbury shoe line. These shoes sell for between $8 and $15. Starburys are almost solely responsible for breaking the ultra expensive Air Jordan stranglehold on the feet and hearts of low income neighborhoods.
It's no secret that Clark's executive producer Christa has found a lot of excitement in clothes shopping over the years. Recently she's been trying to change her spendthrift behavior and has detailed the transformation on her blog.
While she's been doing a much better job at saving lately, the old Christa came out with a vengeance when a new H&M opened in the Atlanta area. After dropping her kids at school, Christa got in a queue with hundreds of frenzied woman (and 2 men) hours before the store officially opened its doors. The first 250 people in line received H&M gift cards that had to be scratched off to reveal between $10 and $250 worth of free clothing. The first 250 people also received a free tote bag, umbrella and T-shirt. Christa's gift card turned out to be for $75, while 5 people in line who camped out overnight only got $10 each!
Clark knew she'd go overboard with her spending at this event, and she did…by $93! Christa vows that she's going to return a lot of the items she got, but no one on the staff believes her. Her finds included a couple of "nice" T-shirts for $12; linen pants for $25; and a beautiful cocktail dress for $39, among other things.
H&M is not necessarily a well-known store in the United States, but it's immensely popular in Europe. It's like their GAP, with fashion forward styles that trend a little younger and are fairly inexpensive.
When Clark's eldest daughter was 13, he took her on a father-and-daughter trip to England when he spied a $180 roundtrip fare. But he actually lost money because all she wanted to do was go from one H&M to another on London's Oxford Street. The music was deafening at each location and Clark was saddled with at least 14 shopping bags. Security at each location would eye him suspiciously as he entered the store!
Years ago, Clark recalls getting a unique call from a man who explained how he haggled at Wal-Mart. Haggling at a chain store that's already turbo cheap? It turns out that idea is now in vogue. America's Research Group reports that two-thirds of Americans say they've haggled in a store during the last 90 days. The Los Angeles Times reports that some chain stores have now given floor employees the authority to accept lower prices, especially on electronics. Many retailers also have matching policies where you can show them a competitor's ad and get the lower price. Clark's not sure if he thinks of that as bargaining. Do you have a great haggling story? Let us know with our new commenting feature!
The World Bank estimates that the cost of food is up 83% over 3 years! Not all of this increase has translated into U.S. supermarkets yet. At the same time, half of all the things we import now come from the Third World where inflation is rising. Foreign inflation will come back to bite us in the form of higher prices on imported goods. So we as consumers have to make a decision between things we'd like to have and things we need to have. In the former category, you have things like electronics and clothing. It might be a good time to take a step back from buying. Fashion-forward retailer Target has just reported rotten sales for March, so that's a sign that some shoppers have already begun dialing back. Meanwhile, food falls into the latter category of things we need to have. So for food items, try brand substitution or buying the store brands at the market.
As a parent, Clark is sick over the fact that the Consumer Product Safety Commission is not doing its job of ensuring that toys are made and sold in a safe manner. CPSC honcho Nancy Nord instead sees her job as protecting manufacturers who have unsafe products on the market. Congress recently gave her the authority to ban lead-filled toys and children's trinkets. But she refused to do so and continues to allow the toys to be sold. If you have young girls, you need to be especially cautious about cheap jewelry and trinkets that are made to look like real silver. Clark advises parents to quietly dispose of these potentially lead-filled trinkets.
It's just insane that Nord has worked to put kids in harm's way in order to protect manufacturers. Clark is beyond anger over her activities; at this point, he's just deeply saddened. The whole thing becomes even more incomprehensible when you consider that Nord is a mother herself. The policy on her watch has been to keep things hush-hush when there's an unsafe product out there. Manufacturers get to sell off their dangerous inventory with the understanding that they'll have to comply with safety standards in future production. Visit SafeKids.org for the latest news. There is no cop on the beat, so you've got to be extra vigilant.
Clark has an obsession with not paying too much for sneakers. Perhaps you've heard him talk about the Steve and Barry's chains. S&B make very fashionable sneakers available for as little as $9. Recently Clark read an article in The Chicago Tribune about the latest Air Jordans. The iconic athletic shoe is now on its 23rd version and the asking price ranges from $185-$230! Sneakers are such a symbol of the power of marketing and advertising. With clever imaging and promotion, you can create a value that should not really exist. If you have a child who wants a pair of Air Jordans, Clark feels sorry for you! Actually, he encourages you to think about footwear from S&B instead. It is up to us as parents to teach good money values to our children.
Have you ever had a shoe that felt like it was made for your foot? Clark has been a longtime fan of mass customization. For example, Nike has been making sneakers that are customized as far as the look and styling goes. But now there's a company coming to United States called Left Foot that will do the same for the world of men's dress shoes. Left Foot starts by taking a digital picture of your feet. Then you have your pick of more than 300 styles of footwear, including golf shoes. The end result is a shoe that fits you perfectly down to every last dimension. Forbes has already reported on how people are raving about this company. But at $300/pair, these shoes are way out of Clark's price range. The rich who become early adopters of this technology will help the rest of us out by driving future prices down. Meanwhile, Clark paid about $15 for his dress shoes. They've lasted forever -- probably because he wears sneakers every day of the year!
The holiday shopping season was worse than expected by retail. Circuit City sales dropped 10 percent in December, and that's in the hot realm of electronics. The flip side to this story is that now there are great deals out there in the retail world. January is the sweetest month of the year to look for bargains. Clark was recently in a discount store when he saw bags of bows that were originally $2.99 marked down to 9 cents! So he bought 9 packs for 81 cents and now has 270 bows for years to come!
Clothing is one sector where you can find some real deals. Retailers are always looking 1 season ahead. Last week, Clark bought a lambskin leather jacket on clearance for $59. If he had bought it in the fall, it would have cost more than twice as much. So Clark's rule of thumb is to follow the calendar. On the first day of winter, winter clothing goes on clearance. On the first day of spring, spring clothes go on sale, etc. One caveat: Do not buy back-to-school clothes for your kids before they get back to school. The retailers try to trick you with non-sale sales in the weeks before September. Speaking of school, Clark once saw 20 pens for 20 cents after the kidlets returned. At a penny a pen, you better believe he stocked up!
Clark is one man who has a unique take on dressing for success; his fashion sense usually involves shorts and sneakers! On a rare occasion, he may have to wear a suit. That's why Clark was thrilled when he bought a couple of washable suits last year at J.C. Penney. He picked up a dark grey and a dark blue one in the $129-$149 range -- "typical banker or political candidate suits," in his own words. Clark first learned about washable suits in Europe. They're a big deal over there because many Europeans of all economic levels have to wear a suit in their daily lives, plus dry cleaners are more expensive over there.
Clark's former TV producer was aghast when she caught word of the wacky washable suits. So they soiled the suits, threw them in the wash and they came out perfect, according to a top tailor they consulted. The only caveat Clark has about washable suits is that they tend to be 50 percent wool and 50 polyester fabrics. That's why they're wash and wear. But they look great. Now Target is offering washable suits at select locations. J.C. Penney has a new one for women by American fashion designer Nicole Miller. The Limited is also selling a washable travel suit for women. Meanwhile, Sears and Kohl's are also on board with this trend.
Clark loves news reports that affirm his deeply held beliefs about saving money. Right now he's gloating about the results of a Scottish study that found low-cost running shoes are just as good as more expensive ones. The only time Clark spends real money on shoes is for running. But somewhere inside he feels that inexpensive ones may harm his feet. So he picked up his current running shoes on clearance for $45, which is pretty expensive for him. He tries to get most of his other shoes for less than $15. He has a pair of loafers that cost $15, a pair of tennis shoes that he got for $12 and some dress shoes that he inherited from his father in 1989. Now the study published in the British Journal of Sports Medicine has found that inexpensive shoes provided better foot support for the sole, heel, forefoot and big toe than more expensive ones. This whole issue makes Clark thinks of the Steve and Barry's chain that features Stephon Marbury's NBA quality sneakers for under $15 and Sarah Jessica Parker's clothing line for $19 or less. In fact, Steve and Barry's is the only company really doing deep discounted merchandise in the sports field.
The Consumer Product Safety Commission (CPSC) has been front and center in Clark's mind over the whole issue of unsafe Chinese toys getting into our marketplace and harming children. This is a federal agency that's charged with seeing that dangerous products get pulled. But the CPSC really isn't doing that at all, thanks to the actions of chairwoman Nancy Nord. By law, the CPSC is prohibited from issuing public reports about unsafe items until after a multiyear investigation. Nord has been lobbying to not have additional authority to deliver reports in a quicker manner. She's also fighting a move in Congress to fine manufacturers who make unsafe products. So what gives? Clark would love for Nord to come on the show and explain her position. Perhaps she's the ultimate libertarian who believes that capitalism is the best way to deal with products that kill children. Clark is just shocked that a woman whose job it is to protect consumers is actively campaigning to undermine efforts that would allow her to do so. But Clark doesn't want to jump to conclusions. After all, he doesn't personally know Nord and has no idea if it's her goal to harm children everyday. In addition, he does know what it's like to be on the receiving end of completely off-base attacks on the Clark Stinks message board. So he wants to hear right from Nord herself why it's a bad idea for government to ensure the safety of toys.
When can you really justify making an expensive luxury purchase? Phyllis Furman, a business writer for The New York Daily News, recently wrote on an article on this topic and Clark has taken issues with some of her picks. For example, Furman thinks premium men's watches priced at $900 and up are worth it. Clark disagrees. He has an inexpensive Casio that has lasted him very well. He can't believe that The Financial Times -- a very upscale newspaper -- sometimes has ads for watches that cost $100,000. Furman also feels designer handbags priced at $800 and up are worth it -- something Clark just doesn't understand. On the subject of men's wool suits, the two once again have diverging feelings. Furman thinks suits priced at $300 are worth it, yet Clark has both a grey and a blue suit he got at J.C. Penney on sale for $149 each. There are, however, some areas where the two see eye to eye. Clark and Furman both agree that expensive built-in refrigerators, costly mattresses and designer jeans are not worth the price. When it comes to jeans, for example, it's the fit that matters, not the brand name. It's perfectly acceptable to pick up a pair for as little as $15.
A few days ago, Clark spoke about how you can use the calendar to help you pick the best time to buy a vacation home. But did you know you can also benefit by timing your purchases at retail stores? During the fall, there are plenty of deals on wine because the harvest cycle generates a lot of oversupply. Clark and his wife snatched up a bottle of merlot for $2.77 the other day and his wife will see how it is the next time they entertain and serve wine. Clark, meanwhile, will stick to his Coke Zero! MarketWatch.com recently ran a story that unveiled other seasonal deals. October is the best month to shop for blue jeans and toys. Wal-Mart has already slashed toy prices in anticipation of a weak holiday sales season. Right now you'll see price cuts and a great inventory because people haven't started Christmas shopping yet. In November, you'll find that sneakers are a real deal. That's because of oversupply following the hot back-to-school sales season for both kids and adults. November also is the best month of the year to buy a wedding gown. Affordable dresses are now available at Target, Ann Taylor, J.C. Penney and David's Bridal.
Years ago Clark found out from a listener about a wallet made from parachute material. After buying one, he discovered that the material solved the problem of having a bulging billfold or "fat wallet syndrome" as it's sometimes called. The wallet's manufacturer is a company called ALL-ETT Billfolds -- pronounced like "wallet" without the "w" sound. Clark will be the first to admit that his original ALL-ETT was ugly. In fact, he was only able to recognize it after being mugged once in Madrid because it was so unmistakably hideous to look at! Recently Clark was on the ALL-ETT website and saw a chic leather-coated version that still features a parachute interior. Well, he just had to have it! Though it cost him $29.95, he thinks it is well worth the purchase price. If you want advice on how to pick up a basic men's wallet for cheap, try after Father's Day and Christmas. Retailers are overstocked with them at those points, so you can usually find some deals in the single digits.
On a related note, Clark spoke about a website called WalletTest.com that set up an experiment where 100 wallets were dropped in front of hidden cameras. Seventy-four percent of people returned them safely, while one in four stole the wallet's contents. Women were overwhelmingly more honest, while 40 percent of men committed a crime of opportunity and pocketed the billfold. In terms of age groups, people under 30 were more likely to steal the wallet than those over 30. The experiment was done in a small Illinois town by a webmaster who videotaped the wallets being picked up and posted the footage on YouTube. The webmaster also provides audio clips of people calling in to redeem fake gift certificates that were placed inside the wallets!
Think it's too early to start looking ahead to the Christmas shopping season? Retailers have already begun fretting over it. Dow Jones recently reported that retailers are getting more sober with their expectations and have cut back significantly on imported goods for this upcoming Christmas. A lot of spending during prior holiday seasons came from people borrowing against their homes. But that teller window now is closed in our current housing market. It's kind of a strange time because big companies and financiers are cautiously optimistic about the economy, yet two-thirds of consumers are expecting recession. That means retailers can't figure out which way the wind is blowing. So far the retailers have cut back on ordering as they try to avoid extreme discounting on goods that may sit unsold.
If the financiers are right and people do buy heavily this holiday season, there will be less promotional activity and less real deals on products after the holidays. But if consumers are right and they cut back on shopping, there will be a lot of opportunity to buy cheap. Meanwhile, there will be great bargains on clothing if the warmer weather across the country continues. In the electronics world, Nintendo's Wii is going to be difficult to get because of continued short supply. Clark's eight-year-old daughter clobbers him when playing tennis on the Wii, but he's pretty capable when playing bowling on the game system. As a parent, Clarks likes that the Wii encourages kids to get up and be active while playing their video games.
There's going to be a marriage of TV and Internet in the coming years and the level of interactivity will be incredible. Clark was really excited when TechNewsWorld.com recently reported about upcoming innovations that will integrate e-commerce and TV programming in a new way. Say you're watching a TV show and you notice some really fashionable clothing or shoes being worn by an actor or actress. You'll be able to click with your mouse or TV remote and purchase the clothing or shoes right then and there via a pop-up purchase window. People who watch TV shows on the web are already experiencing this kind of cross-promotion on their computers.
An MTV reality series called The Hills is trying out this new business model. So TV viewers like Christa, Clark's executive producer, can purchase clothing worn by the show's Lauren Conrad while she experiences daily drama in the chic setting of her Teen Vogue internship. Not exactly the kind of advancement Clark was hoping this technology would bring us! He's looking forward to the day when there will be one junction box on your TV that bring together lots of programming from multiple platforms -- satellite, cable, the web, mobile and more.
There's a new study out that says 60 percent of Americans are overweight. Mississippi has the highest rate (31 percent) of obese people. Yet Clark doesn't often see overweight people in places like Manhattan and San Francisco where folks frequently walk. Exercise is obviously the key. So what are you going to wear when you exercise? Well, Consumer Reports recently took a look at Starbury shoes, a brand pioneered by NBA player Stephon Marbury and clothing retailer Steve and Barry's. Starbury shoes sell for $14.98 and Consumer Reports finds that they offer good cushioning, flexibility and they breathe well. On a related note, Clark's executive producer, Christa, recently discovered that Steve and Barry's also sells actress Sarah Jessica Parker's line of clothing. All the clothes from the Sex and the City star's Bitten imprint are available for under $20. "Fashion is not a luxury, it's a right" is the slogan featured in the ads! If you're looking for other fashionable yet inexpensive duds you may want to check out Target. The company has teamed up with some high-end designers to bring specially made clothing to its customers for a limited time. Meanwhile, Christa recounted her horror story of being in New York for Clark's Rachael Ray Show taping and trying to shop at H&M. She took a cab back and forth from their hotel to the store and spent $7.50 to go and $15 to come back. Unfortunately she was so pressed for time with the TV shoot that she didn't get to purchase a single thing!
Right now mainland China is taking a lot of heat for shipping unsafe products like tires, toys and toothpaste to the West. Will all the criticism change the way the communist government does business? Clark hopes so. The country has made enormous progress from the first time he visited it and experienced full-on Mao-style communism. Then when he went back about 11 years later, he was surprised to see the country had become relatively freer. Today, China is torn between its totalitarian past and its future of embracing capitalism. Clark recently read an article that said that we as American consumers are helping to make the Chinese people freer than they are now when we buy their products. Currently under the communist system there is a lot of nepotism and doing business is all about who you know. If you bribe the right people, you can ship out your unsafe products without consequences. But now that people are frowning on Chinese goods the demand in the West for their products may dry up. Clark wonders if the communists' failure to ensure safe goods will be the very thing that opens up their society even more.
The internet offers users the opportunity to get thing much cheaper than at physical stores. The Wall Street Journal's Personal Journal section reported that people have begun treating cyberspace like an old-fashioned bazaar, where they haggle for lower prices. Comparison shopping websites like ShopStyle.com and Glimpse.com have always been helpful in this regard, especially if you're in the market for a good deal on clothes. You can even find out about big savings at message boards like MakeUpAlley.com and StyleForum.net, where bargain hunters will post their finds from around the web.
To bargain for lower prices online, you should e-mail the website you're interested in and tell them about a better offer you found elsewhere on the web. Often the e-tailer will give you a comparable or lower price (and maybe even throw in free shipping) to get your business. One thing from the Personal Journal article that really struck Clark was that the writer mentioned getting a pair of blue jeans online for the bargain price of just a little above $100 -- some $50 cheaper than list price. That just goes to show that Clark really lives in a different orbit than most people. He says he doesn't do triple-digit clothing; in fact, he doesn't even really do double-digit duds. Single digit? Now that's more his style!
Are you looking for a new washer and dryer combo? Don’t think that all you have to do is look at the brand name and then find what color you want. The Consumer Reports June issue shows that the most important thing to look at is the model. Whirlpool has one of the highest rated and also one of the lowest rated washers in the market. The same thing is true with Kenmore. So when you are looking for a washer and dryer, don’t just be fooled by a brand name. Also, check out what Consumer Reports has to say about brand reliability. You don’t want to get on a first name basis with a repair guy, so make sure you check out how often each person has problems with different branded appliances.
Last fall, Clark praised NBA player Stephon Marbury for his contribution to needy kids. No, he didn’t start a charity for kids or open a recreation center. He started a line of shoes. That’s right. Marbury created the Starbury line of sneakers, which cost just $14.95. Marbury made them cool by actually wearing them himself. And, they’re not cheap in quality. The shoes are made out of the same materials as expensive Nikes or other high-priced sneakers. So, kids have found out that it’s possible to be hip on the cheap. The shoes are sold exclusively at steveandbarrys.com. So find out if there is one near you. Platos Closet is another great resource for teens who want high-quality, designer clothes for cheap.
Clark hates wearing suits. In addition to being uncomfortable, they are very expensive to clean. But what if you could just throw your suit in the washing machine? A company in Europe invented the suits and they’re being sold in Marks & Spencer in England, according to the Wall Street Journal Europe. So far, only one American retailer is selling the suits right now – J.C. Penney. They are 50 percent wool and 50 percent polyester. And after you wash them, you just hang them out to dry. It’s for the guy who must wear a suit but doesn’t want to. It also eliminated dry cleaning costs. So what do they cost? The jacket costs $109; the pants are $44. Keep an eye out if you like convenience and low cost. Reviews say no one will be the wiser!
The Financial Times of London conducted a retail survey recently and found that two companies are miles above the rest in terms of customer satisfaction and profitability. They are H&M and Zara.com. Find out why! Remember to click just once and disable your pop-up blocker.
Counterfeit products are flooding the market these days, and people who vowed never to buy them are scooping them up. Prices are just too good. So, is it possible to know when you’re getting the real thing? Companies must come up with labels and markers for their products that guarantee it’s the real deal. Fendi, for example, is putting holograms in its purses, hats, clothes and other items. The hologram cannot be duplicated by counterfeiters, according to the Dow Jones News Wires. Clark thinks these items are not worth the money. But if you do, look for information from Yves Saint Laurent and other designers about what they’re doing to prove they’re the real deal.
Have you heard of disposable clothing? Lots of fashion-oriented teenagers and young women now buy clothes with the intention of wearing them only two or three times before throwing them away. It’s a “cheap chic” trend and it’s being led by three companies: H&M, Zara and Forever 21. All of them are making a huge profit, with Zara in the lead at 36 percent. These clothes are probably going to wear out pretty quickly, but they meeting the needs of hip young women in terms of cost and design. The traditional retail model in the States is over, and this is where it’s at.
Have you heard about the 2006 holiday collection from the Neiman Marcus? One item may help Clark with his traffic woes, but it will cost him $3.5 million. The department store is selling a multi-million “Sky Car” that can fly or drive. The store also has a limited edition Lexus hybrid for $65,000. If those items aren’t good enough, you can also enjoy a private concert from Elton John for $1.5 million. Who buys this stuff? Apparently, someone does because they publish the catalog every year.
Clark has been excited for years about how the clothing market is changing. Since the beginning of the year, clothing prices have dropped dramatically and clothing from China has increased 54 percent. In an effort to protect American factories, the feds are now imposing quotas of clothing. Clark believes this is going to create a barrier war between countries and ultimately really hurt the consumer. Implementing a quota restricts the free market.
You’ve probably noticed that most of the suitcases out there are black. It hides dirt well and it’s just what people have used. But some high-end designers are making suitcases in a variety of colors and designs, according to the Dow Jones wires. Leopard print, bright orange, candy apple red and flowered prints are growing. Some of these luggage sets are as much as $1,300. Tumi, one of the high-end brands, is releasing 50 new designs this year. Clark likes the idea of a new look. It helps us pick our back out of the crowd. But if they’re that much money, they are bound to go down in price. Wait a while until you buy a designer bag.
Would you consider buying $200 jeans? Expensive jeans are all the go these days, with people not even blinking at a couple hundred dollars. Clark is stunned that people would waste that much money on a pair of blue jeans. But apparently, the more ripped and damaged they are, the better. All people care about is the logo on the back pocket that says they are “Seven” jeans or “Blue Colt” jeans. It’s gotten ridiculous out there. Try to save your money for something more worthwhile, like your retirement. Or if you have money to blow, give it to a charity or cause you believe in. It will feel even better than a pair of fancy jeans.
If you like buying clothes, the perfect situation is coming your way. For years, there were quotas on how much clothing one country could send to another. But that went away in recent years and, since then, the amount of clothing coming into the U.S. is up 550 percent. The Communist Chinese clothing makers have the most efficient system and the oversupply of clothes is mind boggling. Stores are figuratively flooded with clothes, so the savings will be passed on to shoppers in the States. You may not notice it yet, but clothing is becoming a smaller and smaller portion of our budget because prices are so low.
Luxury carmakers and designers are feeling a need to lower their price points in an effort to make more money. Mercedes and BMW, for example, are trying to create entry-level vehicles because other companies have made a fortune off of these cars. The Japanese were the first on board with this trend, building the entry level Infiniti, Lexus and Acura. They were coined as “near luxury” cars and . Now, Mercedes has a car that starts in the 20K range. The average price of a car today is about $25,000. So, people are very excited about getting into a luxury label car for just a few thousand dollars more. Clothes designers are also starting to create entry-level brands. Target, for example, sells Isaac Mizrahi, a couture designer, at bottom basement prices. It’s hot, but Clark wonders if it devalues the brand when a designer starts offering entry level “designer” clothes for much less money and discount stores.
What will they think of next? There is now a service that allows women to rent designer purses for a fraction of what buying them would cost. There are several different “lines,” including the “Trendsetter Line” ($20 a month); the “Princess Line” ($50 per month); and the “Diva Line” ($100 a month). With various lines you can rent real purses from such lines as Prada, Hermes and Fendi. Clark thought the story was a joke when Christa, our executive producer, brought in. But apparently, people in America want a lot of flash, as you know. Some may think this is a cheaper way of looking good. But Clark thinks that if you have to rent the purse, you probably can’t afford it in the first place. So, don’t spend your money on lifestyle.
September is now the second biggest wedding month of the year, after June. So, it’s really a bad time for shop owners to go belly up because brides are left without gowns on their wedding days. It happened recently to one chain in the Northeast and Midwest known as Kaufman’s Wedding World. The stores just shut down one day and padlocked all of their doors. Brides who had paid big deposits or who paid in full suddenly were left with nothing. What happens is women pay deposits for their dresses and then they wait and hope that the dress comes in. It’s the traditional way to buy a dress, but it’s just not smart anymore. Buying dresses off the rack is much safer. David’s Bridal is one of the biggest “buy now” shops, as is Filene’s Basement, and these shops are growing in popularity. Some companies also rent wedding dresses. It costs only a couple hundred dollars to rent a dress. So, if you are planning to get married, don’t pre-order and pay ahead of time. Think of new ways to get the dress you want. Otherwise, you may be left with nothing to wear on your wedding day.
Have you heard of the “Try Before You Buy” program from Maytag? It’s been around for a while, and basically you get to do a load of laundry or bake cookies with an appliance before you purchase it. It’s a very successful program, with people buying an item 70 percent of the time. The company is opening several stores a month around the country, and there should be 60 more around the country by the end of the year. So, who is doing laundry these days? According to Money Magazine, 70 percent of the time it’s the women doing the laundry in a male/female couple. Why is that? Three-quarters of the time it’s because the woman doesn’t trust the man to do it right.
Teenagers, especially girls, like to test their parent’s patience by dressing in questionable clothing. Britney Spears has been the role model for young girls, who frequently wear short skirts, low riding pants and very racy clothing. There is a constant struggle between some parents and their kids over what to wear to school. Thankfully, that trend seems to be disappearing. Retail stores are starting to sell more preppy, conservative clothing. Those that sell the racy clothes are not getting much business. The recent hype over back-to-school clothing was what finally showed us the trend change. And the kids are all for it. That is great news for parents, who were concerned about what their kids were wearing. But your kids may want a whole new wardrobe! In other fashion news, females can now put digital imagery on their fingernails. Women are actually putting art designs and pictures of their boyfriends on their nails for about $3 a piece. So, the designs are not that expensive. We’ll see how big this gets.
People are going berserk buying brand new, ultra expensive appliances, especially for the kitchen. Turns out, it’s a complete waste of money, according to the June issue of Consumer Reports. Inexpensive washers did just as good a job cleaning clothes as did the $1,600 models. And, better yet, they’re more reliable. Clark doesn’t get why it’s such a big deal to have a prestige brand. Consumer Reports’ “Best Buy” dryer is a Frigidaire at $310. The other two “Best Buys” are about $400; one is a Kenmore and one is a Whirlpool. Yet, people are spending a fortune. The most expensive brands tend to have trouble, according to the report. So it’s clearly not worth it.
Do you wear a watch? Clark’s watch recently died and he had to buy a new one. He agonized over it for a bit because the least expensive one he saw that he liked was about $50. That was by far the most he’d ever spent on a watch. But, many people are spending thousands of dollars on their watches these days, according to the New York Times. About $5,000 seems to be the standard price. Brietling, Taghauer and Tiffany are just a few of the big names in watches. An “entry level” watch today will cost you about $600, according to the Times. Cartier was selling a women’s watch called “The Roadster” for $3,450 that was very popular. And Louis Vitton and other companies are now charging $200,000 for some watches.
