Gently used or new appliances can be a real deal on Craigslist as executive producer Christa has found.
For those of you who don't know, Christa has had to replace all the major appliances in her home because of flood damage.
By diligently searching online everyday, she has been able to find brand-new stainless steel double convection ovens that were never installed or used in a home. She bought them from a man who planned to use them in one of his high-end rental properties, but couldn't install because the tenants wanted a different finish! So what retails for $2,850 cost Christa a mere $600.
In addition, she picked up a fancy six-burner gas range from an architect who bought it for a client who again opted for a different finish. It was never used and came in its box with warranty. Retail price: $3,200. Christa's price: around $600!
She also snatched up a Thermador hood that retails for $3,150 for just $500!
The hazard here is that people selling appliances on Craigslist could be doing so out of their foreclosed homes. Or worse yet, they may be selling stolen goods. (Editor's note: After meeting with the sellers, Christa is certain that she has not bought stolen appliances.)
Legally speaking, it's very murky on the question of whether or not you have the right to buy built-in appliances out of a foreclosed home. Fridges and washers/dryers, however, are considered to be the owner's property and can legally be sold even when the owner is in foreclosure.
A variety of energy-efficient developments are coming to help Americans live smarter and cheaper in their homes.
The New York Times reports that there's a new technology where solar panels can be built right into the very shingles of your roof.
This can be a great workaround for people who want solar energy but live in restrictive covenant communities that prohibit traditional solar panels. The newly developed solar shingles come in terracotta and the traditional asphalt look so they fool the eye from the street.
The Wall Street Journal, meanwhile, has a story about new smart appliances. A smart appliance is any that would adjust when it runs based on when you can get the cheapest power rate. Both GE and Whirlpool have plans to crank out smart water heaters and clothes dryers next year.
Variable rate pricing for energy is already prominent in the Western states and eventually will be a standard practice across the country.
Looking for the best buys this autumn? Kiplinger magazine has put together its latest list of seasonal steals.
• Book your holiday airfare now. Mind you, the Tuesday and Wednesday before Thanksgiving and the Sunday and Monday after the holiday are the four busiest travel days of the year. So you won't find a deal at any point during those days.
• Landscaping plants are extra affordable. Fall sales are the secret of year-round gardeners. You can also try looking for pre-winter deals.
• The price of appliances makes consumers smile this time of year. Clark got burned on buying a new fridge for a rental property earlier this year. It killed him to see in sales circulars how much cheaper appliances are now!
• Outdoor grills are bargain too. Clark's brother-in-law is crazy for Big Green Egg grills. Because grilling out is seasonal, the deals abound right now.
• Finally, Kiplinger suggests that this is a good time of year to plan your health coverage needs ahead of open enrollment periods at work.
Now that Cash for Clunkers is disappearing in the rear-view mirror, it's time to gear up for…Cash for Appliances?!
The federal government is readying money for states to set up their own appliance purchase program. The stated goal of the program is to replace energy-guzzling appliances with Energy Star products. But the ulterior motive is to help the appliance industry after it fell apart with the housing market.
Some of the items that will likely be covered include air conditioning units, water heaters, fridges, dishwashers, washing machines and dryers.
But beyond that, it will be up to the individual states to set the parameters of the program. Expect a lot of variance from state to state.
The money should be ready in time for Christmas appliance shopping. "Hey, honey, I got you this new washer for Christmas!" Not exactly a way to win brownie points with the spouse.
The truly odd thing about the program is that you won't have to trade in your old appliance to get the deal on a new one.
One final word of advice: Don't take your old fridge and use it in your garage or basement. It's likely to be an energy beast. Just scrap it once you have a new one.
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.
The rising cost of food has prompted many people to buy freezer-only units, according to The Houston Chronicle. The idea behind this kind of purchase is that you can buy food in bulk at cheaper prices, freeze it and eat it over time at a great savings.
But Clark is not so sure about this idea. For one thing, not all food tastes good after being frozen for months. He also doesn't like salespeople pushing a freezer full of food on you. It's all smoke and mirrors because the samples you see in their freezers won't necessarily be what you get in yours.
Instead, Clark wants you to be a more careful shopper. Using a site like CouponMom.com can yield more savings in the long run than the freezer investment.
Clark has been greatly impressed with the efforts of individual states in creating energy independence and using alternative energies.
Colorado has been a real beacon. Several years ago, it citizens got a resolution passed that required 1 out of every 10 kilowatts of energy to come from renewable sources.
The utilities fought the measure hard at first. But now they've changed their tune. One power company reached its mandate 8 years ahead of schedule. The Washington Post reports that they're even offering to double the production of renewable-sourced energy!
California, meanwhile, has 2 humongous solar power plants being built in the desert. They both will use different solar technologies to generate transmittable power.
When it comes to wind power, Colorado and noted Big Oil state Oklahoma are both leading the charge. In Oklahoma, they're using windmills that rotate when they sense the direction of the wind.
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??
Clark has long been a big advocate of reducing his electric bill by using compact fluorescent lights in his home. It used to be that Clark installed CFLs in overhead fixtures and his wife put traditional bulbs in all the lamps. But now they're doing almost all CFLs through the house.
They've also done a lot of retrofitting with attic insulation, duct work improvements and weather-stripping around windows and doors. Their energy bill has fallen by about 40%, though complete payback is still several years away.
CFLs are a no-brainer in terms of savings. They cost about $1.10/bulb at the warehouse clubs -- which is still 4 times as much as a traditional bulb. Yet you may save up to $60 over the life of a CFL.
One of the biggest impediments to widespread CFL adoption has been the environmental angle. They're seen as a hazard by some because CFLs contain small amounts of mercury.
He is, however, a bit surprised that Wal-Mart or Sam's Club didn't beat Home Depot to the punch. But Home Depot has so many stores that most Americans live within 10 minutes of one, which makes recycling easy.
As Clark has said before, CFLs are just a transitional technology before LEDs (light-emitting diodes) become commonplace in the average American home. LEDs are already showing up in the homes of the ultra rich.
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?!
The Department of Energy is now saying that wind power could represent 20% or more of our future energy needs.
Wind power in the United States began as something of a curiosity and a big money loser. The first wave of installations took place in the '70s just west of Palm Springs, Calif.
Today's windmills are highly automated and can even rotate to catch the wind. We're also getting closer to figuring out how to store the energy that's generated, which had long been a problem.
However, one of the main deterrents to wind power remains the "NIMBY" mentality. People love the idea, but "not in my backyard."
For example, the wealthy are protesting the installation of wind power off the coast of Massachusetts. Likewise, The Houston Chronicle reports that some HOAs in Texas are fighting solar installations.
Clark thinks we all need to grow up and look at the greater good. We need a gut-check as Americans. Are we going to be sitting ducks to foreign energy, or will we seize the moment and work to find alternative forms?
Clark has a few suggestions for lowering your energy bill as we begin to ramp up for the summer. He's opted for a cycler at his home. On hot days, the power company will shut off his air conditioners when they sense they're approaching peak demand. They'll also pay him a bounty for the right to do this. So far, his family hasn't revolted against him!
There are varying degrees of sophistication to these kinds of setups. PG&E has a Smart AC option for customers in California. It allows them to decide if they want to participate or not on a daily basis. Customers can also decide if they want the temperature of their home raised 4 degrees or if they want the AC to run at half power for short periods of time.
Clark is also toying around with the idea of purchasing power only at non-peak times. So far his wife is not pleased. This could force them to re-arrange their routine. For example, they may have to do laundry at 8 p.m. instead of 7 p.m. because it may be cheaper later at night. Perhaps the easiest way to cut back on household energy costs is to install a setback programmable thermostat. And during the winter, try piling on another blanket and turning the thermostat down at night.
Finally, have you thought about a home windmill if you live in a windy area? Of course, there are always aesthetic concerns to be addressed with your neighbors before installation! The New York Times reports that there's a new generation of self-installed personal windmills. They've become so simple to set up and hook up to your electrical power. Some local governments even give big rebates to encourage installation.
Did you know that Denmark generates so much wind power that they've begun selling the excess current to other nearby nations? So what does that mean to you and me in the United States? The World Wind Energy Association reports that the U.S. has the second greatest installed base for wind power. In fact, we have 5 times more of the capacity to generate wind power than Denmark. We're just in the early innings of capturing this new energy that will help us reduce our reliance on dirty coal. Clark thinks wind, nuclear and solar energies are all great options going forward.
Meanwhile, the Danes also have another initiative in the works that Clark is excited about. Electricity use drops drastically at night as most people go to sleep. So Denmark is planning to put pollution-free electric cars on the road that will be charged at night for free with the country's excess wind power. If this is what little Denmark is doing, just think what our country can do it we all put our minds to it. We can't be just sit back and be victims of the high price of foreign oil. Clark hopes the next president makes this issue a big deal, instead of just talking about energy independence. In fact, we don't have to have a 100% solution to imported oil; even reducing our demand by 10% with alternative fuels would change the balance of power with those OPEC nations who want to harm us.
Clark is guilty of leaving his cell phone charger plugged in, along with a lot of other equipment that sucks up energy when not in use. These so-called Dracula or vampire electronics account for 5 cents on every $1 you pay for electricity. Clark's staffers recently made him look lousy during a meeting when they admitted they unplugged chargers that are not in use. And he's supposed to be the cheap guy! So think about what you can unplug and do it. Both your wallet and the environment will benefit.
On a related note, there's another environmental nuisance that you can now take charge of for free. Clark's mailbox around the holiday season has stacks and stacks of mail-order catalogs, most of them addressed to his wife. Now he's learned about CatalogChoice.org, a new website where you add your name to a "do not catalog" list. You probably won't be able to stop the influx of catalogs this holiday season because it takes about 10 weeks to process your request. Previously Clark only knew of a site where you had to pay to get your name taken off catalog mailing lists. CatalogChoice.org is absolutely free. Americans receive 19 billion catalogs every year. If you're an environmentalist, that's 53 million trees per year. The USPS also makes huge revenue delivering all these catalogs, so they'll be hurtin' for certain if everyone were to remove their names from the catalog lists.
Much of the country is suffering from either a shortage or a surplus of water. Clark was recently talking to some TV producers looking for a new angle on the drought story in Georgia. He thought we should be focusing on how to reduce our consumption of the existing water supplies, rather than on the fact that there's been too little rain. Clark believes there needs to be more emphasis on greywater systems. These are methods of water conservation that reduce consumption by about 35 to 40 percent. The idea is simple: Water is first used in the household for drinking, washing dishes and showering. It is then partially treated and recycled for landscaping, for use in toilets or whenever there is a need for non-potable water.
Meanwhile, Clark recently read about a high school in North Georgia that's conserving water by replacing water-based urinals with ones that don't use water. The military base where Clark trains as a volunteer state guardsman did this several years ago too. The filters used in waterless urinals are so efficient that there's no odor. In the home, you can install low-flow showerheads that use a blast of air to simulate a strong stream or use water-conserving toilets. Clark's home has a European-designed toilet that conserves water by having two buttons: One for a minor flush and one for a major flush. As Clark says, this is a G-rated show -- so use your imagination to understand when to use which button! As an aside, did you know that the Las Vegas Strip uses only three percent of the water in Nevada? Most of it is being sucked up by home owners trying to have green lawns in the desert. Now there are incentives for home owners to use rocks to landscape their lawns instead of having grass. Once again, the problem is on the consumption side -- not the supply side.
If you filled up at a gas station in the last several weeks, you've probably noticed the price of gas has been zooming up. That's because the price of oil per barrel is nearing a historic high. The most recent trade Clark saw was around $95. But adjusting for inflation, we've seen higher prices in the $101 and $102 range. Clark's economical Scion XB now costs him 9 cents/mile to gas up. One of his coworker friends was recently shocked that he couldn't fill up his huge modified TV station van for $50. Clark's friend thought the gas station was limiting how much gas he could pump, but really he was just getting such little gas for such a high price.
The good news is that gas and oil prices should decline in the future, barring any disasters either manmade or natural. A lot of the recent rises in price have been because of speculators. In fact, the price of a barrel of oil is up $25 over the last two months. Prices will drop once the speculators put their money elsewhere. But in the meantime, those who use home heating oil in the winter will really feel the pinch. The price of home heating oil is directly affected by the price of oil per barrel. So make sure you insulate and weatherize your home to avoid getting financially burned this winter. The average house using home heating oil is looking at $2,200 in winter heating expenses versus $900 dollars just two years ago.
It's no surprise that we Americans are energy hogs. But everyday there are new developments that help us reduce our energy consumption. Soon auto shoppers will actually be able to believe the gas mileage stickers found on cars in dealer lots! The feds used to put fake numbers on the stickers because the test used to calculate mileage efficiency was bogus. So you could purchase a vehicle expecting to get something like 26 miles/gallon (city) or 38 miles/gallon (highway) and get substantially lower real mileage. Now the government is enforcing a legitimate mileage test, so all cars shipped to dealers after Sept. 1 will have real numbers posted on them. Why the sudden change? The Toyota Prius really pushed this along. People were expecting to get 50-60 miles/gallon but the actual numbers were so much lower that people really ripped off and complained.
Another positive change that's a little further off involves LED (light emitting diode) lighting. Clark and his wife often battle over using regular or CFL (compact fluorescent lamp) bulbs in their home. He has a number of CFLs from the '90s when the technology still had a lot of kinks. In fact, once he was doing a TV story about energy-smart homes and he wanted to demonstrate his lighting for the camera crew. The CFLs took about 70 seconds to come on after he flipped the switch! Today's CFLs are much better (and faster to light up), so his wife is now more open to using them in their home. But CFLs may soon be a thing of the past when LEDs hit the market. LED are now used in new billboards and offer just about the best artificial light possible while eating up low energy. They don't release extra heat and they last for years. LEDs will probably be in offices, retail stores and industrial parks before they're available for home use. Clark thinks within four years LEDs should become a popular consumer product.
Clark's wife loves drinking coffee and often makes her java at home. She uses an electronic barista that has pre-packaged coffee blends to deliver ultra-fancy, boutique-style drinks. The packets cost 25 cents each, which is about five times more expensive than it costs to make a no-frills cup of joe. So how does Clark feel about this added expense? He loves it! It's not hard to see why when you consider that the alternative is to pay upwards of three dollars a cup at a Starbucks.
The Financial Times reports that people are now making more cups of coffee at home rather than buying them out at coffeehouses and restaurants. Starbucks wants a piece of this market, and the chain plans to offer its blends at your grocery store so you can brew it yourself at home. If you're like Clark's wife and brew yours up on a fancy machine, you can take solace in the fact that the return on investment is incredible. Though it may cost a few hundred to buy the machine, you'll quickly earn that back when you cut expensive coffee runs out of your budget for a few months. Or you can just go for the less-expensive Dunkin' Donuts coffee, which Clark's executive producer Christa says is the best in the world!
In February 2006, a gentleman called the show and spoke about using the same razor for a year. He revealed that blades don't degrade from shaving, but rather they corrode from the moisture that collects on them once you're done shaving.
He went on to explain his ritual of using a blow dryer to dry his razor after use. His call prompted others to speak up and share their tricks and tips for maximizing a razor's life.
Clark got inspired by the whole discussion (and the expense of shaving blades!) and decided to take a single 17-cent razor and make it last for one year.
He didn't dry his razor with a hair dryer, but instead took the lazy man's approach of just blotting it dry on a towel. It lasted for a whole year and he was very pleased to not have to throw money away on blades anymore.
Recently Clark got a letter from another man who heard the on-air talk about drying your razor and invented a device to do it easily. His invention -- the Razor Pro -- has been sold on QVC and through a drugstore chain.
The Razor Pro looks like a battery-operated pencil sharpener and dries your razor in two minutes. Clark's executive producer, Christa, thinks it can double really nicely as a fingernail polish dryer for girls.
Check it out if you're looking for a way to cut down on one of those smaller expenses that really adds up over time.
Minneapolis' Star Tribune reports that sales of extended electronics warranties at Best Buy and Circuit City are down 12 percent and eight percent, respectively. Clark really rejoices in these stats because he hates when these warranties are crammed down your throat by salespeople. Speaking of that, Clark recently bought an LCD TV (on sale) at a major electronics retailer. When the salesperson started his spiel about the warranty and Clark declined, the salesperson dropped him like a hot potato. He actually left Clark by himself to lift the TV onto his cart and didn't even fill out a customer ticket! Clark thinks the man probably acted this way because he may have needed a certain close rate on the customer tickets he writes up. So rather than risk being penalized for not selling the warranty, the sales associate didn't even bother writing up a ticket. At Circuit City, for example, the only way they survive is through warranty sales. Best Buy, meanwhile, reported some $800 million -- more than half of their $1.38 billion in profits -- came from the sale of extended warranties.
Clark says the payback on warranties is worse than on a Vegas slot-machine. In fact, he jokingly advises people to get a quote on a warranty and then go drop that chunk of change in a one-armed bandit. At least then you'll get flashing lights, racket and noise, plus have some fun taking in the atmosphere! But seriously, for every dollar you pay on an electronics warranty, you only get back about eight to15 cents, after you account for depreciation and how quickly technology becomes outdated. Clark thinks you should never buy an extended warranty on computers and electronics. You're a little bit safer with a warranty on your appliances. Finally, keep in mind that credit cards will sometimes double the manufacturer's warranty on electronics. It's like getting an extended warranty for free!
The latest American Customer Satisfaction Index from the University of Michigan has been released. This quarterly survey has been around since 1994 and keeps tabs on the good, the bad and the ugly in multiple industries. The big news this year is that American automakers did very well. While the top automaker was foreign (Toyota's Lexus division), homegrown companies like Cadillac, Buick and Lincoln-Mercury all tied for second place. Meanwhile, Toyota's namesake division fell way behind on the tally. Clark thinks the Japanese automaker has been taking its eye off the ball lately. The Toyota business model is now geared toward growth and quantity, not quality. That accounts for why they've been issuing more recalls than ever. Fortunately for Toyota, there are some corporate initiatives in Japan to raise the quality of their namesake line of vehicles. In the computer industry, Apple is tops in customer satisfaction; Clark's wife has an Apple Macintosh that she loves. In the PC world, Hewlett Packard's HP line makes a beloved machine, yet HP's Compaq division has been voted the worst company in the industry. Meanwhile, Whirlpool continues its dominance in the appliances field, racking up its largest lead yet over the competition.
Long ago in a galaxy far, far away…Star Wars came out. That was 1977. Remember how Luke Skywalker was living with his aunt on land that had its own power plant at the start of the film? That was a pretty clever idea for 30 years ago -- today people are doing the same thing by harnessing wind power. There are now companies that will install silently operating wind turbines at your home. Obviously, it's a great idea if you live in a windy area. The problems usually associated with wind power -- including the difficulty of capturing it in one area and then transmitting it to where it's needed without losing the power -- won't impact you if you generate it at home. The cost of installation could run you $10,000. But after you recoup your investment, the payback could be free power down the road. If you do choose to put up a turbine on your property, you'll probably hear from neighbors who say that it's an eyesore. Maybe people will start disguising their turbines as trees, much like some cell-phone towers are decorated. One thing's for sure: we should be building wind towers near where talk show hosts live. As Clark says, that's a great way to capture all the hot air!
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.
Clark bought a scratch and dent dryer when his old one broke recently. Lane, his wife, thought it was a crazy move, but she is used to that with Clark. He is pretty much always willing to accept lower quality for a lower price. And, this product was no exception. It was on sale because it had been damaged in a move and couldn’t be sold in a traditional appliance store. But it has been great. In fact, Lane told Clark it is the best dryer they’ve owned. Too bad appliances are such image purchases. Consumer Reports magazine showcases the best refrigerators in this month’s issue. The company did extensive research into which appliances are the best. People tend to think the brand “Subzero” is the best because it’s the most expensive at about $6,500. But, according to CR, it’s one of the lowest quality refrigerators on the market. What about in terms of repair? Well, the top models are Whirlpool and Kitchenaid. Between 5 and 7 percent need a repair over a five-year period, whereas about a quarter of Subzero brands will need a repair over five years. Also, GE got some Consumer Reports “Best Buy” tags. One side-by-side model was $1100. Whirlpool models are listed at about $950. Clark got one recently for about $850. So there is no need to buy an expensive brand to impress your friends and family with a name that is actually pretty worthless.
Vacuum cleaners are one of the hardest items to buy these days. Do you need the one with extra suction or the standard, bulky model? Well, according to Consumer Reports, the top vacuum out there costs just $150. It’s a Eureka and it’s CR’s “Best Buy.” People will pay up to $400 for a vacuum cleaner, but the affordable Eureka brands are the second most reliable out there. The Boss Smart Vac Ultra 4870 model had the highest rating for cleaning carpet and bare floors. It also got the highest rating for sucking up cat hair. It was one of only three that scored tops in all three categories, and it’s the least expensive at $150. So, what were the worst models? Some of the most expensive ones - $900 to $1,000 – were the least reliable. What about the Dyson, which has gotten so much press? It was in the middle of the pack. For a fairly expensive machine, it got mediocre ratings.
Americans are spending an ungodly amount of money on appliances, and it makes no sense to Clark. Stove tops, washers, dryers and dishwashers are selling for thousands of dollars. For instance, GE is going to offer a $14,000 refrigerator/freezer, and people are standing in line to buy it. How nuts is that? Consumer Reports has said repeatedly that an $800 fridge and freezer works just as well as – and usually better than – the expensive ones. How about ranges and stoves? A range that costs $4,000 won’t do any better than a regular stove top that costs half of that. Apparently, people care more about how they look to their neighbors than they do about having money to buy food. It’s all about your kitchen looks to others, and that is just sad. Keep in mind that kitchens that look hip and happening today will be hideous down the road. Huge fridges that are as big as an SUV are going to be an anomaly someday. So why spend that much today?
Clark is a big fan of energy star products because they are very efficient and they will save you a ton of money over time. But you completely blow any chance of making money back on these products if you buy the fancy, fashionable model. Christa recently bought a fancy washing machine that has a folding table attached, and she paid an extra $600 for it. Clark balked at this and told her the standard model is just fine. Apparently Consumer Reports agrees. The “best buys” for washers, refrigerators and freezers cost about half of the most expensive brands. Going back 30 years, turquoise appliances were in. Do you remember that? Today, we spend that extra money on appliances with expensive metals and computer graphics. Instead of going fancy, just buy what’s affordable and practical.
Consumer Reports recently rated dishwashers and several other appliances to find out which are the best quality for the best price. The best buy, according to the February issue, is $330. When it comes to microwaves, the best buy was just $75. Clark had no idea people were spending a lot on microwaves, but they are. The $75 model CR picked cooks food much better than the $800 model. How about refrigerators? The most reliable brand is Whirpool at $630. The least reliable was Sub Zero at $5,600.
About five years ago, Clark signed up for an experimental program with his utility company. The utility gets to seize Clark’s air conditioner on hot days when the demand is higher. In return, he gets a bounty and the company saves tons of money. That’s because it costs a power company much more to get that last bit of energy than it does when the company is producing energy on a non-hot day. So, each additional source of energy costs more than the one before. And, it's a win-win if the company can conserve resources and the customer gets the payback. The idea of adjusting prices based on how much it costs to provide energy is starting to take root. Several states are experimenting with meters that people can adjust themselves depending on demand. Therefore, consumers can control their power bills. Pennsylvania, Florida and California are all experimenting with programs. Look for something similar in your state.
Several weeks ago, Clark was enraged when he heard about the massive fees the federal government was planning to charge on imports coming from China. Furniture from China is dominating the market because the quality and the price is so good. It’s got U.S. furniture makers all worked up because the competition is doing so much better than them. Well, now that the election is over, the news has changed. The tariffs have been reduced to a maximum of 16 percent and some items will have duties of only 8 percent. So, the increase in the mark-up will not be as high, and prices will remain very reasonable in general on furniture. On the other hand, China is soaking up so much of the world’s steel and raw material that appliance prices are headed up. Whirlpool is raising prices as much as 10 percent and Maytag has just announced it will increase prices as well. Refrigerators, washers, dryers, dishwashers and stoves are among the items headed up.
Major appliances for the home have gotten much cheaper these days. That includes washers, dryers, refrigerators and stoves. Unfortunately, many people buy expensive, unreliable fancy appliances that break all the time just because they look good. What people don’t understand is that these fancy appliances are not tested enough. Therefore, the bugs have not been worked out and they end up breaking all the time. The reliability of an item increases as the production runs increase. Consumer Reports confirms this in its appliance issue, in which ultra expensive items are always rated worst in reliability. Most people are still looking for good deals on reliable appliances, however. The business has become super competitive with Lowes and Home Depot duking it out for market share. In the meantime, Sears is getting clobbered. Part of the reason is because Sears is located in malls, and most people don’t shop in malls anymore. As a result, Sears is going to open stand-alone appliance and electronics outlets that will carry very reasonable merchandise. According to reports, the most price-sensitive shoppers are upper- to middle-income buyers. These are people who make a substantial income but are looking for the best value on a dollar. Non-traditional players such as Wal-Mart and Costco are entering the business, so traditional appliance stores must compete for your business. Wal-Mart alone accounts for one in every $11 spent in the United States, so they mean business. And remember that if you were psyched to get one of those ridiculously expensive appliances, don’t! You’re wasting your money!
Investor’s Business Daily recently completed an analysis of what things cost today versus what they cost one generation ago. Take food for example. One-quarter of all of our spending went to food. Today it’s about one-tenth. As for clothing, we used to spend about a dime on clothes. Today, it’s four cents. One expenditure that has gone up is housing. We were spending about 15 percent of our income on housing. Now, it’s up to almost 20 percent. That could be because the average square footage of homes has also gone up. The average size of a home one generation ago was 1,300 square feet. Today, it’s more than 2,100 square feet. And, although car prices may seem much higher than a generation ago. But based on what we now make, they are much cheaper. Appliances are also much less expensive. They cost about one-fifth to one-tenth of what they cost back then. Color televisions cost one-seventeenth what it cost in 1970. So, in spite of all the talk about how much tougher life is, the truth is we’re living larger and paying a lot less for it. So, you may want to step back from wanting everything and tone it down. You'll probably appreciate it more.
