Consumer Math - Price Extremes

For the first half of the 20th century, Economists assumed that buyers were rational, i.e. that they would also do that made the most sense mathematically. But experiments showed that buyers are very irrational by influenced by things we are often not even aware of. TheAtlantic.com gives some examples in The 11 Ways That Consumers Are Hopeless at Math.

Anchor Bias

Most of us have no idea what a fair price is for a home so instead we have to build a mental model of price comparisons and determine if the price is reasonable. Salespersons take advantage of this by showing the highest priced items first. Suppose you want a pool table. The salesperson will first show you a $10,000 model with amazing features. Oh, that's way too much. Next a $5000 table that's on sale. Uh, still too high. How about this $3000 model for bargain hunters? You take it because it seems like such a deal in comparison and you're beginning to look cheap. In reality there are many fine pool tables for under $3000 but the salesperson has distorted your mental price model artificially high. Odds are that $10,000 pool table will never sell but it's used to distort your perception of a fair price range.

Some menus take advantage of price anchors by listing early and prominently a steak or lobster at a high cost. So anything you order seems a bargain in comparison.

The book Priceless give a real example, Williams-Sonoma doubled sales of a $279 bread maker by adding a $429 bread maker next to their $279 model. Nothing had changed in the old model but now it looked like a bargain in comparison.

Price Extremes & Goldilocks

Given a range of prices and product choices which do we pick? Most will shun the highest priced thinking it must be overpriced and shun the lowest priced because it must be somehow inferior to allow for the super low price. So we pick a price in the middle of the range that's not too high or too low but just right regardless of the actual merits of the products themselves.

Consumer Math - Unit Cost

The Atlantic has a great article titled The 11 Ways That Consumers Are Hopeless at Math which will be the basis of my blogs this week.

Would you rather get a 33% discount off the price or 33% more product (more coffee, more cereal, etc)?

It turns out these are not the same. When you compare two products it's not enough just to say, product A is cheaper than B. What if B contains twice as much as A but only costs 50% more? Then B is the bargain. The trick to comparing different sizes of the same product is to use UNIT COST, that is dollars per quantity where quantity is some common unit of measurement like cups or pounds.

UNIT COST =  $cost / quantity

Now lets return to the original question. Which is better: a 33% discount or 33% more product?
The 33% discount reduces the top part of unit cost by 1/3 and new unit cost is 2/3 of the old.
The 33% more product  increases the bottom part of unit cost by 1 1/3,  or an increase of 4/3 in the denominator. We invert that number to find the new unit cost is 3/4.   And since fractions are difficult to compare let's convert everything back to percentages:
33% discount means a new unit cost 64% of the old
33% more product means a new unit cost that is 75% of the old
Discount wins!

"This is your brain on shopping, and it's not very smart" - The Atlantic

Strategic Shopping: The best months to buy foods

"We used to build civilizations. Now we build shopping malls."
~Bill Bryson

The SurvivalistBlog.net has an excellent article entitled Strategic Shopping: A Month-by-Month Analysis by M.D. Creekmore.  Here's a summary of the best months for certain food specials and deals:

January

• After Christmas Sales (wrapping paper, tape, bows, winter clothes)
• National Oatmeal Month
• National Beef Month
• National Meat Month
• National Tea Month
• National Soup Month
• Super Bowl (excellent prices on chips, salsa, soda and snacks)

February

• National Canned Food Month
• National Hot Breakfast Month (pancake mix & maple syrup)
• National Snack Food Month
• National Cherry Month
• National Potato Lover’s Month
• Sweet Potato Month
• Celebration of Chocolate Month
• Valentines Day Sales (candy)
• Chinese New Year (soy sauce, teriyaki sauce, noodles, bamboo shoots and water chestnuts)

March

• St. Patrick’s Day (corned beef & cabbage)
• National Red Cross Month (CPR class & first aid items)
• National Noodle Month
• National Frozen Food Month
• National Peanut Month
• National Peanut Butter Lover’s Month
• National Celery Month
• National Flour Month
• Spring Cleaning (cleaning products)

April

• After Easter Sales (candy & ham)
• Daylight Savings Time (batteries, smoke detectors, and carbon monoxide monitors)

May

• Memorial Day Sales (condiments, picnic items, chips, soda)
• National Barbecue Month
• National Hamburger Month
• National Salsa Month
• National Strawberry Month
• National Salad Month

June

• National Dairy Month (butter)
• National Iced Tea Month
• National Seafood Month
• Adopt-a-Cat Month (buy one cat, get one free? :-)  (cat food)

July

• Fourth of July (picnic/party items)
• National Hot Dog Month
• National Baked Bean Month
• National July Belongs to Blueberries Month

August

• Back to School Sales
• National Peach Month
• National Coffee Month

"Summer items begin to go on clearance. Keep an eye out for charcoal, lighter fluid, paper plates and plastic utensils, sunscreen and insect repellent."

September

• Labor Day (last of the picnic/BBQ sales)
• National Chicken Month
• National Honey Month
• National Better Breakfast Month
• National Mushroom Month
• National Rice Month
• National Preparedness Month
• Summer Clearance Sales (clothes)

October

• Halloween
• National Apple Month
• National Tomato Month
• National Pasta Month
• National Dessert Month
• National Seafood Month
• National Pork Month
• National Eat Country Ham Month
• National Chili Month
• Adopt-a-Dog Month (dog food)

November

• Thanksgiving Sales ( Baking goods such as butter, sugar, flour, chocolate chips, etc.)

"The week of Thanksgiving is the best sales week of the year."
Expect cooling weather sales on canned soups, coffee, tea, and hot chocolate.

December

• Christmas Sales (hams)

Bottom Line

A food storage is not just a wise precaution for preparedness, it can also save you money if you buy and stockpile items when prices are low and use them later in the year.

When is "Free" really Free?

"A fool and his money are soon parted"
- Thomas Tusser, 1524-80

Shoppers love the word "free" and so stores exploit that craving with many creative uses of free. For example,

"We'll send you this CD free plus shipping and handling (S&H)". Then when you discover that S&H is $10, it's not so cheap anymore. I recently encountered an odd variation of this. I was shopping for a used book on Half.com and found several copies selling for just one penny (plus S&H). The shipping fee was $5, not pennies, but I had little reason to complain. I was going to get a book I wanted for just $5.01. Perhaps the book was not selling and sellers were just trying to clear space for better inventory? And upon receiving the book I found it filled with yellow underlining and dog eared pages. Not quite the "very good" condition I expected. So I did get what I paid for.

"Buy two, get one free!",  "Half off! (with purchase of similar item)" Sales like this give me glad I studied mathematics. The first sale is 33% off but must buy 3 items.  The second 25% off with purchase of two items. I've seen as high as buy 10 for $X. The problem with sales like this is that you might not want 10 or 3 or even 2 items. Just one. Buying food that will just spoil if unused is no bargain at all. But if the item has a long shelf-life like printer ink or shoes or canned goods, then it might make sense to stock up.

"Free shipping!"  An article at Savings.com points out the possible flaws of free shipping.
1. Free shipping is not always better. Often the item prices are higher to cover the cost of the "free" shipping. Compare the item price plus S&H to find the best deal.
2. Free shipping may not be your best choice. Some vendors block coupon code discounts if free shipping is selected. Check to see which gives you a better deal; 25% off will likely save more money than free shipping.
3. Expect Delays. Free shipping is low priority for the vendor and typically sent by slowest method.
4. Stores vary widely in the shipping fees they charge. Check out a list of fees at Savings.com Top 50 Retailers.
5. Consider "Ship to Store". It may be cheaper (or even free) to have an item shipped to the store nearest your where you can pick it up personally.

Bottom Line

Stay smart when shopping and look at the total cost before buying.

Peanut Butter price excepted to rise 30%-40%

(To The Tune Of: Clementine)
Found a peanut, found a peanut,
Found a peanut just now,
Just now I found a peanut,
Found a peanut just now.

The Wall Street Journal reports that prices for Jif, Peter Pan, and other peanut butter jars will be going up as much as 40% starting in a couple of weeks. The problem is poor peanut crop with all the rain and flooding we've seen this year. The wholesale price of peanuts has already jumped from $450 a ton to $1,150 a ton.

Stock up now before the price hike. Peanut butter is a great item for home storage as it has a long shelf life, is ready to eat, and nutritious.

When buying your peanut butter, or any other item, don't purchase it at a drug store. An article at DailyFinance.com reports a Consumer World study that found that average drug store prices were 36% higher than average grocery store prices. For example, Ben & Jerry ice cream at CVS, $6.29. Same container at Stop & Show, $3.99.  Rite Aid had the distinction of having the most expensive basket of items at $107.46, while CVS was the least expensive at $98.12.

Bottom Line

Drug stores can beat grocery store prices on the loss leader items. These are advertised goods on sale at an extremely good price to lure you into the store with the hope that you'll buy other over priced items while there. Your best bet is too buy just the bargains you want and get out with wallet intact. However I've noticed many stores are fighting back against people buying only the loss leader items by changing saying: Sale price X with additional $20 purchase. So the sale is void if you don't buy other stuff.

If you need $20 of groceries, great. But don't buy $20 of stuff you don'd need just to save $5 on one item.

Are Dollar Store Items Worth a Buck?

“I wish I had a dollar for every time I spent a dollar, because then, Yahoo!, I'd have all my money back.”
-Jack Handy, Saturday Night Live

Dollar Stores used to be fun to visit. You could buy many items and still get change from a $20. But with the rise in oil price and inflation most stores have raised prices - sometimes posted, sometimes not - so I'm no longer sure just what "dollar store" items will cost anymore.

Michael Z. Williamson at SurvivalBlog.com  notes another change at dollar stores:

At one time, dollar stores (former called "five and dime" stores) sold closeouts, leftovers, seconds and special deals.  Increasingly, though, they're selling purpose-made, second-rate, third world junk made just for that purpose.  I would never trust any tool from such a store--they're of pot metal and guaranteed to fail.  They are not, in my opinion, "better than nothing", because they cost money, give you a false sense of security, and don't accomplish anything.

For example: a 2nd rate dollar-store hammer might take a few hits and break. And there's no lifetime replacement guarantee. I've noticed the same problem with brand-name Outlet stores. They used to sell left-over items and items with minor imperfections that failed to sell at the parent stores. You could find bargains on "real" merchandise. But now Outlet malls have sprung up all over America and there's no way there's enough remainder items to fill these stores. So instead the brand-names make their own cheaper knock-offs to sell at Outlets.

Check out an old post of mine about the importance of buying for quality, not price.
Bottom Line

Michael Z Williamson offers this advice,

I would recommend finding both actual overstock and closeout stores, and thrift stores, as well as frequenting garage sales.  At the latter two, older tools without the shine and modern high-tech shaping are perfectly functional, usually better made, and often available even cheaper than at dollar stores.  You can often find kits missing one or two pieces, pick them up separately for a mismatched but complete kit, and have name brand quality for pennies on the dollar.

For me old tools are often the best - enduring quality that just needs some polishing and perhaps sharpening.  Be sure when shopping at flea markets that you're paying for "used" goods, not antique value. I don't want an antique hammer to put on a display shelf; I want one I can use. 

My wife loves finding bargains at garage sales and thrift stores. Last week at a flea market we saw the price on old LP records vary quite a bit from vendor to vendor. The highest was $3 per album. We "scored" with 12 records for a buck which we'll use in craft projects with cub scouts. We're going to melt them and turn them into bowls in the oven.

9 Ways to Save Money on Food

“I went back to work because someone had to pay for the groceries.”
-Bette Davis (actress)

Back in February I blogged about rising food prices. Nearly every day now I see stories on this topic. For example, a site named FrugalDad.com offers 9 Ways to Prepare for Food Inflation. Here's my comments on his suggestions.

1. Only shop every other week instead of weekly
Every visit to the grocery is a chance to be tempted into buying something you don't really need.

2. Buy in-season produce
Maybe. Everyone seems to think that produce from foreign countries will be more expensive than local produce. But shipping by sea or air freight is VERY cheap. I read of a company who flew their chickens to China to be hand cut and flown back - AND this was cheaper then cutting them in the US. For many items the production cost is far greater than the shipping cost.

So, take advantage of specials when produce is in season. But my advice is don't worry if the season is local or on the other side of the equator.

3. Eat Less
Our parent's lesson of eating everything on our plate is making us fat when plate size and portion size has grown tremendously. Pay attention to portion sizes on packages. Some of the frozen meals I bring to work serve 2. So I'm learning to cook it half-way, cut it in half, put half in Tupperware for the next day and continue cooking the remaining half. Note cooking time may be less when you do this since smaller portions cook faster.

4. Grow your own vegetables
My wife keeps trying but little luck so far.

5.  Compare unit costs and keep a price history
Don't be fooled by special deals that are not so special after all. The Frugal Dad writes, " I recently stocked up on a few items included in a 10/$10 sale and the next week the store returned the item to their normal price…$0.88."

6. Eat less meat and more eggs, beans, and vegetables
Omelettes are great for dinner. So is meatless chili. We find summer squash and mushrooms can substitute for meat in some dishes. But again keep an eye out for the unit price per pound. My wife has been buying chicken this past week at $0.49/lb while zucchini was selling for 10 times a much at $4 per pound. Shop the specials.

7. Avoid the Junk Food aisle
There's nothing there you really want to eat is there? Next time look at the cost per pound for your favorite junk food.

8. Eat leftovers
This was a no-brainer when I grew up but we have a friend whose husband refuses to eat leftovers. He insists that every night she prepare a fresh meal from scratch.
I love leftovers - these become future lunches for the office.

9. Freeze the extras
Freeze leftovers - they'll be more fun when you're forgotten the first time around. Take advantage of store specials and freeze what you can not use within a few days. Buy bulk, break it into smaller/family-sized packages and freeze those.

Bottom Line

You may have noticed that none of the items above address food inflation directly. It looks like Frugal Dad was using a hot topic headline to repost common-sense ideas. Let's re-examine the advice with inflation in mind:

Food prices naturally fluctuate over the course of a year. Just like the stock market you want to buy low so you can enjoy owning the goods when prices are high. "Buying in season" and shopping the specials and freezing the extras are all ways to take advantage of low price swings.

For true inflation you either need to stock up now or opt out.  Eating smaller portions, avoiding junk food, eating less meat, and growing your own are ways to opt out. You can also use the food you have more efficiently by using leftovers and freezing. My family is learning to use leftover bones. A ham bone gives great flavor when added to a pot of beans or rice. A chick carcass can make a stock for soup.  A famous chef said he kept vegetable scraps over many days then used them to make a vegetable broth stock.

When certain food items become too expensive, look for alternatives. In my lifetime I have observed the "good" fish (like salmon) become over harvested and expensive so grocers started selling "trash" fish that were never considered food fifty years ago. These include Talapia and Chilean Sea Bass. Personally I like these cheap white fish but think back on how the contents of the fish counter has changed over thirty years. Be open to discovering new foods.

Warehouse Psychological Tricks

DealNews.com has discovered 7 Ways Warehouse Clubs Get You Hooked on Buying in Bulk

I always say shopping is cheaper than a psychiatrist. 
~Tammy Faye Bakker

1. Low prices
Low priced items attract shoppers. A warehouse can sell at prices near cost and still make a profit from the annual membership fees.

2. No music
There’s no fast music to make you shop faster.

3. Large sizes that look like deals
We are taught that bigger is better so Warehouses often supply huge sizes and quantities of products that are not what we are used to. You have to look at the unit prices to see you are actually getting a deal. And even a great unit price will be a poor buy if some of the food spoils before you can use it.

4. Product placement
Tech equipment like computers provide little profit margin, so stores put these in front to encourage rapid turnover. The Hot Spot for buying is the ends of aisles, or "end caps" as they’re known. Signage will claim the featured end caps are great bargains but check twice before grabbing the product.

5. A treasure hunt
Warehouses are designed to make you walk through as much as possible, hunting for items, in the hopes something will catch your eye for an impulse purchase. Some people enjoy the Treasure Hunt of finding "hidden" bargains.

6. Survival of the fittest
Warehouses can be a pain with parking, lines, self carting, etc. "It’s not an easy trip, so once there, you might as well make the best of it and buy as much as you can so that you don’t have to do another trip soon."

7. Customized deals
The Sam’s Club program, which requires an extra annual fee, uses predictive analytics on past purchases to determine which items would be attractive specifically to you, and then offers you discounts on those items.

Bottom Line

Buy only what you need. Don't be fooled into buying more than you need.

Five things worth haggling over

Connie Mack

"After all my years, there are two things I've never got used to - haggling with a player over his contract and telling a boy he's got to go back."

- Connie Mack (1862-1956) longest-serving manager in Major League Baseball history

Money.msn.com suggests 5 things worth haggling over

1. Home repairs

There is a lot of competition out there for home repairs like snaking your drain, painting, or electrical work. Know what your limit is and stick too it. You don't have the hire the first person who gives you a quote. We got four quotes to fix a leaking shower and nearly a dozen quotes for new windows. We still have not yet done the windows because the price is too high.

"Ultimately, being able to say no gives you a lot of leverage when you haggle. People who can walk away from the negotiating process often get called back with a better deal than those who feel (rightly or wrongly) that they have no other option. It's also important not to accept the first discount offered if it isn't what you want -- silence, waiting or just saying no can produce a better deal."

You can also get better prices in the winter when contractors are idle and need work.

Don't forget to check references, license and insurance. Sometimes the lowest bid is not worth the damage done by an unskilled contractor.

2. Auto repairs

"Finding a mechanic you can trust is a key ingredient to keeping your car well-maintained and reliable. But that doesn't mean you have to pay whatever the mechanic wants to charge."

If it's a big job get competing bids and ask your favorite mechanic if he/she will match.

3. Medical bills

"If you're low-income and have a hospital bill, you should ask to speak to the hospital's financial counselor. Many hospitals and other medical providers have charity programs that provide discounts for people making up to 300% of the federal poverty level. Since that level is about $14,000 for a family of two, a couple making up to $42,000 might qualify for some kind of break.
Another option is to ask for the same discounts the medical provider gives major health insurers"

4. Mattresses

Manufacturers and retailers deliberately obscure the information you'd need to compare mattresses by giving unique names to their product lines. So you have to find what you like by feel and dicker over the price. Walk out if the price is not what you want - you can always go to another retail store of the same company. We had one salesman get angry because he "called his manager" for a discount on our behalf and we still would not buy.

5. Jewelry

Jewelry markup is huge so don't be afraid to ask for 70% off.  Even 50% off may be over paying! Don't become attached to the piece - you must show that you can walk away and not buy. A smart salesperson will have you put on the jewelry because once you touch something, you're more likely to buy it.

Bottom Line

Don't be afraid to ask for a discount. If they say no, go somewhere else.

Gift Returns

"Beware of Greeks Bearing Gifts"
- Laocoon in the Aeneid, book II

Almost one in five Americans expected to return at least one holiday gift. If you are one of these five then ConsumerReports has this advice for returning gifts at http://blogs.consumerreports.org/money/2010/12/5-tips-to-make-returning-gifts-almost-as-easy-as-getting-them.html

1. Know the time frame
Large merchants usually allow 90 days for returns but some items like electronics, computers, music, and DVDs may have shorter return periods. software, and CDs and DVDs. For example electronics bought at Walmart must be returned within 15 or 30 days. But as a gesture of holiday goodwill, if a gift was purchased at Walmart between Nov. 15 and Dec. 25, the return clock doesn't start ticking until Dec. 26.

2. Use and Keep gift receipts
My wife requested gift receipts for items we bought at Toys-R-Us and I received a hobby kit this year with a gift receipt included. Merchants used to offer store credit without a receipt but don't count on that nowadays. You may have to ask the giver for the store receipt before making a return or exchange.

3. Take your driver's license
Some companies require a government-issued ID with a receipt. This way they can track serial returners who use and return items frequently.

4. Be sure before you open the box
Once you open a box the item is no longer new so merchants may charge a restocking fee, often 15 percent of the product's cost. Digital items that can be copied like computer software, CDs, and DVDs aren't usually returnable once they're unwrapped.

5. Know where to go
If an item was purchased online and the merchant has walk-in stores, check their website to see if you can return it at a store and avoid reshipping fees.

Bottom Line

I'll be sure to use more Gift Receipts in the future.

Are you Ready for Christmas?

“Christmas gift suggestions:
To your enemy, forgiveness.
To an opponent, tolerance.
To a friend, your heart.
To a customer, service.

To all, charity.

To every child, a good example.

To yourself, respect.”

- Oren Arnold

According to misconceptionjunction.com,

Black Friday is not the biggest shopping day of the year. In fact, it’s typically not even in the top five, though has cracked the ranks a few times in recent years.

The real biggest shopping day of the year is nearly always the Saturday before Christmas, excepting a few occasions where it typically then ends up being the Thursday or Friday before Christmas, when Christmas falls on a weekend day. 

Bottom Line

Expect the stores to be extra busy today and tomorrow. Happy Holidays!

Out of Stock

"I foresaw that, in time, it would please God to supply me with bread. And yet here I was perplexed again, for I neither knew how to grind or make meal of my corn, or indeed how to clean it and part it; nor, if made into meal, how to make bread of it; and if how to make it, yet I knew not how to bake it. These things being added to my desire of having a good quantity for store, and to secure a constant supply, I resolved not to taste any of this crop but to preserve it all for seed against the next season; and in the meantime to employ all my study and hours of working to accomplish this great work of providing myself with corn and bread. It might be truly said, that now I worked for my bread. I believe few people have thought much upon the strange multitude of little things necessary in the providing, producing, curing, dressing, making, and finishing this one article of bread." - Daniel Defoe (1661–1731), Robinson Crusoe

There are many things we take for granted and rely upon and never dream could possibly fail us. For example, access to your money in the bank. Last month, one of Australia's largest banks, National Australia Bank, encountered a corrupted computer file that jammed its payment system, hitting customers from a range of banks who rely on the NAB to process payments including Citibank and HSBC. Anxious NAB customers discovered online that their November paycheck has been "rubbed out" and their account credited with nothing. "Property deals were being put on hold, car sales suspended, wages not transferred, and direct debit payments for mortgages and bills stopped"

Or consider the Robinson Crusoe quote at top. What if your regional grocery stores ran out of bread (and most everything else) for a week or more? The post, The Truth About Your Local Grocery Store, describes the Just in Time (JIT) inventory system and its impact during disasters. "Twenty or even ten years ago we stored tons of merchandise in the back room and restocked throughout the day." But now stores carry just enough stock to cover normal demands and rely on supply trucks

Most stores get 2 to 5 trucks a day of some type of food.  Thus the store you shop at each day/week really only has about 1-½ to 2 days worth of food on the shelf any given day during normal conditions.  If an emergency happens they will be cleaned out in a matter of hours.  Then the question becomes how they will restock.  Remember roads may be closed.  The warehouse workers who normally load the trucks may have situations where they don’t show up to work due to taking care of their own family.  The same would be true with the truck drivers who would bring it to the stores and the folks who stock and run the local store as well.

If an emergency affects only a very local area then stores may get back in stock within 2-3 days on basic supplies. However if a large region is impacted, such as half a state, then the regional warehouses run out fast and supplies must be trucked in from great distances. Roads between the store and the warehouses may be impassible or damaged. Connecting bridges may have to pass inspection and be cleared as safe before trucks are allowed to cross.

Bottom Line

Regional warehouses stock common items for normal usage levels. They do not have stockpiles of chainsaws, gas cans, and other speciality items that everyone will want after a disaster. Even common items like batteries or bottled water will see an explosion of demand over normal levels that warehouses can not meet. A store may look well stocked with 60 propane bottles for camp stoves on the self but consider, an ice store or blizzard is announced with power outages likely so customers rush in and want 2 bottles each. On average big box stores see 3,000 to 6,000 customers each day. So if just 10% of customers need propane, that means 300 to 600 people need 600 to 1200 bottles with just 60 in stock. Only the first 30 customers will be satisfied assuming there are no hoarders that buy up 10 bottles or the entire stock. Picture your worst experience shopping for Black Friday specials and now ramp that up since the items are now "essential" as opposed to nice-to-have.

Consider also, how will you pay for things if you can find them? The ATMs are down, credit cards won't work so it's cash or personal checks (if the store will accept checks). How much cash do you have on hand to buy things in an emergency? Keep small bills like ones, tens and twenties (not $100s).  When stores reopen they may not have access to change from a bank as they normally do and will be unable or unwilling to give change for $100s.

Black Friday

It's Black Friday! Run!

Bottom Line

From Wikipedia,

"Black Friday is the Friday following Thanksgiving Day ... The term dates back to at least 1966 [on the East Coast but] has become more common in other parts of the country since 2000. ... According to Reuters, in 2007 135 million people participated in the Black Friday shopping rush.

Many retailers open extremely early, with most of the retailers typically opening at 5AM or even ... as early as midnight ... Upon opening, retailers offer doorbuster deals and loss leaders to draw people to their stores. Black Friday, as the first shopping day after Thanksgiving, [serves] as the unofficial beginning of the Christmas season"

Please don't get carried away...

Worker dies at Long Island Wal-Mart after being trampled in Black Friday stampede (2008)

Open 23 Hours, 30 Minutes

I went down the street to the 24-hour grocery. When I got there, the guy was locking the front door. I said,
'Hey, the sign says you're open 24 hours.'
He said, 'Yes, but not in a row.'
- Steven Wright

The Cosumerist shares a letter from a reader about his visit to a 24-hour McDonalds only to be told they were not taking orders from 4-4:30 am as they did cleaning. In general I find most 24-hour stores to be a bad idea. I hate grocery shopping while the aisles are clogged with pallets of items waiting to be stocked. Or shopping at a 24-hour store but find the Deli, Meat & Seafood sections are not 24-hour and have closed.

Bottom Line

I would prefer a store to be open, clean and accessible during "extended" business hours but shut the doors to the public while they clean and restock in the wee hours of the night. What's your opinion on 24-hour businesses?

Gender Differences

“Why can’t a woman be more like a man? ...
Why do they do everything their mothers do?
Why don't they grow up, well, like their father instead?”
– lyrics from My Fair Lady

On Dec 3, an article about shopping malls reminded me of a marriage counseling video that I saw fifteen years ago. The article is entitled “Male and Female Shopping Strategies Show Evolution at Work in the Mall” and addresses questions such as:

- Why can’t men distinguish a sage sock from a beige sock?
- Why can’t women tell if the shoe department is due north or west from the escalator?

The answers the authors say, can be traced back to ancient times when women gathered plant food and the men hunted for meat. The women needed a keen eye for detail while looking for the right plants; they had to be choosy and selective and patient while gathering. They had to pay attention to the growing season and know just the right time to pick a plant. The men on the other hand had to locate a herd animal, kill it, and get it back before it spoiled. They specialized in quick action and a good sense of direction.

“In modern terms, women are much more likely than men to know when a specific type of item will go on sale. Women also spend much more time choosing the perfect fabric, color and texture. Men, on the other hand, often have a specific item in mind and want to get in, get it and get out.”

This reminded me of the video “Love is a Decision” by marriage counselor, Dr. Gary Smalley. My wife and I enjoyed many of the talks in this series not long after we were married. Unfortunately, today I cannot find the video/DVD for sale on Smalley’s web site. Instead I found a paperback book written about the series and new lectures and seminars that I’ve not seen.

In the video, Dr. Smalley talked about the psychological differences between men and women. A successful couple accepts these differences and adjusts as opposed to Professor Henry Higgins in My Fair Lady who sings, “Why can’t a woman be more like a man?” I recall two of Smalley’s examples:

1. (On average) Women are nest builders and hate the thought of a dirty home. Before going on vacation (or even leaving the house) many women will wash dishes, vacuum, and do other house chores to avoid returning home to a dirty nest. Now that I’m aware of this I bite my tongue when my wife starts washing dishes when we’re late for a meeting like cub scouts.

2. (On average) Men are hunters and find mall browsing boring. The solution is to give the husband a goal, “Find me a red dress in my size for church/party/work”. Now the husband is motivated and will search the racks and stores for the prize sought. You may have to add some additional qualifiers so he doesn’t buy the first red dress found. I know for my wife that the dress must be washable (no rayon or silk), have short sleeves, modest neckline, no gathering bands, little to no sewn on jewelry/sequins, etc.

Bottom Line
Please keep in mind that the characteristics above are for men and women in general and that there are many who are exceptions. Regardless, a goal in any partnership should be to recognize and respect differences instead of fighting over them. To see the differences as strengths, not weaknesses.

How to Identify Good Furniture

“An educated consumer is our best customer”® - Syms.com

Author Karawynn Long has written an excellent article for GetRichSlowly.org about judging the quality of furniture. Now there is nothing wrong with buying cheap. As a college student I used milk crates and other inexpensive items for furniture. Today my wife & I enjoy strolling through IKEA and sometimes find something we can use – like a large shelving unit for our library. But cheap has a hidden price. The item may warp if it becomes wet, it may warp from use, and it’s not likely to last long enough to be passed on to your children.

If you want quality furniture that your great-grandchild will someday have appraised on Antiques Roadshow, then you need to spend real money. And if you’re going to spend serious money, you don’t want to be ripped off with shoddy craftsmanship.

For upholstered furniture, like a couch, check out the article January 2008, “You can size up upholstered furniture like an expert” by Consumers Reports.

Here is a Basic Furniture Shopping Checklist created by Karawynn Long for her article Furniture Shopping Secrets: How to Tell Superior from Shoddy.

-- Wood --
good: solid wood or 9+ layer plywood
bad: thin plywood, particleboard, pressboard, fiberboard
bad: knots, cracks
bad: soft, easily-scratched surfaces

-- Joints --
great: dovetail, mortise & tenon
good: reinforcing corner blocks
good: dowels, screws
bad: staples, nails, visible glue

-- Drawers --
great: dust panels, floating bottoms
good: metal glide-rails, stops
bad: wood-on-wood sliding

-- Frame --
good: even, level with floor
bad: twists, creaks, wobbles

-- Springs --
great: hand-tied coil springs
good: close together, even resistance
bad: any springs more than a few inches apart

-- Cushions --
good: firm foam wrapped in padding
good: protective inner cover
good: reversible cushions
bad: bare foam
bad: loose fill without internal sectioning

-- Upholstery --
good: aligned patterns
good: skirts with lining or weights
bad: skimpy padding along arms and back

Bottom Line

"Caveat emptor" - Latin for let the buyer beware
“Won't Get Fooled Again” – The Who

Food Photography

“Life expectancy would grow by leaps and bounds if green vegetables smelled as good as bacon.”-Doug Larson

Here’s another clever story from the Consumerist.com, Store Brand Mixed Vegetables: Not Quite As Mixed As You Would Think

A consumer, annoyed at inaccurate depictions of food on labels, decided to sort, count, and weigh the vegetables in his can of store brand mixed vegetables. The results were:

• 109 carrots, 146 grams
• 99 potatoes, 149 grams
• 13 corn, 3 grams
• 6 peas, 3 grams
• 6 green beans, 2.5 grams
• 2 lima beans, 1.5 grams
• 1 celery, .25 grams

Not exactly the mix shown on the can’s label above.

Bottom Line

A lot could be said about the “art” of taking food pictures. By law the photo must show actual food, no vasoline, paint or other external modifiers. But the photographer can search through hundreds of items looking for the perfect version. Or mix and match – say the bun from one hamburger and the meat from another.

Or the food artist may tweak the product a bit. For example, changing the air to dairy ratio before making a tub of butter to be photographed. Yes real food but nothing like you can buy. Or carefully removing then reattaching sesame seeds on a bun for a perfect look.
Don’t be fooled by pictures. And don’t refrain from complaining if reality does not match your expectations.

Farmer Markets

“The fight to save family farms isn't just about farmers. It's about making sure that there is a safe and healthy food supply for all of us. It's about jobs, from Main Street to Wall Street. It's about a better America.” - Willie Nelson

According to the USDA, there are more than 4,600 farmers markets operating throughout the nation. I first fell in love with Farmers Markets in Ann Arbor, Michigan, while attending the University of Michigan. It was gigantic and amazing! Now I live in the Hudson Valley region of New York and the Farmers Markets are smaller but more plentiful. Nearly every town has a few stands on Saturday mornings from May to October. These markets are so popular that at least two in the region are now open year round. You won't get local produce in the winter but you can buy fish, meat and fresh bread.

To find a local market, try Googling "Farmers Market " or these websites

http://apps.ams.usda.gov/FarmersMarkets/
www.localharvest.org/

A few years back my wife and I signed up for CSA (Community Supported Agriculture). The idea is that you support local farmers by prepaying for a share of their crop(s). The CSA agent often represents many farmers so you get a variety of foods over the course of the growing season. Our cost for a very small share was the equivalent of $18 per week. We'd visit the drop off point on Saturday mornings and discover what the CSA agent was distributing that day: lettuce, corn, kale, beans, etc. We usually got six different food types each week and sometimes we could choose; i.e. take 2 large cucumbers or 4 pickle sized.

The CSA was fun and we were exposed to many vegetables that we would not ordinarily eat; like kale. For just two people the amount of food was too much. We bought the smallest share possible and split the cost by alternating weeks with a friend. We did not rejoin the CSA for a second year. Instead for $18 we can buy exactly what we need and want from Farmers Markets.

Bottom Line

In theory you should get great bargains at Farmer's Markets by cutting out the middle-man but this is rarely the case. The farmers will claim their food is organic and charge the same or more as supermarket rates. So you may not save money but you can feel good about buying local (less fuel used in transportation) and supporting your local farmers. If fuel prices shoot up again or a pandemic closes the boarders of nations, then you'll want successful local farmers that can continue to supply you with food.

Save Money with Coupons

“The best things in life are never rationed. Friendship, loyalty, love, do not require coupons.” - Unknown

From the Consumerist, 5 Sites for "Clipping" Grocery Coupons:

While the Sunday coupon circular in the newspaper is still No .1, many consumers are turning to the Internet to match up store sales with print-at-home manufacturer’s coupons.

1. Coupons.com – print coupons at home with daily updates and a weekly email newsletter
2. SmartSource.com – printable coupons whose value depends on answers you give for shopping habits
3. The Coupon Clippers will mail you coupons you want for a “modest” fee
4. ShortCuts.com - an AOL service for print coupons OR adding them automatically to your Kroger loyalty card.
5. RedPlum.com – printable coupons from the company that creates the Sunday coupon supplements.

Bottom Line

Don’t let pride keep you from using coupons.