Recession-Savvy Shopping: (Discount) Buyer Be(A)ware

Some of us have shopped at discount retailers, both bricks-and-mortar and online, long before this current recession began. Now, these retailers are suffering not-quite-proportionately with their full-price cousins and offering us even deeper discounts. Very tempting!

They are, however, having to make cuts in places we can't necessarily see, like their customer service and warehouse employee numbers - places that can make the buying experience a nightmare. So be forewarned that strange things may happen during your shopping experiences, and although you may not be able to do anything about them, you can at least develop appropriate expectations and shop wisely.

SHOP SMARTER

At online discounters, when is Next Day delivery really next day? What should you expect when you pay for the shipping option "Next Day" or "Overnight"? Not all online vendors mean what you think those terms mean. Dictionaries define "next" as "nearest in time" and "on the first occasion [of the same type] to follow."

What part of "next" doesn't mean "the one immediately after this one"? Here's an example from my recent disappointing experience with an otherwise reliable vendor of many products, Overstock.com. I ordered a necklace for a friend's birthday the day before the party. The necklace cost about $68, and "Next Day" shipping was an additional $36.80. (Chalk the extravagance up to guilt for shopping at the last minute.) Overstock's shipping method definitions include "Next Day (1-3 Business Days)" and "Standard (5-10 Business Days)," at $2.95, with other options in between at various costs. Now, I figured that since my other jewelry orders from Overstock typically arrived in 2 days with just standard shipping, Next Day would really mean Next Day ... particularly since the $36.80 cost was right in line with the USPS overnight charge, which is Overstock's usual delivery method. Heck, it was even in the ballpark with FedEx's overnight charge for something as light as that necklace. (See rates information at end of article.)

But no! Overstock's tracking mechanism shows that on the next day, the shipment was still being "processed" in Overstock's warehouse. It wasn't handed to the post office until the 2nd day. The USPS did its job just fine, and delivered it the next day after it received the package. To Overstock's credit, when I called on the real next day to complain, and I insisted on speaking to a supervisor in customer service, the supervisor offered me an in-store credit for the $36.80. I'll remain a frequent shopper at this online discount retailer, so I'll use that credit. However, I did learn my lesson about what this economy is doing to even discounters.

Wait for the free (shipping) lunch. At all online discount retailers, you should be on the lookout for "free shipping" offers because otherwise you run the risk of "clearance" prices being offset by shipping and handling fees. To make this strategy work for you, track the price of the item you want at several online retailers several times a week, along with their usual shipping and handling fee; keep notes on these moving targets. That's the only way to be sure when-and where-the bargain is really a bargain. The "weekend special" free shipping from one vendor may give you less value that the deep discount from another vendor who charges for shipping. You can find competitive pricing at several "comparison shopping" sites: Shopzilla.com, PriceGrabber.com, BizRate.com, NexTag.com, MySimon.com, Shopping.com and Smarter.com among others.

In the bricks-and-mortar world, Stein Mart cuts employee status as well as its prices. I have fond memories of finding experienced sales people in Stein Mart's home decor, gifts and linens departments who unfailingly pointed me to the exact things I needed (sometimes at the very back of the pillows shelves) or told me they had nothing like that, saving me from a pointless hunt. In January and February, 2009, Stein Mart employees posted these kudos for their employer on Glassdoor.com (a great place for anonymous, honest employee comments) - "Stein Mart has a great family feeling to the job. Employee retention and morale was very high at times" and "Great hours for Store Management. Good benefits. They care about their employees. The discount. Salary is somewhat lower than what similar sized retailers pay, but on the flip side, they require less time at work." In March, things changed. First, Stein Mart reduced its home, gifts and linens merchandise to make room for better-selling (more "necessary") types of merchandise - from local observation, I'd say that's lower-cost clothing basics and smaller gifts targeting younger shoppers. Then they laid off nearly half of its assistant-manager positions, while cutting the remaining salaried management employee pay by 5% and stopping 401(k) matching. Reports from the field indicate that hourly-wage employee hours have been reduced to eliminate overtime and eligibility for employee benefits. So customer service may suffer in the form of fewer knowledgeable sales people who can guide you to the hidden gems among the merchandise.

WHAT TO DO?

With in-store customer service reduced by sales staff layoffs (which means you might as well shop the discounters' websites as well as the online-only sites like Overstock.com), and with fair warning about shipping dates and costs from online vendors, you might as well shop online. Save gasoline - it's the green thing to do.

RESOURCES:

Typical Shipping Rates for "Next Day" or "Overnight." Consumer Reports states the cost of sending a 5-pound package overnight (by afternoon next day) from New York to California, as of late September, 2008: USPS - $36.85, FedEx - $73.50, UPS - $73.50.

FedEx quoted cost of Standard Overnight (by afternoon next day) shipping a ½-pound package from New York to California, as of April, 2009: $39.55.

FedEx Rates & Transit Times Calculator - http://fedex.com/ratefinder/home

Comparative overnight shipping rates - http://www.consumerreports.org/cro/money/shopping/shopping-tips/fedex-vs-ups-vs-the-postal-service/overview/package-delivery-services-ov.htm

Comparison Shopping Sites:

BizRate.com - http://www.bizrate.com/
MySimon.com - http://www.mysimon.com/
NexTag.com - http://www.nextag.com/
Overstock.com - http://www.overstock.com
PriceGrabber.com - http://www.pricegrabber.com/
Shopping.com - http://www2.shopping.com/
Shopzilla.com - http://www.shopzilla.com/
Smarter.com - http://www.smarter.com/

Employees' honest opinions of their employers: GlassDoor.com - http://www.glassdoor.com/index.htm