Vigilance, patience can lead to major holiday discounts

This year, more than any other in recent history, holiday shoppers have a chance to grab some big bargains.

They only need to walk through stores to see the markdowns. Or they can pick up advertising circulars in newspapers or visit retailers' Web sites for buy-one-get-one-free offers or other discounts.

Consumers still need to shop smart, though, to make the most of the savings. They should compare prices at multiple stores, rather than take the first discount that comes along. They should stick to their lists and resist the urge to buy products they don't need just because it's a good deal.

And they should be patient. In this climate, shoppers will likely find that procrastination pays off.

Shopping experts traditionally warn that buyers who wait too long could face sparse shelves and a limited selection of items that cost more or that recipients won't want, wasting money.

This year, consumers could score the biggest markdowns by purchasing closer to Christmas. Toys R Us advertised a Dora's Designer Dollhouse play set for $79.99 in its newspaper circular for the week of Dec. 7 to 13. The price dropped to $74.99 in the ad released Sunday for this week.

Retail experts say prices will fall even further.

"Typically, once you mark it down, you don't re-mark it back up," said Margie Johnson, a national retail consultant based in Virginia Beach.

Discounts that start at 20 to 25 percent will fall to 30 to 35 percent, then 40 or 50 percent and finally 70 percent off, Johnson said.

Retailers planned months ago for a downturn in sales and a challenge getting shoppers into stores. They worked with vendors to develop products with price and profit margin in mind, Johnson said.

"They were very much more conscientious about having goods that they could offer as good values," she said. "What they're doing is they're driving volume."

The wait-for-prices-to-fall strategy won't work for limited-time deals known as early birds or door busters, which typically feature deep discounts on hot items for a few hours in the morning. Once restricted to the day or weekend after Thanksgiving, door busters have recurred several weekends this year.

If the phrases "no rain checks " or "minimum quantity" appear in fine print, inventory is likely low at the advertised prices. In those cases, shoppers need to jump to get the deal.

Weekly newspaper circulars provide a good place to start for price comparisons and a sense of what's on sale.

On big-ticket merchandise such as electronics, retailers are pushing discounted bundles. Best Buy packaged a Sony Bravia 46-inch LCD TV set with a Blu-ray player, surround-sound system and free home-theater setup for $2,000, said Bill Holloway, services manager for the Greenbrier store in Chesapeake. The TV normally sells for $2,500 alone, and the other items would cost another $900, he said.

A shopper looking for a 40-inch Samsung for $1,000, but not a Blu-ray player or surround sound, should avoid getting distracted by the bundle.

"Don't buy more than you need or want," advised Greg Daugherty, executive editor of Consumer Reports magazine.

As these deep discounts cut into profits, retailers will look to make up the margins with full-priced accessories and additional services such as extended warranties, Daugherty said.

"They're going to make their best effort to sell you something else that they can make money on," he said.

Salespeople might push a more expensive peripheral TV cable, for example, when a lower-priced version will work fine. Consumers should know what they need going into the store and do price comparisons so they can identify a decent deal when they see it.

Frequent-shopper programs also can bring benefits. Retailers send special discounts via mail or e-mail to those who sign up. Sephora, the cosmetics and beauty chain with a store at Lynnhaven Mall, recently sent a coupon for $15 off a purchase of $35 or more - an offer exclusive to those on its customer list.

Shopping areas such as Prime Outlets Williamsburg have similar programs.

The Internet offers a wealth of options for savings. Several Web sites allow visitors to search for retailer coupons. Those sites include BradsDeals, CurrentCodes.com, RetailMeNot.com, Yahoo Deals and Keyc ode.com.

In some cases, the site simply gathers the same promotions that shoppers would see by visiting retailers' Web sites. Others list deals not necessarily promoted by the retailer. Sites such as RetailMeNot provide the discount "code" that a shopper would use on the checkout page for an online purchase.

Another Web site, FreeShipping.org, lists the shipping discounts that retailers offer. The site has designated Thursday as Free Shipping Day and lists dozens of participating merchants that have agreed to waive shipping costs on online purchases with guaranteed arrival by Christmas. Macy's, Crate & Barrel, Charlotte Russe and Sports Authority are among them.

Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com