For those of you who are planning on throwing an Academy Awards party, here are some cheap party tips to help you throw a party on a budget, courtesy of Teri Gault, CEO of The Grocery Game, a site devoted to helping people save money and live well.
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Outlet Shopping vs. Retail: A Shopper's Guide
Bargain shoppers may be concerned about price, but they still appreciate name-brand products and enjoy staying on top of trends. Outlet shopping malls woo budget buyers with the promise of designer labels at affordable prices.
We started by compiling a shopping list. We conducted our research ahead of the holidays, so we selected items that would make good gifts for a variety of recipients: a handbag, iPhone case, and Le Creuset pot for a wife, mother, or sister; a polo-style shirt, sweater, and wallet for a husband, father, or brother; PJs for a niece or nephew; socks and underwear for stocking stuffers; hand soap and lotion for friends or hostess gifts; and a carry-on suitcase for a gift or for holiday travel.
We took our list to the closest outlet mall, where we had 110 stores to choose from. We found the items we were looking for at Gap, Banana Republic, Gymboree, Carter's, Kate Spade, Coach, Restoration Hardware, L'Occitane, Samsonite, Le Creuset, and Calphalon. At each outlet, we took note of not only the prices but also the quality of the items on display. The outlets we visited were generally well-organized and had a high-end feel. Salespeople were friendly, helpful, and well-informed about their products. We chatted them up about where their stock originates and asked about return policies.
Then we headed over to the local mall for a similar walkthrough at each outlet's retail counterpart, where the shopping experience was a bit different. For one thing, the traditional mall was a fully covered, indoor space. The outlet mall, by contrast, had open-air corridors with shops on each side, a setup that lowers the cost of heating, cooling, and maintenance. Outlet malls also tend to be developed in out-of-the-way locations, so outlet chains pay lower occupancy charges than stores in regular shopping malls. Prices often reflect these lower operating costs.
At the outlet mall, the items on our shopping list came to a grand total of $1,240.15, including sale prices and excluding taxes, which vary from state to state. Granted, sale prices also vary day-to-day and mall-to-mall, but we factored them in because seemingly constant sales and promotions account for much of the savings from outlet shopping. Similar items from the retail mall set us back $1,756.62, also after discounts and before tax. That means shopping at the outlets shaved $516.47 off our total -- about a 29 percent savings over retail. When we compared an even larger selection of items we found at both the outlets and the regular mall (see chart), the percent savings was almost exactly the same -- lower than the average of 38 percent reported by the trade publication Value Retail News, based on an annual survey of outlet executives, but sizable nonetheless.
Price obviously isn't the only consideration in comparing an outlet mall to retail, however. Sure, outlet shopping will save you money, but will it buy you value? The answer is yes, it can, but you have to do your research if you want to spot diamonds in the rough.
First, understand what you are buying. Where does the merchandise come from? Is it offered at a discounted price because it's lower quality -- which might be OK, if the price is right -- or because it's simply a season behind? Next, try to get a sense of what an item is really worth. Familiarize yourself with the prices of retail merchandise so you can spot a bargain when you see one. Don't be misled by the manufacturer's suggested retail price, or MSRP, listed on the tag or rush into a purchase because of a limited-time discount. Finally, leverage coupons to get the best price, and always ask about the return policy before you buy.
Read on for a rundown of what to expect from outlet shopping, and some tips to help you find the best deals.
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Outlets vs. Retail
Outlet Shopping
Outlet malls offer discounts to shoppers looking for bargains on brand-name goods, though often not the rock-bottom prices consumers might expect. Most factory stores are well-run and organized, with a high-end feel and knowledgeable salespeople. Outlet merchandise is sometimes lesser quality than retail but lives up to each brand's standards. Shoppers warn that outlet malls can be crowded and chaotic, food choices are often subpar, and the common open-air format leaves customers exposed to the elements. Proponents deem outlet malls a great place to stock up on basics and find occasional hidden treasures. Photo by prayitno
Outlet Shopping vs. Retail Deals
Retail Shopping
Retail malls offer the latest fashions, a wider selection, and a more convenient shopping experience. Of course, all that comes at a price. Full-cost retail goods are usually more expensive than what shoppers can find at outlets, partly because of the higher overhead associated with retail malls. Retail merchandise is frequently trendier and slightly higher quality than outlet stock. Some shoppers can't see paying full price for the same brands found at outlet malls. Others advise that buying retail offers greater choice and you can match or beat outlet prices by shopping the sales. Photo by Joe Shlabotnik
Outlet Shopping vs. Retail Deals
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