Jean's Blog

Deals, Deals, Deals

Posted by Jean

Last week I appeared on Today to join Forbes Editor Bill Baldwin (one of my former bosses) discussing a story from his shop about things you should buy before the recession ends.  Essentially, these are things where prices have fallen because of lack of demand.  But as the economy improves, they’re expected to go right back up.

I started fishing around and found some deals that weren’t on his original list.  If you are one of those people who have already stocked the emergency cushion, maxxed out the 401(k), gotten the health and life insurance you need, feel your job is secure AND you STILL have money to spare, look no further:

* Wines over $25.  According to James Laube of The Wine Spectator who blogs about wine deals, wines under $25 are still selling really well overall.  Above that price, however, people are pulling back in their spending.  That means you have wines that have been stockpiled and may not be selling.  If the people that have those wines need to raise cash (winemakers to pay for more barrels and grapes, wine merchants to pay for next year’s inventory, wine collectors to pay the mortgage) they will sell at a discount.   A couple of things to note: Deals tend to be regional.  A wine that is very popular in California may not be moving – and therefore may be on sale – in New York.  And these deals will not last forever, Laube points out.  The 2008 California vintage was pretty poor, so the fact that less of it was produced will help dry up some of the supply.

Specific Deals From The Last Month:
Mondavi Cabernet Sarvignon Reserve 1999.  Priced regularly at $125 bottle, now $69.95
Chardonnay Carneros 2007  regularly $19.99 a bottle, now $13.00 (for a half case)
Mixed Case Cabernet Sauvignon 2005 12 bottles, regular price $600 (case) now $300

* Furniture Deals exist, according to Ray Allegreza, editor of Furniture Today, because as the economy slowed “to a crawl” many suppliers either found themselves sitting on excess inventory or went out of business.  Retailers who were well-heeled and had good credit were able to make opportunistic buys and pass the savings onto the consumer.  Prices will go up after the recession ends.

Specific Examples:
JC Penney is having 30% to 60% off on furniture.  Recliners that were $799 to $999 are now $449 to $549.
Furnitureland South in Jamestown NC is an outlet store larger than most freestanding furniture stores.  Serta and Spring Air Mattress and Box Spring Sets had been priced from $999 to $1599 are now $649 to $999
And a bedroom suite from Royal Patina (now out of business) sold nationally for $7999.  Now at Furnitureland South for $2999.

* Travel. There are some really good cruise deals.   The cruise lines like to sail full – they have to sail anyway – because once they get people onboard they’re likely to spend more money on alcohol, excursions, spa and salon services, etc.

Specific Examples according to World Travel Holdings and Cruises Only :
Disney Cruises are down 30%
Royal Caribbean prices are down 20%

Should you try to haggle on all of the above?  There seems to be a bit of haggle backlash happening (sales associates not willing to deal and getting annoyed in some cases.)  But according to America’s Research Group, 72.2 percent of the consumers it surveyed said they recently haggled for lower prices, and of that group, 80 percent reported being successful. Two years ago, 61 percent said they tried to negotiate, and only 50 percent of them succeeded.