Wednesday, February 3, 2010

In this week' s Money Matters, as the economy starts to turn around, more people are starting to shop again. We have some tips for smart shopping during this economic recovery.

According to smartmoney.com there are a few things retailers won't tell you when it comes to your money. Now, let me first say, not all retailers do these things. Some play it straight with you all the time. But, it never hurts to ask questions.

Here are five things some retailers would never say:

1. "Forget commission, we get kickbacks" - Some retailers reward sales associates for selling certain products - usually the high profit stuff. It's called a promotion incentive fee. Be sure to ask why a salesman is pushing you towards a specific item.

2. "Our return policy really stinks" - Next time you return something, don't be surprised if you don't get all your money back- particularly when it comes to electronics. You might be charged a restocking fee ranging from 10 to 20 percent. So, ask about the policy before you purchase.

3. "Outlets are a front for cheaper goods" - Discount outlets used to be where a chain store would unload leftovers. Now, they've become so popular that designers create secondary lines with cheaper fabric, for example, just for the outlets. So, the cheap stuff may be mixed in with the good stuff.

4. "Our gift cards aren't a great deal" - They're a cash cow for retailers because about 6% of the total value of cards purchased was never used in 2009. Some cards even have expiration dates or decrease in value with time. Also, if the company files for bankruptcy, your card could be worth nothing.

5. "We can damage your credit score" - If you're tempted to open a store credit card to get that 10% discount consider this: When you apply for that card, an inquiry is made to the credit bureau which could lower your credit score a bit.