I do like J.C. Penney and have enjoyed many quality purchases from their stores over the years, but I also know that the most amazing deals (which mean little or no profit for the company) are not sustainable on a year-round basis. If a store can offer 40% off all the time, their regular prices were too high to begin with. I envisioned J.C. Penney joining the ranks of other seedy retailers who advertise false “regular” prices in order to snag customers with supposed discounts off prices that were never a reality.

Thankfully, after looking into this further, it would seem that J.C. Penney’s new CEO (and former Apple executive) Ron Johnson is on the same page as customers who are tired of being duped. “Customers will not pay literally a penny more than the true value of the product,” he told the Associated Press. When you look at the math, the new approach makes a lot of sense. An article in The Wall Street Journal explains:

“At Penney, the regular price on an item that costs $10 to make rose 43 percent, from $28 in 2002 to $40 in 2011. But because of all of its sales and other promotions, what it actually ended up selling for rose only 15 cents, from $15.80 to $15.95 during that same period.”

Image courtesy of JCPenney

JCPenney is cutting to the chase, offering their products at the prices that most customers are willing to pay. Ron Johnson understands that advertising gimmicks cheapen the brand and inspire skepticism. What reputable company really wants to use the same tactics as cheesy infomercials that say tacky dollar-store quality gadgets are worth $19.99 (but wait, we’ll give you three!)?  J.C. Penney won’t nix sales altogether, though. Some items will be featured with even lower prices as “month-long values” and lagging inventory will be marked down for clearance on the first and third Fridays of every month (intended to coincide with payday). I can imagine how this new strategy will simplify store operations and perhaps even save money: fewer ads and mailers, less signage for employees to put up and take down, etc. It sounds like a win-win.

Image courtesy of JCPenney

I like the description of the new price tags, which feature even numbers like $15 instead of $14.99, and utilize different pricetag colors to communicate discounts rather than stacked stickers. I haven’t seen the new price tags, but I hope that the “regular price” labels show only the selling price, and not a mythical crossed-out “suggested price”. I also hope that they maintain the same level of quality despite the lower prices.

Will the new J.C.Penney change my shopping habits? Probably not much. I will still avoid spending money on things I don’t really need and will probably hold out for clearance bargains. However, it’s nice to know that if I do need a new outfit or a gift for someone, I won’t need to plan my shopping trip around specific sale dates, or feel like crying when I realize I’ve left a $10 off coupon at home in the frenzy of trying to pack my son into the car (as happened during last year’s Christmas shopping).

This is the kind of straightforward, honest advertising that I would like to see from all retailers. This encourages consumers to shop for good products, not just good discounts. Kudos to JCPenney for trying something new, and I hope it works for them.

UPDATE 2/4/2012:

Of course I had to check out the new JC Penney for myself as soon as I had the opportunity. Mr. Boy and I headed to the mall yesterday and I found lots of “Best Price” (clearance) racks to peruse. Some prices were outstanding, others were “meh”, but I was very happy to find that there was no scammy advertising to be found. The old retail prices of the items were either covered up with the new price sticker, or removed from the tag altogether. Some of the clearance items had lingering discount stickers, and in all cases the new “best price” was a big improvement over the former sale price. I picked up a St. John’s Bay marl sweater for just $9. An old sticker indicated that it had been $19.99 at 60% off the regular price. I felt that $9 was certainly a bargain for my nice sweater, but a $44 regular price? No way. I’m so glad they decided to change that ridiculous pricing.

I browsed some of the “everyday price” racks and found the new pricing scheme to be very reasonable. Since I’m accustomed to shopping clearance racks, some of the prices were still a bit on the high side for me, but like I said before, it’s nice to know I can find quality clothing that won’t break the bank if I do need to buy something specific.

What do you think of the “new” JCPenney?

I was looking for a very specific gift, and I needed a real bargain to be able to afford it. I found just what I was looking for, and the starting bid was a price that fit in my budget. Better yet, shipping was free! If I could win the item for close to that starting bid, I could cross one important gift off my list without blowing my budget. Since the seller had several of the same item listed, I thought my chances were good, and indeed I won the item for the minimum bid, $34.95. I was thrilled.

It was all downhill from there. I won and paid for the item on a Friday night. The seller’s listing promised quick turn-around and shipping within three business days. I heard nothing over the weekend and waited until Tuesday afternoon to inquire when I might expect my item to be shipped. Shortly after I sent off the email, the seller marked the item as shipped through eBay. The next day I received an email message from the seller apologizing for the delay and telling me that the item had been sent. I would receive a tracking number (they claimed to ship everything by FedEx) once their “system updated”.

A few more days went by without a tracking number or a box on my doorstep, and a number of red flags had me worried. First, I saw that the item I had purchased was relisted twice by the seller, one time selling for $10 more than I had paid. I wanted to believe that the seller simply had multiple of the same item, but the incoming feedback was telling a different story. While the seller’s feedback had been overwhelmingly positive when I made my purchase, now negatives were starting to trickle in. People who had made purchases a week or two before me were starting to claim that they never received their items. Oh no! I emailed the seller again asking for reassurance that I would receive my item, and never heard back.

I always read a seller’s feedback before I bid on eBay. This seller had sold thousands of items with 99.9% positive feedback. At the time I made my purchase, the seller had only 3 negative feedback in the past month, and they seemed like honest mistakes. Now, the seller’s feedback page looks like this:

The seller’s “Top-Rated Seller” badge from eBay was only removed (most likely by their automated system) after the feedback dipped below 97% positive. Although there are no longer any active listings for this seller, there were active listings for several days after the negatives started pouring in. Based on other feedback I read, I believe other buyers had disputes already in progress when I unwittingly made my purchase. eBay’s system failed to warn consumers of a problem seller who took thousands of dollars from them and failed to deliver.

What to do if this happens to you

While I was very worried that I wouldn’t find the same item at a comparable price in time for Christmas, I wasn’t concerned about the money. Both eBay and PayPal offer resolution services that will get you a refund should you find yourself in the same situation. To ensure that you are protected, always complete the transaction through eBay. Never give a seller your payment information through email or by phone.

To report a problem through eBay, look for a dropdown menu called "More Actions" next to the item listing on your My eBay profile. Choose "Resolve a problem".

If you prefer to resolve the problem through PayPal, choose "Resolution Center" from the top menu to see your options.

The resolution process is frustratingly slow. I found that eBay would not allow me to dispute the transaction until the seller’s estimated delivery timeframe had passed. However, PayPal allowed me to launch the case two days earlier. I paid for the item on November 25th, filed the dispute on December 7th, and just received my refund today, December 19th. Fortunately I only had $34.95 to wait for–other buyers are out hundreds of dollars right before Christmas. Some buyers were brand new to eBay and didn’t know what to do to get their money back. I contacted one of them to help them out, and hopefully this article will help point others in the right direction. I hope eBay will reach out to these buyers as well.

Don’t forget to leave negative feedback for a bad seller–by doing so you can help prevent other buyers from falling into the same trap.

I don’t want to scare anyone away from eBay. Like I said, I’ve been using it for years without a problem. For some reason this seller suddenly went rogue and was able to scam a lot of people out of their money before the negative feedback started to warn others away. I won’t name the seller at this time, since it appears that his PayPal account has been locked down and he is no longer selling on eBay, but rest assured I will give you the information if I catch this seller listing any auctions in the future.

For me, there was a happy ending–I found what I was looking for on another website and ordered it on Free Shipping Day. It cost me just $10 more than my eBay “bargain”, and it arrived today. It’s perfect! I hope the hundreds of other buyers who found themselves in the same boat were able to find alternative gifts. It’s an awful time of year to experience something like this.

UPDATE: Shortly after I posted this, I received an e-mail from eBay stating that the listing I bid on has been removed for security reasons. It provided instructions to get money back, and warnings about dealing off of eBay or paying with other methods. I don’t know if it was just a coincidence or if someone from eBay read this post, but thank you eBay! I assume that this seller’s other listings will have been removed as well, and I’m grateful that the newbie buyers who I saw on the feedback list will have some help getting their cases resolved.

UPDATE 2: Looks like this seller is no longer a registered user on eBay. We won’t need to worry about this account scamming anyone again.

Founded in 2008, Free Shipping Day now has thousands of participating vendors (from big-name websites right down to eBay and Etsy sellers) who promise free shipping in time for Christmas. Visit the official website to browse or search for a particular vendor. Many companies have promo codes for free shipping, while on other sites it’s automatic. Some offers are better than others–certain websites have free shipping thresholds but many have no minimum purchase requirements. For 2011 the promo began at 12:00 a.m. EST on December 16th and ends at midnight December 17th.

Although it’s a bit last-minute for my taste, it’s nice to know that you can still save some serious money online even if you skipped other heavily promoted sale days like Black Friday or Cyber Monday. Don’t forget to follow my other online shipping tips to maximize your savings! To find free shipping deals, visit www.freeshippingday.com.

Her name was Ruby, and I feel like I owe much of who I am to her. What I will always remember about her is her steadfast determination. If she had her mind set on something, she just wouldn’t take no for an answer. She had a can-do spirit and set about learning to do whatever needed to be done, including fixing her own plumbing leaks in her basement last year. She always found ways to make the most of what she had, whether it was a little or a lot. She had an irreverent sense of humor and her grandkids got a kick out of her name-calling while we played favorite card games, like Pinochle.

One of the happy memories of my grandmother involves a big grocery shopping trip. There was a Buy One Get One Free sale and she brought me along to help load up shopping carts with deals. I can’t remember how old I was. When we returned to her house, she divvied up the items to give to my mom and my aunt for our families. For some reason that memory stuck with me, and I knew when it was time to quit my job to stay home with my son, that I could spend less on groceries if I tried. My grandma knew that I have been using coupons and she wanted to learn how to do even better herself. Last month she told me about a coupon class that she wanted to attend together. We never did go, but it made me happy that she wanted to.

When I was 20 and preparing to head to England for a year-long study abroad program, I was distraught because neither I nor my parents could afford a nice luggage set like I hoped for. My dad had found some hideous (sorry, Dad) vinyl suitcases from the 60′s for free by the side of the road and seriously expected me to use them. My grandma and grandpa swept in and purchased three matching rolling suitcases for me with some extra money they had. I still use them.

It is particularly difficult at this time of year. Our enormous extended family had a tradition of packing into her tiny house each Christmas eve, where she served up enough food to feed an army: roasts, meatballs and sausage in homemade marinara sauce, scalloped potatoes, baked beans and more. She always made roast pork for me because I told her once that it was my favorite. It was a lot of work for her to do all this with her failing health, but it was something she looked forward to. Last Christmas Eve at her house was one of the last times I saw my Uncle Brian happy and (seemingly) healthy; we lost him to cancer at the age of 53 in September.

I’m going through a weird mix of emotions right now. You wonder if you took too much for granted, if you should have tried harder to spend more time. But I do know that my grandma didn’t believe in slowing down, and she kept as busy as she could right up until the end. I hope she knew how much she was loved.

Grandma meeting my son in the hospital in 2008.

Santa drives a delivery truck!

My online savings formula can be summed up as follows:

sales + coupon codes + rebates = big savings

I’m going to walk you through the steps I use each and every time I shop online to find what I want for less. Use these tips to save big year round, whether you’re shopping for gifts or just the things you need.

1. Know exactly what you’re shopping for

If you take to a search engine or shopping website with vague queries such as “winter jacket” or “dolls”, expect to be overwhelmed very quickly. Before I begin to shop, I make a list of the specific items I am looking for, right down to the brand and product name whenever possible. My initial ideas come from store shelves, catalogs, websites and word of mouth. I familiarize myself with the regular retail prices so I will know a good deal if I see it. I search online for product reviews to help make a final decision and ensure that my purchases will be worth the money. It pays to plan gift lists well in advance so you have plenty of time to research the items and monitor prices before you take the plunge.

2. Pay attention to sales

I save my coupons to combine with sales when I shop in brick-and-mortar stores, and the same holds true when I shop online. Whenever possible, I hold off on making purchases until there is a good sale. I follow a few of my favorite stores through email or Facebook, and others send me flyers in the mail that let me know when prices are going to drop. If I need something like clothing and don’t have specific preferences, I log on to the websites of my favorite stores and head straight to their clearance or sale sections. I buy almost all of my son’s clothing that way, including a wonderful Land’s End parka that has lasted him two winters and cost me just $18.00.

3. Check prices on comparison websites

Don’t assume that popular websites such as Amazon.com or eBay will automatically net you the greatest discounts. Sometimes they will, sometimes they won’t. Don’t assume that the great sale you heard about is the deepest discount available. Keep an open mind and look everywhere. I’ve seen some amazing bargains where I wouldn’t expect them, like on higher-end websites such as Bloomingdales and Serena & Lily. How do you sift through the thousands of retailers that carry the item you’re looking for? Price comparison websites allow you to type in a product name and see a list of prices for the same item. They often include tax and shipping charges so you can see the full cost, and many offer vendor reviews to help you make sure you’re purchasing from a reputable website. Some of the best price comparison websites that I use frequently are Google Products, Bing Shopping and BizRate.

An example of price comparison with a Google Product search

4. Find coupon codes or promo codes

Once you’ve found a few websites offering great prices on the item you’re shopping for, search for coupon or promo codes to lower the price even more. Retailers release codes that will give you a percent or dollar amount discount, or free or discounted shipping. If there’s a spot for a coupon code on the checkout page, I don’t complete my transaction until I’ve looked for a coupon code to use. Where do you find the codes? If it’s a favorite retailer that you already follow, you may receive them in your email inbox or see them posted on Facebook. There are also a variety of websites that aggregate promo codes into a searchable database; RetailMeNot and Coupon Cabin are two of my favorites. Simply enter the website name into the search box on such websites and available coupon codes or special discount links will be listed. Some websites, like Kohls.com, allow you to stack more than one coupon code, so you can enjoy a discount and perhaps free shipping.

An example of a coupon code search on RetailMeNot.com

5. Get cash back from a rebate website

I’m not a big fan of mail in rebates because they require extra time and organizational skills that elude me. However, online rebate programs are almost completely automated and simple to use. My favorite rebate website is Ebates.com. I’ve been using it since 2010 and have enjoyed a little bit of cash back on purchases that I needed to make anyway. It’s completely free to use and very easy. You need to start by registering on their site and logging in. Once I have found the best price on an item, I head back to the Ebates website to search for the website I want to purchase from. Ebates is affiliated with thousands of companies, so chances are good that you can get some cash back. The percentage varies depending on the vendor, and there are often promotions such as double cash back. As an added bonus, Ebates also lists coupon codes for most vendors, so you can complete two steps on one site. In order to ensure that you receive your cashback on your purchase, you must click the “shop now” link for the store of your choice on the Ebates website. You will see a redirection webpage confirming that Ebates is taking you to the vendor website and that you will receive cashback for your purchase. If you had already added items to your shopping cart on the site you have clicked to, they will still be there and you will get your cash back after you complete the purchase. Please note that I do not factor my rebates into the purchase price, but rather view them as “icing on the cake”. Since I won’t get my rebate money immediately, I always look for the lowest out-of-pocket price to determine where I shop–I don’t like to rely on future funds.

You should see a transition page like this one when you shop through Ebates.com

Before you make your final purchase decision, make sure you factor in the total cost. Proceed through the checkout process until you see a grand total including any sales tax and shipping costs. Shipping that isn’t free can be a deal breaker if it’s too pricey, but sometimes the cost is low enough that you’re still paying less than retail. Once you’ve found a great price that you’re happy with, complete the transaction before it goes out of stock (I’ve missed out on many a deal by hemming and hawing about it), then sit back and wait for the delivery truck to bring it to your door.

Many shoppers are under the misconception that shopping online is automatically cheaper. That’s not always the case, but with a little bit of extra effort and know-how you can beat regular retail prices most of the time. Enjoy your savings!

I’m sure you’re all familiar with various daily deal sites that offer vouchers to use at restaurants, stores, hotels and more. When it comes to gift-giving, they can help you get more mileage for your money. Last Christmas I gave my husband a gift certificate (worth twice as much as I paid) to his favorite bagel shop. He was able to enjoy some nice lunches during his work week and really liked the gift. I have used discount vouchers myself to help save money when shopping for toys or clothing for my son.

Today Erin introduces us to Plum District, a daily deal site designed specifically with moms in mind. All of the offers are geared toward making parenting easier or more fun. Deals include discounts for a family movie night, photo cards, toys and games, and more. You can find deals in an assortment of major cities, but they also offer “everywhere” deals that can be used nationwide.

Erin is going to help four lucky readers get some great gifts with $50 gift certificates to Plum District! Head over to Mommy Octopus to read more about Plum District and enter to win.

You can see our complete Beat the Rush giveaway schedule here.

I’ve mentioned in the past how much I love magazines. There’s something about the glossy pages and the great photography that I can’t get enough of. I use magazines for home decorating inspiration, recipes and even coupons. A magazine subscription is a fantastic gift idea because it’s something that lasts throughout the year and saves the recipient money by keeping him or her away from those newstand prices at the grocery store. I ask for an Architectural Digest subscription every year for Christmas and it’s a gift I always enjoy.

Of course we’re all familiar with the pesky subscription cards that fall out of magazines, but they rarely offer the best deal. Purchasing magazine subscriptions online is often much cheaper, and more convenient too. Today Alli introduces us to DiscountMags.com where you can choose from over 1,500 magazine titles at discount prices. Oh, and remember when we talked about Ebates the other day? Well, they currently offer 10% cashback when you shop at DiscountMags.com, so you can give yourself a little gift while you save money shopping for someone else.

Alli has $50 gift certificates to DiscountMags.com for four lucky readers, so head on over to Couponing for 4 to enter!

To see our complete Beat the Rush giveaway schedule, click here.