Retail

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Glad Bags Downsized

Being aware that Mouse Print* regularly reports on downsized products, 12-year old reader Jared G. wrote to us having spotted large boxes of Glad Bags that no longer had as many bags as previously.

MrConsumer asked him to go back to the store, and to act as our special correspondent on the scene, and show us what he found.

Here is Jared’s report…

*MOUSE PRINT:

Wow, wow, wow. What a smart kid! I asked Jared how he came to know about consumer things, and what his views were on spending money. It turns out he learned to be a good shopper from his mother, who homeschools him.

“Regarding consumery things, my mother taught me about pricing and labels, scams, deals, and other shopping paraphernalia, at about eight years old. My money opinions are simple. Your expenses should always be lower or equal to your income.”

Is this a budding consumer advocate or the next Suze Orman (minus the debit card), or what?

Back to Glad bags. MrConsumer took a trip to BJ’s and it revealed that this was not the only Glad product that had been downsized.

*MOUSE PRINT:

*MOUSE PRINT:

We asked Glad to explain why they had downsized so many products. We’re still waiting for an answer.

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J.C. Penney Drops Phony “Regular” Price Comparisons

On February 1, 2012, J.C. Penney is revamping its pricing strategy to one where it offers everyday low prices, and only runs sales a couple of times a month.

This is a huge departure for a company that, along with Kohl’s, historically advertised huge discounts from inflated “regular” or “original” prices that they rarely if ever charged. In a New York Times article, JCP’s new CEO even admitted that those regular prices were phony:

Though retailers use promotional pricing to attract shoppers, even if they often vow to move away from it when it gets too pronounced, Mr. Johnson said the method used what he called “fake prices” — artificially inflated prices that are on near-constant markdowns.

In newly released commercials, J.C. Penney, makes fun of its old pricing strategy including endless sales and coupons (and impliedly makes fun of Kohl’s for continuing those practices):

Penney’s new pricing strategy is to reduce regular prices by 40% or more, and makes those the prices customers pay most of the time.

This page from their website reveals how inflated the old “regular” or “original” prices were compared to the everyday selling price now.

*MOUSE PRINT:

It will be interesting to see if consumers, who have been conditioned to only buy things on sale, will respond positively to no longer seeing sales every week with deep discounts along with coupons for additional savings (even though those savings were illusory).

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Suze Orman: Advisor or Pitchman?

Financial counselor Suze Orman just came out with her own prepaid debit card called the Approved Card.

It is a MasterCard that you can use in retail stores to make purchases, but only up to the amount you have deposited onto the card. It is promoted as an easier, smarter way to be debt-free. Upfront she touts that it costs “only $3 a month if you use it how I tell you to.”

The card’s homepage goes on to tout nine benefits of the card including “free Transunion credit score, reports, and monitoring”, “safer than cash”, and “teach your teens financial responsibility.”

A closer look at the fee structure reveals some costly provisions besides the $3 monthly maintenance fee.

*MOUSE PRINT:

CARD PURCHASE FEE — $3
ATM WITHDRAWAL FEE — $2 (if you do not have direct deposit)
OVER-THE-COUNTER CASH WITHDRAWAL — $2

While these fees are less than other competing prepaid cards, this whole genre of card is set up to cost you money rather than save you money.

Making a deposit via direct deposit or transferring money from your checking account electronically to the car is free. (But would someone really put their entire paycheck or social security check onto a prepaid card every month? And if you already have a checking account, might not a regular debit card or ATM card be offered by your bank for free?

*MOUSE PRINT:

Conspicuously missing from their fee list is the cost to deposit money onto your card at an ATM or in person at a store.

Apparently you can only add money at locations that support either Moneygram or Western Union payments. The cost, they say, is typically $3.00 – $4.95. Whatta deal.

Here is another surprise.

*MOUSE PRINT:

If you only read the headlines about the free TransUnion credit score, report and credit monitoring benefit, you may miss the fact that the service is only free for the first year. After that, if you want to keep it, it is $143.40 a year.

Lastly, Suze proudly proclaims:

*MOUSE PRINT:

As she admits in smaller print, debit card purchase information is not part of anyone’s credit report and does not affect your credit score. She merely has a desire to see whether providing card use and purchase behavior to Trans Union will be considered in the future as a predictor of creditworthiness. Put another way, Suze has put a clever spin on the fact that she is sharing your purchase history with an outside company.

Prepaid cards have become popular as moneymakers for issuers particularly since they fall through the cracks of federal reform legislation that covers conventional credit and debit cards. If you must have a prepaid card for some reason, a better choice is the virtually fee-free American Express prepaid card. There is no monthly maintenance fee. In fact the only stated fee is $2 for ATM withdrawals after your first free one each month. Depositing money at a retail location incurs the same approximately $4.95 charge as does the Approved Card.