Ten Tips For Saving Money on Electronics

Online retailers score big in new survey

November 3, 2008

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Online retailers continue to outscore walk-in retailers according to Consumer Reports' latest survey of electronics stores, with Amazon.com, B&H (bhphotovideo.com), and Crutchfield.com the standouts in this year's ratings. That could be useful information for consumers, motivated to save money on this year's holiday shopping.

The survey, based on more than 38,000 purchases of electronics including flat-screen TVs made between January 2007 and June 2008, found that online retailers offered better prices.

Although no single retailer has it all, perennial standouts Amazon.com and Crutchfield.com came close. Both were among the highest-scoring retailers for electronics -- each offering above-average selection. Newcomer B&H also scored well in Consumer Reports' survey and like Amazon.com, was noted for its prices.

Despite CR's findings, consumers shouldn't rule out brick-and-mortar stores. If price is top priority, warehouse stores such as Costco and BJ's Wholesale stood out in the survey, but consumers shouldn't expect the best service or the widest selection.

Independent retailers, Apple, Sony, Tweeter, Ultimate Electronics, Ritz Camera, P.C. Richard & Son and HH Gregg were noted for their attributes that made the store experience easier, including customer service, satisfying checkouts, and general shopping ease.

Whether buying online or in a brick-and-mortar store, Consumer Reports recommends the following 10 money-savings secrets that can help consumers stick to their budget this holiday season:

• Buying online can be better. The higher-rated electronics retailers in Consumer Reports annual reader survey are Web sites. Readers who bought online rated their overall satisfaction at 90 out of 100 -- higher than those who bought in a store. Additionally, many Web merchants offer free shipping, even on TVs, which could spare the hassle of struggling to fit a bulky carton in the car or paying a local store for delivery.

• Be wary of pricey add-ons. Retailers may push high-priced accessories such as premium video cables for a TV or ultra-high speed memory cards for a simple point-and-shoot camera. As a rule, CR suggests choosing regular alternatives, since the fancy versions can cost twice as more and aren't likely to give much performance benefit.

• Skip the extended warranty. Consumer Reports' reliability data continues to indicate that repair rates on most electronics are low overall, though some brands have a worse reliability record than others. But even in the unlikely event that a repair is required after the manufacturer's warranty expires, the bill for the repair itself is often comparable with the typical cost of an extended warranty.

• The best prices come early in the season. The magazine has found that the lowest prices of the holiday season on flat-panel TVs and more have been offered on Black Friday and the other frantic shopping days after Thanksgiving. Consumers who do buy an item early and see the price drop later in the season, should check to see if the retailer offers a price guarantee that entitles them to a refund because several major chains do.

• Consider refurbished and open-box items. Buying refurbished or open-box items can save consumers 30 percent or more over buying new. To minimize risks, Consumer Reports recommends buying from a trustworthy manufacturer or retailer. Some Web sites such as Amazon.com, Crutchfield.com and WarehouseDeals.com also offer these types of items.

• Asking for a lower price often works. A recent survey found that about a third of shoppers tried to negotiate the price of an electronics item within the past three years and most succeed at least once in their efforts. Savings from the most fruitful haggling was $50 or more in most instances.

• Recognize what each retailer offers. No single merchant has it all -- low prices, broad selection and convenience. CR recommends that consumers select their shopping priorities, low price or best selection, for example -- and head to the nearest retailer of that type rather than worry about modest difference among similar retailers.

• High specs might not ensure high quality. Ads and in-store sales pitches often imply a direct relationship between high resolution and high image quality. However, Consumer Reports' lab tests reveal that's not always the case -- some high-def TVs and high-megapixel cameras that fall short in other respects, such as contrast or color. Conversely, there are models with lower resolution that manage fine performance because they ace those other attributes.

• Performance often runs in the family. Consumers won't go wrong if they buy a model that scored well in Consumer Reports' full tests, but if the model being considered isn't included in the ratings, they can still offer some guidance. Products similar to high-rated models, such as those within the same brand line, often turn out to be fine performers. For that reason, the magazine's recommendations for TVs, digital cameras, and laptops include mention of some noteworthy newcomers, especially when they're successors to models that have been recommended.

• Top performance might not be needed. CR's rigorous tests sometimes turn up fairly subtle performance distinctions -- say between very good and excellent performance on an attribute. While these differences are evident in side-by-side comparisons, they can be less obvious in normal isolated use and their importance may vary depending on how the product is used.

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