Luxury Brands Cut Prices. Can They Go Back?
December 18, 2009 by Miranda Marquit · Comments Off
The most recent recession has been a boon for deal conscious shoppers looking for discounted deals. And even luxury goods have been seeing price cuts. Here is what CNN Money says about price cutting on luxury brands:
Step into Nordstrom a year ago for handmade Italian pumps and flats from designer Anyi Lu and you’d be shelling out as much as $595 a pair. This season, everything in the spring collection that hits stores next month goes for under $400. For CEO David Spatz, adjusting prices downward simply made sense: “The days of conspicuous consumption are over,” he says.
Of course, the real question is what happens when the tough economic times are over and prices start to creep higher. Will consumers be willing to pay nearly $200 more for the same item that was discounted before? And, of course, once a luxury brand starts discounting, it runs the risk of losing credibility.
So, instead of simply cutting prices on core brand offerings, some luxury brands are adding new, lower priced lines. This way, they can maintain credibility with their core items, and then expand their reach for the sake of boosting the bottom line.
But is conspicuous consumption really over, as David Spatz contended in the CNN article? I’m not so sure. It might be over for the time being, but once things start to get good again, and once the money starts flowing again, I’m sure that conspicuous consumption will make a comeback.
Image source: BrendelSignature via Wikipedia
Post from: EveryJoe
Luxury Brands Cut Prices. Can They Go Back?
Jobless Claims Rise, Stunt Economic Growth
December 17, 2009 by Miranda Marquit · Comments Off
Yesterday, Ben Bernanke talked about the fact that the jobs market appears to be stabilizing as part of the policy statement from the Federal Reserve Board. However, today the news isn’t so rosy. Initial jobless claims rose unexpectedly this past week. Initial claims are still below 500,000, and that is 
encouraging, but it underscores the fact that there is still quite a ways to go in terms of economic recovery.
Indeed, there are some that think that a double dip recession could be on the way, and that the current jobs market is one of the reasons for it. This is because many companies are holding off on making new hires until the economy shows marked improvement, which may not happen until the second half of 2010. This sets off something of a vicious cycle. Consumers can’t spend more, and foreclosures can’t slow the pace (two things that some consider vital for economic growth and recovery), until jobs are available, providing income for people. But if people won’t be hired until the economic recovery is well under way…Well, you see the paradox that could be brewing.
In any event, even though this week’s job numbers were an unpleasant surprise, the good news is that things aren’t as bad as they have been, and that a certain degree of improvement is, in fact, being made.
Image source: Daylife
Post from: EveryJoe
Jobless Claims Rise, Stunt Economic Growth
Stock Market Awaits Fed Policy Statement
December 16, 2009 by Miranda Marquit · Comments Off
The stock market is rather flat today as investors await the latest Fed policy statement. Members of the Federal Reserve will conclude a two-day policy meeting today. The interest rate is not expected to change, so investors are waiting to see what Ben Bernanke, the Chair of the Federal Reserve, has to say about the economy and the expectations of policy going forward.
Many expect Bernanke to acknowledge that the economy is showing improvement and that stimulus measures have been doing their job. However, there is also an expectation that he will drop hints of when interest rates might start to rise again as the Fed works to keep a lid on inflation.
Ben Bernanke has had a great deal of influence on the markets lately, since Fed policy and statements can impact how investors feel about what is happening in the economy, and sentiment going forward. This in turn affects their decisions, and how they invest. His influence is one of the reasons that Bernanke was named Person of the Year 2009 by Time magazine.
Image source: Board of Governors of the Federal Reserve System via Wikimedia Commons
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Stock Market Awaits Fed Policy Statement
Get Ready for Free Shipping Day on Dec. 17
December 11, 2009 by Miranda Marquit · Comments Off
Two years ago, Luke Knowles started an interesting holiday shopping tradition: Encouraging retailers to offer free shipping on December 17th with the guarantee that gifts would arrive in time for Christmas Eve. This year, the tradition continues, and 
there are more than 450 merchants offering free shipping on December 17th, which is named Free Shipping Day.
This move has steadily gained in popularity amongst retailers and consumers alike, and the day is expected to provide a needed boost to holiday shopping that slows down considerably after December 10th. Retailers like the extra shot in the arm as the holiday shopping season winds down, and shoppers appreciate the fact that free shipping can save them a great deal of money. Shipping costs start to add up after awhile.
So mark your calendars, and visit FreeShipping.org. Find out who will be participating, and plan your Christmas shopping around saving a little extra money when it comes time to order your gifts. Because when you are doing Christmas when money is tight, every little bit helps.
Image source: Daylife
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Get Ready for Free Shipping Day on Dec. 17
Looking for Student Loans with Cology
December 9, 2009 by Miranda Marquit · Comments Off
One of the most difficult parts about college is figuring out how to pay for it. The good news is that there are more resources than ever when it comes to getting student loans from a variety of lenders. This is important as scholarships and grants become scarce, and even Federal loans are less able cover the costs of college tuition.
In order to help students better find student loan lenders, Cology has joined forces with Overture to create an easy-to-use platform for student loan funding. I recently spoke with Brian Cox, an executive with Cology, about the process.
“The whole process is different,” Cox told me. “Overture’s platform features the lender’s credit criteria built in, so your results include confirmed interest rates and fees. This is different from many other searches, many of which just return the best rate offered, whether or not you qualify for it.”
He also pointed out that the platform would be able to help potential students make more informed decisions about the loans available to them. “It’s kind of like Lending Tree, offering you multiple offers on your student loan options.”
Once students select a student loan option, Cology’s loan processing takes over. “We take care of everything,” Cox explained. “We are compliant with usages and disclosures, and we have relationships with a number of schools, so we know what is needed for a number of possible universities and colleges. So we make sure you get the money through your university.”
Cox said that for now the platform is designed mainly for traditional lenders who want to offer student loans. However, he hopes to expand the platform in the future to include person to person lending and foundation loans at 0% interest. “The next wave will include alternative student loan resources.”
Image source: Clawed via Wikimedia Commons
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Looking for Student Loans with Cology
U.S. Unemployment Rate Drops
December 4, 2009 by Miranda Marquit · Comments Off
The big news from the world of finance today is that the U.S. unemployment rate dropped in November. In the wake of a jobs summit at the White House, the latest numbers for the employment picture are in. And in November, it looks as though the economy only shed 11,000 jobs. This is opposed to the 125,000 that many expected the economy 
to shed in November. The news also meant that the unemployment rate dropped to 10%
Of course, this positive data does not indicate that a significant number of jobs are being added to the economy — just that the economy is not hemorrhaging them at near the rate we have been seeing throughout the recession. But the news is still encouraging, as it indicates a certain measure of stability in the jobs market, and in the economy. With fewer jobs being lost, there is hope that consumer confidence will return, and with it the important economic driver of consumer spending.
Initially, the stock market rallied heavily on the news. However, other considerations are now taking precedence, and the stock market has pared its gains rather dramatically as mid-day approaches.
Image source: Daylife
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Stocks Continue to Struggle On Dubai, Sales
November 30, 2009 by Miranda Marquit · Comments Off
Stocks continue to struggle today on the stock market as Dubai remains a bit of an issue. Also contributing to the bearish slant to today’s trading is the fact that Black Friday sales ended up being mixed. However, stocks aren’t down as much as they could be, since there are some silver linings to the stories dominating the markets today.
Dubai isn’t that big a deal
While the reaction on Friday to Dubai’s possible debt problems was huge, over the weekend, investors realized that U.S. direct exposure to Dubai markets isn’t that big. Additionally, the UAE promised to provide funding for Dubai banks, and things appear to be relatively contained for now. That has some investors breathing a sigh of relief.
Cyber Monday might make up for Black Friday
The other issue giving investors pause this morning is the lackluster sales performance on Black Friday. Yes, sales were higher than last year. But only just higher. And individual spending on Black Friday was down. This indication that consumers are still holding back has some investors concerned about economic recovery, since consumer activity is such a large part of economic activity. However, there are hopes that today, Cyber Monday, will make up for it as consumers look for online deals.
In the end, though, it is clear that investors are mostly waiting. They are waiting for indications of how the holiday shopping season will go, and for indications about how bad things are in Dubai.
Image source: Imre Solt via Wikimedia Commons
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Stocks Continue to Struggle On Dubai, Sales
Will Raises Make a Comeback in 2010?
November 28, 2009 by Miranda Marquit · Comments Off
The end of 2008 saw a serious dent to bonuses, due to the financial crisis. And this year saw salary freezes at a number of companies. As a result, raises have been few and far between. But things might change in 2010. Hewitt Associates points out that only 13% of companies plan to freeze salaries next year. You might not get a huge raise, but you might 
get something more than you got this year. And that could be helpful to many who are struggling right now. It will be especially helpful if economic recovery results in inflation next year. So far, inflation has been relatively modest, but if prices rise and salaries don’t, many people will find it difficult to keep up with their obligations.
The job market itself is likely to take longer to recover. Even though there are signs of stability, the fact of the matter is that it took three years after the last two recessions for unemployment to return to pre-recession levels. And there are some economists who believe that we may not see a return to pre-recession levels of employment for even longer this time. One of the biggest reasons is to do with the fact that many industries and companies have been making substantial changes to the way the do things. There may be no need for a great deal of hiring.
Image source: sxc.hu
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Will Raises Make a Comeback in 2010?
Dubai Shakes Things Up for World Markets
November 27, 2009 by Miranda Marquit · Comments Off
Yesterday, the news broke that Dubai was experiencing some serious debt issues. Dubai World, which is a financial entity owned largely by the Dubai government, announced that it would be restructuring and that it would be stopping debt payments. This news has shaken world markets. In 
Asia and Europe, the markets were shaken yesterday. But with the Thanksgiving holiday, it appears that the U.S. reaction was delayed.
This morning, investors work up and sent the Dow plunging more than 200 points. While the losses have moderated so far, with the trading day almost over, there are concerns that Monday could bring another round of losses. After all, today is a short trading day — ending at 1 p.m. Eastern — and many investors are traveling or enjoying time with their families. Time to consider the information may lead to bigger losses on Monday. The news is also taking away from optimism, prompted by Black Friday, about the holiday shopping season.
The investors participating in the markets today, though, are mostly gravitating toward U.S. Treasuries and the U.S. dollar. Stocks are considered riskier, and in times of uncertainty and in times when the markets are in upheaval due to such monumental news, it is little surprise that investors are turning to the relative safety of government bonds and the U.S. dollar, both of which are backed by the most stable taxpayer base in the world.
Image source: lardo via Wikimedia Commons
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Dubai Shakes Things Up for World Markets
Cyber Monday Deals via Text
November 25, 2009 by Miranda Marquit · Comments Off
As consumer spending rises, and as people feel better about the stability being shown in the jobs market, this holiday shopping season is shaping up to be fairly solid. And online retailers are hoping to get in on the action come the Monday after Thanksgiving. Cyber 
Monday is the biggest online shopping day of the year, and now you can stay fully alerted to hourly and daily deals with a little help from your cell phone. SoundBite sent me a press release about this service (which I do not intend to use):
Americans send 50,000 text messages per second. Ninety-five percent of those messages are opened and read, most within 15 seconds of sending. The brevity, immediacy, and mobility of the text messaging channel makes it ideally suited for communicating Cybermonday.com’s Deal of the Hour. By simply opting in on CyberMonday.com, consumers can receive Deal of the Hour text messages and benefit from great savings while on the go.
I was also informed that you can get on the special deals text message list by texting Cybermonday to 77053.
If you are a hardcore deal seeker, looking for the best deals on Cyber Monday, this might be just the thing for you. Being able to get alerted immediately to good deals can save you money — provided you were planning on spending it anyway.
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