Five Rip-offs to Watch Out for at Outlet Stores

By Comcast Finance

Mon, 28 Jun 2010 20:22:04 GMT

Editor's Note: This post by Jason Cochran originally appeared on June 28 on WalletPop.com.

Outlet shopping is such big business, it stands to reason that retailers try to slip some tricks past shoppers to make a little more money. The next time you hit your nearest outlet center, keep these tips in mind, and avoid the five ways that retailers try to divert you from the true discount shopping opportunities.

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The foot traffic at America's outlet malls is immense, and everyone is there to spend. Many of the country's biggest malls are tourist attractions unto themselves. Franklin Mills Outlets, outside of Philadelphia, attracts about 18 million visitors more than ten times the number who visit Independence Hall. And because of its strong attraction for international tourists, Florida's Sawgrass Mills, outside of Fort Lauderdale, is estimated to rope about 26 million shoppers a year, or about two and a half times the estimated draw for Epcot at Walt Disney World in Orlando.

Most outlet stores are located far from town, and not just because that's where the rent is cheap. It also helps shoppers believe that inaccessibility means there must deals there. The truth is shoppers arrive at outlet malls assuming that everything they see will be a bargain off the prices they'd pay in town. Some retails take advantage of your convenient assumptions:

1. The amount you save may be a lie Most stuff is tagged with what the Manufacturer's Suggested Retail Price used to be. But in fact, that MSRP might as well be made up. Most stores custom-print tags for their outlet markets, and they can put the MSRP at whatever level they want to make the item seem like a bigger bargain than it actually is. The only way to arm yourself against this simplest of tactics is to know what you want to buy before you leave home, do price research so you know the normal price, and then compare your real-world finding with the special tag at the outlet store. Don't trust the store to tell you its retail price, because its sole intention is to lure you into a purchase.

2. Not everything is marked down I needed some compression shorts for my workouts, so I recently went to an Under Armour outlet store. I was surprised to see that its shorts were no cheaper than they were in the outside world. I asked a sales associate why that was true. "Those are our core products," I was told. "And we don't discount our core products." I might as well buy them from a preferred retailer, then -- at REI, at least I get 10% back from every purchase in the form of an annual dividend, I told him. But a less attentive shopper might have tossed them in the cart, assuming that everything was marked down in Outletland.

3. Overcharged at the register Few people buy just one thing at outlet stores. They go on sprees. Piling lots of assumed bargains on the counter makes it tempting for stores to "accidentally" overcharge you for one or two of them at the register. You probably won't notice. On a recent trip to Prime Outlets in Orlando, I wanted a dress shirt at the Calvin Klein store that was marked as 40% off. I worked out in my phone's calculator that the item should have cost $32.10. But it rang up as $36 -- it was still cheap, so the mistake was easy to miss -- and the clerk was already asking for my credit card before I had a chance to clock the disparity. I pointed out the error, which sprang from incorrect information in the bar-code scan, and after a staff huddle, the price was corrected and the clerk sheepishly apologized to me. "I don't know how that happened," she told me. How convenient, too, that it would have put another $4 in the cash drawer.

4. Knockoff products The outlet industry hates talking about it. It's the dirty secret of the business. But it's true: Lots of stuff is made expressly for the outlet market. You may think you're getting the top-line department store stuff, but you probably won't be. It's often lower-quality, with poorer cuts and cheaper fabrics, which means you shouldn't expect it to last as long as the real thing. That doesn't matter if you fall in love with your purchase, but it's something to keep in mind: Like the phony MSRP, you should never make the assumption that what you see is truly been dumped into the outlet malls from the mainstream retail market. A few stores do sell stuff that didn't sell out at the department stores -- the operative phrase to look for is clearance store. One of them is Neiman Marcus Last Call.

5. Worthless coupon booklets. Also at Orlando's Prime Outlets (which, despite my problems, is a fruitful place to shop if you come prepared), you have the option of paying $7 on a booklet of coupon deals. The trouble is that many of them won't pay off. Many are only good for purchases of $100 or more (making most casual purchases ineligible), and even then for only about 10% off, which barely pays for the coupon booklet. They also aren't usually good during sales anyway, and at many outlet stores, the posted "sales" never seem to go away. Still more offer a "special gift" after spending a certain amount of money, and that gift may turn out to be cheap or worthless. I once got a "special gift" travel alarm clock that never worked from the moment I activated the battery.

Where coupon booklets shine is for big-ticket purchases such as leather coats or jewelry. Even an offer for 10% off for purchases of $100 or more can mean a $30 savings off a $300 coat, which more than pays for the $7 you spend to get the booklet. Again, knowing what you want to buy, and doing the math ahead of time, is the key to not getting the shaft.

There's one more way to lose money at the outlet store, but this one is entirely your fault: Never spend money to save money. If you hear yourself saying these words -- "I have to buy it! It's such a deal!" -- then check yourself, because you might not have spent that money otherwise. The true savings are for things you knew you needed before you walked into the mall.

Do you shop at outlet stores? If so, do you find that you save more than you would at regular department stores? Share your thoughts.

WalletPop.com is one of the leading consumer finance sites on the Web. Find the latest deals, bargains, consumer protection and personal finance information quickly. The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.

Comments

What is an Outlet Store? Is that an Outdoor Boutique? I have never been to an Outlet Store, but I've heard about the so called bargains that others rave about. I have always believed in the adage "you get what you pay for." For me, personally it's always been about Quality, Quality, Quality. Not that I am a Snob, but I had a terrible experience with a perfume that was given as a gift. I knew right away, the scent was a defective imposter somehow, even though it was a top French brand (from an outlet store) and down the garbage it went. Chanel no 5 was actually a Chanel no 0 . After the most unpleasant experience of my life, I have come to the conclusion that what works for someone else may not work for you as well. But for the experience of it, I would like to see what the craze is about and wouldn't mind making a visit, someday. Bargains galore, is it really?

Mon, 28 Jun 2010 20:24:36 GMT | lightandtruth

I can tell you from experience that the Sawgrass Mills mall in Fort Lauderdale is incredible ! All of the stores that you could imagine, wonderful restaurants and the place is gigantic ! I also can agree with the estimate of 26 million visitors per year . I love that place and go about twice a month.

Tue, 29 Jun 2010 04:51:00 GMT | PatsfanFL

Sawgrass Mills mall in Fort Lauderdale is my second home, I love it. You have to shop there and know how much everything cost somewhere else but you CAN get good things at a GREAT price.

Tue, 29 Jun 2010 06:02:02 GMT | yahoome

I have to say this article is a little harsh on outlets. Yes it is true that the product is often marked with a high retail price, aka MSRP. It is like the MSRP for a car, do you ever pay the MSRP for a car? No. You negotiate a price you like. An outlet is like that except consumers do not get to pick the sale, they have to be patient and wait for the right price like at any other store. The merchandise is not a knock off; you get knock offs at the flea market. Outlets get product that could not be sold through by the regular stores and the warehouse, but they do also get thing made just for them. Ever gone into a store to buy a shirt only to find that the last one in your size has a stain? If outlets only sold items that could not be sold elsewhere they would not survive; they would be stuck trying to sell that stained shirt. They would have outdated fashion and product that has been over handled and returned for some reason. Also, Simon/Chelsea Outlets (I believe this is the one the author went to) give those "over priced" coupon books away for free to AAA members. There is a long list of ways to not have to pay for the book. Sorry, you should have done your research a little better. They have to pay their staff like every other business and pay the printer to make the book. And they are good for a year. They really are worth it if you shop at least a few stores in the mall. If it is only one or two, ask the store if there is a way to get a discount (like senior days) without the book. Also, if you're a regular at the store the employee may not mark the book so you can use the discount again. As far as being overcharged, that can happen anywhere. Those prices and sales are done at the corporate level and people make mistakes. If it is an issue with the store, call weights and measures. That is why there is a little yellow sign/sticker on the register that tells you to call if you are being asked to pay the wrong price. Lastly, every brand sells there product at a different price. Toyota and Lexus car parts are interchangeable (or at least used to be); but you don't see people complaining about the price difference. When you buy a high end product in whether it is in an outlet or not, you are still paying for a name. How much do you think a Coach bag REALLY cost to make?

Tue, 29 Jun 2010 08:28:22 GMT | AngelOfCA

If you go into a Coach outlet store you will not see any bags that are just like the retail stores. These bags are made to be sold at the outlet stores. They are not the same colors or quality but at least they are not knockoff bags that are made of pleather and fall apart. So if your just looking to carry a Brand name bag it's ok.

Tue, 29 Jun 2010 10:27:21 GMT | dee1560

to "light and Truth"- getting a knock off Chanel perfume was "the most unpleasant experience of your life"??? Lucky you.

Tue, 29 Jun 2010 10:51:39 GMT | TamelaTamaravich

I opened an Eddie Bauer charge for an outlet mall near by. For the first year, the prices and quality were excellent. But everything changed because they're selling IRREGULARS.

I purchased a pair of slacks for $40. that looked perfect before I washed them. After I washed them, the right leg, inner seam turned to the front making it impossible to wear!! I returned them for a new pair and the exact same thing happened. I returned them again..same thing. This time I asked to speak to the manager and complained, "$40 isn't a savings for irregulars." She explained to me, when they made all the right legs of the pants, they cut from an opposite direction from the bolt of fabric...to save costs using less fabric!!!

Tue, 29 Jun 2010 11:22:31 GMT | GlobalLove

I go to the Outlets all the time! We get some great deals, on items I have seen at Macy's, Everything has part scam, for you non believers, it's a harsh world. Outlets are a great place to get more for your money. As for quality, I have never had a problem with quality from the outlets. As anywhere you shop and anything you buy, check the garment or product for quality before you leave the store!

Tue, 29 Jun 2010 11:23:10 GMT | th1212

Don't be fooled by these other scams that retailers commit:

1. In this scam the cashier rings up an extra item, something you are not purchasing and did not even bring to the checkout. The hope is that you are not paying attention and the extra charge goes unnoticed. After you leave, the cashier credits the overcharge and pockets your money. In some cases this involves collusion, where a supervisor processes the credit and they share in the proceeds. You must watch everything the cashier is doing during checkout, and check your receipt thoroughly before you leave the store.

2. You also have to listen to everything the cashier is doing during checkout. In this scam, the cashier intentionally double scans a few items. You can hear this if you listen closely, otherwise it is missed which is what they are hoping. After you pay and leave, the cashier and/or supervisor credit out the double scanned items and pocket the difference. Again, you must check your receipt before you leave the store.

3. If paying by cash, make a mental note of the amount you hand the cashier and concentrate on that until you are handed your change. Some cashiers will try to pull a quick change scam on you, purposely counting out change for a lower amount so they can pocket the difference (for example, counting out change for a twenty when you hand them a hundred dollar bill). They are hoping you are distracted and can slip this by you, and it will work if you are not attentive.

It the cashier places your tender in the register, watch out, because then the amount you gave them becomes your word against theirs, and they are counting on you not really remembering. A good cashier will place the money you handed them on top of the till until they count out your change, knowing that this scam can also work in reverse, with you claiming you handed them more than you really did. The key thing to watch for here is the cashiers actions, so they cannot pocket your money.

Happy Shopping!

Robert A. Kaye, CPA

Tue, 29 Jun 2010 11:34:43 GMT | KayeCPA

This article is a little harsh. Not all department stores are this dishonest. Although it does contain good info on what to look out for.

I've seen stores try to add on a few dollars to receipts, but quality hasn't been an issue for me personally. Anything you buy from Macy's or Sears is prone to problems.

I've even seen certain outlet stores make fun of their poor quality! honestly, when you're buying a shirt for $1.50, you're not gonna care if it gets worn out in a few months.

Just like anything else, there are good and bad outlet stores. Just try to avoid the latter and you'll be fine.

And I completely agree with TamelaTamaravich!

Tue, 29 Jun 2010 11:46:06 GMT | jrdcommentor

by Glutton on 06-29-2010 07:53 AM

Lands End Outlet Stores (called "Inlets") are terrific. The store has much of the Land's End current merchandise which is not marked down. However, the store also has many overstocks and marked down items are offered at very good discounts. Further, keep your receipts because if you do not like an item, it is returnable at any time (even after wearing it for some time and washing it) for a full refund of your purchase price. Also, if they don't have one of the normal catalog items in stock at the store, you can order it there and escape having to pay for shipping and handling.

Watch out for Nordstrom Rack. Much of the clothing there was never in a Nordstrom store. Much of it is made especially for the Rack. However, if you want a good discount on running shoes, Nordstrom Rack is the place. I wear New Balance running shoes and I wear a larger size than most dept. stores carry. I usually can find many pairs to choose from at Nordstrom Rack at a decent discount.

I only buy items at stores in Outlet Malls if I am certain of the regular price and am familiar with the quality of the merchandise. Most of the time, I can get pricing that is just as good at Dept stores when the stores run a sale.

Tue, 29 Jun 2010 11:56:50 GMT | Glutton

As a former employee at Prime Outlets Lee I have to say I have seen it all when it comes to greasing the deal to get as many sales as possible. Don't get me wrong, there are in fact many opportunities to save big at some outlets and all stores do try to maintain at least 20% closeouts and overstocked discontinued items to give themselves the presence of mind that you are in an "outlet" store. However they still carry, as written above, "core" items that are being sold at full price but are items that appeal to a broader consumer base and so ensure a higher profit margin. Take it from someone who has seen both sides of their registers, be an informed consumer and take that extra few minutes before the trip to weed out the real deals.

Tue, 29 Jun 2010 12:01:51 GMT | jl_robert

Anyone with half a brain knows and understands this information!

The only reason this happens is beacause the seller knows just how impulsive

and dumb the average consumer is.

Wise up people, If I ( as a 35 yr old guy ) can take $40 worth of product at my local store and

have them pay me anybody can do it.

Careful planning is all you need to be a great consumer.

Tue, 29 Jun 2010 12:02:09 GMT | cgbutter

I have shopped at the Wrentham Outlet in Mass. and the Tanger outlet in NH and never purchased anything. It was quite clear to me that I did not have to travel the one and a half hours and the two hours, respectively. I only had to travel fifteen minutes to my local mall and acquire the same merchandise for less during a sale.

Tue, 29 Jun 2010 12:09:07 GMT | maxine15

I usually go into outlet knowing what item would cost retail. For example Clark sandals cost $79.00 at Zapp0s online, same sandal $35 at outlet.

Tue, 29 Jun 2010 12:17:29 GMT | bluefatdogs

Pay attention to what you are looking at with price. Do simple math in your head - an take the emotion out of shopping. That's why http://www.acceleratorforsuccess.com was created. To give you an edge.

Tue, 29 Jun 2010 12:34:26 GMT | vertical100

I live near Sawgrass Mills in Ft. Lauderdale and it is true you must know your prices before you go. I often find that Macy's with their clearance days and coupons is alot cheaper. Also if you go to these outlet stores head for the back of the store where their clearance merchandise is at end of season, then it is a bargain. There are alot of "company stores" which are still retail at these outlets. Michael Kors is a rip off outlet. Again, department store gives better price on sale. Also go to Coach at end of season when they have 50% of fa clearance price. Buyer beware most of these outlets are no bargains. You can do much better at Department stores ,when they have a great sale. Factoring in gas to get there and tolls it can be a losing proposition.

Tue, 29 Jun 2010 12:34:40 GMT | Banquetoflife

Outlet stores are great fun and like anything else, require a saavy shopper! We've gotten great deals at the Addidas Store, Cold Water Creek, and many others. Retailers are in business to make money, and our job as consumers is to be alert to possible scams and quick changes (isn't this article meant to assist us with that?) Truthandlight, I hope the friend that bought you that gift read your posted comment, and knows the gift went in the trash. Newsflash, you are a snob. If this is the worst experience of your life, please join me on weekends as our social ministries group feeds the homeless. Then we'll stop off at the nearest pediatric ICU. Get real.

Tue, 29 Jun 2010 12:37:55 GMT | Wenchley

I'm not a big outlet mall shopper; however, after discovering there was a Lucky Brand Outlet at the Sawgrass Mills, I relented and decided to give it a try. I was excited to discover jeans were 40 to 50% cheaper than the major department stores. I bought three pair of jeans! After wearing one pair one time the zipper broke, and I discovered the quality of all three could not compare to much older Lucky jeans I've had in my closet for years. These I purchased at a department store with one of my 20% off coupons! Think I'll go back to my earlier shopping habits and avoid the outlets. Sometimes you do get exactly what you pay for.....

Tue, 29 Jun 2010 12:49:00 GMT | DLFox