Mellody's Holiday Shopping Secrets

Nov. 19, 2007 — -- Retailers are positioning themselves to get a piece of the anticipated $475 billion consumers are expected to spend this holiday season. And while it's a huge season for stores because this is when they make most of their profit for the year, it doesn't mean savvy shoppers can't save on purchases.

Check out the tips below on how to save money while shopping this holiday season from "Good Morning American" financial editor Mellody Hobson.

Use Coupons

Most people think a coupon is just for the supermarket. But, you can go online and get coupons for department stores and boutiques to save you tons of money.

Head to the Back

The back of the store is where you will always find the sales. They're out of the way and hard to find, but it's where the best deals are.

Get to Know the Salespeople

They can be so helpful. Not only will they give you great information, but they will also let you know when that sale is coming.

Supply and Demand

Supply and demand dictate price. So the more items that there are, the better chance that they are going to go on sale.

Budget Your Spending

There's a simple formula to use to set a holiday spending budget. Limit your spending to what you net — meaning take home after taxes — in three working days. Let me give you an example. If you take home $52,000 — that's how much you make after taxes — that means you take home $1,000 each week. Three days of take-home pay would equal $600 and would be your budget.

Cash Is Your Friend

Pay as much as you can in cash. Credit cards will make it easier to fall off the budget wagon. Plus, if you use a credit card, you'll have to pay interest on what you spend.

The Best Bargain Days

It's all about when retailers receive their stock. For clothes, retailers get their new inventory every four to six weeks, and they'll mark down the older merchandise to move on Thursday, so that they can restock the shelves for weekend shoppers. So Thursday is the best day to buy clothes.

For department stores, shop Saturday evening. That's when they clear the racks to make room for the items they're advertising in the Sunday circulars.

And people are used to negotiating prices at flea markets or online, but you can do it at stores, too.

Be Vocal, Ask for a Discount

Most stores have strict policies on negotiating prices. But if you have a good reason, they may go for it. For example, if you're at the store a few days before a sale starts, ask for the sales price, or if you see a jacket with a slight imperfection, ask for 20 percent off. You'd be surprised the money you can save just by asking. The worst that can happen is they say no.

Ask for the Sales Price Even After You've Bought the Item

If you see that cashmere sweater you bought at full price last week is now on sale, go back to the store with your receipt within 14 days and most retailers will give you the price difference.

Ask Stores to Match Competitors' Prices

It helps to know competitors' prices. Stores like Target and Wal-Mart will meet a competitor's price on a similar item and even offer it at 10 percent less. Knowing these store policies can help you save big and give you an incentive for keeping your eyes peeled.

Go It Alone

Don't make your shopping trip a social event. It's smarter to go it alone. Well-meaning friends will tell you an outfit flatters you, when it doesn't. They will enable you to spend more on yourself than just knocking off the items that are on your list. Plus, making shopping social usually turns it into a marathon event instead of a sprint.