Deals on electronics may not be that hot

Do homework, read reviews, skip add-ons

Christmases past have been ruled by purchases of big-screen TVs, digital cameras and iPods.

And you might think there will be deals galore this year with big sales from bankrupt national chains including Circuit City and Tweeter.

But that's not necessarily true.

"This isn't a market where there's lots of room to cut everything by another 30 to 40 percent," said Stephen Baker, analyst for the NPD Group. "You may see TV pricing coming down because there's some oversupply, but that's it."

Shoppers should be wary of "store closing" and clearance sales anyway because the retailer's goal is to make as much money as possible, said Paul Eng of Consumer Reports.

"A lot of times, you'll see huge banners that say, 'Clearance sale! 40 to 70 percent off!,' and the fine print says 'off MSRP' (manufacturer's suggested retail price). No one charges MSRP," he said.

Hot electronic items this year will include GPS systems, notebook computers and gifts that are for the whole family like a new TV, Baker said.

"In a bad economy, you don't want to be spending money on yourself," he said.

But when the discounts will be offered and how big they get will have a lot to do with the upcoming Black Friday holiday, Eng said. If it goes badly, stores will roll out bigger promotions for the rest of the holiday shopping season.

Even if Black Friday is better than expected, there probably will still be plenty of deals since retailers are expecting a mediocre year at best.

"If you miss those sales on Black Friday, personally I think you're not going to be disappointed," Eng said.

Here are some additional tips for shoppers looking to buy electronics this year:

* Do your research. Comparison shop and know the going price for the item you want to buy. Also, some stores will match competitor's prices.

* Read reviews of products. Find out what their general track record is and also some of the common malfunctions. With electronics especially, an item might have a chronic problem that is not covered by the warranty.

* Speaking of warranties, avoid extended ones offered by stores. The retailer could go out of business. And it's often cheaper to replace the item than get it fixed.

* Consider refurbished. Refurbished products -- generally, those that were returned and are up for sale again in working, usually like-new condition, and at a discount -- can be great deals.

* Read the manufacturer's warranty. If you buy a product at a store that is going out of business, the manufacturer's warranty should still cover the item.

But check which repairs are covered and who is authorized to do them. If you have to ship your big-screen TV to California to get fixed, you might reconsider.

* Beware of add-ons. Don't negate a good bargain by loading up on extras, such as pricey A/V cables. "Basic cables will do just fine," Eng said.

* Be patient. This year especially, deals are coming early and often. If you can afford to wait, the discounts could get better.