Early, Big Holiday Toy Bargains

The holiday season is still more than two months away, but retailers are already trying to get you shopping -- with some deep discounts on toys.

On "The Early Show" Friday, CBS News Business and Economics Correspondent Rebecca jarvis spelled out some "do's" and "don't's" of looking for holiday discounts.

It's not even Halloween, she pointed out, and we're already seeing big early holiday toy discounts on familiar brands - Nerf, Barbie, Fisher Price, Lego, Disney at:

• Wal-Mart - many toys discounted, won't say how many
• Target - 1,000 toys discounted
• Toys R' Us - 600 pop-up stores

Ultimately, all retailers -- not just these -- are competing for your dollars.

Americans are projected to spend $447 billion dollars this holiday season and every retailer wants a piece of the action and that's good for you.

So how big are the discounts now and could they be better later in the season?

"Right now, with toys, you're looking at anywhere from about 20 to 40 percent off the original prices," Jarvis said.

She added analysts say they could still go lower from here. Price cuts are like a game of chicken: The more reluctant we are to spend, the more retailers are pressured into markdowns.

Generally, retailers try to hold prices as high as they think they can through Cyber Monday, the day after the Thanksgiving weekend, she said. Then they re-evaluate, and if they're holding onto too much product, they'll cut prices.

Traditionally, the best time to strike is the second week in December. It's early enough that you can get goods shipped to arrive before Christmas, there's selection, and prices probably won't get any lower until the post-holiday clearance sales.

If you buy now, and prices drop again, can you get an adjustment?

Jarvis said, "Basically, yes...all these stores offer 90 day return policies. Just keep everything in its original box, and hold on to the receipt. At the very least, you can return the item, and buy it back at a lower price."

At Target, she said, they also match competitors' pricing, so if you see toy at lower price during either the same week of the purchase or the week following the purchase date, bring in original receipt for a price adjustment.

So what are some other incentives to shop now?

• Early bird gets the worm - The very best selection is now. Companies aren't stocking up as much as they have in the past because of the economy.

• Less Stress - There are fewer crowds and cars in the parking lots. (And if you're in the Midwest, you won't have to drive through sleet and snow to get to the mall.)

• Less Wallet Shock - If you Christmas shop slowly throughout the entire year, there is less of a shock right at the end. No more dreading your January credit card statement.