Small Business Saturday puts focus on independent retailers

Mom-and-pop stores today are gearing up for a Small Business Saturday that they hope will top the bustle of Black Friday.

"(Today) for us is usually bigger — by double," said Philip Celeste, owner of On Centre, a specialty gift and accessory store in Jamaica Plain. "We're expecting to have a very good holiday season. Looking at November, we're already way ahead of last year."

On Centre opted not to have a sale yesterday or today, instead relying on their unique products and the know-you-by-name customer service that most big box stores and online retailers simply can't provide.

Down the street, at Boing! Toy Shop, Kim Mitchell and her staff gift wrap every purchase for free and have a loyalty program to reward frequent customers. "I'm also here, and I'm active, and if people have a question or a complaint, they know who I am," she said.

Still, many small business owners are acutely aware that their competition increasingly is not only big box stores but the Internet. So at Fire Opal in Coolidge Corner, Sue Stein has heightened her Web presence and advertises on social media. Stein also has the benefit of being located in a neighborhood that has a strong shop-local ethic.

"People should keep in mind that more than half of the money they spend in a small business stays in their town," said Jack Mozloom, a spokesman for the National Federation of Independent Business. "You're helping your neighbors, you're helping to create jobs in your community."

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Monday the deals shift to the Web

Black Friday shoppers have collapsed on their couches and finally gotten a chance to digest that turkey after a hectic day of deal-hunting, but it all starts again Monday on the Internet.

"Online shopping has been very, very strong," said Chris Christopher, a retail analyst with IHS Global Insight. "Right now, a little over $1 of every $20 spent is spent online."

Online shopping is the only retail sector growing at a double- digit pace, with online sales expected to generate $78 billion this holiday season, a
15 percent increase over last year.

Still, Christopher said, Cyber Monday may have lost some of its exclusivity this year because online retailers such as Amazon have been offering deals to compete with brick-and-mortar stores opening on Thanksgiving.

"A lot of them had to up their game because they didn't have the luxury of people staying at home," he said.

Jon Hurst, president of the Retailers Association of Massachusetts, said online retailers can take a chunk out of local sales, but the Internet also opens up possibilities for small stores.

"There's a lot of smaller companies that are finding it as a growth opportunity," he said.

Jasmine Raines, a 24-year-old Dorchester resident, hit Legacy Place in Dedham on Black Friday, planned on shopping again today, and then finish off her spree with some online shopping. "Then I'll wait for Cyber Monday," she said.

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Some Black Friday deals are duds

Black Friday is where good technology goes to die. Doorbuster deals are dubious and an "exclusive" is code for an untested product made specifically to get you in the door on this day.

Exhibit A is every too-good-to-be true deal on an HDTV. On Black Friday, the big box stores are full of television brands you've never heard of before. There's a 32-inch LED TV listed for $98 that I would not pick up for free. To play it safe, stick with Samsung, Panasonic, Sony, Vizio and Sharp. And if there's no listing for a brightness or contrast ratio, the number of HDMI inputs and the resolution, you're likely dealing with a sea of motion blur and muted color.

This year features a special level of laptop mediocrity. The worst offenders are those laptops running the Windows 8 operating system without a touchscreen. Those may look tempting, with the lowest prices south of $200. But under no circumstances should you purchase a Windows 8 PC without the touchscreen. The system wasn't designed to be used with a static screen and mouse.

An array of Android tablets with impossibly low prices is another pitfall to avoid. No tablet should be priced below $150, which is the lowest it costs the manufacturer to produce a semi-respectable tablet. If you're looking for a value tablet, check out Amazon for sales on its excellent line of Kindles.

There is one notable exception to today's bleak tech outlook: Black Friday could be your last chance to purchase the universally sold-out Xbox One system before Christmas. If you're headed to the stores today in search of Microsoft's newest gaming system, expect long lines and possibly even waiting lists.

There are some deals worth noting. Though retailers can't slash prices on most Apple products, Target is offering generous gift cards, like $100 when you buy the new iPad Air. Another heartening Target deal is $99 for a Nikon L320 digital 16 MP camera, regularly priced at $229.99. And, Walmart's 70-inch Vizio E701i-A3E television, for $998 instead of $1,698, is worth a shout-out.

And I'll give props to Best Buy for slashing $200 off the 13-inch MacBook Pro with Retina display, on sale for $1,100.

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Black Friday discounts vary widely

Shoppers beware — not all discounts are equal on the always-chaotic Black Friday.

The world's largest retailer, Wal-Mart, is being noticeably more aggressive on price cuts this year, while Sears' average discounts are less aggressive compared to last holiday season, according to an analysis of Black Friday ads by Jefferies & Co. retail analyst Daniel Binder.

"Wal-Mart stepped up the depth of promotions this year, with about 15 percent higher average discounts than last year," Binder said in his report. "(It) stands to gain the most improvement year-to-year on a day where a certain breed of super value-seekers are shopping based heavily on price."

The Retailers Association of Massachusetts expects Bay State holiday sales to increase 3.5 percent from last year, to approximately $15 billion, after a 2.8 percent jump in 2012. That's slightly below the 3.9 percent rise forecast by the National Retail Federation for nationwide sales in November and December totaling an estimated $602.1 billion.

RAM's member retailers are apprehensive about six fewer days this year between Thanksgiving and Christmas, although they're hoping very good retail sales since August's state sales tax holiday will continue and offset the short calendar, according to the association's president Jon Hurst.

"A good third of all purchases are impulse buys," Hurst said. "That's where, hopefully, you're going to pick up some of your profit margin. With a short window, you have less days for the opportunity for those trips to the store."

Kohl's, which leads in discounts on regular prices among chain stores, is averaging 4.8 percent higher average discounts for Black Friday compared to last year to lure in some of those shoppers, according to the Jefferies report. Sears' average Black Friday discount, meanwhile, is about 21.5 percent less than last year, when it sharply reduced prices.

"We're expecting a great weekend," said Laurel Sibert, vice president of corporate marketing for WS Development, whose shopping centers include Legacy Place in Dedham, The Street in Chestnut Hill, MarketStreet in Lynnfield and the South Shore's Derby Street Shoppes.

But if you plan to stay away from the stores today, you won't be alone. Fifty-six percent of Americans plan to skip Black Friday shopping this year, according to a Consumer Reports poll, and the top three reasons are too many crowds, over-hyped deals and the desire to do something else.

"There's a very large misconception that Black Friday is the biggest sales day of the season," Hurst said. "The Saturday right before Christmas is by far the biggest."

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Casino gambles on Revere

Mohegan Sun and its New York-based investor would be the sole owners of a $1 billion Revere casino — not Suffolk Downs — under a new eleventh-hour agreement finalized just days before the two sides could learn whether they're legally free to build a gaming palace just over the East Boston line.

The deal, announced yesterday after a week of whirlwind negotiations, could breathe new life into two battered gaming partners, whose prospects appeared dead just weeks ago after voters in Palmer spiked a Mohegan Sun proposal and Eastie voters shot down Suffolk Downs' pitch.

But in a major shift from Suffolk Downs' last gaming agreement, the struggling racetrack would lease 42 of its 52 acres of land in Revere to Mohegan Sun and $15 billion-backer Brigade Capital Management, which together would own the casino.

Caesars Entertainment, the track's first partner, bounced amid questions over debt and purported mob ties, would have held just a 4.2 percent stake in the original proposal as the developer and operator.

Mohegan Sun has already passed its Gaming Commission background check.

"It's more akin to our agreement with Palmer," said Mitchell Etess, CEO of the Mohegan Tribal Gaming Authority, referring to the 99-year lease Mohegan Sun had signed to build in the western Massachusetts town, though he declined to detail the Revere terms.

"I think in this case, given the extremely short time frame we needed to get this done, this probably was more executable if our existing arrangements with Brigade and the structure were maintained," Etess said. But he disputed the notion that Suffolk Downs would be simply a "landlord."

"We're really partnering with them," he said.

A Suffolk Downs spokesman declined to comment, referring comment on the deal's structure to Mohegan Sun.

It remains uncertain whether the new partners will be allowed to compete with Wynn Resorts and Everett for the eastern region casino license.

The Gaming Commission is due to meet Tuesday, when its legal team will brief members on whether Suffolk Downs can legally operate a Revere-only casino without another referendum vote. When Revere voters approved a casino on Nov. 5, it was part of the city-line-crossing plan that East Boston rejected.

Celeste Myers of No Eastie Casino, an East Boston-based group that is considering suing to stop the Revere-only deal, immediately blasted Mohegan Sun for "shopping wherever they can."

Mohegan Sun, Myers noted, has faced layoffs of more than 300 workers last year, the refinancing of $715 million in debt and a two-thirds plunge in its fourth-quarter profits just this month.

"They have had all kinds of financial issues," she said. "And now they're joining in the last-ditch cash grab in the commonwealth."

But Etess countered that Mohegan Sun's refinancing will save $16 million in interest costs a year. He touted Brigade's backing "as the strongest platform of any participant in the entire process."

Revere Mayor Dan Rizzo said, "I think it would be unrealistic to think because Mohegan Sun fell on some hard times, that should be indicative of any casino never being built (by them) again."

And Rizzo added, "We can definitely use the jobs."

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Safety first for Black Friday frenzy

Massachusetts stores will be beefing up security, staggering lines and handing out first-come, first-served tickets for hot Black Friday sale items to avoid the kind of stampede that killed a Wal-Mart employee five years ago in New York.

"The busy shopping season should not put retail workers at risk of being injured or killed," said David Michaels, the nation's assistant secretary of labor for occupational safety and health.

In response to letters the Occupational Safety and Health Administration sent out last week, many retailers plan to follow OSHA guidelines, including having trained security or police on hand, placing barricades away from the front of the store's entrance and not allowing more customers to enter once the store reaches its maximum occupancy.

"We continually look for ways to raise the bar on safety for our customers and our employees; their safety is and always has been our highest priority," said Alyssa Peera, a spokeswoman for Toys "R" Us, whose seven Bay State stores will be opening at 1 a.m. "Each year, we evaluate and strengthen our crowd control policies, procedures and store operations right up to Black Friday."

Senior members of the chain's store management teams, including security, will be monitoring crowds waiting outside to identify potential problems before they happen, Peera said.

The chain has tried to ensure it has enough inventory of the most popular toys, she said, But in cases where the demand exceeds the supply, staff will issue tickets to customers for the product on a first-come, first-served basis.

Wal-Mart, whose 47 Massachusetts stores will open on Friday at 1 a.m., will allow customers to line up to get wristbands reserving the item they want, then leave the line to do the rest of their shopping and pick up the item within a two-four period before they leave the store, said Alex Serra, a Wal-Mart spokeswoman.

Best Buy, which will be opening at 1 a.m., also will be giving out tickets reserving items for people in line, as well as distributing store maps so that people will know in advance where to find them, said John Garrasi, who manages the chain's Watertown store.

Wrentham police will have as many as 46 officers working "midnight madness" at Wrentham Village Premium Outlets and a dedicated frequency they'll be able to communicate over, Chief James Anderson said.

There also will be message boards posted on Interstate 495 and Route 1A, telling motorists how much of a wait they can expect to reach the mall.

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Expert: Gaming panel will consider Revere casino

A leading casino expert predicts the state Gaming Commission will seriously consider a Suffolk Downs casino in Revere to keep competition for the sole Eastern Massachusetts gaming license alive, but a group of East Boston residents is vowing to fight such a project.

After yesterday's recount of the votes cast in Palmer's Nov. 5 referendum found that Mohegan Sun did lose, albeit by 94 votes, the Rev. Richard McGowan, a Boston college professor and gaming expert, predicted that Suffolk Downs will now entertain bids from Mohegan Sun, Penn National and Hard Rock — all casino operators that lost bids in other parts of the state.

"I am also fairly certain that Commissioner (Stephen) Crosby will encourage this in order to provide competition with (Las Vegas billionaire Steve) Wynn, especially if (the) Dec. 16 ruling on his suitability goes against Wynn" in his bid to build a casino in Everett, McGowan wrote in an email.

Last week, Crosby said he wanted to consult with the commission's lawyers to determine whether Suffolk Downs legally could shift the site of its proposed casino from East Boston, where residents voted down the project, to Revere, where voters approved it.

Yesterday, Celeste Myers of No Eastie Casino said the group would not rule out legal action if the commission permits the racetrack to build a casino in Revere.

"That's what we have our legal team looking at," Myers said. "We're going to pursue every avenue to fight this."

McGowan predicted that whether Suffolk Downs can build a casino in Revere ultimately will be decided by the courts.

"I don't think the law ever foresaw a situation like this," he said.

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Asian stocks muted before Thanksgiving holiday

MANILA, Philippines — Asian stocks were muted Wednesday as funds switched to better performing markets and trading thinned out ahead of the Thanksgiving holiday in the U.S.

Japan's Nikkei 225 was down 0.3 percent at 15,464.17. Hong Kong's Hang Seng was up 0.5 percent at 23,805.16 and China's Shanghai Composite added 0.7 percent to 2,198.17. South Korea's Kospi fell 0.2 percent to 2,018.40. Southeast Asian bourses were mixed.

Francis Lun of GE Oriental Financial Group in Hong Kong said some funds from Asia are being invested in the U.S. and Germany, where stock indexes are setting record highs.

"Fund managers are switching money out of Asia into Europe and America," he said. "That's why the Asian markets are underperforming."

On Wall Street, upbeat news from the housing industry and luxury retailer Tiffany & Co. nudged shares higher Tuesday.

Investors also got another market milestone when the Nasdaq composite closed above 4,000 for the first time in 13 years.

That followed two other round-number moments last week. The Standard & Poor's 500 closed above 1,800 for the first time and the Dow Jones industrial average finished above 16,000.

The Nasdaq jumped 0.6 percent to 4,017.75. The Dow rose less than a point to 16,072.80 and the S&P 500 index nudged up less than a point to 1,802.75.

In energy markets, benchmark crude for January delivery was down 23 cents at $93.45 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 41 cents to close at $93.68 on Tuesday.

The euro rose to $1.3591 from $1.3567 late Tuesday. The dollar rose to 101.56 yen from 101.25 yen.

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Palmer recount on, Revere heats up

The Bay State's roller coaster casino ride shows no signs of leveling off, with a recount of Palmer's narrow rejection of Mohegan Sun set for today, even as the casino operator says it is moving on in talks with Suffolk Downs as it tries to cobble together a last-minute casino deal in Revere.

On Sunday, Revere Mayor Daniel Rizzo told the Herald an agreement "may be imminent." But yesterday, both Suffolk Downs and Mohegan Sun said they had no agreement to report.

"As we have said before, we have received strong interest in potential partnerships from a number of top-class gaming companies," Chip Tuttle, the track's chief operating officer, said in a statement. "We are aiming to enter an agreement with a new gaming partner soon."

Other casino operators who made failed bids in Massachusetts also could be in the running to replace Caesars Entertainment, which bowed out as Suffolk Downs' partner over concerns about debt and purported mob links.

Yesterday, Scott Butera of Foxwoods, which last week lost a referendum to build a casino in Milford, said: "We're looking for opportunities at this point." But he would not say whether he was talking to Suffolk Downs.

Even if the track cuts a casino deal before the Dec. 31 deadline, its chances of Gaming Commission approval are far from assured. Last week, commission Chairman Stephen Crosby said he wanted to consult with lawyers about the switch to a Revere-only project after voters in East Boston rejected it.

Mayor-elect Martin J. Walsh said in a statement yesterday, "The voters of East Boston said no to a casino, and I respect their stance. It's my responsibility as mayor to ensure that the best interests of Boston residents are protected, and I'll do everything in my power to advocate for Boston during this process."

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The Ticker

Apple buys company that developed Kinect

Apple could be getting into the 3-D sensor game, as it has picked up a company used by rival Microsoft.

Apple confirmed that it has bought PrimeSense, the company behind Microsoft's Kinect sensor device.

PrimeSense also confirmed the sale, though the price has not been revealed.

Wal-Mart names new CEO

Wal-Mart Stores Inc. said yesterday that Doug McMillon, head of its international business, will replace Mike Duke as chief executive officer when he retires as the world's largest retailer struggles to ignite growth at home and abroad.

McMillon, 47, will take over for Duke on Feb. 1, the Bentonville, Ark.-based company said. Duke, 63, will stay on as chairman of the board's executive committee, and McMillon will join the board immediately.

McMillon, who first worked at Wal-Mart as a summer employee in 1984, is grabbing the reins as the retailer tries to restore U.S. sales growth with Amazon.com Inc. and dollar stores luring away its customers.

Today

• Commerce Department releases housing starts for September and October.
• Commerce Department releases third-quarter gross domestic product.
• Standard & Poor's releases S&P/Case-Shiller index of home prices for September and the third quarter.
• The Conference Board releases the Consumer Confidence Index for November.

TOMORROW

• Commerce Department releases durable goods for October.
• Commerce Department releases personal income and spending for October.
• Labor Department releases weekly jobless claims.
• Freddie Mac, the mortgage company, releases weekly mortgage rates.

Kirkland Albrecht & Fredrickson LLC, one of the leading CPA firms in the Boston area, announces that Jennifer Frazier has joined the company as a staff accountant. In this role, she will assist with audit engagements, including bank reconciliations and the preparation of trial balances and financial statements.

L CVS Caremark announced that Helena Foulkes, recently chief of health care strategy and marketing officer, has been named president of CVS/Pharmacy effective Jan. 1.

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Marty Walsh promises to retain, spur Hub’s innovation economy

Martin J. Walsh, known for his labor ties, State House experience and Dorchester roots, hardly made startups a signature issue of his campaign, but the soon-to-be mayor says the innovation economy will be a crucial part of his plan to continue Boston's growth.

"The beauty about that is it creates jobs," Walsh told the Herald. "They're an important piece to Boston."

"The plan for continued growth in the city of Boston is creating more opportunities," Walsh said.

A Kaufman Foundation report in August said high-tech startups are "a key driver of job creation."

Walsh's plan for the continued success and momentum of the startup ecosystem, while still light on specifics, places significant emphasis on keeping talent in Boston.

"I'd really like to keep these startups here in Boston," he said. "There's no pipeline to keep them here."

His plans include:

• Acting as a quasi-real estate agency to match growing companies with affordable office space that fits their needs.

• Focusing on the biotech and medical device industries as industries that could take off in Boston.

• Continuing Mayor Thomas M. Menino's Innovation District initiative, which the city says has added more than 5,000 jobs and led to the newly opened District Hall.

• Also making sure innovation in Boston is not contained to one area. "We have an opportunity to take innovation and spread it around the city of Boston," Walsh said.

Attracting a tech giant to anchor the city's growth is not a bad plan, Walsh said, though he prefers to create "our own team" of big-name companies.

"If we can attract a big name, we will, but it's really cultivating the businesses to stay here," he said. "Some of these startup companies become the Googles and Twitters of the world."

Startup leaders say Walsh seems to be on the right track.

"He's said the right things, so we're excited to see him engage with the community," said Tim Rowe, founder and CEO of the Cambridge Innovation Center.

John Harthorne, founder and CEO of MassChallenge, said his conversations with Walsh have been promising.

"I do think he recognizes it really is critically important to the growth and sustainability of Boston," Harthorne said. "It remains to be seen in practice, but I remain optimistic."

Harthorne said one of the key things Walsh can do for startups is to simply engage with the community.

"Come and speak when we have events, just to show up," Harthorne said. "That's part of recognizing that innovation is a priority."

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PS4 no competition for Xbox

Microsoft's Xbox One is the biggest game-changer to hit the consumer electronics industry since the iPad, establishing the foundation for true multimedia integration between gaming, social media, television and more.

But because the new Xbox One ($499) debuted just days after Sony's widely anticipated PlayStation 4 ($399) hit shelves, most tech reviewers are throwing their backs out in an attempt to be "balanced," dutifully comparing and contrasting the two.

Not me.

Here's the straight dope: PlayStation is graphically a tad more powerful but it's just for gamers. The Xbox is for gamers and everyone else. Though it costs $100 more, that price includes the motion-sensing Kinect and a slew of exclusive features, including the following:

• Xbox is always listening. Walk into the room and awaken it with a simple phrase: "Xbox, on." Or just cut to the chase: "Xbox, go to Netflix." Rarely will you need your remote.

• Facial recognition. It knows the different members of your family. When someone walks into the room, that person's user name (aka gamer tag) appears on the screen.

• It's a wireless personal trainer. The Kinect will monitor your heart rate, and give you tips on how to step up your game. The Xbox fitness library is another story altogether, with workout stars like Jillian Michaels cheering you on and issuing official "achievements" and other incentives.

• Xbox is fully integrated into your technology, controlling everything except your DVR. There's no switching back and forth between your Xbox and TV anymore. Xbox is layered atop everything you already have. It simply adds features.

• It's a football-lover's best friend. Microsoft struck a five-year, $400 million deal with the NFL that will allow you to view and control your fantasy football league while watching live games side-by-side.

Like any evolving technology, however, the Xbox has hiccups. For instance, for the life of me I can't get it to recognize when I say "Xbox, turn off," though it does recognize the same phrase from my husband just fine. If you expect voice controls to be flawless, you will be disappointed.

Nearly all the cool features require a subscription to Xbox Live Gold, which is $5 a month. Because of the myriad movies and television titles provided by Xbox and its integrated apps, I'm now keeping my cable subscription around for the sake of one or two shows.

It's becoming harder and harder to justify.

What's more exciting than the current product is its potential. In the future, it may provide everything from virtual health care monitoring to salsa lessons.

For now, it's sure to be at the top of many a shopping list this holiday season.

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Brookline: Plastic not so fantastic

Brookline businesses are gearing up for bans on plastic bags and disposable polystyrene food and beverage containers that take effect Dec. 1.

Public Health Commissioner Alan Balsam expects a wave of applications for six-month waivers, in particular for the polystyrene ban that will affect 350-plus food-service operations.

"People want to comply, but it's going to take a little time," Balsam said. "I wouldn't be surprised to see dozens of waivers, and the reason is they haven't found a substitute for what they're using, or they have a large inventory (of their current containers or bags) to get rid of."

Town Meeting approved both bans in November. The town won't start enforcing them until January and will start with education and warnings first instead of fines that ultimately will be $50 per "offense," a term that has yet to defined.

"We don't want to make fines onerous, but we want them to be sufficient to ensure everybody complies," Balsam said. "We're willing to work with people to get compliance in a way that doesn't murder their business."

The town offered three polystyrene training sessions on Monday where it had on hand acceptable alternative containers from about a dozen vendors.

"I think in terms of the theory behind this, most people understand and embrace it, but they need more time to find the appropriate replacements and to work it into their budgets, because it is more expensive," Balsam said.

Anna's Taqueria, which has two Brookline restaurants, plans to work that added expense into the price of its Mexican plate, according to owner Mike Kamio.

It's replacing its polystyrene containers used for that menu item with a bamboo-based tray and will have new 8-ounce containers for other items.

"It is substantially more expensive," Kamio said. "As other things pop up, we may switch over to other things that are more cost-effective."

Dunkin' Donuts formulated a new cup for its Brookline stores, but has asked for a waiver until it finds a suitable lid, according to Balsam.

Meanwhile, about 70 Brookline supermarkets, drugstores and other businesses must eliminate plastic bags that aren't compostable and marine degradable. "Come to find out, there is not a commercially available (plastic) bag that meets that criteria now in the United States," Balsam said.

Brookline Booksmith will use paper bags that are about a third more expensive than the plastic ones now used. "It's a significant expense, but we understand it's the right thing to do environmentally ... so it will become part of the cost of doing business," manager and co-owner Dana Brigham said.

Stop & Shop and Shaw's also will meet the deadline by using paper bags.

"We'll also be encouraging and selling reusable bags," Shaw's spokesman Steve Sylven said.

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Pickup owner sludges way to costly repairs

My son purchased new a 2009 Chevy Silverado with a 5.3 liter engine. He's always used synthetic oil and changed it when the oil life minder indicates. Recently while on a road trip the oil pressure dropped to about 10 psi and the low oil pressure light and stop engine warning came on. He checked the oil level, which was OK. He restarted and the oil pressure was fine. He drove about another 10-15 miles and the oil pressure dropped again by 15 psi and the service engine light came on. He reduced speed and drove to the nearest Chevy dealer. They diagnosed a faulty oil pressure sensor and replaced it at a cost of $463. Two months and 1,800 miles later the service engine light came on. The oil pressure gauge read a normal 40 psi. The Chevy dealer where he purchased the truck found the oil pressure read by a scan tool was lower than that measured with a mechanical gauge at the filter. They determined the screen next to the sensor was clogged with sludge. They replaced it and flushed the engine for $483. Did the first dealer screw up by not checking and replacing the screen? Is sludge unavoidable with just a three-mile commute to work even with synthetic oil? The truck had 49,000 miles when these problems occurred. Would more frequent change intervals help? Or should he plan on doing a flush every 25,000 miles?

Sludge build-up inside an engine occurs when moisture in the air inside the engine condenses during a cold start and contaminates the oil with water. Combined with fuel contamination and oil oxidation over time during normal use, this can form a "glop-like" sludge that can block or restrict oil passages, screens and filters, causing a loss of oil pressure. Under normal driving with the engine fully warmed up, the moisture evaporates and is drawn out through the PCV system and burned. Short trips after a cold start may not allow the engine to reach fully operating temperature long enough to eliminate all this contamination.

So, while the oil life monitor system may not call for oil changes for 10,000 miles or more, in this case more frequent changes would remove much if not all of the contamination before it has a chance to jell into "glop."

Should the first dealer have caught this? Based on your son describing the repeat scenario of dropping oil pressure, the pressure sending unit is suspect, but it might have been wise for them to replace the valve lifter oil filter screen, mounted just below the sensor, at the same time.

More frequent oil changes should prevent additional sludge build-up. According to TSB 04-06-01-029G, GM does not endorse any type of engine flushing.

Paul Brand, author of "How to Repair Your Car," is an automotive troubleshooter, driving instructor and former race-car driver. Readers may write to him at: Star Tribune, 425 Portland Ave. S., Minneapolis, Minn., 55488 or via email at paulbrand@startribune.com. Please explain the problem in detail and include a daytime phone number. Because of the volume of mail, we cannot provide personal replies.

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