PRICES FOR FLAT-SCREEN

LCD and plasma TVs are dropping fast.

With demand soaring and competition more heated than ever, prices have plunged about 25% over the past year. And analysts expect even steeper drops in the future. Last week, Panasonic lowered the prices of its plasma-screen models by an average of $500, starting what Denny Arar, a senior editor at PC World magazine, calls "the plasma price wars."

For those ready to take the plunge, here's a four-step buyers guide.

1. Decisions, decisions: plasma or LCD?
Flat-screen TVs come in two different formats: Plasma and LCD. Both have their advantages and disadvantages, though LCD screens are edging ahead in popularity, say experts.

Plasma screens, according to Consumer Reports, offer good-quality images whether you're watching HDTV or regular cable. The sets are about four to six inches thick, no matter the screen size. Most of the sets are wide screen (16:9 ratio), with the smallest measuring about 42-inch diagonal. (It's rare to find smaller plasma screens.) Price is measured more by quality than screen size the cheapest models run about $2,000 (for a 42-inch), while more expensive ones can still top $20,000.

The downsides, however, are significant. Plasma screens use more power, and thus generate more heat than other kinds of TVs. They are also prone to "burn-in" when a static image, such as a TV network logo or a videogame background, creates a permanent impression on the screen.

To get a good deal:

• Look at quality first.

  Then check price and screen size. Generally, price differences are based on the quality of the image.

• Think big.

  "The bigger you get, the better the deal," says Arar. The technology is such that it doesn't cost much more to manufacture a 60-inch than it does a 42-inch.

LCD screens, on the other hand, have a wider range of sizes, down to tiny 15-inch monitors that can be used as computer screens. They're usually an inch or so thicker than plasma screens. But unlike plasmas, they're immune to burn-in, and generate less heat. You could pay as little as $500 for one of the smaller screens (say, 15-inch or 17-inch).

But LCD screens also have their bad points. Their pictures are difficult to view from the side and don't always offer great quality when it comes to fast motion which can spell massive disappointment for sports fans.

To get a good deal:

• Go small.

  The best deals will be found with smaller screens that can double as computer monitors.

• Look for the latest.

  Newer models tend to have improved off-center viewing.

2. Read the reviews
Now that you've decided which kind of screen you'd prefer, it's time to check out what the experts recommend. Picking a flat-screen television isn't as simple as looking at resolution and screen size. PC World recommends you take a look at five factors: contrast ratio, aspect ratio, resolution, video inputs and comb filter type. Consumer Reports goes further it recommends that you also consider four aspects of picture quality (from HD, DVD, S-video, and antennae/cable content), plus sound quality, ease of use and parts/labor warranty.

For expert reviews, read PC World's guide to flat screens and Consumer Reports. To see how consumers have fared with the product once they brought it home, look for consumer reviews on the AV Science Forum and Epinions.

3. Hit the stores

Since viewing quality is the key to getting a good deal, you don't want to buy a TV sight unseen. Head to your local department or electronics store before you start comparing prices, advises Arar.

• Don't go toward the light.

  "People's eyes are drawn to bright sets," says Arar, so stores set their display TVs to the brightest settings. Don't assume that the set that first catches your eye has the best picture quality. After all, you won't be watching your TV in bright, bright light. Visiting the store is your opportunity to play with the display sets and make your own comparisons.

• Find out what you're watching.

  Some stores will use HDTV content (which will look good on any flat screen), while others use DVDs or regular cable (which can have varying results). Assuming you won't just be watching high-definition content, you'll want a model that makes everything look good, says Arar.

• Check out what's included (and where).

  Not all sets include speakers or TV tuners, and some have hard-to-reach connections to hook up your screen to a DVD player or cable box. These can be important factors if you plan to mount the TV on a wall the wires won't look great, and separate elements can be tough to configure.

• Ask about enhanced-definition (ED) models vs. high-definition (HD).

  For plasmas, an ED set can be one way to cut the price, according to Consumer Reports. The lower screen resolution still produces very good picture quality with most sets. But if you're looking for an LCD set, steer clear of ED sets the quality is significantly worse.

• Test the color capability.

  One of the problems with flat-screen TVs is that they don't reproduce gradations of the color black especially well. PC World recommends bringing along one of your DVDs one that has dimly lit night scenes. You'll be able to make out the picture more clearly in the better sets. Looking at the display sets, you'll also be able to notice which of them don't show color as well. (Hint: An all-over greenish tint isn't a good thing.)

4. Then, buy online
In the wake of Labor Day sales and already falling prices, it's possible to find good deals in stores. But online, you can find rock-bottom prices.

In its most recent analysis (March 2005), Consumer Reports recommended 10 models. We found them online for up to 45% less than the regular retail price.