The Official Spokesperson

The Official Spokesperson

Testimonials may use anyone as a spokesperson, but when they can afford it companies like to get big name stars.  Marie Osmond has lost 45 pounds using NutraSystem.  Tony Orlando lost 103 pounds. Oprah has lost several hundred pounds, over and over, to a variety of weight loss programs.  It is actually easy to get a known spokesperson to do an ad for your product. Even I can do it on my Slightly Creaky site.  For under $500 Flash Video Actors.com will arrange a script, an actor, and do the filming.  Live Personalities.com will do a 30-second commercial for $499 and a 60-second one for $549. 

Do actors need the money so badly, or are products manufacturers so much in need of testimonials?  Some spokespersons have actually promoted products that have gotten them into trouble.  Many others use actors pretending to be customers or even dignitaries such as doctors, lawyers, and other experts.  The small print states that the commercial is a dramatization.

TitleMax, a loan company in the South, uses local celebrities to push their product.  Here is what one former company employee said about their hidden policies: “I am a former employee of TitleMax of TN. Titlemax uses catchy TV commercials with testimonials from satisfied customers along with print advertisement to seduce hard working lower middle class people into pawning their vehicle. They tell you over the phone that they charge 'about half' of what others charge. The interest rate (and fee's) come to 12.9% MONTHLY (which is 154.8% APR).”

On occasion what you think you see is not what you get.  The top-selling cholesterol drug, Lipitor, which featured artificial heart inventor Dr. Robert Jarvik, used an actor rather then the doctor himself in some scenes. 

One must wonder whether Viagra commercials did more to get Bob Dole’s name known than his presidential race in 1996.  Some voters found it strange that John McCain supported the use of Viagra while arguing against forms of contraception.  Soccer great Pele also did commercials for this product.

Some of the more famous product endorsements include

1. Ed McMahon and Dick Clark for American Family Publishers. This company lost numerous lawsuits for misleading advertising including a $1 million fine in Florida involving an ad that featured Mr. McMahon
2. Bill Cosby made almost as much money doing ads for Jell-O, Eastman Kodak & Coca-Cola then he made for his movies.
3. Our all time favorite space actor, William Shatner is better known for his PriceLine ads than for his award winning TV and movie roles.  Priceline has been criticized for two of their unadvertised policies: All transactions are non-refundable, and reservations cannot be changed even by paying a penalty.
4. Phil Rizzuto was a long-time spokesman for The Money Store.  This company has been cited, among other things, for illegal home foreclosures. Using the name “Mortgage Lending Direct,” The Money Store engaged in providing illegal mortgages in many states.  This part of the company was closed down by governmental authorities.  In their ads they stated no points and no origination fees, yet investigations showed they typically tacked on up to 6% for such fees, hidden in small print among many pages of documentation.  In 2008, nine Money Store franchise owners and employees defrauded 110 home owners in Washington DC of $35 million.
5. Soviet premier Mikhail Gorbachev appeared in a Russian-language commercial for Pizza Hut.  The advertisement was eventually shown in the United States.  This was the man who once said, “I am a Communist, a convinced Communist! For some that may be a fantasy. But to me it is my main goal.”
6. Jessica Simpson and Sean P Diddy Combs have all done advertisements for the Proactive line of acne medication, about how it got rid of their acne and led to their acting success.  I never knew either of them were actors.  If they are, they should fire their make-up consultants.  Proactive uses misleading advertisements to get you to try their product.  If you do not cancel within 14 days of the initial order, and usually that’s before the product actually arrives, you get placed on their automatic shipping list and will be billed $45.95 monthly.
7. The cavemen of GEICO fame could not survive the real life of television.  Their show was cancelled after six episodes and gathered a final Nelson ranking of 107.

Adding their name to a product can bring actors and actresses a large residual income, even long after they are dead.  The heirs to Roy Rogers still get paid for the use of the name, as do the estates of Jimmy Dean and Paul Newman.  Consider all the people who let their names be used on clothing lines.  Interestingly some of them have received Mr. Blackwell’s Worst Dressed awards over the years. His list, from 1922 through his death in 2008, included Britney Spears and Paris Hilton, Madonna, Farrah Fawcett, Cher, and the always well popular Dennis Rodman.  Each of these has had clothing lines, cosmetics, or similar fashion products named after them

The Testimonial Trap

The Testimonial Trap

(Be sure to read the previous three articles - above - prior to this.)

Just where might you see testimonials used?  Everywhere.  In addition to television, print ads, and radio plugs, Internet scams are filled with testimonials.  Multi-level product companies, such as Amway, Avon, AmeriPlan, Forever Living, Herbalife, Mary Kay, NuSkin, Shaklee, and Sunrider are perhaps the best known of the more than 100 multi-level marketing companies.  All of them depend on testimonials rather than scientifically proven facts.  Their products may not be bad, but comparing them with similar products available in a typical drugstore or in WalMart, you land up paying up to three times what the product goes for elsewhere.

In most cases, products sold this way use testimonials to avoid scientific testing.  By not calling their items drugs or food, they escape the Food and Drug Commission’s rules and the Federal Trade Commission’s regulations, and can make outlandish statements.  If a person told you a product cured a debilitating disease, and you happened to know someone who was suffering from it, you might be tempted to pass the information on.  You have no proof; you do not know if that previous cure was real, you have no idea what sort of testing the product has gone through or what the potential side effects are.  That is how most multi-level marketing companies sell their products – testimonials by the friend or relative or co-worker who is selling it.

Even proven pharmaceuticals, as mentioned before, can cause misleading usage of their product by producing television commercials providing symptoms and telling you what the cure is.  Many of us have a variety of symptoms on occasion, and just because some might match what this product is pushing does not mean the item is for you.  It may indeed be dangerous.

Infomercials love testimonials.  Who would not love to have a body like those we see using their equipment.  In the rare case that we see before-and-after pictures they avoid saying that the weight loss was strictly due to using their product.  Hard bodies are hard to fight.  Almost as hard to fight as fat. 

There is a web site called InfomercialScam.com where people can lodge complaints and see what others say about the products and companies.  Interestingly mentioned frequently in January and February this year was Direct Buy, a company whose entire commercial shows happy customers.  I have researched this company as well, and can find little good to say about them.  Their satisfied clients, shown on television, are all paid to do those ads.

Recently the New York Mets have faced controversity at naming Citi Field. Citigroup will be paying $20 million a year for the naming rights to the park over the next 20 years.  Many businesses have paid to get stadiums named after them, including Continental Airlines Arena in the Meadowlands (now renamed Izod Center as the original contract expired), the Prudential Center in Newark and Barclays Center in Brooklyn).  There are also two minor league ballparks in the New York area, KeySpan Park in Brooklyn, and Richmond County Bank Ballpark in Staten Island.  Around the country there are now over 1,200 such testimonial designations.

Tylenol is the official pain reliever of NASCAR.  On the way home from New Jersey one evening, listening to a Yankee game, we heard that there was an official bottled water for the NY Yankees, another for the bullpen, and a third for the announcer’s booth. 

Due to the misuse of testimonials, the Federal Trade Commission has been studying them and has very specific rules for their usage.  Like most Federal guidelines, though, there are ways to get around them.       

Haven’t Been There? Don’t Go

Haven’t Been There? Don’t Go

Many of us have been lucky enough to have visited places and seen sites that will become less accessible in the future, or simply no longer there. In 1956, my parents took us across the United States by car and I had the opportunity to see this country before the Interstate Highway System bypassed the “real America.” Since then I have traveled around the country, by super-highway and local roads seven times, seeing places that I could never imagine. Now, though, many such locations are no longer accessible, generally due to the volume of visitors and the results of this human invasion.

The first, to my knowledge, popular tourist site to disappear was Mesa Verde, the Anasazi dwellings in Colorado. While it used to be totally opened to visitors, access has been restricted since the late 1960s. “Mesa Verde is first and foremost an archaeological preserve, which means that access to the park's natural resources is restricted out of consideration for its many ruins. All hiking within the park is restricted to six marked and paved trails.” (Mesa Verde National Park)

In 1962, my parents had the opportunity to see the Lascaux Caves in France. Although opened to the public since its discovery in 1940, damage caused by visitors caused the closure the year after my parents were there.

“The work carried out at Lascaux shortly after the Second World War made access to the cave easier. At that time, the entrance was considerably enlarged and the floors lowered to enable the constant flow of tourists (almost 1,200 people per day) to circulate more easily. But, in 1955 the first indications of deterioration of the paintings appeared. A thorough study found that the cause was an excess of carbon dioxide in the air brought about by the visitors' breath.” (The Caves at Lascaux)

There are hundreds of other examples, from the overcrowding at US National Parks causing reservation requirements (some having to be made a year or more in advance) to the damages done at the Galápagos Islands from oil spills and heavy visitation.

Our generation was the first mass-visitors to the glaciers in Alaska and in Glacier National Park. We will also be the last. The glaciers are diminishing at a rate that, only ten years after my visit to Glacier Bay and 30 years after ice fishing in July in Glacier Park’s Quartz Lake, there are few of these ice wonders still accessible.

Perhaps, even if we knew our presence at these places were causing damage, we may still have gone. Perhaps, even if we knew the damage we were doing to the environment, we would still have caused the pollution that has ruined many locations of our planet. We can, though, hope not.

Now, armed with this knowledge, we can and should do all we can, even sacrificing trips to such tempting and inviting locations, to preserve nature and our archeological heritage. As today we may no longer visit Lascaux in person, in fifty years our grandchildren may be unable to visit Venice, the low-lying Pacific islands, or even much of Florida, New York City, or the Netherlands as the melting ice caps cause a dramatic rise in ocean levels.

No more excuses.

Living a Lie

Living a Lie

Truth is as we perceive it. There is no such thing as absolute truth as perceived by human senses. Everything we encounter is tainted by our prejudices, and we all have them. Our parents, teach us inaccuracies, as do our teachers, our religions and history. Yet these inaccuracies together make up our culture and it’s not necessarily a bad thing.

George Washington did not have wooden teeth or chop down a cherry tree. No one ever threw a coin across the Potomac River. Paul Revere never made it to Concord – he was captured partway there… and there were three riders that night, not two. The United States sank the Maine, and used it as an excuse to declare war. If you run with a pencil you’ll poke your eye out.

How many lies are told to us “for our own good” and remain with us as truths? How many fictions are given to us as children to make our parents’ lives easier, and we pass them on to our children even though we know they are not accurate? How many poems or stories are written to honor heroes that contain exaggerations or are twisted to make the protagonist seem worse than he really was? Did the police use excessive force or did my child actually behave like they say he did?

We want to believe that people we know are good and discount stories about them behaving badly. We dislike someone or a group and thus believe the person or people could easily do wrong. Two hundred years ago the British could never be right; 150 years ago the South knew the North was wrong. Many people cannot forgive the Germans for starting the two World Wars or the French for simply being French.

Every person, every group has colored perceptions of other people and groups. Try to persuade someone that one of their “truths” is inaccurate and you become the enemy. No human is exempt from this.

Yet should we always tell the truth? Can it be a kindness to lie to soothe someone’s feelings or to protect someone we love? Is it honesty or dishonesty to present our perceptions as the total truth and possibly harm another person, or cause a country to go to war?

Mark Twain is credited with stating, “Truth is more of a stranger than fiction.” Sir Winston Churchill wrote, “Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing ever happened.”

Perhaps we should take the advice of Adlai E. Stevenson Jr., and apply it not only to the political world, but also to all our relationships and thoughts. During his 1952 presidential campaign he suggested: “I have been thinking that I would make a proposition to my Republican friends... that if they will stop telling lies about the Democrats, we will stop telling the truth about them.”

Honesty may be the best policy, but in today’s world it will not help a student pass a test (only studying will do that), it will not help you avoid a ticket, it will not correct a mistake, nor, it seems, will it help certain political aspirants get elected. But honesty and admitting your mistakes may make you a better person.

Seeing is not Believing - Part 1

Seeing is Not Believing

Part 1: TV Advertisements: They Think Us Fools

There is one sure way to save money and avoid purchasing items that you neither need nor work as touted: do not believe advertisements.

No one believes in miracle weight-loss pills (then why is it a billion-dollar a year industry?). We all know that those fad ab-strengthening machines do not burn away calories of take inches off your waist by themselves.

The purpose of advertising is to sell you something that you would not normally purchase. Companies make products and need to sell them; it’s that simple. It makes no difference what the media is: television, paper ads, billboards, or radio. They ARE out to get you, and your money.

Open your eyes when watching television advertising (or simply ignore them completely).

Home security alarms: Are we to believe that a wife has had an alarm installed on the house without consulting with her husband? The alarm company has to take a home inventory, look over what type of system is best, where to put the components, and then make an appointment for the technicians to come. How good can it be – let’s try it out. Run around the house (from daylight to dark) with your suit jacket over your shoulder and carrying your briefcase. What is he looking for? He can get in at any time, just open a door (or does he not have a key?). What does that advertisement prove except that the people that buy the product are fools?

And “for free?” Not hardly. What is offered is a minimum system that might cover a two-room shack. You want more than a few windows or doors alarmed? You want glass-shattering coverage? Add a few thousand. In addition, you need to sign up for monitoring at a cost that, within three years, would be more expensive than thet alarm system. And then they usually have you and your money for more years beyond that. But the alarm companies just want to get in your door – they are salesmen.

Snake oil, encyclopedias, tonics, and sure cures for all that ails you.

Cholesterol-lowering foods: Eat our product and lower your cholesterol. One ad says that the item may lower your level by 4% in six weeks. Actually they want you to buy the product for six weeks. If you normally eat bread, eggs, muffins, or any high-cholesterol food, by switching to almost any healthier product WILL produce positive results. If you buy their product you encourage more inane ads. If you have a cholesterol of 300, a 4% drop is 12 points. Not much of a solution.

Car Advertisements: Let’s compare our car with another. We have got to have at least one thing, of the thousands of items on a car, that is better than someone else’s vehicle (one that costs more than ours). Our glove compartment is 10% larger than a car that sells for thousands more. We have a spot for your coffee mug (is that safe driving?). We have cute wheels. We have sexier models or ones that can do handstands and jump over the hood. We get 27 MPG (in the 1970s there were many cars that got over 35 MPG). We can climb a 90-degree hill and take you across rugged terrain (but can it get you to work and back without costing $20 for gas?).

You can spot the improbabilities yourself. Watch the advertisements, and don’t believe.

Seeing is not Believing (Part 2)

Games Prices Play

If you think you are getting a bargain, you’re wrong. It’s that simple. When an item is on sale, its still making a profit for the person or company selling it. The stronger the advertisement’s wording, the less likely you’re getting a good deal.

Advertising Price Increases: For the last six months, we have been purchasing a seafood – shrimp salad at our local store for lunch on occasion. It is low in fat, quite tasty, and $3.99 a pound. Two weeks ago the store’s newspaper advertisement featured this product for $4.99. One give-away that the price has gone up is the inclusion of the word “only.” Cat food that was selling for 44 cents a can is now “only 2 for 99¢.”

BOGO: The same store that increased the price of the salad also uses the “buy one, get one free” gimmick. Frequently, if you know the actual price of the product, this can result in a great opportunity. But this store rarely advertises the price of the product, just that if you purchase one, you’ll set the second “of equal or lesser value,” for free. After selling boneless chicken for $1.99 a pound for weeks, they had it “on sale” at a BOGO price of $3.99.

I will admit that their “buy six bagels and get six free” is always at the regular price, and I do purchase it. No, I cannot eat a dozen fresh bagels, but they freeze well (as do English muffins).


For Six Easy Payments: Reverting to television and the sixty-second infomercials for salad spinners, the world’s sharpest knives, and other items “not available in stores.” They all tell you to “call within 3 minutes” to get a great deal (although since they run the ad throughout the day for weeks, how can they tell when those three minutes are up?). Whether they sell for “only $19.99” or for six weeks of easy payments, before you purchase check out WalMart (now they have eliminated the hyphen so it’s no longer Wal-Mart) or Target to see what they are getting for a similar product. You might even find that $19.99 special at the “All For a Dollar” store.

Spend $15 Coupons: Inflation has increased the “spend $5 and get…” all the way up to $15, and it will probably go higher soon. If you are already going to spend that much in the store, these can be good deals. In fact if you need the products, and were planning on spending $10 or more, it may be worth it to get an extra something for the coupon special. It, though, is never worth the trip or the savings if you were not going to purchase anything or if the product is not something you really need.

Seeing is not Believing - Part 3

Bait & Switch 2010

We all recognize the old Bait & Switch advertising. Illegal in every state, companies advertise one product to bait you into the store and then either do not have the product or it’s of such poor quality that you are easily switched to another more expensive item.

They still do it, more subtly, and they still get away with it. Here are a few examples:

Vacuum Cleaner: The bait: Advertised for a seemingly low price, probably with several free “exclusive offers” such as a car vac, computer attachments, or a steam iron. The switch: buy a better model and get extended warrantees and free cleaning for up to 20 years at ever increasing prices. Beware: The “free” products may be of poor quality and generally not things you might use. Note, though, that if you do keep the vacuum in good condition and get it cleaned using their program, it will probably last the 20 years and do a good job.

Meal Discount Coupons: The Bait: buy one meal at the regular price and get the second for free or at a discount. Possibly buy two meals and get a discount on both. The Switch: There may be many exceptions to this policy: minimum purchase prices (spend $50 to qualify), good only on certain days or at certain meals, or limited menu selections. Beware: When you use such a coupon, check the bill carefully. The restaurant may ignore your coupon (“we forgot,” “computer error”) charge you more than the listed price for the meal, or add a surcharge to make up for using the coupon. We have experienced restaurants adding non-ordered or delivered items onto the bill, such as soup, an extra appetizer, or a beverage.

Furniture: The Bait: Buy a complete living room set and get free end or coffee tables; possibly “close out” sales with deep discounts. The Switch: The free products, and possibly the items offered are of poor quality or do not match. Beware: the sales staff is trained to use high-pressure tactics to move you up to items they want to sell. Most showrooms are so large, and the sales staff follows you so closely, that they show you what they want to sell, not what you may wish to purchase. Ask to be left alone to browse at your own pace. Many companies now charge for delivery and for removal of old items.

If you have replaced a large item, and the old product is still in somewhat usable condition, consider advertising for it at a local college. Offer it for free “as is.” That way a needy college student gets something they can use and you do not have to pay removal charges.

Membership Clubs: The Bait: Pay a small annual fee to join and get deep-discount prices. The Switch: A few companies offer low quality and limited selection at prices that really do not provide a discount. While Costco, Sam’s Club, and BJ’s have made this business model a success, and if you need to buy in bulk these companies have a reputation for providing what they advertise, you can frequently find items for less at a non-membership food market. Beware: A few home supply stores have used the membership ploy to sell low quality items at discounted prices. Be especially careful if the store does not display items but only provides catalogues.

Seeing is not Believing - Part 4

Discount Stores

During the last 20 years, the United States has seen a growth in both high-end and low-end stores that advertise that they provide deep discounts (or similar euphemistic advertising slogan). Generally these stores fall into three categories: “Dollar” shops, membership clubs, and outlet malls. A careful consumer can obtain many good bargains at these places, but they can also spend more money on items here than they might at a supermarket or variety store.

In the dark ages of the modern world, the Five & Dime stores held the place that the Dollar shops do now. There were several important differences: Woolworth, J.J Newberry, Kresge, and similar stores offered many items at small prices, but they did not stop there. It was also possible to spend several dollars for products. They were “variety” stores that provided a huge range of products.

Today’s Dollar stores, and there are several national and many local names, state that every item in the store is the same price. For the most part that’s accurate, although some may be 2-for-a –dollar and others higher, usually marked as “special purchases.” Comparing the typical product in such stores with WalMart and Target will show that you can purchase similar products for slightly less or more elsewhere. Many items in the discount stores are discontinued, overstocked items, or holiday specials that, while still in date, have passed their intended target.

You can obtain many items in these Dollar stores that are not easily available elsewhere, especially gift boxes and packaging, Mylar balloons, and trinkets. There are also major savings on telephone and computer cables and jacks, electrical tape, pet toys, and simple kitchen gadgets.

The large membership stores, not limited to BJ’s, Sam’s, and Costco, charge an annual fee that is advertised to provide a discount on prices saving you more than the membership cost. There are two catches, though: you generally have to buy larger sizes and they rarely put items on sale. If you are a small business and have need of gallon sizes of pickles or mustard, or if you go through diapers, snack food, and kitty litter so fast that you need a huge supply, then these stores are for you.

But not all is at a discount. If you compare prices to your local supermarket, you will find that many items, even those not on sale, are less expensive, and you have a wider selection of products and brands elsewhere.

In addition, some membership stores, especially those who specialize in furniture and home goods, do not always offer either quality or discounts. Shop around and compare prices before buying. You need not waste gas or run all over: check online. Slightly Creaky’s Consumer Assistance Page provides a list of Price Research Sites to assist you.

Likewise, outlet stores are best for those who either know typical prices for the items they are seeking, or those who absolutely have to have name brands. In many cases, the discounted off-name products are made on the same assembly line or in the same Chinese factory that the advertised products are.

Seeing is not Believing - Part 5

Lowest Price of the Season

If you watch television, you will be familiar with stores that run sales for special occasions. It might be Back to School, Columbus Day, Lowest Price of the Season, or some such silliness. Some stores run two to three sales a week and in many cases the same items are on sale, for the same price.

Most states have laws regulating what can be advertised as “on sale.” To circumvent these laws, all a store has to do is have a “list” or “suggested” price and occasionally sell the item at that amount. Usually it is so high that no one would buy it; but tomorrow it will be On Sale again.

One crafts store is noted for having huge signs outside their building and announcements in their ads for “50% off all picture frames.” This sale has been running for years. In actuality, the price they sell the frames for is so high that even at the discounted rate you may not be getting a good deal.

Clothing stores are prone to special occasion sales since no one knows what the products actually cost to make, ship, and handle. Silk shirts may sell for $20 each, and next to them are silk ties, using a quarter as much fabric, requiring no buttonholes, buttons, and few seams, selling for more than twice the price. What is the justification? Two blocks away, at the same chain’s outlet mall store, the shirts may be “discounted” to $30 and the ties are selling for $15.

This is no longer a supply and demand market. Today prices are set by the store, and if the items do not sell they simply spend more money on advertising stating what a great deal the high prices are.

One of the reasons you can frequently get good deals in a discount store is not that the products cost less to make or are of lower value, but the stores do not spend millions weekly in advertising and then have to raise the prices of the products to pay for the ads.

Toothpaste is a good example. There are actually few companies manufacturing this product. Each may place the same formula in as many as three-dozen competing packages. The ones that advertise, the so-called name brands, have to charge two to three times what the unadvertised store brands get, yet it’s basically the same product.

Americans, and in increasing numbers others around the world, have been tricked into believing ads. You MUST have this specific brand (only available at this store), and you “MUST buy it now since it’s on sale at THE LOWEST PRICE OF THE SEASON.” Next week it will no longer be on sale, it will no longer be the same season, and the price will be 20% less.

Retirement, A Cruel and Unusual Punishment

Retirement, A Cruel and Unusual Punishment

Can you imagine being retired with nothing to do? Would it not be one of the cruellest punishments you could imagine? Does sitting in front of the TV, day in and day out, sound like a fulfilling way to live? Malcolm S. Forbes said "Retirement kills more people than hard work ever did". Fortunately we have time to plan our retirement. Think about the question "What are you going to do when?" -- you grow up? -- you graduate? -- you retire?

For the first two stages of life we have very little time to decide. We could spend a lot more time on plans for the third phase. When it comes to retirement, we know that an enjoyable and peaceful retirement comes with good planning long before you actually retire. Retirement planning is about learning how to spend your time and not just how to spend your money. You need to understand the best way to use your time, to keep busy and enjoy everything you desire to do.

Of course having enough money put away is the number one factor as to whether or not you’ll maintain your desired lifestyle once you stop working. Even if you’ve been saving your money since your first nickel, that still may not be enough to have an enjoyable retirement. Money is always an issue. How often do you hear people say that “I'll do that when my ship comes in" or "when I win the lottery"?

Everyone would travel in their retirement if it was free, and fortunately a few travel vacations a year will probably fit into even the most conservative budget. Traveling to exotic places could be a dream come true for you and your partner. Limiting the number of trips to take this exotic vacation may definitely be worthwhile.

Your vacations will not consume all of your free time so you know you’ll need something engaging to do with the rest of that free time and remember you will probably have more free time than you’ve ever had since you became an adult. Having several interesting hobbies is a necessity to get the most out of your retirement. Creative planning can rev up your retirement with hobbies and activities.

If you retire without retirement planning and you think you would be too old to learn something new, think again. There have been many people who took up meaningful retirement hobbies in their advanced age. Some have been able to excel at those hobbies. You've heard the saying, "Can't teach an old dog new tricks" , it doesn't apply to you unless you want it to.

Before you entered the workforce If you wanted to be a lawyer, you had to go to school first. Architects go to college. Hairdressers go to a school or college. When you picked a career or a profession you had to do it long before you started into that profession because you had to learn first. Hobbies are no different. Learning to take a new hobby or activity to the next level is very beneficial to keep the mind active. Keeping the mind active, according to some researchers, has several health benefits, not to mention the pleasure of just learning and perfecting something new.

After a few years into retirement, it may become necessary to rearrange your priorities, activities, relationships and lives. Retirement is usually more challenging than we thought it would be and often health issues force these changes. Fortunately, those who have planned for retirement and have a clear vision for more fulfilling lives for themselves, will stand out for their ability to reinvent themselves. They will find new adventures, hobbies, new friendships and even new careers.

Some retirees will be satisfied with hobbies, especially as we get older. Some will be happy with volunteering their services to give back to the community. Some will look forward to retirement as an extended holiday where they can finally slow down and "smell the roses". Others will have a busier, more active life than when they were working.

Over the next 20 or so years, it's expected that 75+ million baby boomers will retire and there are approximately 46 million workers to replace them. There is a very obvious gap here and the next generation really needs boomers to stay working in some capacity. That's good news for boomers since many aren't likely to retire totally anyhow. Talk about a win-win situation for all generations and for society itself.

There will be a decision for you to make, keep working full or part time or quit the workforce entirely. Deciding to quit the work force entirely calls for a retirement plan for the new retirement lifestyle you are about to embark upon. Should you decide to use hobbies to fill up that free time just remember those who get the most from their hobbies in retirement are those who have started pursuing these earlier in life. That’s not to say you can’t start something new. Maybe you’ve had a passion to try out a new sport, activity or pastime and just haven't had the time to do it while you’ve been working. The one thing that is certainly true is that retirees who have one or more hobbies of some kind are far less likely to suffer from physical health problems or emotional problems such as depression and the more active the hobby, the greater the chance of living a fuller, healthier and longer life.

Research Can Lower Your Costs

Research Can Lower Your Costs

For those of us who are retired, as well as others who have the time or wish to make the time available, a little research can help you find the lowest cost of food, clothing, gas, heating fuel, and much of what we need. Slightly Creaky has done much of the work for you. Below are a few samples. Go to our Consumer Assistance site for more information and Internet locations.

Gasoline:
Gas Buddy: Set up by community throughout the United States and Canada, and reported by community members. Anyone can join and submit the current prices for stations in your community.

MSN Autos – Local Gas Prices: Submit the zip code and get not only a list of gas stations, but a quick glace at the highest and lowest prices and what each station is charging. Each entry is dated. At the bottom of the page are the national lowest and highest prices for regular gasoline throughout the country.

MapQuest National Gas Prices: Input the type of fuel you need, regular, premium, diesel, or alternative, then put in the zip code. Starts off locally, then expands outward to nearby communities. Place your mouse pointer over the listing and the station appears on the map.

Home Heating Fuel
Most web sites in this category want a service fee to assist. They contact local fuel companies and attempt to get them to bid on your needs. In most cases, though, we find they have affiliate sites that win the bid ignoring whether they were the lowest price, best quality, or most reliable. Slightly Creaky suggests you find a listing of heating fuel sites in your area and contact them by telephone getting their current prices.

Home Heating Oil Prices.com: Has contact information for local fuel companies. On occasion they list recent prices.

Consumer Products
Slightly Creaky suggests that you do not depend on any one consumer product site as none of them are all-inclusive. Check out these locations to find a product and to get an idea of current retail prices. Then go to the web site for your favorite stores and check weekly advertisements to get the best deals.

Shopzilla: Enter the product you are looking for and Shopzilla will produce a listing of current retail and online prices as well as pictures of the product and reviews.

Price Grabber: Gives you the opportunity to select a product category or to input the product in a search engine. Includes product description and reviews.

MySimon: “A comparison shopping site for almost everything: Apparel, computers, electronics, jewelry, video games, and more. We gather prices on millions of products from thousands of stores, so you can compare products and find the lowest price before you buy.”

Smarter.com: Includes information about rebates and discount coupons. "Come to Smarter.com before you buy online. Using an unbiased system to compare prices on products from thousands of different merchants, Smarter.com helps you shop and find the best prices, products and websites. As the leading price comparison shopping site online, Smarter.com carries top merchants including: Circuit City, Crutchfield, Buy.com, B&H and many other popular online stores."

Seeing is not Believing - Part 6

Size Matters

Consider the life cycle of a package of cereal. When you first purchase it you get 18 ounces for $1.99. The package has no particular advertising slogans on it. Six months later, although you are not aware of it, while the outer package stays the same, the contents shrink to 17 ounces. Six months after that it’s advertised as “a full pound for the same price.”

Two years after your initial purchase, there is a special: 10% more for the same price. (That’s an extra 1.6 ounces.) Strangely the package is a smaller size, although the contents now fill the inner bag. Once the sale is over, the box remains the same yet the contents have shrunk to 14 ounces. Soon after you see a “new larger size,” 16 ounces, and, glad to be getting more for your money, you may not notice that it’s now selling for $2.49.

Watching the weight of the contents is of major importance when making purchases. Many products come in several sizes, although the larger one is not always the best bargain. One of the finest food stores we have ever visited has been selling carrots at 59¢ a pound with 5-pound bags going for $2.99. When you weigh the 5-pound bag it comes to a few ounces over. Each of the one-pounders is also a few ounces over, and five of them weigh around 6 pounds. Yet together they cost 4 cents less.

Larger sizes, if you are going to use the entire item while it’s still fresh, may be a great deal. You may only need two pounds of ricotta for the lasagna, and it costs $2.99, yet the 3-pound may be selling for the same price or $3.49, still far less per pound than the smaller size. What else can you make with ricotta this week?

Personally, I do not think “churned” ice cream tastes any better than the old-fashioned type. By churning it, there will be more air and less actual product in the package, yet it looks like you are getting more. Therefore the new 56-ounce “half gallons” look the same size that the 64-ounce half gallons did.

Another trick is for the company to make you think they are doing something for you: easy to hold bottles contain less than the previously not so hard to hold ones did. “New and improved” is a sure sign that there is either less in the package, a higher price, or the company has somehow saved itself some cost. How does a brighter color on the package translate to a better deal for the consumer?

Seeing is not Believing - Part 7

Pressure Sales

During the 1970s and 1980s, Time Share marketers perfected the “used car” selling technique known as pressure sales. This is a multi-step procedure involving getting you interested and involved in a product (in this case time share vacations) and selling it to you at an extremely high price. The sales person knows that it is unlikely that you will purchase the item at the price quoted, but they have a great offer for you, in fact a whole bunch of great offers.

Initially they sell you a one-week vacation, but once you turn it down they offer the right (at a nominal fee, which, once it is closely examined is not at all inexpensive) to shift your week to another week and even another location almost anywhere in the world. Even better, if you buy two weeks, and they do not have to be together, you get a substantial discount.

Once you show resistance to that, they bring out the big guns: if you sign up today, and today only, they will throw in a major discount. That might be a significant percentage off the price, a third week for free, or some such “sweetener.” Turn that offer down and the sales manager comes over with an even better offer. High pressure and even insults are used to persuade you to BUY NOW.

Recently that technique is being used for other products, especially home improvement items. At least one bathroom remodeling company offers to replace your existing shower with a state-of-the-art enclosure that does wonderful things and provides increased comfort, usage, and safety, for only… a price that far exceeds what you would expect to pay. Once you turn them down they sweeten the offer with free products, a reduced price, a quick installation, and other high-pressure tactics, but only if you make the purchase immediately.

Home alarm companies use the same technique. Their advertisements appear to offer a free or inexpensive home alarm system, but once you get to the contract you discover it only covers a few doors and perhaps no windows (substituting an interior motion sensor). Then they offer small add-ons at “low cost,” which, once added up, comes to a substantial selling price. But if you do not purchase it today you will not be able to get all of this at the same price tomorrow.

Television and radio sales use a similar technique. Purchase within the next ten minutes and you will get two for the price of one (although you may have to pay a high “shipping and handling” cost for the second item), or get other products as part of the promotion. But the offer is only good for the next ten minutes. Of course, twenty minutes later you hear the ad repeated, and tomorrow… and next week.

Automotive and computer products give you “limited time offers.” They may have reasonable sales in their advertising, but with a time limit. Next week you will find a new advertisement, a new time limit, and possibly a better deal. It is almost impossible to know when to buy as they confuse you with double-talk.

The best thing to do is to determine for yourself, without looking at the advertisements, whether you need a new or replacement item (or vacation home) and then do online consumer research. Find a reasonable price range for the product you want. Consider all options ahead of time. Then seek at least three companies that provide the product you want. Investigate and compare price, quality, installation or delivery time, and warranty (watch for the small print – many warranties are worthless). After each sales pitch make a comparison chart so you can easily see which company is offering closest to what you want at a price you are willing to pay. If the company offers you a buy-today-and-save option, show them the door.

Seeing is not Believing - Part 8

Are You Well Qualified?

We are used to hearing the term “…for well qualified buyers…” on auto advertisements, but recently this phrase has also been appearing in advertisements for homes, mortgages, furniture and appliance ads, and elsewhere. None of these ads, except occasionally in the tiniest of print that appears for a few seconds only, explains what makes someone qualified for the special treatment or low rates offered.

We checked hundreds of online ads to discover what some of these requirements are and discovered that none of the advertisements we saw explained this phrase on the advertisement page. You had to go as far as eight clicks below the ad to discover a definition, and not all of them even provided a definition. Most offer no explanation at all. Some examples:

> “Three important factors - adjusted capitalized cost, residual value and the money factor - determine the monthly rate of a lease.”
> “See your local [brand] automobile dealer for program details and offer. This is not an offer of direct financing.”
> “Financing is simple, quick and no-obligation.”
> “Dealers set actual vehicle sales prices. See participating dealers for details. For well qualified buyers. Not all buyers may qualify.”
> “If qualified, dealer retains all rebates and incentives.”
> “Upfront acquisition fee and capitalized cost reduction with no security deposit; total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like). Not all buyers may qualify.”
> “Not valid with current offer. Does not apply to prior or future purchases. Restrictions may apply. Void where prohibited.”
> “Incentives available to residents only.”

Generally, “well-qualified” can mean whatever the dealer, company, or salesperson wants it to mean as it is not a legal term, nor is it regulated by law. It may be based on a variety of factors including:
> Credit score
> Prior purchase from same store
> Prior ownership of same model
> Residency within a township or distance from store
> Trade-in
> Membership in an approved organization
> Limited time offer
> Availability of a limited stock item

It is recommended that, when you see an offer of special consideration for a “well-qualified buyer,” that you ask to see, in writing, the company’s policy regarding the advertisement. If they have no written policy, you should not trust the dealership or company and purchase the product elsewhere.

Seeing is not Believing - Part 9

Fewer calories? Greater Profit!

They contain only 100 calories per bag: potato chips, cookies, fruit drinks, flavored popcorn, and dozens of other products. Originally this marketing trend was advertised for kids’ lunch bags – give them the snacks they want, but control the amount of calories they get. Does it work? Not at all.

The products in the 100-calorie packages are the same items that are found in the larger bags. They contain the came number of calories per ounce (or serving), the same amount of fat, the same amount of salt. The only differences are that they are packaged in smaller bags and cost considerably more per ounce.

If, as they are presented, these products are only used as a child’s snack, then one can argue that there is merit in them (if money and health was not considered). Children, and adults, that are given a full-sized bag will eat as much as they can. If the bag is of limited size, they can only eat what is in that bag. Unless they feel unsatisfied and reach for a second, or third package.

They are the lazy mom’s solution. It is far less expensive, and far better for the child, to purchase a store-brand box of zip-seal bags (around three cents each and reusable) and select only the healthy snacks you really want your child to have: low calorie, low fat, low sodium. In addition, you can give them a greater variety, including different items every day.

According to netgrocer.com (http://netgrocer.com/), here are a few comparison prices:
Chips Ahoy! Candy Bites - 100 Calorie Packs: $2.29 a bag (.59 an ounce)
Chips Ahoy! Cookies - Candy Blasts – full size bag: $3.56 (.25 an ounce)
Less than half the price

Oreo Candy Bites - 100 Calorie Packs: $2.59 a bag (.55 an ounce)
Oreo Cookies - Reduced Fat Chocolate Sandwich: $4.04 (.22 an ounce)

Pop-Secret Microwave Popcorn - 100 Calorie Premium Butter: $6.39 (.64 an ounce)
Pop-Secret Microwave Popcorn - 94% Fat Free Butter: $3.85 (.42 an ounce)
ShopRite Microwave Popcorn - Light Original: $1.79 (.20 an ounce)

In every example above, and in every 100-calorie pack we cound find, even taking into account the extra cost of packaging and shipping, the promoted product was at least twice the cost, and twice the profit, of the regular sized bag.

Better yet, provide a healthy snack with no added sugar, salt, or other things the kids (and adults) don’t need: a banana, an apple, a peach, or a 1.5 ounce box or raisins (90 calories).

Green Savings at Home

Green Savings at Home

Politicians frequently come up with mixed ideas to save us money and energy: temporary elimination of gasoline taxes, billing the energy companies for part of their vast profits, crying for an increase in petroleum production, stating they are all for alternative fuels, and an assortment of others.

Rather then depend on the election-year promises and statements of politicians, usually empty with exaggerated outcomes, there are steps each of us can be taking to both save money on energy costs as well as reducing our dependence on resources that are in short supply.

Many corporations and organizations have created web sites dedicated to such efforts.

Energy Savers (http://www.energysavers.gov/). From the US Government. “On this U.S. Government Web site you can find information to help you save energy in your home, business, vehicle, or industrial plant. The links on Energy Savers take you directly to resources available across Federal agencies for homeowners, contractors and builders, building managers, realtors, state agencies, drivers and fleet managers, and industry managers.”

Energy Saving Ideas (http://www.hribar.com/energytips.htm). From Keller Williams Realty, Carlsbad, California. Surprisingly, this commercial site has a huge amount of great ideas for energy savings in the home, work, and on the road.

California Energy Commission’s Consumer Energy Center (http://www.consumerenergycenter.org/tips/index.html). “Energy Conservation and Energy Efficiency are two sides of the same coin. Most people think they mean the same thing, but they don't. Energy conservation means reducing the level of energy use by turning down a thermostat, or turning off a light, or turning up the temperature of your refrigerator. Energy efficiency means getting the same job done while using less energy. Efficiency is usually done by replacing an older, less efficient appliance with a new one. In this section, you'll find both energy conservation and efficiency tips for your home, office, school, car or truck, and other areas. You'll learn how to get your home ready for summer or winter. You'll learn how to be prepared in case the power goes out. And you'll learn some interesting facts about energy.“

99 Energywise Ideas For Saving Energy (http://www.pnm.com/customers/99_ways.htm). From PNM Resources, Albuquerque, N.M. “Insulating your house, putting in storm windows and installing weather stripping can go a long way toward making your home more energy-efficient. Weatherizing is like buttoning up your coat in the winter: It keeps the warm air in and the cold air out. Examine the following tips and see if they won't help make your home a cozier place.”

Powerful Money Saving Ideas (http://www.energyright.com/tips.htm). From the Tennessee Valley Authority. “Did you know that in most cases a family’s third largest energy expense is from heating water? So if you’re not heating your water the energy right way, you could be sending money down the drain.”

Reduce Your Energy Usage. Increase Your Savings (http://www.directenergy.com/EN/Alberta/MMC/Pages/CUS/EnergySavingIdeas.aspx). From Direct Energy Marketing Limited. “We’ve compiled this list of energy saving ideas to make your home and business more energy efficient and comfortable. Most of these ideas are easy to do and take only a few minutes to perform.”

46 Energy Saving Ideas (http://www.recordonline.com/apps/pbcs.dll/article?AID=/20060910/NEWS/60911008/-1/news33).
From our Hudson Valley, NY newspaper: the Times Herald Record.) “This home energy audit won’t replace having a professional energy auditor come to your home, but it will reduce your impact on global warming.”

Seeing is Not Believing - Part 10

"We Know What You Need"

Someone in your family probably has a cell phone that takes pictures, contains a GPS, provides Internet and e-mail access, records memos, provides a daily calendar, and dispenses dental floss. Next week they will discard that product when the manufacturer comes out with Model 16 that does all the above and contains a pop-out comb, toothbrush (with your choice of toothpaste), and nose hair clipper.

Around 19 years ago, we purchased a new washer and dryer with dozens of possible settings, temperature for wash and rinse, and a variety of drying options. Over the years knobs have fallen off or broken, yet it makes no difference: we only use two settings on the washer and one on the dryer. Now they have dryers that offer simulated dry-cleaning and washers that use “the power of oxygen” rather than detergent.

TV Cable companies (as well as satellite and the telephone companies’ recent entries into the field) also know what channels you want to watch, all 900 of them. Fighting consumer suggestions and complaints and using their lobbying power to keep Congress at bay, they have fought all attempts to give people the option to select and pay for only the channels they want. The TV providers claim they are only following regulations, so that smaller television stations, which have few followers, can survive. In actuality they are following profits, and everyone knows it. Most of these smaller broadcast companies will eventually move to the Internet anyway, where they will do just fine.

Commercial garbage haulers are the same. They offer one plan: once-a-week pickup of one container of trash, plus recycling, all for $30 or more a month. Fortunately, where we live, we have a trash transfer station where seniors can drop off their refuse at fifty cents a bag with no cost for recycling. It is now three years since we dropped our garbage hauler and we’ve saved over $1,100.

One industry that has not conformed to this all-inclusive party is the computer manufacturers. Even though Microsoft has attempted to force their products on to every PC, you still do best configuring your machine at the company web site, HP, Dell, Gateway, Mac, and others, just the way your family or business needs it. You can then purchase only the software that you wish to use.

Hospitals and doctors also follow the all-you-can use policy. In order to avoid potential lawsuits and cover their insurance company’s demands, they frequently order many lab tests that are not needed and avoid providing expensive ones that might save a life. Dentists demand a cleaning every 3 or 4 months now, and even veterinarians have gone to a one-size-fits-all, six-month pet checkup.

Consumers must not follow blindly. Be aware, ask questions, and demand alternatives. If a store, service company, or even your medical providers do not offer options or compromises, then go somewhere else. They treat us like this only because so many people let them.

Seeing is Not Believing - Part 11

Stay Tuned After the Commercial

Almost every night my family watches network news after supper while cleaning up from our meal. No matter which network we watch, they use the formula introduced in the 1920s to get you to come back for the next show, or in this case, to stay for the commercial. Instead of leaving us with the heroine tied to the railroad tracks, though, they promise an amazing story immediately “following this brief break.”

Of cause the whole idea is to get you to remain attentive during the commercial. Most people, I’d venture to say almost everyone, would like to mentally block out the latest automotive sale, the coming attractions to a sit-com we’d never watch, or whatever they are pushing. But we absolutely have to remain so that we “find out if tomorrow will be even hotter than today” (no it will not be) or to “discover which Hollywood star is expecting triplets” (someone we have never heard of and could not care about).

To make matters worse, after three minutes of news they take a “brief” 60-second break, come back with another 5-second teaser (thus the break is over) and have another 60 seconds of advertising. In addition, if the story is really something you’d like to hear about, they do not show it immediately, but tease for it several times before commercials before finally showing it.

Television dramas are picking up on this, showing as many commercials as they can in the most unexpected places. At the end of an hour show (40 minutes if you subtract the commercials), you know it’s over, only the punch line is missing. “We’ll be right back.” This is part of USA Network's standard formula. After that final commercial, some shows are then showing a split screen with another commercial and a fifteen-minute concluding scene that is usually anticlimactic anyway.

Product placement in a movie or show used to be subtle, now it’s blatant. You know what soda or beer they are drinking, what brand cereal they are having, and the model of the chase car is clearly in focus. Look around the room and there will be perhaps a dozen brand products showing. On street scenes there are commercial billboards or buses with advertising passing by.

We have been told that it costs a considerable amount of money to produce these shows and if it were not for the commercials we would have pay-TV. Even on the “premium” cable channels that you do pay extra for there are commercials for other shows as well as an increasing amount of product placement.

Perhaps it’s time to reduce the number of channels from the over 300 now available (900 if you consider each has a Spanish, and a high definition version), to less than 50 to reduce costs. Of the 300 or so channels, perhaps you watch 10 or 12 on a regular basis and most likely no more than 25 or 30 total. If you are reading this it’s unlikely you’re the type to watch Celebrity Bowling Ball Painting or Dancing With the Inmates.

A Tale of Two Attitudes

A Tale of Two Attitudes

In the world of commerce, there are two conflicting truisms: “Buyer Beware,” and “The Customer is Always Right.” It is rare that either of them is completely accurate in any given situation. On the other hand, it is true that “You catch more flies with honey than with vinegar.”

When it comes to customer satisfaction, some stores and many salespeople do not wish to put customers first. Although I try not to mention specific company names in this blog, several must be mentioned today. These stories relate to Sears, ShopRite, The Tractor Supply Company and two clothing chains.

Our local ShopRite (a North-East food supermarket) has many super-sized stores that carry just about everything. The one nearest to us, though, is more than 40-years old and, by today’s standards, antiquated. There is another Shoprite 10 miles away, twice the size, yet I avoid it when possible. The small store may not have everything in the newspaper ad, but it more than makes up for it by having courteous concerned people working there.

On three occasions during the last month the store did not have an advertised product in stock – in fact they probably never had and never would. Each time, as soon as I showed the ad at the “Courtesy Counter” The phone was picked up, the floor person called, the product was found or something was substituted. (With personal thanks to the many who work there, whose efforts make this small store seem like the best place to shop.)

On the other hand…. One of these stores is a clothing shop. Two years ago, a customer on crutches and starting to feel pain asked a clerk for a chair. She was told they do not provide chairs. When told there were four by the front registers the response was, “So, go there and use one.” Eventually the manager was called and she stated, “We have a wheelchair by the front door, you should have taken that if you felt you were not going to be able to walk around.” No customer satisfaction. No respect.

Sears’ Craftsman promises a lifetime guarantee on their non-power tools. I purchased a hoe there more than 20 years ago and, as the blade bent, got another in exchange with no questions asked. Six years ago I bought their most expensive leaf rake and exchanged it four years later when seven tines snapped off. Now I want to exchange it again as this one did not hold up too well, but the company has discontinued the model and the nearest to it is of lesser quality.

After more than a year of trying to get this product at the three Sears near us, I finally called their home office. Eventually I was put in touch with someone who could assist me, grudgingly and after a half-dozen excuses. Two weeks later Federal Expresses dropped off a heavy duty dirt rake, exactly like one I already had. With no leaf rake in sight, I went out and bought another, from a different store.

One other clothing store…. Towel sets were advertised on a half-price sale. At the store there were only a few left and nothing matching. I asked the salesclerk for assistance and she seemed bewildered. The department manager told me that this was an in-store special only (although it was advertised on TV and in newspaper ads across the country) and not available online, yet they had none in stock and the store did not give out rain checks (which violates New York State law). I really wanted those towels so I asked for the store manager.

The woman who approached me seemed friendly, but when I asked for a rain check and was refused, then explained that it was state law, she walked away from me. I asked for her name so I could complain to the company and the Attorney General’s office, and she started screaming, went into the stock room, and got two young men, considerably larger than me, and told them to throw me out. After she walked away, the larger of the storage clerks asked me what the problem was, offered to call me if the towels came in on that afternoon’s truck, and gave me the manager’s name. While the company did respond positively to my e-mail and telephone calls, that lady was never reprimanded.

Now for The Tractor Supply Store. I used to laugh at their commercials, but when one opened near me a few years ago I had to go in to see what it was all about. I am now a confirmed shopper there for four reasons: they always have what they advertise, their prices are reasonable, their quality is high, and everyone in the store puts the customers first. Whether it is a company-wide policy, or just that the manager in that store sets such a wonderful example, I’m not sure, but they have my vote for what a company needs to do to retain customers.

Seeing is Not Believing - Part 12

Seeing is Not Believing - Part 12:
Winning and Losing with Discount Coupons

Most people use coupons when they shop. They appear to save us money, especially since many stores double them. But in reality, they are simply another form of advertising and generate additional profits for both the manufacturers and the stores.

There are two common types of sales coupons: those from the manufacturers on specific products and those from stores. Both serve the same purposes – to get you in so you will shop, and to get you to buy a product you may not otherwise purchase. In some cases the items are new, and providing a discount coupon is a major sales technique to win your loyalty to the product. Manufacturers believe, and they are frequently correct, that once an item is tried many shoppers come back to it.

Over the years, stores have tried to attract customer loyalty by placing their own coupons in advertisements – you only get the discount on the product at that specific store. Of couse the manufacturer gains as well, and has probably reduced the wholesale price to that store during the sales period. One advantage to the store is that they do not double their own coupons. A 75 cent off manufacturer’s coupon may cost the store $1.50 if they double, but their own coupon for the same amount would cost them half that amount.

Stores usually limit the doubling to coupons under a dollar. Thus a 75-cent coupon is worth $1.50 to the consumer, but a $1.00 is only worth face value. This explains why manufacturers have so many $1 coupons. BUT – to use them you need to buy multiples of the product. Thus you see $1 off two or three items, which forces you to buy more than you might need or reasonably use. You may be tempted to pass the item by, but the name remains in your mind through this subtle advertising technique.

Recently one cat food manufacturer has been offering a dollar off if you purchase 24 cans at one time – thus less than three cents per item – and each can sells for over 60 cents. Thus to get your dollar back you have to spend at least $14.

So how can a consumer win at this game? Selectively use coupons only for items you would otherwise purchase. I happen to use the brand of cat food mentioned above, and wait for it to go on sale, usually around once a month. I currently have around 60 discount coupons for items I generally use anyway and compare them to what is on sale, using a coupon only if it is to my advantage to do so.

One of my favorite grocery stores offers coupons that seem to provide significant discounts. They may be for $1 off any frozen food item in the store or 25 cents for a loaf of bread. The catch is that you have to spend $15 (not including the coupon items) to qualify. Since I make a shopping list and rarely vary from it, there are times I pass on such items.

One way you can take advantage of such promotions is to have a separate list of items you know you’ll need sometime within the next few weeks that do not normally go on sale: garbage or storage bags, detergent, spices, tea… If you need a few dollars more to make the spending requirement, purchase one or more of these items.

Used properly, couponing can save you several hundred dollars a year as well as give you the opportunity to try items you might not normally purchase. Just remember that neither the manufacturer nor the store is losing money on them, and they are gaining a customer.

Seeing is Not Believing - Part 13

Seeing is Not Believing - Part 13:
The Gifts That Keep Taking

Here comes Christmas, a birthday, any event that calls for the giving of a gift. Everyone’s interests are so diverse that you might not even know what your spouse, neighbor, or third cousin wants. So you solve the problem by purchasing a gift card.

Just about every store now has them: grocery, clothing, beauty parlors, tool shops, and phone companies. Most people think that giving a gift card solves many problems, but actually it can create even more.

Most gift cards come with a time limit – use them within a certain number of months or the store starts deducting a percentage or cash amount each month for “maintenance.” Some of them expire completely on a set date. Thus if the person receiving the $100 card does not use it by the set time, you may be only giving $85 or $60, or nothing at all.

Stores like gift cards. Not only are they inexpensive to produce, it ensures that someone will be coming in to make a purchase. Frequently the item bought exceeds the value of the card generating additional profit for the store. This is one reason many stores now give such cards rather than cash when you get a refund – it ensures that you must come back, and you will probably purchase more than the value of the card.

Consumer Reports cautions against the use of gift cards: “Earlier this year, TowerGroup, a research firm in Needham, Mass., estimated the value of unused gift cards in the U.S. at $8 billion for 2006. And in its fiscal 2006 annual report, the retailer Best Buy revealed a $43 million gain from gift cards that were unlikely to be used.” Recently their parent company filed a report with the FTC about people losing the value of the cards when a store closes or files for bankruptcy. (Also see “$8 Billion in Gift Cards Went Unredeemed Last Year”.)

The FTC has been active, warning people that gift cards are not always the best way to go. “But before you buy a sack-full of gift cards from your favorite retailer, restaurant, or local financial institution, the Federal Trade Commission (FTC) wants you to know that some strings may be attached.” Among the problems reported are identity theft, loss of funds, counterfeit or fraudulent cards, and hidden fees.

With a growing number of scams revolving around gift cards, even those you buy in your favorite store might be tampered with prior to purchase. Think twice before purchasing one.

Additional resources:
New Gift Card Scams
Beware New Gift Card Scam
What is a Gift Card Scam?
Gift Card Fraud
Buyer Beware: Gift Card Scam Alert

Coming on April; 15: Seeing is Not Believing - Part 13

Seeing is Not Believing - Part 13:
The No-Price Policy

Get the person to want the product badly enough and they may not argue about the price.

The Obvious Legal Statement.

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