Tag Shopping Networks

And If You Order Now…Part 2

Michael Leave a comment

Some time ago we supposed, “We believe that with two you have a spare.  With three you have a collection.” (See ‘With Three You Get Collections,’ Jan. 9, 2012). Hold that thought.

When we last left our heroes, we were wondering how America has managed to create so many different ways of separating one from one’s money without leaving the house. And wondering beyond that if the trend might ever reverse.

We think we have some other trends that have to reverse first. Some time ago, He of We was at a financial seminar where the focus was keeping one’s money. One of the exercises the 30 or so attendees took part in was a card count. Not as in blackjack. As in credit cards. Not debit cards. Not insurance cards. Credit cards. With those 30 or so attendees there were 187 credit cards also in attendance. That’s at least 6 per individual. That’s a collection. If you add in the debit cards there were 245 cards hanging around in purses and wallets. If you run the math you’ll see that is more than one debit card per person. That might be a spare. The whole kit and caboodle is definitely a collection.

Let’s go back to January of 2012. We also said that collections are not rational and just a little obsessive. You might say that makes sense if we are speaking of coins or art or other objects of value and beauty. But credit cards? Yep, even them. Having six credit cards is not rational and a bit obsessive.   It is also empowers the marketers to continue selling to those who haven’t left the house.

The only way on-line shops, infomercials, magazine inserts, and television shopping networks work are if they accept something other than money. The ready availability of credit and debit cards is their ticket to your bank account. According to the Federal Reserve, credit card balances now total nearly $857 billion. With an average of just about 13% interest on that balance, Americans are paying just about $110 billion a year in credit card interest. And since we all seem to have a collection of them, once one is maxed out we can move on to another and never miss the opportunity to buy that $400 purse.

So there we go again with the purse. Is it so terrible that someone sells and someone else buys a $400 purse? No, it’s not. We’d just prefer to see that if someone is going to buy it for $400 that someone has to reach into her, or his wallet and pull out four $100 bills to pay for it. Then it will mean something. But that’s a different post for a different day.

If you too are concerned about the rollercoaster of remote shopping you too can do something about it. Break up your collection and get back to using money. If Capt. Kirk was able to figure out how to do it, you can too.

Now, that’s what we think. Really. How ‘bout you?

 

And If You Order Now…Part 1

Michael Leave a comment

A local television station recently reported on new shopping sites that lower your costs. Television shopping channels are comparing their prices to those in brick and mortar retail outlets. Infomercials are offering “free” or dramatically reduced trial periods. What do these all have in common? Boy are they expensive!

Selling products remotely is nothing new. You can go back to the sixties and find record clubs that offered 10 albums for a penny. Selling music on TV was a staple then. And the penny sale was the hook they all baited to get you into a long-term arrangement. Get your 10 albums now and agree to buy a certain quantity over time. Don’t like that idea? How about get your 10 albums now and never have to buy another one ever, period. But you would get an album or two every month “on approval.” If you wanted it, you kept it and sent them money. If you didn’t want it, you sent it back by a certain date.

While the record clubs were fine-tuning their pitches, home shopping was starting to take off. The earliest versions were the televised equivalents of the print ads found in the Sunday supplements of every major American newspaper. No longer were you limited to a picture and your imagination about how something worked. Now you could see it in action on your TV screen. The prices were reasonable even though shipping was extra, and you could always count on some special bonus if you ordered a certain dollar amount, usually a “surprise package.” Woohoo.

But the real money was still around the corner. The televised department store. Entire networks were set up to do nothing but sell. All of them had some catchy 3 letter name so they sounded like real television networks. And they all started out as economical alternatives to going to the mall. It’s two in the morning and you’re bored. Let’s go shopping! It won’t cost any more than going out and you don’t have to get out of your jammies to do it.

And here we are today. Television shopping networks, infomercials, print ads, and on-line stores. Somewhere we’ve lost the record clubs but we have Hulu+ instead. No longer are they content with competing with the brick and mortar outlets, they want to be better. Now there are high end fashion sites with real couture. Accessories from shoes to bags to scarves to belts. Jewelry from costume (a few pieces here and there), to this week’s favorite gemstone. We’ve seen purses over $400, rings in four figures, and a dress suited for a red carpet. Don’t worry about the price. There are payments available. Without interest. Is a one-time “Holy Cow” hit to your debit card out of the question? Just make 4 easy payments of “oh-my-gosh” instead and it’s yours.

Do we begrudge those businesses making money. Of course not. Do we begrudge those who buy a purse for more than their weekly salary to carry around in it? Absolutely not. Do we think things are getting out of control? For sure!

In the original Star Trek movie, when they return to the 1940’s Capt. Kirk says to Mr. Spock, “They are still using money.” We’re pretty certain that’s a statement that we never want to make. How do we stop this roller coaster? Part 2 is coming.

Now, that’s what we think. Really. How ‘bout you?