Folklore Thursday

Online shopper

Someone's about to give her credit card number to Overtsock.com

You know what’s special about today? Nothing. Just like there’s nothing special about the Monday after Thanksgiving (MAT), either.

Think about this for a second, thinking being something still encouraged here at Control Your Cash if not in most other places. Cyber Monday doesn’t exist. Well, it exists as a concept, but cash registers don’t ring any more loudly on MAT than on any other day of the year. One noteworthy thing about this particular urban legend is that we can pinpoint its origin.

Even on the surface, “Cyber Monday” makes no sense. Why would people go out of their way to shop on what is, occupationally, one of the worst days of the year for doing so? Employees return to work on MAT after the only guaranteed 4-day layoff of the year. Workloads are particularly heavy that day. MAT’s the one day on which it should be especially difficult to slack off and spend one’s time shopping online.

The beauty of shopping online is its convenience, right? After hours, at home, in your underwear or less, sitting on the couch, one foot on the coffee table and the other in a bowl of Doritos.* Why would you buy online on MAT when there are dozens more convenient days to do so?

Here’s the story that started this nonsense, courtesy of CNN.

(That’s the same esteemed news organization that brought you, among other pieces of easily disprovable tripe, “Cloned baby born”. Video, audio, pictures, or even second-hand accounts of the birth forthcoming. Just not in the first 8 years and counting.)

(Isn’t it amazing how little time it can take for a headline to look ridiculously dated? Five years, in this case. “After Black Friday comes Cyber Monday”. Too bad CNN wasn’t there to write “Electronic Mail to Supplant Post Cards As Popular Means Of Communicating”. Then again, maybe they did. We’ll check the archives.)

Check out the details of the “Cyber Monday” story. It says “77% of online retailers said their sales increased substantially last year on the Monday after Thanksgiving.”

You need to read everything with a critical eye. Except for our blog posts, they’re the unshellacked truth. Why? Because no one ever quantifies anything.

“Sales increased”. Over what? The day before? The hour before? The previous Monday? The story doesn’t state any origin from which sales increased, so we have to guess. In journalism school, this is called omitting crucial details, and it’s a senior-level course. There are two reasons for a journalist to omit crucial details. The less common one is to advance an agenda: the more common one is because the idiot writing the piece is too stupid to recognize a crucial detail.

On average, MAT occurs on the 332nd day of the year. Presumably, for the 77% of companies who gave an answer that the poll questioners were looking for, they’d sell more merchandise over 332 days than they would over 331. Not only is this so obvious that it hardly counts as an observation, but the qualifier “substantially” in the original story is up to the discretion of the questionee, not the questioner.

So, no Cyber Monday doesn’t exist. Shop online next Monday, but don’t think you’re getting any better or worse deals than you’d get on August 16 or March 3.

*Writer’s conception. Our house is not like this.

**This post is featured in the Carnival of Personal Finance #284:Thanksgiving Preparation Edition**

It’s Only a Money-Back Guarantee If You Ask For It

Growling wolf

You want that in 20s or 100s?

Here’s how to get $495 for a couple minutes work, depending on how you calculate time.

We recently attended a $475 conference for authors, a four-day event that’s supposed to help you sell books. (We’d love to give details, but shouldn’t.) The conference consisted of little but obvious advice, something we loathe here at Control Your Cash and that you should too.

It was a seemingly endless panel of incestuous salespeople in complementary fields. The ringmaster, an energetic little man who writes books about how to market and promote books, followed his introductory comments by welcoming the man whose vanity press he publishes on. After 90 minutes of him, we were treated to a “best-selling author” whom that publisher signed, and whose one book hasn’t even been released yet (but if her promotional materials were any indication, it’ll be fecal.)

Fleshing out the program, a book editor who just so happens to work with the publisher. Then someone who designs book covers for you’ll never guess who. And about 6 more, including a guy who styles himself as and went to the trouble of trademarking the slogan “America’s Hottest Young Speaker!” (with exclamation point.)

The editor, for instance, was offering her services at a very special price for conference attendees, normally $1997 but for you, now, today, right here, only $1497. Do you like saving $500? Etc. Laughably brazen sales techniques must still get results today, in our Decade of Irony, or these conferences and their merchants wouldn’t exist.

Whatever we were hoping to get out of the conference, this wasn’t it. Plus the clientele were depressing: so earnest, and so over their heads. The vanity publisher’s PowerPoint presentation contained rich nuggets like “Use every method at your disposal to promote your book.” Everyone in the audience would diligently write that down, perhaps for fear of forgetting the nugget and relying on memory to recreate it later. (“Wait. Was it some or many methods I’m supposed to use? Or all? Maybe it’s none. Why didn’t I pay more attention?”) We talked to one 30ish Canadian* attendee who’d been “working on a non-fiction book for, oh, aboot 7 years now, eh?” Only he wasn’t Thomas Aquinas, and his book wasn’t the Summa Theologica. Still, it didn’t stop our ambitious new acquaintance from passing out business cards with “AUTHOR” on it in a far bigger font than the one his own name was in.

Dolorous, 60ish ladies ready to write their memoirs. Twitchy, malodorous people of indeterminate sex. Self-consciously wacky cats who accessorize their suit jackets with sweat pants and sandals, presumably to be the one freak noticed by the agent whose boss ordered him to give someone, anyone, a six-digit advance this weekend and this weekend only.

Yet with sufficient coaxing and yelling from the conference’s speakers, the undead attendees rose in enthusiasm. Which lasted and lasted. The conference did teach a lesson in human behavior: we now know how Tony Robbins achieved power. We also know how Benito Mussolini did.

With a book in print, another under construction and something of a reader base, we were parsecs beyond the other conventioneers. We didn’t need to learn how to write a proposal (excuse us, “How To Write a Game-Changing Proposal To Put You On Top Of The Amazon Charts To Stay!!!!!!”). Nor did we need to learn Choosing A Million-Dollar Title, The Secret To Getting 5 Million Radio Listeners Talking About Your Book, nor The Six Indisputable Truths Of Book Publishing That Those Crooks At Random House And HarperCollins Would Rather Die Than Tell You About.

The weekend’s final speaker was the outlier: a legitimate agent from a real New York agency, one that’s actually sold books from talented and successful authors whom you’ve heard of. That agent’s talk was fast, inspiring, and informative, but not worth $475. (Aside: he thought our book’s cover is “crap”, and gave 13 reasons why; mostly to do with font choice, clip art and the blue bars on the top and bottom. It’s tough to be objective, especially while deferring to his informed opinion, but ours remains the best cover anyone saw all weekend.)

The conference came with a 100% Money Back Guarantee, capitalized prominently on its website and mentioned in the diminutive boss’ opening comments. This is the kind of offer that consumers consider a pleasantry, rather than an actual condition of business, but it does mean something. The founder (we’ve gone this far without giving him a pseudonym, but let’s call him “Ron”) specified that if you talked to him at the end of the conference, and hadn’t received your money’s worth, he’d refund it.

As you can imagine, once the conference concluded it wasn’t easy to get Ron alone. Each of the 299 other attendees wanted to shake his hand and pose for pictures, including one who asked Greg to hold the camera. Boom.

After shooting he handed it back to her, then asked Ron for a few words. Greg was displaying our copy of Ron’s most popular how-to manual, letting him know that he at least got $20 out of us. Greg even donned the ridiculous name tag that came with the conference registration packet.

“Hi. I don’t believe I got my money’s worth.”

Worst case scenario? Ron refuses to refund the fee, we dispute it with American Express, avail them of the money-back guarantee on his website, and all should be well.

Had a full argument ready to go, too. It went like this: “Before the final speaker hit the stage, I didn’t learn anything that I didn’t already pay for (pointing to Ron’s book.) Look, I get what you’re doing here, and you probably make a lot of money at it. But this…really wasn’t for me. I already have this book (points to a copy of Control Your Cash), and…” All this stayed unuttered, because Ron reached deep inside himself and found that extra gear that only the best salesmen possess.

Steer the conversation to a part of the ballroom where we can have something approaching privacy? No way. Instead, let’s have as many eavesdroppers as possible. The other attendees will be incredulous and shame you into withdrawing the refund request.

“I’ll give you your money back, but you’re telling me you didn’t get FIVE THOUSAND dollars worth of value out of this conference, let alone 500? (to an adjacent guest speaker) Hey Brent! (back to Greg) Do you know Brent?”
“Not personally, no.”
“Brent, this guy says he didn’t get $500 worth, can you believe that?”

Brent contributed an angry look and a few questions that he thought were rhetorical. Yes, we did attend the conference and no, we didn’t get our money’s worth.

At this point Greg thought, “Do other people really fold at this point? Is this what Ron’s hoping for?” It seemed that it’d be more embarrassing to backpedal.

Of course, along with Ron’s book and ours, we brought our receipt.

Ron opened his checkbook, filled in the amount and the payee, and briefly saved his signature for a final flourish. He then raised his voice a little and said, “Here. Now, I’m going to sleep well tonight.
(dramatic pause)
I hope you can.”

Greg thanked him for being a man of his word. Ron neither responded nor made eye contact.

Stand your ground, especially when it’s expensive not to. If you’re entitled to something, take it. If the house you’re about to close on has a cracked slab and an uneven garage door that somehow escaped inspection, insist the seller fix them before you hand over a check. Don’t just live with it. From the viewpoint of a semi-established author, nothing in that conference began to cover its price. For a would-be author, awash in naivete and convinced of his own incipient brilliance, it’d be easy to justify the price (along with the expense of coming to Las Vegas to spend it.)

Halfway home, it turned out Ron wrote the check for $20 too much. And though we’d paid for the conference with a co-branded Hilton HHonors card, because Ron refunded the money with a check, we got free points to redeem for part of a hotel stay.

*slow

**We’re a top pick in The Best of Money Carnival Magical Penny Edition**

Invest in Sylver or Platynum before Zync.

Ysn't thys clever? Yt's a good thyng our comedyc ynstynct ys so childysh.

We’re still having this discussion?

Listen, the credit card companies don’t owe you a thing. You owe them. That’s how you got stuck in this mess, remember?

You applied for a card. You signed an agreement. No one “preyed” on you. Coyotes prey on ground squirrels. But the ground squirrels never initiated proceedings with the coyotes.

If a credit card company promised you a 7% interest rate, then started charging interest on your balance at 15%, then you can consider yourself preyed upon. Even though you’re idiotic for carrying a balance in the first place. One problem: no issuer has ever arbitrarily raised rates without notice. They’re not going to blatantly lie and run the risk of losing customers.

But they lost me, you say. I refuse to pay their confiscatory interest rates. I’ll never get out of this mountain of debt. Even the White House and Congress want to keep them in check, so clearly the issuers are doing something nefarious.

Then where’s the court willing to hear the inevitable class action suit filed on behalf of millions of defrauded cardholders? Fine, if you’ve got conclusive proof that a credit card issuer dishonored the terms of its agreement with you, let us know about it at info at control your cash dot com. Include a copy of the agreement.

Neither American Express nor Visa nor MasterCard nor Discover has ever held a cardholder at knifepoint and said, “Buy stuff, preferably more than you can afford.” Diners Club and Carte Blanche, we can’t vouch for. Ask your great-grandfather.

Governments routinely change the rules in the middle of the game, but do you seek redress for that? Your elected representatives and executive branch raise tax rates, and your only recourse is to emigrate. Which is somewhat less practical than cancelling a credit card.

In Control Your Cash: Making Money Make Sense, we endorse Discover and American Express Blue Cash as the only credit cards you should look at (and even then, pick only one of them.) Sure enough, the moment we sent the manuscript to the publisher, American Express unveiled a new card: Zync.

It’s got a contemporarily misspelled word and it starts with a Z…the young folks will love it! Zync is intended for people in their 20s and 30s, as evidenced by the patronizing marketing campaign. (Hey, that’s Control Your Cash’s demographic! Only we try to talk to you like adults.)

Anyhow, here’s how Zync works. You pay $25 annually, which immediately sounds like a bad idea, but keep reading. You have to pay the card balance every month. (Until the ‘90s, this was how every American Express card worked. The company made a lot of money on annual fees, and even more on services available only to cardmembers. Convince people that they’re special and you can rifle through their pockets indefinitely.)

On top of the $25, you can pay an extra $20 for what American Express calls a “pack”. “Packs”, just like the way they expand the video games.

Anyhow, packs: (This feels like explaining Twitter to my grandmother.) The Go Pack, the Social Pack, the Connect Pack, the Eco Pack. That pretentious-sounding last one waives the $20 fee, because encouraging something as noble as global-mindedness should never come with a price tag.

The Go Pack earns you double rewards on airfare, an annual $50 credit if you book a vacation via American Express (don’t, Orbitz is free), 20% off Hertz car rentals, and 25% off Avis and Budget. (We’d love to know which Hertz employee stood firm on that 20%. Don’t kid yourself: they really are #1.)

Then there’s the Social Pack (social, like networking! This isn’t your grandfather’s credit card.) Double rewards at restaurants and shows, and first crack at seats for the latter.

Followed by the Connect Pack. Double points on your cell phone, cable and internet service; and you get 1/3 more points on cell phones at MembershipRewards.com.

For the insufferable among you, and those who just happen to prefer the illusory to the tangible, get the Eco Pack and American Express will buy $1 of carbon offsets. Amass enough of them, and you too can get a Sri Lankan farmer to metaphorically dig himself an early grave by continuing to plow his yam fields with oxen and a hand tiller instead of saving up for a tractor. As if that’s not enough, you’ll earn double reward points on any item deemed sufficiently holy by American Express’ green-rating service. This includes Chevy Volts, Olive Green loofah dog toys, Aleutia solar-powered desktop computers (we’d never heard of them either), and other stuff we wouldn’t be caught dead buying.

You know what were the first companies to offer reward points for buying more of their product than was good for you? Cigarette manufacturers, and not by coincidence.

American Express gives you “one point for virtually every dollar you spend.” So charge $432,000 to your Zync card, and you can earn a 17” MacBook Pro with a 2.8GHz Intel Core Duo processor, which is a wonderful computer that retails for about $2000. Of course, this assumes you haven’t redeemed any of your reward points for anything else in the time it takes you to spend that much.

Don’t be confused by the hijacking of a word. A “reward” is what you get for lassoing the horse thief to the cactus and holding him there for the sheriff. Credit card “rewards” are really incentives. They’re encouraging you to buy a particular product or service that you wouldn’t have otherwise.

You don’t want that. You want cash. (You really want gold or real estate, but credit card companies don’t offer those.)

So does Zync make sense? Only if you’re in that small group of people who know you’re going to rent $225 worth of car from Hertz this year (or $180 from Avis or Budget.) American Express’ own Blue Cash is a better deal. Blue Cash is not only free, it refunds you $1 for every $200 you purchase. Once you buy $6500 worth of stuff with it every year, they’ll refund $1 for every $80 you spend. You’d have to spend “only” $163,900 to earn that MacBook Pro. Which you should buy on eBay anyway. To paraphrase AC/DC, sink the Zync.

Fortunately, we don’t have to change one word of credit card advice in Control Your Cash: Making Money Make Sense. (And while you’re here, scroll up and to the right and buy a copy or two of our still up-to-the-minute book.)