Some Random Thoughts After A Trip To The Mall…
Photo by Paul Keleher
A few years ago, whenever I needed to pick up clothes and other general items, I would invariably find myself at my local shopping mall. Of course, the internet has now all but taken over that role, and so I rarely find a need to drive out to the mall. Today, however, was an exception, as I found myself at the mall due to a last minute need by a family member.
It was interesting to spend some time in there. Just some quick thoughts I had on the way back from the mall:
- Holiday shopping is an overwhelming experience. First, there were just a ton of people at the mall — both in terms of the number of cars in the parking lot, but also in terms of the number of people inside. Once you get past issue of crowds, you have to combat the marketing campaigns all over the mall that are trying to induce you to spending more money. The holiday season must be when stores are at their best when it comes to wielding the power of marketing, advertising, and social pressures — you really need to mentally prepare yourself for the overload of a trip to the mall.
- Everybody seems to be having a sale - Seems the trend from Black Friday continues — retailes are taking deep price cuts to try to drive up sales.
- Aggressive sales people – Maybe I’ve just been away from mall shopping for too long, but I was surprised the extent to which some employees were aggressively seeking sales. Some were more chatty than usual, others were aggressively giving “sales pitches”, some continuously checked if you needed help, and some offered large amounts of unsolicited advice. I found this all to be tremendously annoying, but I suppose that it is just part of the reality for small business owners during these though economic times.
- Horton at Macy’s — Horton was everywhere. By “Horton” I mean the Horton Plush Toy from the Dr. Suess book “Horton Hears a Who”, and by “everywhere” I mean the Macy’s in my mall. They literally had flooded their store with Horton Plush Toys — you can see one here – which could be found behind every counter (whether it be the cosmetics department or the children’s department), next to the exits, along the escalator, on wall shelves, and more. There were so many of them that I started to wonder how they got there — it looked like you could have filled a truck with the number of Horton plush toys this Macy’s had. It must be a huge marketing campaign. That being said, at $15, they were not a bad deal.
- Stores going out of business – As opposed to Horton, this is not nearly as happy an observation — I was saddened by the number of stores that were going out of business in my mall. It was just a tad depressing walking along the store fronts; most of the handful of stores going out of business were independent “mom and pop” type places, many of which had been in this mall for quite some time. Certainly a sign of bad economic times. It is hard to imagine what the mall is going to look like mid-way in to 2009 if this continues; will we lose any major anchor tenants?
- Something nice about the holiday experience in the mall – Yes, this seems to contradict number 1, but hear me out. While it is true that there are lots of people, cars, aggressive marketing, and more, all told, the mall during the holidays seems to be a happy place. All of the holiday decorations, seasonal music, Santa’s workshops, and more, work to create a very festive and jolly atmosphere. Of course, the cynic in me rightly points out that is surely all a ploy to get shoppers to spend more money in the name of the “holiday spirit,” but it does do a good job of setting the mood. Furthermore, given the emphasis on gift giving during the holiday, there is something nice and appropriate about shopping for gifts amongst other people who are doing the same thing — it fosters a sense of holiday community that I think you just don’t get when you buy everything on the internet.
Is there an ethics of frugality?
Photo by Jorge-11Is there such a thing as going too far in pursuit of frugality? I have been thinking about this some ever since the Consumerist ran an entry where readers shared stories of trying to save money by threatening to cancel service.
The idea is simple — if you do not like what you are paying for something (in this case, Comcast cable service), call them up and tell them that you want to cancel your service. They’ll transfer you to a retention department that will presumably offer you some sort of promotional deal to stay with the service. The Consumerist piece provides several reader anecdotes:
JohnDeere: “i did the same with direct tv. first time a week before my contract expired, they gave me all the movie channels free for 6 months and no new contract. after that first week i called to cancel anyway they cut $20 off my bill and gave me a big credit to last till next year still with no contract. i got it all in writing.”
jojo319: “The key is to ALWAYS set the cancellation a few days out. That way if they call your bluff, you can call back and “change your mind” before they actually shut you off. Works like a charm.”
gawngi: “I called them up and told them I was being let go from my job (believable in the economy). I now pay $42 less a month for 1 year.”
In these cases, the readers were able to get their bill lowered simply by threatening to cancel. Comcast’s behavior makes sense, as in all likelihood they would rather have you at a discounted price than not have you at all.
But is misrepresenting yourself going too far?
If you really want to cancel…
To start with, I think it is pretty safe to say that if you really intend to cancel or are really unhappy, that there is absolutely nothing wrong with this tactic. When you call up your service provider, you let them know that you intend to cancel for some reason, and in return they might give you an offer to stay with them. If it is an offer that you like, then perhaps you’ll stay with them, and if it is an offer that you don’t like, you’re free to cancel and move on elsewhere.
Tip: If you really are thinking about canceling, when you call in you should provide your reason upfront. So instead of saying “I would like to cancel my service,” try saying “I just can’t justify the monthly rate to myself anymore, so I think I am going to have to cancel.” Doing this gives the service provider an easier chance of doing something to address your concern that might keep you as a customer.
But if you don’t really want to cancel…
But if you really don’t want to cancel, is it wrong to nevertheless call in and threaten to cancel?
I think many — including The Consumerist crowd — would probably say that there is absolutely nothing wrong with this tactic even though you are misrepresenting yourself. No one is forcing either party to do anything, no one is violating any agreements — you are free to threaten to cancel, and your service provider is free to offer whatever response they see fit. Are you bluffing? Are they bluffing? It is very much a game theory problem, with deception just part of the game. If you can save money on your monthly bills, why not?
Doesn’t feel “right” to me
While I appreciate the argument, it doesn’t sit well with me. I am (obviously) fully in favor or trying to save money wherever possible, but I don’t feel comfortable doing it via misrepresentation. Pursue loopholes and chase deals, in my opinion, but do it fairly within the rules. This may sound silly, but if I threatened to cancel without meaning it, I feel like I would be elevating money above some other very important human values.
It also seems somewhat disrespectful to your service provider; this is probably a bit naive, but I would like to think that I do not have an antagonistic back-and-forth relationship with all of my service providers. Having spent years with my cell phone provider, even if I am just one of their millions of customers, I would like to think that there is a certain level of respect that should go back and forth, and threatening to cancel seems to fly in the face of that.
I guess my feeling can be best illustrated by an example. To me, “My neighbor is getting so-and-so a deal from you all; is there anyway I could get a similar deal even though I am an existing customer” is a far different situation than “I am unhappy with my service right now, and I would like to cancel it.” The first one presents an honest situation, while the second is purely business.
Selfish Reasons
Setting aside the more “ethical” side to this, there are some more selfish reasons to avoid this tactic:
- “Boy Who Cried Wolf, Part 1″ – If you become a habitual user of the “cancel tactic,” don’t expect much sympathy from your service provider when you really need it. In all likelihood, the retention department is going to know how often they’ve given you a deal in the past, and that will factor in to future offers.
- “Boy Who Cried Wolf, Part 2″ – If too many people use this tactic, the tactic might just go away. That may seem unlikely, since, again, the company might be better off with you at a discount than to not have you at all, but it may not be as outlandish as it seems.
- “Boy Who Cried Wolf, Part 3″ – If you yell “fire” in a crowded field, do not be surprised if one time they actually spray you with the fire hose. The Consumerist article also has stories of people who failed with this tactic, and inadvertently canceled their service. Don’t assume that there is a retention department on the other end!
So I have stated where I stand, but what do you think? Let me know!
My Financial Check-Up: Introduction
I have finally gotten around to beginning something that I have been meaning to do for a while — a sort of “financial check-up”, taking a moment to re-evaluate my financial management and allocations and make sure that I am happy with the way things are going.
It is almost certainly a good idea to try to do something like this on a regular basis, perhaps annually. Much can change over the course of a year: you might have changed jobs, gotten a raise, relocated to a new area, had a major life event happen, or more. Even if your life seems the same, financial products can change, too - banks cut rates, introduce new accounts, and more.
I plan to cover my financial check-up as a series of individual posts over the course of the remainder of August, covering each issue as I research it for myself. I want to take a moment, though, to introduce some of the questions I plan to look at over the next couple of weeks.
My Primary Checking Account
Should I switch to ING Electric Orange? By and large, I have been pretty satisfied with my current checking account — I have a MyAccess Checking Account with Bank of America that is fee-free as long as I maintain direct deposit, and BoA has convenient ATM and branch locations for me.
But lately, I have been tempted by ING’s Electric Orange account, which is an online-only checking account that offers 1.75% APY for my balance range and no fees. The downside is that you give up branch access, and have to rely on their affiliate network of ATMs. I need to evaluate for what uses I really need a checking account and whether ING will meet those needs, how important branch access really is to me, and whether ING’s ATM network of affiliates will work in my case.
My Primary Savings Account
Am I with the best bank? I have been with Emigrant Direct for years now, and have had almost no complaints with the service they have offered. I’ve stuck with them lately even though they have not had the most competitive rates around (right now, ED has 3.00% APY, HSBC Direct has 3.50% APY). I am not a big fan of rate chasing - moving money around constantly in pursuit of the highest rate, but HSBC might be offering enough of an incentive to move my money over.
How much do I need in my savings? At least right now, with the exception of the small amount of money I keep in my checking account, almost all of my money ends up in my savings account. As I contemplate other factors like a Roth IRA and Emergency Fund, I need to consider how I want to balance the savings with the other accounts.
A Retirement Account
I need to open a Roth IRA. This is not so much a question as it is a statement – I have read the advice for a while, and I have finally convinced myself that it is in my best interest to open a Roth IRA even though I am still in school. Even a little bit of money for a few extra years can make a huge difference when it comes time to retire. The issue for me, however, is that I need a brokerage firm that offers a Roth IRA with low minimums and (hopefully) no fees — so which brokerage is best for me? I suspect that I will ultimately end up going with a Vanguard Roth IRA.
My Credit Cards
I am pretty happy in this regard, and suspect that my combination of Citi mtvU and Chase Freedom cards for almost all of my purchases will continue to be the best situation for me. The only real question I have is how can I best put my rewards to use? I currently have more than enough Citi ThankYou Points to start considering how best to put them to use.
My Emergency Fund
I need to create an emergency fund — how best should I go about this? I have been nurturing my savings account for a while, but I have not taken the step of creating a separate emergency fund. I have read enough posts about emergency funds from other bloggers, however, that I think I need to take the step of creating a separate emergency fund.
My Other Bank Accounts
Which bank accounts are dead weight? Especially in 2007, I frequently opened up bank accounts for the sign-up bonuses which would often be quite lucrative. Now, however, I have all of these checking and savings accounts open at over a dozen banks. Not only is it difficult to stay on top of keeping these accounts maintenance fee-free, but it is also difficult to get an adequate picture of my financial health. I plan on looking into closing some of these accounts and reporting back.
Road Ahead
As part of this process, I also plan on sitting down and taking a look at where my money has been going – I have never really created a literal budget, but I think it will be helpful for me to get a clearer sense of what I am spending my money on as I look for ways to be more fiscally sound. I also plan on both better documenting my finances for myself, creating a sort of financial “master document” that details all of my accounts, as well as improving my records system.
So, these are some of the thoughts that are going through my head as I begin my financial check-up. Stay tuned for more!
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