There is a price war under way in the video game market that is causing prices to drop to record levels. For the first time in the history of video gaming, people who couldn’t afford the gadgets now can. The Game Cube is now about $100. The X-Box is $150. And the Play Station 2, the dominant machine, is about $200. All three have an extremely high quality picture. It’s so good, in fact, that Clark wants to warn parents about some of the games kids may be playing. Many have very graphic content and may not be appropriate for kids. There are a number of games that are very popular and, therefore, very expensive when they are first released. The games that become more popular over time are much less expensive, so consider these instead. Video games are gaining so much popularity that they are influencing how people spend their time. According to the New York Times, young men - ages 18-34 – are not watching TV like they used to. They’re surfing the Net and playing video games, and it’s creating a tremendous challenge for marketers. That age group is the most sought after for television networks. So, television executives will have to decide whether they want to attract these men back or continue programming to women.
Telephone service is going through a very radical change in the modern era. Just short of half of all people make all of their long distance calls on their cell phones today. And traditional long distance companies will have no reason to exist in the future if things continue like this. Hard to believe that just five years ago there were more pagers in the United States than there were cell phones. Now, the idea of paying a price-per-minute is on the way out. And AT&T is jumping on the most recent bandwagon, which is VOIP – Voice Over Internet Protocol – calling. It’s basically calling over the Internet, and it’s been around for a few years. Clark uses a VOIP company called Vonage, and he has been very satisfied with the service so far. Other companies include Packet8.com and iconnecthere.com. Learn more about these by clicking here. AT&T is charging $39 a month. You get half a year at $20 and then it changes to $40. All you need is a high-speed Internet connection and instantly your phone is working.
Callers often ask Clark how they can earn more on their savings accounts. Most savings accounts earn less than 1 percent, and some even charge to open these accounts. But there are banks and credit unions out there that offer more than others. The best banks pay about two percent right now. It may not sound like much, but it’s better than nothing. So, you’ve got to shop around. In addition, there is a giant difference between what people earn on CDs, depending on where they put their money. People tend to open CDs with the bank they have always used. But that’s not the best course of action. Some of these banks even charge fees for opening an account. So, go with the best deal. Some online banks, including ING Direct, offer great rates on savings account and CDs. You want to “ladder” your money, which means you divide it up into four or five piles. Put some into a 5-year CD, some more into a 2.5 year CD, some into savings and the rest into a 1-year CD. Another option is U.S. Savings Bonds. You have to keep them for a minimum of a year, but they are earning 2.6 percent right now. Bankrate.com is also a great site for CD shopping. And you can always buy from a commission-free stockbroker. They can sell you what are called "broker-placed CDs," which almost always earn you a better rate than what your local bank will offer. So, there are strategies and alternatives out there. Use them!
Many people think that they can return a used car after they buy it. But that is a misconception. When people sell you something door-to-door, you have a three-day right to cancel. But with cars, the minute you sign your name it’s a done deal. There are some forward thinking car dealerships that have different policies. But, in general, people in the used car business will lie and cheat to sell you a car. It may be a hunk of junk. And you have no recourse. In California, the legislature is doing something about this. The state is considering a “Used Car Bill of Rights” that would give customers three days to return the car. And, under the new law, the words “certified used car” would actually mean something. Right now, any dealership can say a car is “certified,” but it doesn’t mean anything. Legitimate certified programs are underwritten by a manufacturer, the best being Jaguar’s program. The manufacturer actually provides the buyer with an enhanced warranty just for buying the car. We’ve also had several discussions on the air about resales and the “extras” for which dealerships charge you. Under the law, any time a dealership sells you something with “extras,” the company will have to tell you exactly what the mark-up is. Typically, when you buy a used car it’s “as is” with no warranty. So, you should always have the car checked out by a certified mechanic before you buy.
The size of the homes people are buying is leveling off. One reason is that the maintenance and upkeep can be overwhelming. Another reason is that people don’t get enough use out of them. So, people are moving into smaller homes that have a lot more amenities and appealing features. One of the big changes is the idea of the “great room.” People no longer want the open air flow that a great room provides, according to . Up until about 1980, everything was zoned off and in its own quadrant. Then, we slowly moved to the open feel of the 90s. And now, people like the zoned off feel again. People want their own private spaces in their homes. The worrisome thing is that people can end up living in their own orbit and there is less communication among family members. So what is the average size of a home today? It’s over 2,300 square feet, and many homes are more than 5,000 square feet. But the footage is in the size of the rooms, which are getting bigger, not the size of the home itself.
Clark saw some shocking statistics on the Dow Jones News Wires recently. The principal story explained why Dell has become such a monstrous force in the Internet market. It’s mostly because of the smart and cost-effective way the company does business. In contrast, Best Buy is suffering. The story mentioned rumors that Best Buy is about to lay off about 7,000 people because their administrative overhead is so high. They spend about 22 cents on each dollar sold on this overhead. That’s huge. Dell spends about eight cents of every dollar on administrative costs. That’s because most of the business is done online and there are very few retail stores. There is a human component to this, however. Recent stories have focused on Dell’s lack of customer service after the sale. So, the lack of humans on staff has hurt them, as well. The company has upgraded the quality of customer service given to big companies and corporations, while the service given to individual customers has dwindled. Dell needs to do something to fix that gap.
