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Thursday, February 28, 2008Other Dates

Websites/phone numbers mentioned:

SearsRangeSettlement.com - Get details on the Sears kitchen stove recall
MunireFurniture.com - Get details on the latest crib recall or call 866-586-9639
FDIC.gov - Federal Deposit Insurance Corporation or call 877-ASK-FDIC

Wal-Mart's poor customer service may threaten its future

Clark recently told you how Wal-Mart ranked as the worst retailer and the worst grocer when it comes to customer satisfaction, according to the latest ACSI survey. The irony is that people still shop there in huge numbers despite all the complaints. But that may not always be the case.

Before Wal-Mart was the largest retailer in the world, that title was held by Sears and then by Kmart. Both Sears and Kmart are today owned by Sears Holdings, which has now reported that its profits are down by nearly 50%. Sears Holdings' sales are declining rapidly, while cash on hand has dropped from $4 billion a year ago to $1.5 billion now. The marketplace spoke and this is the result.

The Wal-Mart haters have to realize that the marketplace will speak again if Wal-Mart doesn't improve its customer experience. Look at any industry. In the car field, GM used to own this country. Today, they're struggling to survive because they had a tin ear to the customer. The message is clear: If somebody doesn't take care of you, you must use your feet and take care of yourself by taking your business elsewhere.

Sprint announces new $99 deluxe plan

Just days ago, Clark told you about Verizon's unlimited calling plan for $99. Verizon's move prompted AT&T and T-Mobile to match or best their offer in subsequent days. Sprint, meanwhile, took its time before jumping into the fray. Sprint was busy reporting a $30 billion loss and a projected drop of more than 1,000,000 customers over the next quarter. But if you're into deals, boy, does Sprint have one for you. They're offering unlimited calling, web surfing, texting, e-mail, GPS and TV for $99 per month. Each additional subscriber will pay $5 less per month on a family plan. This is a real long pass and Sprint is hoping it doesn't bomb. This move represents a real seismic shift in the cell business. Cell carriers have historically made big money on overages. But the future will be all about unlimited calling in different tiers (local, domestic, and even international). Meanwhile, new stats show that 33 million Americans are now exclusive cell users. That figure is up 50% in a year and will only grow.

Stove, crib recalls abound

RECALL WARNING: Can your stove kill you? Imagine dying because it tips over and crushes you or scalds you badly. That may sound impossible, but Sears ranges are now being recalled for that very reason. These ranges are front heavy and were not anchored properly during installation. Sears has now agreed (after a lawsuit settlement) to properly bolt ranges that have been sold since 2000. Go online to SearsRangeSettlement.com for complete details. They'll also be bolting all ranges as part of installation through 2011. This settlement will cost Sears untold millions as an estimated 4 million homes have improperly installed stoves. But how many of the 4 million homeowners will actually do anything about the problem? Historically, recalls don't yield high results.

Meanwhile, there's been another recall of cribs with faulty railing. Make sure your child is not in danger if you have a crib sold under any of the following names: Majestic Curved Top and Flat Top Cribs, Essex Cribs, Brighton/Sussex Cribs and Captiva Cribs. If you're in doubt, contact the importers at Munire Furniture or call 866-586-9639.

Clark poses a moral dilemma to his listeners

Here's a question of morals and ethics for you: What would you do if your ATM kept giving you unlimited cash without deducting your account? That's the question posed this week in Clark's poll. A young man in China named Xu Ting faced this very same dilemma. His response was to make withdrawals at 171 ATMs and pocket $24K in cash. He received a life prison sentence for his crime after being stopped by police for a routine ID check. This story, reported in The Los Angeles Times, really highlights China's unjust judicial system more than anything else. After uproar among the people of China, Ting is being given a second show trial and will be re-sentenced. Corrupt Chinese officials, meanwhile, make out like bandits. While our country isn't perfect, we do have a tradition of sending our big wigs to jail when they mess up. Just think of Worldcom's Bernie Ebbers, some of the Enron people or Leona Helmsley. But how about you -- what would you do if faced with Ting's ethical dilemma? Remember, you can be honest because online polls are anonymous!
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