The iPad3 comes out today, the 3rd release of an ipad in two years. Thousands will buy it, many of whom bought the Ipad2 last year and the original ipad in 2010. So, people may be spending more than $1500 dollars in two years on a tablet computer, and its newer models. http://www.apple.com/ipad/
In this post, I'd like to advise readers to be more discerning about buying Apple products. I remember reading an op-ed a while back about how Apple is more like a religion than a company http://www.washingtonpost.com/opinions/apple-is-a-new-religion-and-steve-jobs-was-its-high-priest/2011/10/07/gIQAjYlgTL_story.html, and i think it is true. Many Apple adherents have a tendency to be fanatics, and will not consider other similar products from other companies. Samsung recently mocked these qualities in advertisements http://mashable.com/2012/01/20/samsung-apple-super-bowl-ad/.
I would suggest looking to another frame of reference when determining whether or not to make an Apple purchase. Baseball has a statistic known as VORP, or Value Over Replacement Player http://en.wikipedia.org/wiki/Value_over_replacement_player. In short, is what you have worth more than the average, and how much more? Apple's primary product lines include tablet computing, personal computing, mobile telephones, mobile music players, digital music, and a variety of other revenue streams. It is necessary to apply VORP to Apple purchases. How much more is it worth it to buy from Apple than a replacement?
In digital music, there is very little value. The itunes store has many popular songs available for $1.29, and are write-protected so they are not transferable between accounts. Meanwhile, Amazon mp3 has the same songs available for 99 cents, and they are not write protected. http://www.amazon.com/MP3-Music-Download/b?ie=UTF8&node=163856011. Further, they are saved to a cloud drive, and can be downloaded to a player or accessed from the cloud. The VORP of the itunes store is zero.
In the interest of brevity, I am not going to go through this analysis for each of Apple's product lines. Generally, when I make technology purchases, I try to compare the specifications and attributes of the products on websites like cnet.com, to determine what is best for me. In my opinion, Apple's VORP in digital music, personal computers, tablets, and mobile phones is very low. Apple's products are more expensive than their competition, and often do not carry all of the features, such as the problems viewing flash video on Apple products (Apple has since provided workarounds http://www.macobserver.com/tmo/article/adobe_delivers_flash_video_to_iphone_ipad/, but this still presents a consumer frustration).
In the interest of comprehensiveness, if you have not read the article on the conditions of the factories supplying Apple, you should. http://www.nytimes.com/2012/01/26/business/ieconomy-apples-ipad-and-the-human-costs-for-workers-in-china.html?_r=1&pagewanted=all. Things like this affected product lines from Kathy Lee Gifford and Nike, and Apple shouldn't be treated differently.
Additionally, in an effort to be even-handed, there isn't a very strong competitor or "replacement player" for the ipod. Microsoft attempted to create one with Zune, but that was ultimately unsuccessful. http://www.time.com/time/specials/packages/article/0,28804,1898610_1898625_1898633,00.html. Unless you download all of your music to a cloud and can play from that cloud remotely, the ipod is probably the best option.
Don't just go out and buy from apple. Do a VORP analysis, looking at an Apple product's attributes and drawbacks, and whether or not it is worth the price over its competitors. You may find yourself getting an excellent alternative product and saving money at the same time.
Showing posts with label Waste. Show all posts
Showing posts with label Waste. Show all posts
Friday, March 16, 2012
Thursday, March 1, 2012
Practical vs. Beautiful in Baby Purchases
I have a son who is 16 months old, and I have spent a ton of money on him. We've been through a mountain of bottles, toys, clothes, and all sorts of accessories. I have learned one simple lesson. Never buy anything which does not seem incredibly practical.
A good anecdote is the crib. We have a very nice crib made by some french company, whose instructions are in french. When it came time to lower the crib, it took approximately four hours to loosen bolts, re-align the frame, and then re-tighten bolts with an Allen wrench. Some other cribs can be lowered with very simple latches. But we chose beauty over practicality. Additionally, we have bumpers in our crib, which are nice, but impossible to wash. They need to be washed from time to time, due to vomit, or stains or who even knows. But they are super bulky. I wanted to buy wonder bumpers http://www.gomamagodesigns.com/wonder-bumpers, which prevent suffocation and if they need to be cleaned, can be washed very easily. But our crib could not accommodate wonder bumpers. Take note, that the baby bargain book http://www.amazon.com/Baby-Bargains-Secrets-furniture-maternity/dp/1889392405 will recommend a 99 dollar ikea crib, which you can dress up however you want. But no, we have wasted money and time.
Another place to be super practical is clothes. My kid has a large head, so any kind of clothes with a tight head opening can be a real pain in the butt to put on. But anything which buttons or fastens up the middle is a dream. If your child is in the top 50% for head size, this may be an important factor for you. Remember, with most baby clothes, there is a yelling, screaming, human doing their very best to avoid putting on whatever you want him or her to wear. So, if you want to save yourself tons of headaches, buy clothes with fasteners and not with an army of buttons. But the goal is to get the child dressed, and if you are too exhausted from trying to dress the child, then you don't want to go show them off anyway. Also, whatever you buy is going to have to stand up to a ton of washing, with extra rinsing. Don't buy anything frilly or delicate, because it'll get torn to shreds.
A final thought is toys. There are tons of toys out there, and kids go through them super fast. Instead of buying toys outright, without knowing whether or not your baby will be interested in them, look into subscribing to http://babyplays.com/. If your child loves the toy, go buy it. But if he or she seems to ignore it and not be interested, then you may have saved yourself a fair bit of money. You could waste hundreds or thousands of dollars on toys, and have maybe a 50% success rate. This is an option to try before you buy.
Think about the goals behind these purchases. Envision the whole picture. It is very easy to waste money in this realm, but by asking a ton of questions, and finding the products which fit your individual needs, not just whimsical excitements, can save you a lot of cash, frustration, and energy.
P.S.: If you would like to know the questions my wife and I have learned through the process, contact me privately.
A good anecdote is the crib. We have a very nice crib made by some french company, whose instructions are in french. When it came time to lower the crib, it took approximately four hours to loosen bolts, re-align the frame, and then re-tighten bolts with an Allen wrench. Some other cribs can be lowered with very simple latches. But we chose beauty over practicality. Additionally, we have bumpers in our crib, which are nice, but impossible to wash. They need to be washed from time to time, due to vomit, or stains or who even knows. But they are super bulky. I wanted to buy wonder bumpers http://www.gomamagodesigns.com/wonder-bumpers, which prevent suffocation and if they need to be cleaned, can be washed very easily. But our crib could not accommodate wonder bumpers. Take note, that the baby bargain book http://www.amazon.com/Baby-Bargains-Secrets-furniture-maternity/dp/1889392405 will recommend a 99 dollar ikea crib, which you can dress up however you want. But no, we have wasted money and time.
Another place to be super practical is clothes. My kid has a large head, so any kind of clothes with a tight head opening can be a real pain in the butt to put on. But anything which buttons or fastens up the middle is a dream. If your child is in the top 50% for head size, this may be an important factor for you. Remember, with most baby clothes, there is a yelling, screaming, human doing their very best to avoid putting on whatever you want him or her to wear. So, if you want to save yourself tons of headaches, buy clothes with fasteners and not with an army of buttons. But the goal is to get the child dressed, and if you are too exhausted from trying to dress the child, then you don't want to go show them off anyway. Also, whatever you buy is going to have to stand up to a ton of washing, with extra rinsing. Don't buy anything frilly or delicate, because it'll get torn to shreds.
A final thought is toys. There are tons of toys out there, and kids go through them super fast. Instead of buying toys outright, without knowing whether or not your baby will be interested in them, look into subscribing to http://babyplays.com/. If your child loves the toy, go buy it. But if he or she seems to ignore it and not be interested, then you may have saved yourself a fair bit of money. You could waste hundreds or thousands of dollars on toys, and have maybe a 50% success rate. This is an option to try before you buy.
Think about the goals behind these purchases. Envision the whole picture. It is very easy to waste money in this realm, but by asking a ton of questions, and finding the products which fit your individual needs, not just whimsical excitements, can save you a lot of cash, frustration, and energy.
P.S.: If you would like to know the questions my wife and I have learned through the process, contact me privately.
Friday, January 20, 2012
The Public Library
I am an unapologetic supporter of the public library. Maybe it's because a lot of the libraries in DC have been spruced up as of late, but, I am a huge supporter on the following levels.
1) Music. How much money do you spend on music in a given year? Probably too much. In DC, the public library buys hundreds of albums per year, which you can rip to your ipod for free. Additionally, the library has a service called Freegal, http://www.freegalmusic.com/, which is a free, online distribution network run by Sony and a bunch of independent labels. You get three downloads per week, and I guarantee you will find at least a handful of artists on there you will like. Take a look at the entire music selection of the library (go to advanced search, select the format "music cd," and enter the year of release), and you'll probably be amazed at what you could be listening to for free. This should significantly decrease the amount you are spending on digital downloads.
2) Movies. We all know netflix has screwed the pooch of late, and that there are a number of competitors coming up. The library isn't an expert at streaming video yet, but they routinely get dozens of movies around the same time as netflix. You don't pay for them, and you have them for three weeks, and you can have out a handful at a time. My netflix plan is for one move at a time, without streaming, for 9 dollars a month. So I spend over 100 dollars a year on what I could easily get from the library. I routinely suspend my netflix account when I get frustrated.
3) Books. Duh. The library will give you books and audiobooks for weeks at a time. Addicted to your kindle or ibooks? There are digital downloads where you can rent an ebook for weeks at a time. Unless you are planning on collecting books for fun or plan on showing off books in your beautiful library, there is virtually no reason to buy a book anymore. Only in those very rare circumstances where you are looking for a book which is not available in the library should you consider buying, and even in that case, look for an interlibrary loan from a jurisdiction that has your book.
Check out your local library. It's free, and they probably have a bunch of programs you would really enjoy. See if they subscribe to Freegal, and if they don't, encourage it. Scroll through the online catalog and find out if there are downloads you might like. You'll be amazed to how much entertainment you can get for free. http://www.dclibrary.org/
1) Music. How much money do you spend on music in a given year? Probably too much. In DC, the public library buys hundreds of albums per year, which you can rip to your ipod for free. Additionally, the library has a service called Freegal, http://www.freegalmusic.com/, which is a free, online distribution network run by Sony and a bunch of independent labels. You get three downloads per week, and I guarantee you will find at least a handful of artists on there you will like. Take a look at the entire music selection of the library (go to advanced search, select the format "music cd," and enter the year of release), and you'll probably be amazed at what you could be listening to for free. This should significantly decrease the amount you are spending on digital downloads.
2) Movies. We all know netflix has screwed the pooch of late, and that there are a number of competitors coming up. The library isn't an expert at streaming video yet, but they routinely get dozens of movies around the same time as netflix. You don't pay for them, and you have them for three weeks, and you can have out a handful at a time. My netflix plan is for one move at a time, without streaming, for 9 dollars a month. So I spend over 100 dollars a year on what I could easily get from the library. I routinely suspend my netflix account when I get frustrated.
3) Books. Duh. The library will give you books and audiobooks for weeks at a time. Addicted to your kindle or ibooks? There are digital downloads where you can rent an ebook for weeks at a time. Unless you are planning on collecting books for fun or plan on showing off books in your beautiful library, there is virtually no reason to buy a book anymore. Only in those very rare circumstances where you are looking for a book which is not available in the library should you consider buying, and even in that case, look for an interlibrary loan from a jurisdiction that has your book.
Check out your local library. It's free, and they probably have a bunch of programs you would really enjoy. See if they subscribe to Freegal, and if they don't, encourage it. Scroll through the online catalog and find out if there are downloads you might like. You'll be amazed to how much entertainment you can get for free. http://www.dclibrary.org/
Wednesday, January 11, 2012
Online Shopping
I like online shopping, for a number of reasons. I'm a little lazy, it's hard to go to stores when you have a kid, and generally, I know what I want and I buy enough in one order to qualify for free shipping. But I am always looking for some sort of incentive when I shop, and I believe I have found it in click through websites. The two which I use most often are http://www.ebates.com/, and http://www.upromise.com/.
Here's how it works. You know you want to buy something. You go through these websites to find the store you want to buy from, and these websites rebate you 1%-20% of the purchase. Upromise is a method of saving for higher education, and the money goes into high interest savings accounts, destined eventually for a 529 Account. Ebates refunds the money to you quarterly, through a check.
Past incarnations of this concept have provided less than stellar rewards (gift cards at undesirable stores) or sites where people didn't want to shop at. Ebates and Upromise both have a very large selection of stores. I have yet to meet someone who I have spoken with informally about these programs that could not benefit from them. My favorite stores on Ebates are Target.com (3% back), Groupon (3% back), Diapers.com (up to 4% back). Friends of mine have commented on their preference for Drugstore.com (12% back), J.Crew (1.5% back) ,and J.C. Penney (3% back). Take a look for yourself and see how much you could be rebated simply by clicking through a website when doing your online shopping. Plus, you get a ten dollar gift card just for signing up. Further, check out sites like http://www.retailmenot.com/ to make sure you are not missing out on any promotional codes for sales and free shipping. I've gotten about 50 bucks rebated to me in the last six months.
Upromise carries with it a few added benefits. There is a Upromise credit card which increases your deposit into the high interest account, and Upromise also has deals with a number of restaurants which will deposit a percentage of your purchase, provided you pay with a credit card registered on Upromise.com. They also provide rebates on gas and grocery purchases.
All in all, there are a number of benefits to doing your online shopping through these click-through websites. Also, both of these sites also can provide discount codes and coupons. All of these options should be considered to make sure that your money goes farthest when making your purchases.
Here's how it works. You know you want to buy something. You go through these websites to find the store you want to buy from, and these websites rebate you 1%-20% of the purchase. Upromise is a method of saving for higher education, and the money goes into high interest savings accounts, destined eventually for a 529 Account. Ebates refunds the money to you quarterly, through a check.
Past incarnations of this concept have provided less than stellar rewards (gift cards at undesirable stores) or sites where people didn't want to shop at. Ebates and Upromise both have a very large selection of stores. I have yet to meet someone who I have spoken with informally about these programs that could not benefit from them. My favorite stores on Ebates are Target.com (3% back), Groupon (3% back), Diapers.com (up to 4% back). Friends of mine have commented on their preference for Drugstore.com (12% back), J.Crew (1.5% back) ,and J.C. Penney (3% back). Take a look for yourself and see how much you could be rebated simply by clicking through a website when doing your online shopping. Plus, you get a ten dollar gift card just for signing up. Further, check out sites like http://www.retailmenot.com/ to make sure you are not missing out on any promotional codes for sales and free shipping. I've gotten about 50 bucks rebated to me in the last six months.
Upromise carries with it a few added benefits. There is a Upromise credit card which increases your deposit into the high interest account, and Upromise also has deals with a number of restaurants which will deposit a percentage of your purchase, provided you pay with a credit card registered on Upromise.com. They also provide rebates on gas and grocery purchases.
All in all, there are a number of benefits to doing your online shopping through these click-through websites. Also, both of these sites also can provide discount codes and coupons. All of these options should be considered to make sure that your money goes farthest when making your purchases.
Wednesday, January 4, 2012
Coffee
I've spent a lot of money on coffee. There is a Starbucks across the street from my job, a Mcdonalds across the street from my house, a Keurig inside my office, and even some stray five hour energy drinks just in case. Where I live, in Washington DC, a cup of coffee at McDonalds costs $1. A cup at Starbucks costs $1.50. At least, it used to. http://www.smartmoney.com/news/on/?story=ON-20120103-000322&cid=951
On Amazon, I can get 50 K-cups for $30 ($0.60 per cup). Also on Amazon, I can get 5 hour energy drinks for $0.62 per serving. I buy Peet's Coffee, which is not the most expensive, nor the least, for 8 dollars per 12 oz bag. You are supposed to use one teaspoon per cup of coffee. 6 teaspoons to the ounce means there is about 72 servings of coffee in my bag of Peet's. So, at 8 bucks a bag, that's 11 cents a cup. In summary:
Starbucks: $1.50
McDonalds: $1.00
5 Hour Energy: $0.62
K-Cup: $0.60
Brewing at Home: $0.11
So, brewing at home is 5 times cheaper than the next best alternative. If you go to Starbucks once a day, 5 days a week, you are spending over $350 dollars more than you need to on coffee per year. Under the same conditions at McDonalds, you're spending over 200 dollars more than you need to. It gets worse if you order complicated or bigger drinks, or if you buy more than one cup a day. It gets to be a better deal if you buy store brand coffee, like Safeway Select or Trader Joe's coffee, which is generally cheaper than my Peet's.
I know there are excuses: I don't have the time to wait for coffee to brew. Buy a coffee maker with a timer. I don't like hot coffee. Brew it the night before and refrigerate it in a tumbler. I hate the taste. Milk and sugar. In the end, even buying coffee from Mcdonalds should be considered a luxury, given how much more money is spent on a yearly basis on coffee at Mcdonalds than would be spent brewing similar coffee at home.
On Amazon, I can get 50 K-cups for $30 ($0.60 per cup). Also on Amazon, I can get 5 hour energy drinks for $0.62 per serving. I buy Peet's Coffee, which is not the most expensive, nor the least, for 8 dollars per 12 oz bag. You are supposed to use one teaspoon per cup of coffee. 6 teaspoons to the ounce means there is about 72 servings of coffee in my bag of Peet's. So, at 8 bucks a bag, that's 11 cents a cup. In summary:
Starbucks: $1.50
McDonalds: $1.00
5 Hour Energy: $0.62
K-Cup: $0.60
Brewing at Home: $0.11
So, brewing at home is 5 times cheaper than the next best alternative. If you go to Starbucks once a day, 5 days a week, you are spending over $350 dollars more than you need to on coffee per year. Under the same conditions at McDonalds, you're spending over 200 dollars more than you need to. It gets worse if you order complicated or bigger drinks, or if you buy more than one cup a day. It gets to be a better deal if you buy store brand coffee, like Safeway Select or Trader Joe's coffee, which is generally cheaper than my Peet's.
I know there are excuses: I don't have the time to wait for coffee to brew. Buy a coffee maker with a timer. I don't like hot coffee. Brew it the night before and refrigerate it in a tumbler. I hate the taste. Milk and sugar. In the end, even buying coffee from Mcdonalds should be considered a luxury, given how much more money is spent on a yearly basis on coffee at Mcdonalds than would be spent brewing similar coffee at home.
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