Posts Tagged Christmas

If my George Foreman grill could order meat it would be a Kindle

If my George Foreman grill could order meat, it would be as important to kitchen appliances as the Kindle is to the book and e-commerce industries.  In June, this ZDNet blogger said he felt the Kindle’s days were numbered because of the iPad.  But just this month ZDNet posted a story that outlines wall street analyst projections that Amazon sold 4 million Kindles in the fourth quarter alone — and is projected to sell 10 million more in 2011.  I just got my Kindle this past Christmas and love it like the year 1987 and the 2002 World Series. (That’s a hyperbole.)

My two favorite Christmas presents

Since getting the Kindle, I’ve spent $475 on Amazon.com (about double what the typical Amazon customer spends per year) — only $20 for e-books. Obviously, the Kindle is my personal gateway drug back to Amazon.com. And it’s far easier to clean than my George Foreman grill.  See smashed left thumb.

Dear Jeff Bezos, You now have 121 122 million customers. I’m back.

Everyone wants to talk iPad vs. Kindle.  Not so fast. The Kindle is different than my iPad.  It replaces paper books while my iPad seems to replace part of my laptop, TV, MP3 player and portable DVD player that I never did buy. The beauty of the Kindle is that it doesn’t pretend to be something it’s not. Like the Cadillac CTS-V Coupe that tries to be a BMW 6 Series and a Corvette at the same time.

The book is dead.  Long live the Kindle.

– Jose Mallabo

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My big fat wallet

It was starting to look like Costanza’s exploding wallet. So I dumped it out and out came a handful of receipts and a packet of Splenda — but mostly the pain in my right cheek was the heft of four gift cards. Each of them are about a year old – from last Christmas, of course.  The grand total of money on my unused cards = $150 – or about a week’s worth of groceries for a hungry vegetarian.

Wonder how many Macy's gift cards were in there?

With just two weeks before Christmas, I’m sure there are people who fully intend to buy actual gifts for their loves ones but will likely get too busy and end up buying a card off the end cap at Safeway or Genuardi’s instead.

I’m not judging you. We’ve all done it. Just know there’s a good chance that you’re taking your $20 or $50 bill and tossing it out the window of a moving car at night in a neighborhood you’ve never been in before.

Americans spend $65 billion on annually (a 2009 estimate) on gift cards with almost $7 billion of it going unused. That’s one tenth of the gross domestic product of The Netherlands. With 309 million people in the U.S. that’s roughly $23 per person in the U.S.  Based on that, I am seven times less likely to use gift cards than the average U.S. consumer.  Maybe a better way to look at it is the people who intend to buy me gifts are seven times more likely to forget.

It’s debatable.  In a pinch, I take PayPal.  And I use it most to buy gifts.  So, odds are if you PayPal me money, it will come back to you in the form of a durable good or White Elephant.

Imagine if the state governments took PayPal.  Now that would be true social commerce. If they did they wouldn’t have to use tax payer’s money to chase down unused, but already taxed money sitting on gift cards.

Gift cards are part of the country’s hidden economy that includes mail-in rebates, flex spending accounts and extended product warranties. Money spent but left unused like that yarn cardigan from your aunt Martha from Pasadena.

People freely buy a gift card for someone (who may not use it), but flee the register if asked to buy an extended warranty on a $59 DVD player.

– Jose Mallabo

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