Deflation occurs when an entire economy of people stop buying as much as they once did, forcing the price of goods to drop. In numbers, an economy enters a state of deflation once the inflation rate (normally 3%) drops below zero.
Archive for the ‘Spend Page’ Category
Deflation is…
Friday, May 15th, 2009What Do You Do When Your Computer Starts To Die?
Monday, May 4th, 2009How spending habits and the way we view appliances are affected by the changing economy…
- Many people are trying to save money and are getting appliances repaired instead of automatically purchasing a replacement.
- Both car and computer repair shops have seen a huge spike in demand for their services.
- Consumers are taking better care of their cars and other household items in order to save money.
Facts & Figures
- Computer repair business’ revenue is 30% higher than a year ago.
- Consumers are extending the lives of their vehicles to nearly 10 years on average, from eight just two years ago.
Best Quote
“I had a lot of customers who had an imaginary threshold. They’d say, ‘I won’t fix it, I’ll unload it.’ Those customers are rethinking that threshold and saying, ‘Maybe I’d better take better care of my car.’” – John McWilliams, Service Manager at Autobahn Motor Works of Bethesda, MD
Your Music’s Gone Digital. Your Photos Went Digital. Ready For Your Books?
Monday, May 4th, 2009New technology could really affect the way you learn, get your news, and relax.
- In late 2007, Amazon’s Kindle redefined electronic books. Not only did it have an E-ink screen (which doesn’t strain your eyes like LCD screens), but it also included high-speed wireless connection so you could download new books directly from anywhere in the U.S., at no extra cost.
- Now, Amazon has released the Kindle 2. There’s no major redesign, but it is faster and a bit more polished than the original.
- If you’re already a Kindle owner, no dire need to upgrade just yet. But if you’re buying your first ebook, this is a good place to start.
Facts & Figures
- The Kindle’s Eink screen uses small shape-shifting ink-like capsules to form print-quality text that doesn’t strain your eyes at all.
- The Kindle 2 features accident-proof buttons, a thinner body (.36 inch), more built-in memory (2 gigabytes), a joystick navigation button, 4x higher screen quality, better battery life, and a robotic voice for the option to listen as an audiobook.
- The Sony Reader is Kindle’s only real competition, though it’s $30 more and doesn’t have Kindle’s favorite feature, wireless connection.
Best Quote
“The new Kindle 2 is less of a revolution, and more of a refinement.” – Seth Porges, bloomberg.com
Designers Refuse To Bargain
Monday, April 20th, 2009How far are designers willing to go to make sure you pay full price?
- Clothing designers and department stores are facing a growing conflict as the economy continues to suffer: Who controls pricing?
- Luxury brands are unhappy that department stores have the power to slash prices on their products, undercutting their luxury images and raising questions about how much a $1200 Piazza Sempione dress is really worth.
- Some designers are following the strategy adopted by major airlines when low-cost websites began buying tickets in bulk and slashing their prices – limiting inventory.
Facts & Figures
- More than 40 designers requested that their products be left out of a recent Saks “Friends & Family” sale.
- In a step away from department store control of her product, Eileen Fisher is building 6 new stand-alone stores this year.
- LVMH, which maintains tight control of its brand and pricing by renting boutique space inside department stores, posted a 10% profit in the fourth quarter of 2008.
Best Quote
“Even wealthy people don’t want to be ripped off.” – Eileen Fisher, Designer
The White House Takes On Credit Card Fees
Monday, April 20th, 2009Credit card companies aren’t always crystal clear about their fees & charges; D.C. is taking a hard look at the fine print and you should, too.
- President Obama is seeking reform on “credit card abuses” – practices that include misleading credit offers and extremely high interest rates.
- Congress is already working on legislation to combat certain fees and rate increases, but support from the White House should help these measures pass.
- Banks are wary of the plan, saying the government should wait for existing legislation to go into effect before pursuing more.
Facts & Figures
- There are already new rules limiting credit card rate increases, but they won’t go into effect until 2010.
- Among 21 of the biggest banks that received federal bailout money, overall lending decreased by 2.2% in February.
- Number of specific plans unveiled so far by the White House to deal with these issues: 0.
Best Quote
“As we go forward we need to be careful about piling on rules that very much may have the impact of restraining the availability of credit.” – Edward Yingling, President of the American Banker’s Association (tha banking industry’s lobbying group)
What is the difference between a debit card, a credit card, and a charge card?
Thursday, April 9th, 2009All three cards allow you to make purchases without handling any cash, but each has its benefits and drawbacks.
A debit card is linked to your bank account and when you use it to buy something, the money is immediately taken out of that account. This is a good option if you want to make sure you’re only spending money you have, as the card will generally be declined if you don’t have enough money in your bank account to cover the purchase. But using a debit card won’t help you build your credit history.
A credit card is like a short-term loan. It is not linked to any bank accounts. Instead, the a credit card company covers the cost of your purchase today (up to a certain amount per month) with the understanding that you will pay them back later. You don’t have to pay it all back right away, but you do have to make a minimum payment every month. If you don’t pay in full, your remaining balance plus interest (called APR) will appear on next month’s bill. Using a credit card responsibly can be a great way to build a good credit history, but consistently missing payments or carrying a balance from month to month will do the opposite.
A charge card isn’t a loan and it isn’t linked to a bank account. This type of card covers the cost of your purchases today with the understanding that you will pay back what you owe at the end of every month. Unlike credit cards, charge cards do not have a pre-set spending limit. If you do not pay off the full balance at the end of the month you will be hit with high fees or possibly a spending cap. Charge cards are good for people who want unlimited spending and can afford to pay off their balance each month. However, unlike credit cards, charge cards cannot help you build a good credit history.