Sunday, January 2, 2011

This TV Special - Only $19.95: True Value?

I was decent with numbers in high school.  That's primarily because there were a lot fewer numbers back then.

Today, I get easily confused by numbers, especially those that come with "only on TV" offers.  I patiently sit through them while waiting for the really good stuff to come on the SyFy Channel.  (The Twilight Zone Marathon is always one of my favorites. The alien "eye" on one episode looks like a lot of Facebook profiles.)

Back to the numbers.  I'm always intrigued by the quantity and diversity of new products that are sold only on TV.  The knife that cuts through a nail, then slices a tomato - never needs sharpening.  They had me sold at $19.95, but wait -- if you order now, we'll send you two knives - a 40-dollar value for just $19.95, and as a special gift, we'll throw in....yadda yadda yadda - all for only $19.95.  The special chef basket that does shrimp and so many great foods for $14.99. And it folds flat for easy storage.  Order now and you receive a second chef basket for free.  Wait, it comes with an chef knife - a $20-dollar value.  If you round up a dime that gives us a $60-dollar value for $20.

How do they do that?  How do they come up with these great products?  And how can they keep the price at $19.95 as we add more to the check out cart (so to speak)?  I've seen the announced value go over $100, and still - it's only $19.95 plus shipping and handling. 

I'm assuming the folks behind these products are making a profit. What is the true value of the product? How much does the product cost the people selling it?  I don't know.  I suppose in tremendous quantities the cost of manufacturing really, really dips.

And I really love the ads that have a countdown clock.  If you call within the next 15-minutes, we'll throw in a second steam cleaner, absolutely free.  And then the ad runs again 30-minutes later.  Hmmmmm.  Operators are standing by.

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