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In last Sunday’s Consumerism Commentary Podcast, our guest from Consumer Reports, Tod Marks, talked about product downsizing. With commodity prices rising, companies — particularly food product companies — are trying to determine how they can cover their increasing production and distribution costs without losing their competitive edge.

In order to maintain the same price point, companies often shrink the size of their packaging. Sometimes, as pointed out in the podcast, companies use more air to create a lighter product, like whipped yogurt, so that there is less real product in the package. Consumers are mostly aware of these tactics. In fact, according to Consumer Reports, shoppers prefer receiving less for their money than paying more for the same product.

Kraft is a good example. While the company indicated they intend to weather their increased costs without any effect to their customers, they have already decreased the number of cheese slices in their Kraft Singles packaging, a staple in my household as a kid. Shrinking packages can only go so far; the company intends to cut costs on the corporate side. In other words, not only will consumers see shrinking packages, but some of the company’s employees might want to start thinking about polishing up their résumés.

CNN

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People Farm Casting, a casting agency that focuses on finding non-actors for reality television shows and commercials, contacted Consumerism Commentary to let us know about a new project. The agency, whose team has experience casting shows like Pimp My Ride and commercials like that Dos Equis ad with the “most interesting man in the world,” has been hired by a large consumer financial institution to cast a new reality show.

I spoke briefly with People Farm Casting yesterday to get a feel for the project. The show will feature several different individuals and families in need of specific financial help. A financial expert will work with each individual for several weeks, and every interaction will be filmed for the series. This could be an interesting opportunity to receive financial help, appear in a reality series, and get paid. If that sounds interesting to you, read the information below and contact People Farm Casting as soon as possible.

A large consumer financial institution is seeking individuals and families that NEED some help planning for their future to star in a brand new series that will take the confusion out of finance! We will be casting across the country. Casting has started so read below and then shoot us an email at: investorcasting@gmail.com

Make sure to include your:

  • Name
  • Location
  • Contact information
  • and a recent photo of you/you and your family.

(Must be over 18)

We are looking for all types of stories, financial situations, both good and bad. Here are just a few examples of the stories we’d like to showcase:

  • Early Retirement Planner
  • First-time Home Buyer / Seller
  • Newlyweds / Couple Getting Married
  • Parents Planning for Child’s Future
  • Divorced Singles
  • Laid-off Professionals
  • Cross Cultural Investors
  • Job Change / Pay cut
  • Pre-retirement Couple (Person in late 40s)
  • Non-savvy Investor
  • Savvy Investor
  • Late Retirement Planning

It would be great to see a Consumerism Commentary reader cast in this new series. Good luck!

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The Album’s Last Gasp

This article was written by in Consumer. 9 comments.

For a good thirty years or so, starting in the 1950s, musicians released singles on vinyl discs called “records”. You could also buy a full album of music by one artist, and some were worth it, but you also had the option of buying just that one song that you liked, that you kept hearing on the radio.

(You’d also get a second song on the “B-side” of the record. Mostly people just considered that a bonus.)

Vinyl made way for cassettes, and the cassingle was born. Then cassettes made way for CDs, and while I remember seeing some CD singles, they were never as prevalent as those on vinyl or cassette. I believe that’s because the vinyl and cassette singles were cheaper to make than the full album version, since they used less raw material, but a CD single cost as much to make as a full CD.

Consumers, en masse, didn’t complain about the death of the single. I did, because I won’t pay $18 for two or three songs. And let’s face it: the majority of your average pop/rock album is filler material. But for some reason, I was mostly alone in my anger.

Then everything went digital, and all Heck broke loose, people were making lossless copies, yadda yadda, you know this part. Now we’re finally at a place where you can once again pay for just the music you like, for a completely reasonable 99 cents, and there’s nothing stopping you from sending a copy to, say, your wife. (See also this controversial article: “Is it Ever Okay to Steal Entertainment?“.) In the music scene, DRM is dead, and yet somehow, the recording industry still lives. Who’d've thunk it? (Me. You. Everyone without a vested interest in obscene profits from album sales.)

record-needle

Photo by stevecadman

But record companies, bless their pathetic little hearts, are still trying to find a way to sell full albums. There are at least two options in the works, something called “CMX” and Apple’s version codenamed “Cocktail”, which we’ll almost certainly learn more about at their upcoming press event on September 7th. These new digital album covers are meant to be interactive, and include videos and lyrics, and other mysterious “stuff” that has yet to be identified.

It won’t work. If I had an extra $1,000 (or even $1,000 that wasn’t extra), I would bet it all that this won’t work. These efforts will all die. Technical compatibility issues aside, people are simply done buying things that they don’t like. I’m not in the habit of feeling schadenfreude, but in this case, I am happy to sit back, point and laugh.

That all being said, when a music group proves itself to make consistently good albums of mostly-non-filler (in my opinion, people like Ben Folds, They Might Be Giants and “Weird Al” fit this description), I’ll buy a whole album. They deserve it. Also, good movie soundtracks. Music tastes are incredibly subjective, of course, but until music goes non-digital again, you’ll have very few reasons to buy a whole album.

New digital album format doesn’t have a prayer, Matt Rosof, CNET News, August 11, 2009

Cocktail part of Apple’s September event, Greg Sandoval, CNET News, August 14, 2009

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CNN Money is presenting an in-depth feature explaining where President-elect Obama stands on a variety of economic issues. Here are some highlights:

  • Temporarily eliminate taxes on unemployment benefits.
  • Tax oil profits and use the money to help fund $1,000 rebate checks for consumers hit by high energy costs.
  • Tax carried interest as ordinary income rather than as an investment gain, thereby subjecting it to much higher tax rates than 15%.
  • Raise capital gains and dividend tax rates to 20% from 15% for couples making more than $250,000 and singles making more than $200,000.
  • Require any financial institution participating in Treasury’s Troubled Asset Relief Program to put a 90-day moratorium on foreclosures for homeowners “acting in good faith.”
  • Leave all tax cuts in place for everyone except couples making more than $250,000 and single filers making more than $200,000. Those high-income groups would see their top two income tax rates revert to 36% and 39.6% from 33% and 35% respectively.
  • Provide a federally funded match on retirement savings for families earning below $75,000.
  • Raise minimum wage to $9.50 an hour by 2011 and tie future rises to inflation.

Those are just a few of the changes Obama would like to bring to the economic system in the United States. There are many more points outlined by CNN Money. I encourage everyone to read through the list to understand what the new president’s economic goals will be.

Feel free to discuss in the comments of this post for economic thoughts or in the Consumerism Commentary Community (C3) for general thoughts about the election.

Update: If you tried to register to participate in the C3 today and couldn’t, please try again. I was just informed that there was a problem with the registration page.

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Weekend Blog Roundup: Emergency Charity Fund, MLM, and AMT

by Flexo

Here are a few articles worthy of review. Lazy Man and Money wonders whether you should have an emergency charity fund. He plans on splitting his charitable giving in three parts: 50 percent to the American Cancer Society and split the rest between Kiva and any natural disaster that happens to strike. Generation X Finance suggests ... Continue reading this article…

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Estimated 2007 Tax Brackets

by Flexo

Kiplinger has the estimated tax savings you’re likely to see for the 2007 tax year (when you file in April 2008). Here are the estimated tax brackets, take a look to see where you fall:

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Carnival of Personal Finance #46

by Flexo

Welcome to the latest Carnival of Personal Finance, edition number 46. For those coming to Consumerism Commentary for the first time, you can learn a little bit about me, Flexo, and this blog. You can also peruse through what I’ve arbitrarily decided were my “best” blog entries of 2005. Thanks to everyone who submitted an ... Continue reading this article…

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Holiday Spending, February Edition, Part 2

by Flexo

Now that we’ve looked at increasing Valentine’s Day expenses, we can determine if it’s all worth it. Allen Wastler tackles the marriage rate of return in his latest opinion column. Marriage is the end result of the courting that involves singles gushing and spending for Valentine’s Day. If marriage pays off financially, then the average ... Continue reading this article…

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