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iPhone and Tide: Twice the Power for Half the Amount?

iphone Leave it to marketers to create the tantalizing proposition of getting more for less when you buy their product.

Both the new Apple iPhone and Tide 2X are making similar claims.

For the iPhone, Apple says you get twice the speed for half the price. In fact, the first generation iPhone sold for $399, while the just released 3G version sells for $199. So far, so true.

One catch is that you have to sign a two year contract. But the sneakier one is this:

*MOUSE PRINT: The data plan for the new iPhone is $30 a month, compared to $20 a month for the old one. Over a 24 month period, you will be paying an additional $240 to AT&T for the phone, which, in essence makes it 10% more expensive than its predecessor — not half the price.

Now for Tide 2X. Procter & Gamble is turning back the clock to the 70s when liquid laundry detergents were concentrated. You only had to use 1/4 of a cup.  The “new” detergent in essence has half the water of the old one, so the new 50 ounce jug will do the same number of loads as the old 100 ounce one.

But in TV and print advertising, they say the new detergent is more powerful:

Tide 2x

“Twice the stain fighting power in every drop” is the claim, and that might make you think it is stronger and better than competitors.

*MOUSE PRINT: The disclaimer indicates the comparison is to their non-concentrated former product. Fine. So while it’s literally true that every drop of new Tide has twice the power of the old one, since you only use half the amount , you are not likely to see dramatically cleaner laundry because the product is still diluted by a machine full of water. (Where “x” is the strength of the product, one-half times 2x still just equals x.)  

Of course, for treating stains directly from the bottle, there may be an advantage. 

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Snap, Crackle, Poof: Kellogg’s Downsizes

Joining the ranks of products being downsized is an array of Kellogg’s cereals, including Apple Jacks, Corn Pops, Fruit Loops, Cocoa Krispies, and others.

Apple Jacks

*MOUSE PRINT: Though the boxes look identical head-on, the new box of Apple Jacks has two cups less of cereal.

How did they do it? The new boxes are narrower:

Apple Jacks side

The new version will also be 10 calories slimmer to your waist line. High fructose corn syrup was replaced with more apple juice concentrate (reducing sugar), and salt was also decreased.

Both boxes cost $3.49 during the week of July 6. That works out to 31.7 cents an ounce for the old larger box, and 40.1 cents an ounce for the new smaller one. That is a 26.4% price increase. Had the product been kept the same size, its new retail price would have climbed to $4.41.

Why did Kellogg’s downsize?  The company was refreshingly candid in their response:

“This package change is considered a price increase, in that box size is smaller. The reason for the price increase is the rising costs of ingredients and transportation. “

Consumers would clearly notice a price increase of almost a dollar, but the subtle change in packaging may go unnoticed. And even if shoppers did realize they were getting 2.3 ounces less in the box, they would not likely equate that with a nearly one dollar price hike.

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Sunshine Guaranteed: Or Your Trip is Free?

Sunshine guaranteePriceline is making an intriguing offer for travelers this summer — guaranteed sunshine!  “If your vacation is rained out, it’s free!”

Of course, the devil is in the details:

*MOUSE PRINT:

1. You must buy a vacation (hotel, airfare), not just airfare.

2. Sunshine is not guaranteed. If it is cloudy every day, no refund is due.

3. The big string is the amount of rain necessary to trigger a full refund: it must rain at least 1/2 inch for at least half the days of your trip. For a five day trip, it has to rain on three of the days. For an eight day trip, it has to rain on four of the days. Again, at least 1/2 inch of rain on EACH of the rainy days is required.

How likely is it that you will have so many days of heavy rain on your vacation?  Of course, it depends on the location you choose (only US destinations qualify). Checking to see how much actual rain different cities get per day, suggests you are unlikely to ever trigger a refund under Priceline’s guarantee. For example, in June 2008, in the Seattle area — a region known for being wet — there was more than a half inch of rain only on one day that month. [See chart]

In Ft. Lauderdale in June, it was quite rainy. But in a stretch of 10 days when it rained every day, only two non-consecutive days qualified. [See chart]

On the positive side, Priceline’s “no rain” guarantee is free. And your refund will be automatic if your trip meets the bad weather criteria it has set.

Bottomline: don’t count on a free trip.

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