PCI’s Purchasing Tip of the Month

April, 2009—Buying a New Television

After the house and the car, the main family television is often the third largest consumer purchase. Such a purchase should last for a good many years. However, with the termination of over-the-air analogue service in the United States, it is likely that over the next 12 months a disproportionately large number of consumers will buy a new television—at least in those parts of the country near to the border.

The number one tip in regard to buying a television (and this works for stereos and other major electronic products as well) is to take a look at what is on offer in local shops, as well as what is on offer at the major national retail chains. In the Hamilton-Burlington area, there are two local shops that offer higher end products at better prices than the major chains—and they have been doing so since the 1930s. Often, the price differences are in the hundreds. Other cities have similar stores. For instance, we found a top brand name 1080p 32 inch set at a local store going for $599. In comparison, the same model set was for sale at the national chain for $699.

Shopping around is always wise. Stores time their purchases of new models differently. Thus, there can be a marked difference in the pricing of the same model at different stores in the same locality: one store will still be selling last years model as current, while the other is trying to move those sets out to make room for newer models.

A starting point for comparing television sets is to consider their provenance. The prime brand names include NEC, Pioneer, Hitachi, LG/Zenith, Panasonic, Samsung JVC, Sony, Philips, Mitsubishi, Toshiba, and Sharp. Off-brand or “no-name” manufacturers include Norcent, Sampo, Gateway, Monovision, SVA and numerous others. There are usually substantial differences in the price for brand as opposed to off-brand products. Off-brand models can be a very good buy, particularly if you are a knowledgeable purchaser who knows what features are available, how these features compare, etc. For less sophisticated consumers—and let’s face it, people tend to buy televisions less frequently than they buy cars—going off-brand can be risky, even though the price is far cheaper. A person buying televisions for commercial use (e.g. for a hotel or bar) might be better off going with off-brand sets, due to the conditions under which such sets will be operated. Also, such sets usually have only one use, whereas the family main screen may have several. For home use, in the case of the family main screen, we recommend going with a brand name. For the kid’s playroom or the bedroom, off-brand sets are the wisest course.

The first decade of the 21st Century witnessed a struggle among the competing television technologies of liquid crystal display television screens, plasma television screens, and DLP television screens. DLP has now largely dropped out of the market, due to its higher operating cost and bulk. LCD technology now seems to be gaining the edge over plasma technology, but there are sill a good many plasma screen sets on the market.

LCD TVs contain two transparent panels, which are filled with liquid crystals. When a power source is applied to the liquid crystals, they align themselves in order to let the requisite amount of light through in the correct places. The light comes from a fluorescent tube located directly behind the panel. The alignment and positioning of the liquid crystals create the pixels which end up creating the final image on the screen.

Originally LCD screens suffered from a delayed imaging problem: when a fast moving object moves across a LCD screen, this delay caused a ghost image, known as “artefacting”.  On newer models the problem has been all but eliminated for smaller screen sets (under 35 inches). Above that size, artefacting can still be noticeable and to some views extremely annoying.   An LCD display has a backlight which shines through its panels. These panels allow or block light depending on what is required to produce an image or a color. LCD sets do not reproduce dark grey or black as well as plasma technology. LCD sets also suffer from a narrower field of view than plasma sets, although again this problem has been corrected to some extent on newer models. Most offer a good picture over at least a 90° range, and some offer an acceptable image over up to a 160° degree range.  Another legacy problem of LCD sets is that of pixel failure. An LCD image is made up of a very large number of pixels (300,000 on a 20 inch set; almost 1,000,000 pixels on a 50 inch set).  As a growing number of pixels will fail over the life of the unit, usage will eventually becomes annoying.

Plasma screen technology is also pixel based. Each pixel contains phosphors of the primary colors, red, green, and blue. A tiny chamber filled with gas, a mixture of neon and xenon, sits behind these phosphor pixels, with an electrical source located behind it. During operation, the electrical source ionizes the gas, generating ultraviolet light. This excites the phosphors into glowing in the colors required, and produces a crisp and clear picture. This technology allows plasma televisions to generate more vivid colors than their LCD counterparts. Plasma technology has a better response time, which makes it a superior choice for fast paced sports, like curling and cricket. 

Plasma screen televisions tend to be cheaper than an equivalent size LCD model, but the price gap is narrowing. LCDs are more energy-efficient than Plasmas, which makes them not only greener, but also cheaper to operate. LCDs are also lighter than Plasmas. Plasma sets are more prone to damage due to the delicate nature of the phosphors inside. An LCD is therefore more suitable where the set is likely to be moved regularly. LCD sets have less reflective screens, which makes them better for rooms with direct sunlight—as does their brighter image. The benefits of plasma are most evident with very large screens, which makes them a better choice for a true home theatre. Also, some people consider plasma color images more life-like.

Plasma screens suffer from a problem known as image retention (or “burn in”) where the same still image is left on the display for a extended period of time. For example, you would not want to use a plasma screen for a computer display constantly. If a plasma TV screen remains on one station which has constant ticker tape across the bottom (as many news channels) for long periods of continuous use, part of the image is likely to burn in to the screen so that it remains visible should the set be switched to a different channel. This problem has been reduced on newer models, but is still a factor to consider. Plasma screens were directed at the high end of the market, for large screens above 37 inches. Plasma screens may also suffer from pixel failure, but again this problem has been reduced on newer models. Early model plasma screens had poor contrast. A plasma screen has a field of vision of almost 180 degrees without loss of picture quality. Plasma screens are very bright, with an image between 4 and 5 times brighter then a cathode ray television screen.

Many people these days source electronic products over the Internet. Although significant savings can be obtained in doing so, it is not always a wise course. Many of the features offered on different brands, manufactures and series of television set can only be appreciated, when two or more sets can be compared side by side. Many people find “sharp” pictures too hard on the eyes. Some sets are better for sports, while others are better for movies. It is wise to compare how the picture looks on channels that show different types of program (high action sports, compared to CNN, where the picture is often little more than a talking head).

Another technology choice is between 720p and 1080p screens. 1080p sets are more expensive than 720p sets is because a 1080p set offers 1920 x 1080 pixels. A 720 LCD TV allows a resolution of only 1280 x 720 pixels. For obvious reasons, the 1080p image is by far the clearer of the two. However, a 1080p LCD set will usually costs 25%-35% more than a 720p model. For screens under 47 inches, the price difference is minimal, but for smaller screens, the difference in image quality is also less pronounced. Although its value is questionable at lower screen sizes, at 46" or above, most viewers consider 1080p upgrade worth paying extra for.

As with any other major acquisition, the purchase of a new television should be properly planned. These days, the largest sets are too big for most living rooms or family rooms. Some are wasted unless you have the room to create a proper in-home theatre—and not many middle class or working class people do. Generally, a 46 inch model is considered about the maximum useful size for the average user.

Size is one of the most important considerations in price, so it is a good idea to have given some thought not only to size, but also the price that you want and can afford to pay. For instance, different prices offered by the same chain for the same brand of set ranged from $1250 for the 40 inch model to $1500 for the 46 inch and finally  $2000 for the 52 inch. If you have a very large room in which to put you set, then perhaps it is worthwhile spending another $750, but not otherwise.

The latest model is always an expensive proposition. The list price for a 46 inch model of one formerly top (now second tier) brand was $1899. This was the same as the list price for a newly released model of only 40 inches. Both sets were available at considerably below the list price (the larger set was going for $1399, the smaller for $1599).

Like any other capital expenditure, the purchase of a television set should be viewed as the acquisition of a long term asset. While one should never buy a more expensive set than what one can afford, very often a small difference in price (e.g. in the range of 20%) can mean a significant difference in the quality of the entertainment experience. The early model plasma screen television sets had a short life span. Most of the sets sold around the turn of the millennium have already gone to that great entertainment center in the sky. Current models have a much longer life expectancy. Some plasma manufacturers now claim that their products have a half-life of 60,000 hours (which means that the set will still be half as bright as on initial purchase after 60,000 hours of use). However, claims like this are difficult to verify and refer to usage under optimal conditions. Both types of set now exceed the 25,000 hour half-life of the old cathode ray tube technology televisions. At just under 10 hours a day, a 60,000 hour half-life means that a new set could last as much as 17 years. In contrast, an older CRT set would be worn out after just over 7 years. Unfortunately, the probability is that an internal component of a television will probably fail well before the lifespan of the screen becomes an issue. It is normally not economical to repair a contemporary television set—and the older the set becomes, the more this is likely to be the case. 

Life expectancy has important implications when making price comparisons. A price of $1999 is obviously just over 25% more expensive than a price of $1599, but in terms of actual dollar outlay, the difference is only $400. Spread over 15 years, this translates to an added cost of just over 50˘ per week. If the more expensive set offers a significantly better picture or sound, or a superior range of features, it may be wisest to go with the higher priced set. Even over a seven year life expectancy, the difference is still only about $1 a week.

The standard rule of thumb when buying large appliances for the home or workplace is measure first, buy later. Do not be fooled by appearances: since store showrooms are usually bigger a living room, TVs often appear smaller at the store. If you want to retrofit your new television into an existing entertainment unit (doing so can knock $100 to $250 of the total price), be sure that the new set that you want to buy will fit in the available space. Flat screen televisions are lighter than the old cathode ray style television sets, but they still weigh a good deal. If you live alone, or with small children, bear in mind that larger televisions weigh well over 100 pounds, and can be difficult to move. This factor should also be considered if you must take stairs to get to your residence.  

With the development of the I-Pod and 3G telecommunications, it seems likely that there will be an increasing convergence in home electronic gadgetry over the next 10 to 15 years. Television sets should be bought with that consideration in mind. The ability to plug-in a computer is already very useful: many movies made back in the 1940s or earlier are now available at no cost over the Internet, as the copyright has expired. A computer attached to the television may allow those programs to be shown on the family’s main screen television. All the major US networks now offer video on demand, and a computer-television combination allows a viewer to take advantage of this option. With the shift to digital television, a computer can also act as video recorder. For computer connectivity, make sure that the set has a HDMI or DVI connector. DVI does not carry audio signals, so audio must therefore be handled separately. VGA is not recommended if HDMI or DVI are available, as VGA offers only lower resolution.

Plug and play capabilities for video games are a virtual must for families with children—a group which for this purpose includes anyone under 30. Connectivity to VCRs, digital cameras, and other electronic products should also be considered.  In almost all cases, lower priced models do not have as many input/outputs as higher priced ones. Work-around solutions are always possible if you purchase a set with few inputs/outputs, but often the results are sub-optimal—and such work-arounds can easily prove as expensive as buying a slightly more enhanced model.

Wall mount television sets free up floor space, but in most homes, must still be attached to cable or satellite via unsightly wires. Home entertainment centers, which accommodate a range of peripherals are useful if you wish to connect the television to the stereo, computer, computer games and video recording devices. 

Warranty coverage is a “soft price” consideration, when the warranty is included in the base purchase price (meaning that the cost of such coverage is a non-negotiable element of the sets basic price to the retailer). It is a “hard price” consideration (i.e. an extra cost) when considering the purchase of a so-called “extended warranty” plan. Most manufacturers offer a one-year parts, 90-day labour warranty. Usually, any problem that will show up with the set will show up during this period.  Extended warranties are expensive, and in our view unacceptably so. There is always an element of gambling in dealing with warranties. It is a fair bet that the retailer would not offer a five year extended warranty unless he or she expected that it will almost never be necessary to honour it.

As a final point, many people rely heavily on the advice of sales staff when choosing a new television. This is unwise for a number of reasons. While there was a time when sales people in electronic stores knew a good deal, that time is now largely passed. Local stores that appeal to the high end market are often an exception to this general rule: the staff working in those stores tend to be audiophiles and video-philes, and for them, the technology is a matter of passionate concern. However, even if one gives all sales staff the benefit of the doubt, bear in mind that their job is to sell televisions, not to provide advice.

 

May, 2009—What to look for in a training consultant

Training consultants should be able to help your company or organization with the following:

           Preparing for a new initiative, such as a major procurement project (for purchasing departments), or the pursuit of a major new customer (for suppliers).

           Giving your company or organization access to cutting edge thinking.

           Explaining how other organizations have improved their productivity and efficiency.

           Explaining how to build effective procurement (or sales) teams.

           Helping you to improve your focus on the bottom line.

           Advising how to improve customer/supplier relationships

Interview possible consultants as if you were hiring a new employee. While a training consultant is not an employee of your company, that person may influence your business as much or more than a regular employee does. Therefore it would make sense to be sure that each possible consultant has similar aims and goals to those of your company. The consultant must also be able to work well with your current employees. Ask specific questions such as:

           What does this trainer promise for your company or organization?

           What kind of background enables this trainer to be good for your company or organization?

           What kind of programs has this trainer delivered previously?

           Are there any independent evaluations available of the work done? •            What kinds of things has the trainer worked on in the past?

           What kinds of things was the trainer most successful in doing?

Take a close look at the potential trainer's resume. How does that experience match with what you need?  Ask the trainer to provide a sample of work product. Make sure that it has some real meat to it.

 

June, 2009—Sexual Harassment in the Workplace

The problem of sexual harassment is not specifically related to public sector purchasing departments, but they are not immune from it either. Workplace sexual harassment is a serious problem in Canada. An increased willingness on the part of the victims to sue over acts of harassment has caused increased perceptions of the problem. In one recent sexual harassment claim before the Equal Employment Opportunity Commission in the United States, 350 female employees recovered an award of $34 million against Mitsubishi Motor Manufacturing of America.

According to one survey, 80 percent of the women questioned said they had been sexually harassed in the workplace. With numbers like that, claims for sexual harassment are likely to become an ever more serious problem for employers over the next few years. Sexual harassment charges can lead to scandal and contribute to the ruin of careers. Quite apart from the risk of potential liability, sexual harassment frequently damages employee morale, causes absenteeism and poor productivity, leads to employee defection and resulting higher recruitment costs due to staff turn-over. In so doing adversely affects both organizational performance and the bottom line. Thus, sexual harassment is not just a problem for the legal department. It is a matter of serious concern to every manager in every organization.

It is generally accepted that educating employees about sexual harassment, and establishing policies on staff conduct to reduce the prospect of such behavior, and providing for effective enforcement when it does occur, not only protect the employer, but can reduce the number and magnitude of sexual harassment complaints. Frequently, the employees who cause the problem fail to understand that their behavior is offensive. They have no malicious intent. However, the lack of any intent has little bearing on the adverse consequences of what they are doing. In one recent American academic study, 95 percent of the working women surveyed stated that they were offended by suggestive comments, and workplace attempts at flirting. More aggressive conduct is even less appreciated. Very often, it is found that the conduct that gave rise to a complaint began as joking behavior. For this reason, it's important to make certain each party knows what is considered appropriate and what is not.

Section 7(3) of the Ontario Human Rights Code provides that every person has a right to be free from:

(a)        a sexual solicitation or advance made by a person in a position to confer, grant or deny a benefit or advancement to the person where the person making the solicitation or advance knows or ought reasonably to know that it is unwelcome; or

(b)        a reprisal or a threat of reprisal for the rejection of a sexual solicitation or advance where the reprisal is made or threatened by a person in a position to confer, grant or deny a benefit or advancement to the person.

No one wants to work in an environment in which everyone is required to walk around on egg shells, so as to avoid the risk of offending others. However, most complaints about sexual harassment involve conduct that everyone should appreciate is offensive. Some of the more obvious causes of complaint include:

           Workplace discussion of sexual activity or alleged prowess

           Inappropriate off-color jokes

           Unwelcome touching or groping

           Displaying suggestive or pornographic pictures

           Commenting on the physical attributes of a workplace colleague or someone who visits the workplace

           Comments about a person's sexual activity or orientation

           Even quiet behavior can be offensive: persistent leering or staring can be highly intimidating.

Certain types of situation have been found to contribute significantly to worker dissatisfaction. One of the types of situation most likely to result in problems is where a workplace romantic affair ends. If one party continues to pursue the other, the situation can soon become very hostile.  If the jilted suitor is one obvious cause of problems, another equally problematic situation involves the rejected suitor: the type of person who refuses to take no for an answer. When the other staff member goes to the supervisor for help, the supervisor refuses to “get in the middle”. By not taking the matter seriously, the supervisor and the organization all could be liable for sexual harassment.

Impropriety can also take the form of favoritism, as well as discrimination. A common example is where an employee who is known to be romantically involved with a supervisor is consistently favored over other workers. Such a situation may support a claim for third party sexual harassment. Again, irrespective of liability, favoritism of this nature is likely to depress morale and to encourage other workers to leave.

As the previous example illustrates, even when the parties who are involved in objectionable conduct see nothing wrong about it, that same behaviour may create a hostile environment for others. When male workers make sexual comments and use derogatory language concerning a female colleague, others might find that behavior offensive, even if she does not. Creating a hostile work environment undermines job performance, irrespective of what the law may be. For this reason, supervisors have a clear obligation to correct the situation.

Some of the common sense measures that should be taken by every manager to avoid problems of this nature include the following:

1.         Every organization should have a written, published sexual harassment policy. If yours does not, speak to senior management about developing one.

2.         Policies by themselves do little more than take up space in a drawer. It is necessary for an organization to take proactive steps to make sure that all workers are familiar with it, and how they can go about enforcing their rights under it. All workers must know of the police, and need to be schooled in observing it.

3.         Creation of a formal process for brining complaints is also a necessary measure. Include a procedure for complaint filing, forms to do so and the ability for an employee to talk with a senior manager. Ensure that complainants are free from any kind of retaliation.

4.         Make sure that your staff understand what constitutes sexual harassment—and what can be done about it. Staff should be provided with proper training, including both and informational and discussion sessions. Training also should be provided to newly hired staff. Appropriate training programs include formal seminars, informal discussions, and showing videos on the subject.

5.         Every organization, and every manager within it, should create an atmosphere that discourages improper behavior and offensive language, as well as the display of inappropriate cartoons, drawings, photos and calendars.

Ultimately, sexual harassment is simply a form of inappropriate and antisocial behavior. It is the common responsibility of management and workers to ensure that sexual harassment is never tolerated, and so far as possible, that it is never displayed in the workplace.

July, 2009—Cutting Your Travel Costs

No one knows more about cutting travel costs than a self-employed consultant. These days, clients argue over every receipt. If you bundle your travel costs in with your hourly rate, then any penny saved goes straight into your pocket. Nothing saves money like that kind of incentive. Among some other useful cost saving tips:

           For routine travel, use the Internet, not a travel agent. This cuts down on fees and is generally faster. It also allows you to search out the best deal. Who is more interested in saving you money: you or a travel agent who hardly knows you and who gets paid on commission?

           Use experienced (and, if possible, specialized) travel agents for trips into unfamiliar territory: although this may cost money, a travel agent whose clients frequently travel to central Asia is much more likely to know where the good hotels are in downtown Ulan Batur than you are.

           For discretionary travel, go at off-peak times. Many airlines, railways and other public carriers offer deep discounts for travel during the mid-day period.

           Decline rental car insurance, such as loss-damage waiver (LDW) or collision damage waiver (CDW). Most credit cards and even the insurance policy on your own car likely afford most of the coverage that car rental agencies try to push you into buying when you arrive at the airport. Confirm the scope of your coverage and decline the rental agency coverage. By the way avoiding these charges can be difficult over the Internet, as many rental agency Web pages make them a default option.

           Avoid using a rental agency supplied GPS system. The cost for a two week rental is equal to the cost of purchase. If you are travelling to a foreign country, down-loading maps to your own GPS device is almost always the cheapest option (e.g. for one make, the cost of downloading a complete set of UK maps is $50; the car rental agency price for renting an equivalent device with UK maps installed is $126 for a two week period).

           Do not buy the tank of gas. Pre-paying for a rental car’s tank of gas may seem like a good deal, and may appear much more convenient, but it is a sure bet that car rental agencies wouldn’t offer this service if they did not expect to make money on it. Most business travelers are only in town for day or two, and are unlikely to travel much beyond the city limits. They are unlikely to need a full tank. Spend a few minutes on your flight with a download from Google Maps, and work out how far you are likely to travel over the course of your trip.

           Stay off electronic toll roads in a rental car. Most car rental companies charge a hefty premium for electronic tolls billed to their vehicles. And also decline so-called “E-Z Pass” electronic transponders supplied by the rental company. The vendors who supply these devices often charge both for the tolls and for using the pass. Standard charges run in the range of $2.50 to $3.00 a day or $10 to $12 for a week.

           Cut your ATM charges. The introduction of international bank machine networks has largely eliminated the cost and inconvenience of traveler’s cheques. But ATM fees can mount up. If you take out $200 per withdrawal rather than $100, you cut your fees in half. Find out if your bank has a local affiliate in the place to which you are travelling. Very often, these affiliates waive ATM fees. Also, whenever possible use credit union owned ATMS. They are almost always cheaper, and your helping the local community when you use them.

           If you take a cruise, check out the cost of local independent services over the Internet, before deciding to go with the local services promoted by the cruise ship. Often, the price is less than half what the cruise line offers.

           Consider which is cheaper: a coach or taxi. Generally, coach and bus service providers charge per passenger. Taxis tend to charge per trip. Confirm which is the case, and do a little math. Often it is cheaper for two people to take a taxi, and this is almost always true with three or more passengers.

           Try pick-up and take-out rather than room service. Many hotels will charge the restaurant price for meals that are picked up and taken back to the room. If you use room service, you might be paying twice that rate. Also, make sure that the so-called gratuity has not been included. If you don’t, you may end up paying a double tip to your waiter.

           Ask for a variety of rates. AARP, AAA, CAA, Government and Corporate rates may vary widely. If you qualify for two or more, ask for and compare the rates. One hotel we stayed in offered better rates for winter storms than it did for government guests: And it was a government-owned hotel!

           Make sure you are not paying for services you will not use. If you have arrived late and are staying over night, or your idea of exercise is using the channel changer, don’t end up paying for tennis courts, fitness center, and other types of service that you are unlikely to use. Also, if you are only going to be in a hotel from 10:00 PM to 7:30 AM, is there really much to be said for a mountain or sea view?

           Get a cellular Internet card, and avoid the ridiculous fees charged by many hotel and transit line for Wi-Fi services.

           Make sure you are paying only for what you ordered. Check your bill carefully before leaving the hotel.

 

 

 

 

 

 

 

 

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