News and Views

Classic Fiasco Part II

Here is the response from Classic to Kurt Kemmling. See last week's newsletter for his comments.

This is to answer all of the questions concerning MLB phone cards. We were just as surprised as you were when we learned that the cards were tariffed at $.40 We expected to have the time tariffed at $.60 per minute. Obviously, it was not. We would not have knowingly issued a card with a $10 face value with only $6.40 of long distance on the card

It is unfortunate that this has happened, and it was not the intention of The Score Board Inc./Classic Marketing to produce at product with a lower phone time value than what was printed on the front of the phone card. We understand how this hurts the collector industry, and we certainly don't want the hurt our customers or the reputation of the company.

The Score Board Inc./Classic Marketing wants to help the phone card market grow by providing collectors with the highest quality phone cards. To date, we have produced 30-mil phone cards featuring the top professional athletes from basketball, baseball, football, hockey and race card driving.

Unlike some other phone cards, once the MLB phone cards (licensed by both the Major League Baseball Player's Association and Major League Baseball) are used they still maintain a collector value on the secondary market. How many other phone cards maintain a collector value once the phone card is used?

We value the comments and concerns of the phone card collector community and we will take into account the comments provided to us about our phone card products. Should you have any questions, please feel free to call me at (609) 354-9000

James Robinson,
Vice President of Marketing

My Response Part II

This letter really shows how far Classic has come concerning understanding the phone card market - And unfortunately, that is not very far. Besides the numerous grammatical errors (He should have at least proof-read the letter) I find Classic's attitude incredulous and ignorant. My favorite part of this newsletter was when Mr. Robinson proclaimed that "How many other phone cards maintain a collector value once the phone card is used?" Does this guy know what he is talking about? How many phonecards maintain value when they are used - All of them! More people on this planet collect used phonecards than new ones. Classic is really not interested in selling phonecards to get people to actually use them, they are more interested in producing phonecards so that people can buy expensive pieces of plastic that look like sportscards. In 1994, Assets came out and most of the phonecards were 1 minute cards. What good is a one minute card? It really isn't any good, I have not used any, you probably have not either. Now, Classic proclaims that they now have a minimum value of $2 per card - With their new coke product. However, at a rate of $1 per minute, they are now giving 2 minutes instead of 1 - Just about as useless. When you see the two dollar card, you probably think of it as $2 instead of 2 minutes. After all, with many of my phonecards, I can get 8 minutes out of a $2 card, something that is useful.

Is this overkill - Am I being too hard on Classic. Perhaps, but if the US market develops the way that Classic is promoting it (Buy the cards because they look neat, don't use the time, collect the card) we will always be a small sub-segment of card collectors. The only way this hobby will really explode as it has in many countries is for people to start using the card, and have a used market develop. According to Classic, this won't happen since there are no used cards of value except for Classic's MLB cards. More if anything develops in later issues.

Gillette Update

More reports of the new GII cards are being filed in the on-line world. They have yet to show up here in Ithaca. However, I have located 20 packages of old Gillettes in this area, and purchased them all. Why not? Tonight I found 16, I just extended my razor supply another 3 years. I was expecting a strange comment from the cashier, after all, I went to the market at midnight. I was all prepared for a funny answer, like I found out I was out of razors and wanted to be sure that would not happen again! Maybe another time.

2 for 1 offers

I have witnessed three different two for one offers over the past 6 weeks. The first occurred at Wegmans, where Frontier entertainment cards were being offered at 2 for 1. 50 cents per minute entertainment cards became 25 cents, a lot more reasonable. Next, Ralphs Market in the Southern California area began offering their GTI cards at 2 for 1. That is 12.5 cents per minute, what a deal. More recently, Fay's Drugs, in the Central New York area, were offering their Frontier Call Time (Normally 40 cents per minute) at half price. I picked up a bunch, Call Time is a nice generic card. The problem I ran into was ignorance of the sales staff. There is no display for this card, the consumer has to go to the film/camera area and ask for it. If we want people to use the cards, we have to make them more accessible!

MCI Harley Davidson

From Gene Hwang of MCI

MCI is now offering Harley Davidson prepaid cards on MarketplaceMCI at http://www.internetmci.com/marketplace/prepaid/

Check out the site to see the new cards, which will be available in 10 and 20 unit denominations, and have two separate card designs.

Free Sample Issue of a German Phonecard Magazine

TKJ is the german phonecard magazine. Subscribers will get a free German phonecard. Please a short message by e-mail to

Karsten.Windfelder@t-online.de

HP Phonecards

Hewlett Packard has offered a FREE phone cards to authorized supply dealers who pass a self study sales training course (2..3 hours) with a twenty question test. Only 2,500 cards were produced and they have 20 units of time. Each card comes in a presentation folder with animated art work. The card has HP's logo and shows two people discussing Hewlett Packard Products (animated). The cards look sharp and will be hard to get by collectors because only AUTHORIZED supply dealers can order the sales course. The promotion started in December and most of the cards are gone. From: Mike Klein

Napa Card

If your vehicle needs a new set of spark plug wires and you buy them at NAPA Auto Parts you will get a free 15 min. phone card. This was advertised on TV last night.
From: Joyce Gair

Style 15 minute Phone Card

Send 20 Style cigarette UPC's along with this form. 3 cards per household offer expires 12/31/96. This offer was printed in a Sunday Insert Paper recently.
From: Joyce Gair

DC Comics

DC Comics is giving away a 5 minute phone card when 2 comic book subscriptions are purchased. The card pictures Superboy, Flash and Green Lantern and the DC logo. Yearly comic subscriptions range from $16 to $21. DC subscriptions can be reached at 1-800-887-6789 (that's the number to subscribe, it may not be for information). I have seen the ad in Action Comics #719 and Batman & Robin Adventures #5. Offer expires April 30, 1996.
From: Dave Dodson

MacWeek Card

This may be a little obscure. MacWeek magazine is giving away a 10 minute phone card along with a questionnaire to certain subscribers. I did not receive one, but another guy in my office did. The card is an incentive to fill out the questionnaire. The card is issued by SmarTel. It pictures the MacWeek logo, the phrase "Advisory Board" and "10 minutes" with a background pattern of "Thank You's".
From: Dave Dodson

Osco Card

In the Sunday insert for 2/18/96, there is an ad for an Osco Drug Smart Card. 30 minute (with 10 free) STO30J/C for $9.99; 60 minute (with 30 minute free) STO60J/C for $18.99; 120 minute (with 60 minute free) STO120J/C for $35.99 - In Topeka, Ks; nothing else required, just buy at the store.
From: Ann Andrews

Afrin Sinus Nose Spray

Afrin Sinus Nose Spray is offering a free 15 minute phone card with the purchase of their product. Look for the box that is clearly marked on the front "FREE 15 minute phone card offer inside."

The coupon is printed on the inside of the box. Original cash register receipt and UPC is also required. Bought the product at Target for about $4
From: Scott Nemeroff

Luxor Hotel (Las Vegas) Offer

This might be old news to some... I am just coming back from a week end to Las Vegas and found out that the LUXOR Casino sells phonecards. They come in several denominations (starting with 20 minutes for $5.25). They can only be purchased when one is a member of the casino "Gold Chamber Club" (an easy, free membership, that will let you win points while you gamble in the Casino - Noteworthy: the membership card is very attractive, in plastic, similar to a credit card). By the way, every Casino has this type of membership available - all free... and comes with one of those credit card lookalike, but I have only seen phonecards at the Luxor.
From: Annie Petitjean

Collector-Link Update

The Collector-Link is up and running (http://www.collector-link.com) There will be a promotion in March, and 200 phonecards will be given away. Most will be used cards, but 1 in 10 of the cards will be an unused card, and 2 Card Mall phonecards will be given away in this promotion. More on this next week.

That's all the news for this week - If you hear of any promos, pass them along my way!

Until Next week, Happy Collecting,

Alan

Distribution

Phonecards On-Line is written and distributed by Alan Cohen. It is a weekly newsletter devoted to phonecards - Current news, viewpoints, and reviews of new issues. It is distributed free of charge, and available two ways.

1) On-Line on the World Wide Web. The address is: http://www.pcmreport.com

2) Direct e-mail. Send a message to: phoneline@cardmall.com

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