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Phonecards

March 2, 1996


Issue 22


Phonecards On-Line is written and distributed by Alan Cohen


News and Views

Administrative Notes

Welcome to another week of Phonecards On-Line. This week, we went over the 300 subscriber mark to this newsletter. This does not take into account the number of readers who only access via the web.

Classic Follow-up

No long commentary from me this week - there are no new developments. I received a lot of responses last week from people, mostly voicing their concern over the direction that Classic has taken. We'll see what happens in future weeks.

Gillette II - Important Update and Commentary

Now that the Classic controversy is quieting down, are you ready for another one? It was announced on CompuServe this week that there are additional details of the Gillette promotion (which I will now call G2 from now on). In case you have not seen what the new cards look like, check them out at

http://www.pcmreport.com.gillette

It turns out that the G2 promotion will be quite different than last year. Cards will still be available in packs of razor products, but there will be 2200 complete sets available to collectors, most likely through some of the larger dealers. Additionally, there will be 100 jumbo sets available. These new cards will be distinguished by a small notation on the card, noting that they are from the collector's series.

The problems I have with the direction of this promotion are as follows.

Last year's Gillette promotion was quite a chase for many collectors. For those who were not collecting then, or just do not remember, the first edition Gillette cards could have been completed by acquiring 35 different cards. Some savvy collectors noticed a variation on the access numbers, so it was determined that a full set really consisted of 140 cards, not 35 (35 unique designs, 4 sets of access numbers, 140 cards total). There were quite a few crazies (and I mean that in the nicest sense of the word, since many of these people I know well and even like!) who went after and completed the sets! This year's sets should be easier to complete because there are only 16 cards. However, with the new collector's edition cards and the jumbos, the number triples. Of course, that is much less than 140. But the difference here is that most of the set will have to be purchased outright from dealers. The fun part was the chase - people buying packs of razors (I have enough to last until 2015) and trading duplicates. That will not happen to the degree that it did last year. This is really too bad since that promotion got quite a few people started with phonecards. What really disturbs me is which dealers will get the cards, what the prices will be and who will set them. For the completist, there will only be 100 complete sets. The prices for the jumbos will surely be high, causing some collectors to abandon their pursuit of a complete series, or placing a heavy financial burden on those who do complete the sets.

What bothers me the most is that the same company that makes the Gillette series also produced the Unocal 76 cards. For those who do not remember or do not know, Unocal 76 ran a promotion where cards were sold with fill- ups of gasoline. Many collectors went out of their way to buy Unocal gas, even burdening their friends and families. Prices rose to an acceptable level considering that this was a promotion in a local market (Southern California) and the difficulty in getting the cards. Last fall, ads appeared in the back of a magazine where many large dealers were selling these sets at a fraction of the market value - probably around 25%. This has negatively affected the market value of these cards. That same company, Brilliant Cards, is playing games with the G2 promotion. Where did those extra Unocal cards come from? Were they overruns that were dumped on the hobby? Now that G2 cards will appear outside of the original distribution system, namely packs of razors, will the same thing happen? Quite a few people commented last fall on the Unocal situation, and no answer or feedback ever came from Brilliant.

My enthusiasm for G2 has been diminished. While I still plan on purchasing some, I will not purchase in quantity. I do not wish to try for a set, and be burned by cards being dumped at a later date in the market place. Until I hear from Brilliant Cards (and I welcome them to respond, they can have space in this newsletter) I will associate the company with over-production and dumping.

Not all Gloom and Doom

I realize that most of the commentary in this newsletter has not been what can be called very positive. Please do not misunderstand me, I love this hobby. I could write this newsletter with a completely happy point of view, but I am of the persuasion that in order for things to work as they should, the things that do not work should be pointed out. Classic and G2 are two examples of what I see are wrong with this hobby. There are many more positive aspects, and I plan on highlighting a few of them.

The best part of collecting is the friendships that develop. This is very true with phonecard collecting, because like it or not, we are a relatively small group. Luckily, we are mostly a friendly group. I am involved with other hobbies, and the level of friendship and communication is higher here.

The Baby Bells are doing a fine job overall. Pacific Bell now allows for collectors to purchase from an 800 number, they are doing promotional cards for companies and advertise to all of their customers. Southwestern Bell offers a Collector's Club, and even gave away a free phonecard. NYNEX has a superb Collector's Club. The cost is $15. I have received many times that back in free cards and special offers.

The Olympics are going to be spectacular, and I am not only referring to the athletic competition. Besides the fact that lots of people from just about everywhere will be coming and trading phonecards, the U.S. will be formally introduced to the smart card - stored value debit cards. What better company to introduce us to a new form of "money" than Visa? It is a name that everyone recognizes, and that many of us use already for non-cash transactions. Add to that the security of real banks issuing these, and they will be accepted. There still is a stigma to phonecards, especially since a few companies have gone under and the card holders are left holding the bag, so to speak.

New Beginnings Head Start Phonecard

Head Start is a national program which provides comprehensive developmental services for America's low-income, pre-school children ages three to five and social services for their families. Specific services for children focus on education, socio-economic development, physical and mental health, and nutrition.

A 1996-97 Congressional act calls for $137 Million cut in head start funding. We are Selling phonecards to try to compensate some of the cuts. The cost of the card is $10, and it includes 25 minutes of phone time. The card can be recharged, and the recharge rate is .22 to .25 per minute. 10% of the total cost of each recharged card will go to Head Start. Additionally, $4 of every $10 card is tax deductible since the profit is going directly back into support of Head Start Programs. 2500 First Edition cards will be available.

You can order by calling: (800) 585-4528
or fax (215) 221-5095
New Beginnings Head Start
1907 W. Tioga St.
Philadelphia, PA 19140
Attn: Lois Remick

If you mail in an order, please include a Self-Addressed Stamped Envelope for return postage.

Head Start plans a series of phonecards, and they can all be ordered from their home page at the Card Mall - The Card Mall is pleased to offer a home page for this worthy organization, and I strongly recommend that everyone purchase a card to support a program that supports education.

Krause Cans Phonecard Collector Insert

Unfortunately, Krause has decided not to enter the phonecard publishing field. For the past year and a half, they have inserted a glossy magazine in their issues of Sports Collector's Digest every 3 months. This month, the announcement came that this magazine has ceased. I was not too surprised. At the height of Phonecard Collector, there were 36 pages of information, advertisements, and more. The last issue consisted of only 17 pages. Krause will now have phonecard news in the monthly Entertainment Cards Insert, but that coverage will only be two pages, a small part of a magazine dedicated to non-sport cards

This really is too bad. Even though Phonecard Collector was quarterly, 50,000 people were able to read a whole magazine dedicated to phonecards. With the new arrangement, they will be lucky to find it in the non-sports magazine, especially since most people probably do not read this insert. There is good news, and that is that there are plenty of quality phonecard magazines out there, including Moneycard Collector and PCM Report. (Which I recommend to everyone reading this that they subscribe to both!)

Telebucks Experience

In December of 1994 (December 30 to be exact) I purchased a phonecard from a liquor store in Southern California. It was a paper card, and I was able to choose the denomination. I placed $5 on the card. I would never buy a card like this today, as it is pretty ugly. However, back in 1994, I was pleased to see any phonecard offered. The card sat in my collection since then, this week I decided I would use the card. I called customer service, and the representative told me that the time had expired. I asked for her to re-activate it, since I did not use the card, and explained many companies offered that. She declined to do this. I wrote a letter to the president of the company, explaining the situation. After all, if the representative was able to tell me the exact date and time I purchased the card, how much I put on it, and that the time was never used, there should be no reason why the card could not be reactivated. I'll update this newsletter if I hear back from them. It is not the $5, it is the principle. In the mean time, I would not recommend purchasing Telebucks cards. They are not a very friendly company.

Promotions

Maxell

Just yesterday, while browsing for phonecards at the local Best Buy, I noticed what seems to be another promotion by Maxell. They are offering a free card when one buys some of their 8mm tapes. I believe the card value was 20 minutes and one needs to buy 4 tapes. Didn't pay close attention as I didn't want to spend $17 on more Maxell products useless to me; I bought into their cassette tape promotion a while back.
From: Jim Bernath

More Cheese Last year, Wisconsin Cheese ran a promotion where very few people won. You can try again this year and lose. The phone number is (800) 452-7000, and a working UPC code that they require is 21000 63382. This information was provided by Tim Sternberg.

Blockbuster Video

Blockbuster video has an in store offer for a free 5 minute phonecard when you buy any of THE FIRM fitness videos. The videos start at about $10.50. Some have a label on the front indicating that the card is actually packaged inside the video. The card is very nice. It features a leotard-clad female instructor from the videos on the front. The PIN is uncovered, and it expires 12/31/96 or 90 days after last use. It looks like it was produced by Phoneworks (?). It also has the BMG Video and Meridian Films logos on the back (lower right corner). Not bad for $10.50 and you get a video that can actually help you. What a deal!
From: Gordon Dixon

US West Offer

U.S. West is offering the Superbowl XXX card with any purchase of their stock cards in excess of $50. This is the card **(that was) given out at the Superbowl last month in Phoenix. There were 25,000 minted and 20,000 were distributed in Phoenix. This offer expires March, 31 1996. As if that wasn't enough, all orders placed by the end of March receive a free subscription to Telecard Times. Call 1-800/739-3339 for additional details.
From: Michael Hersey

There is a NEW FREE PHONECARD available from Pay-Per-View TV. All you have to do is order the movie, "Apollo 13" from Pay-Per-View TV through your local cable TV company. You will recieve a collectable Apollo 13 phonecard with 5 minutes of phonetime. You must order and watch the movie to find out the details on how to get the phonecard.
From: Kurt Kemmling

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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