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Phonecards

July 6, 1996


Issue 39


Phonecards On-Line is written and distributed by Alan Cohen


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News and Views

The National

I was so busy last week that I did not even notice I had a week vacation from this newsletter. The entire ten days were spent on the go, four of them at the National Convention. Being a sportscard as well as a phonecard collector, this show was a double treat. Over 1000 dealers, access to companies who produced the issues, and more! Before I go into details, let me start at the beginning of the trip (from a phonecard collector's point of view)

UCLA

The trip started with a job interview (which was successful, by the way) - I went to the student's store, and there were three different phonecard issues. One a general view of Royce Hall (a main building on campus), and two that were basketball related. I did not purchase any of these cards, as they did not appear to be limited. Next month I'll be able to purchase these whenever I want to. I'll have an image scanned next month, and would be willing to purchase these for any readers.

Las Vegas

The next leg of my trip took me to Las Vegas. I had to go back to the Hard Rock Hotel and see if cards were still available. They were, and I purchased a couple. One thing that had changed was now the second edition of the card is being distributed. Just like the first edition, 2500 cards were produced. The only distinction between the two editions is the small lettering on the back that says first or second edition.

I was able to attend a casino collectibles show while I was in town. There was a total of one phonecard for sale at the show, promoting a Colorado Casino. I actually did not see the card, but another phonecard collector pointed out it was there. As usual, there is a lack of phonecards available in the Casinos. It amazes me that the larger resorts would not have commemorative cards for sale at the gift shops.

cokecard

The National

I had no doubt that I would find phonecards here - Most of my time seems to have been spent in the phonecard pavilion. There were at least a half dozen full time phonecard dealers, a couple of issuers, and many sportscard dealers with phonecards in stock. Additionally, a few of the sportscard dealers carried unopened boxes of phonecard product at excellent prices. I could not pass up on a couple boxes of 1996 Assets and Proline Series 2. Before I talk about the show, I would like to address the issue of the National Assets product.

This product was done for B&B Phone Cards by Classic. A total of 500 cases were produced. Cards with denominations of $2, $5 and $25 were distributed in each pack. There are three cards, with at least two of them being a phonecard with a $2 and $5 denomination. The third card was either a $2 card, a $25 card, or a redemption card. The redemption card would give you a prize of five different levels. The highest level was a test proof set worth $2500, while the lower prizes were supposed to be sample and phone cards, valued up to $25. On average, nine redemption prizes were in each box.

I purchased three boxes of this product. I have to say that the cards are quite beautiful. Out of my first two boxes, I received two $25 cards, a complete set of $5 cards, and 47 out of 50 $2 cards. Out of 18 redemption cards, 17 were level 5 (Lowest Level) and one was level 4. One complaint at the show was that the redemption process was unfair and the prizes were not of the quality expected. I exchanged two level 5 cards, and received items that I considered not worth exchanging the redemption cards for. I was also not very happy with my level 4 prize, but at least it was an autographed cards. On the floor of the show, the whole process appeared quite unorganized. Collectors I spoke with were disappointed in the redemption process. I spoke with Betty Houghtaling of B&B Phonecards, and found out why everything was so unorganized.

According to Betty, The National was "a great place to introduce collectors to phonecards." Classic seemed like the best option, since they had experience with that sort of product. What collectors should know is that B&B is going to pursue a lawsuit against Classic/Scoreboard. According to Betty, these were some of the things that Classic did or didn't do.

- The $5 set was supposed to contain 20 different cards, but ended up only containing 10 different cards. This was done without B&B's knowledge

- Ten days before the National, Classic backed out of handling the redemption process. B&B had to take this task over with no experience and little time. This included getting booth space for the giveaway, and hiring staff to handle the distribution of prizes.

- Classic did not deliver all of the redemption prizes to B&B, especially the lower level prizes. Betty said that B&B used their own stock of cards to give away as redemption prizes. She states that eventually she found out what happened to the prizes - They were being used to distribute prizes at the Classic booth!

- The product was originally promoted as being 50 cents per minute. Upon opening the product, the rate was listed at $1 per minute. Betty stated that Classic changed the contract without B&B's knowledge.

After hearing this, I'm surprised the redemption process went as smoothly as it did. Some collectors stated that they were able to choose their prizes, and some weren't (I was among the class that was not able to choose) Betty categorically denied this, stating that this did not happen. I can't say that it did or did not happen, I know that it did not happen to me. This upset me, because some people said they were able to choose. I don't know if this is the case or not, I certainly hope it is not true.

This product was definitely a lot more trouble than it was worth for B&B. What started out as a way to positively promote the hobby among sportscard collectors has turned into a major headache.

Despite all of the problems that B&B encountered, there is no way to diminish the quality of this product. Boxes are available currently under $100, and have on average about $140 worth of Classic Calling Time. (This means $1 per minute) Finally, B&B is going to make a request that leftover product be destroyed. This could be an interesting scenario. More on this if there are any other developments. I extend an open invitation to Classic to make a response to these allegations and will devote column space if they do respond. I have phoned James Robinson, Marketing Director for Classic, but have not heard back from him.

The Rest of the Show

Now, as promised, a take on the rest of the show. Moneycard Collector was there, I got to meet the staff including Murray Church and Tori Stone. I even had breakfast with them one morning (Thanks Murray!) and got in on an interesting discussion over the future direction of the hobby/industry. Present at this meeting were Chris and Genny English of Phonecards Plus, Kris Nolen and Troy Ward, both phonecard dealers. One issue that came up was the "breaking" point of what rate is reasonable for a user card. Rates of 30 to 50 cents per minute were mentioned. There was concern all around the table in how to get people to actually use the phone time.

The show was a phonecard collector's playground. I was able to purchase everything from Japanese McDonalds debit cards to the latest promotional cards. The Phonecard Pavilion was where I spent most of my time. Once you left the pavilion, buyer beware! I encountered many sportscard dealers with phonecards at unbelievably high rates. I suppose these people read the latest price guide and doubled the prices because phonecards are a "hot" collectible. Whatever the reason, it is always a good idea to be informed what the current range of a phonecard is.

One issue that I found offensive was that dealers in the phonecard pavilion were charged a few times the price over what other dealers were charged. This is an unfair practice on the part of the NSCC - Next year, let's see phonecard dealers pay the same rate as other dealers.

August Show

For those who could not get enough of the National, or were unable to attend, you'll want to attend the B&B Collector's Expo at the Disney Hotel next month. Many phonecard dealers will be present. This will be the largest collector/dealer phonecard gathering to date in the US. The good news is that more shows are planned throughout the year. More information on that as the show draws closer.

Spencer's Reduction

For the past year or so, Spencer's Gifts have sold novelty GTI and other cards at high rates. The prices were dropped, and Spencer's still had these cards! Now, the lowest rate has been dropped 50%, and these cards are quite a good deal. The Jimmy Hendrix card was available for $3.98 (originally $10) and Star Trek cards were available for $4.98. (Originally $13.99) Check out your local Spencer's if you have one.

Canada Post Phonecards

Ray Jeschon reports that similar to the US Postal Service, Canada Post now carries phonecards. Here is a list of what is available:

Vehicles of Canada, each $10.00


Yukon Gold Discovery Phone Cards, each $10.00


First day of issue folders (includes cancelled stamp), $9.95 each

All of the above may be ordered directly from Canada Post.

The only charge is 50 cents is order is under $5.00.

All prices are in Canadian Dollars!

Phone 1 800-565-4362 from USA & Canada

(902) 863-6550 from all other countries

All calls go to their National Philatelic Service Centre in Antigonish, Nova Scotia.

You need a credit card for phone orders.

Mail orders:

Nation Philatelic Service Center
ANTIGONISH, NS B2G 2R8
CANADA

Thanks Ray for providing such a detailed list and ordering instructions!

AAA/Frontier Deal

Frontier Communications and the American Automobile Association have signed an agreement for Frontier to produce cards for the Association. My local AAA office already carries the Frontier Call Time cards at a discount over face value, look for this deal to extend the use of phonecards. Who wouldn't want a prepaid phonecard on a long car trip just in case...

Mobil/MCI Deal

Look for MCI cards to be available at over 4600 Mobil Stations in the near future. Now I will be purchasing a prepaid gas card and a prepaid phonecard at the same location! Cards to be available starting this month.

Olympic Telecoins

Here is a press release about this interesting new product:

J Cubed Inc. teams up with U.S. Mint, AT&T and Visa to produce commemorative series of 1996 Olympic Telecoins

If one innovative marketing company has its way, visitors to the 1996 Olympic Games in Atlanta won't be using a pocket full of change to phone home. Instead, they'll be using one of a special series of pre-paid phone calling cards that feature images from the U.S. Mint's new series of coins commemorating the 1996 Olympics being held in Atlanta, Georgia this summer.

The Telecoins, officially titled "The 1996 Atlanta Olympic Games Telecoin Phone Passes", are a series of five credit-card sized cards that offer varying amounts of pre-paid domestic and international long distance calling. Produced by J Cubed under license from the U.S. Mint and with the cooperation of major Atlanta Olympic sponsors AT&T and Visa, each of the cards features the image of one of the U.S. Mint's new Olympic coins commemorating the 100th anniversary of the modern Olympic Games. The phone cards range in value from $10 to $100.

The five Olympic Telecoin Phone Passes coin images and long distance values are as follows:

Once the pre-paid long distance time is used up, the cards may be "recharged" to any value using a Visa card.

The Olympic Telecoin Phone Passes will be available in early July through retail outlets nationwide.

J Cubed Incorporated is a New York-based marketing company that offers a variety of pre-paid calling cards for the tourism, collector, and general retail markets. The company retails phone cards in the Empire State Building, as well as other locations. For more information on the Olympic Telecoin Phone Pass or any other J Cubed phone card release, please contact J Cubed Incorporated at 829 W. Boston Post Road, Mamaroneck, NY 10543. Telephone (914) 698-1546, fax (914) 834-3452.

Frank Thomas Fan Club

For $19.95, you too can be a member of this club. You will receive:

The address is:

Big Hurt Fan Club
PO Box 512
Carbondale, IL. 62903

You must add $3 for shipping and handling. If you'd like to join you need to also enclose your name and address.

Thanks for Bruce Harmon for providing this information.

That's all for this week. Give me a week off, and I will fill your computer screen with too much information.

Until Next Week,

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.cardmall.com

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

If you wish to be removed from this mailing list, or find yourself with two subscriptions (It does happen), please reply to the ORIGINAL message that was sent to you - This will assist me in removing your name