SNIPPET: Should companies honour their price errors?

(Here we go again)

Tuesday, 3 June 2014 | by | 6 Replies

lenovogate

A couple weeks ago, Lenovo advertised their Y410p and Z510 model laptops in a “doorbuster” sale for $279 and $255. They regularly retail for $1389 and $1099, respectively. Many of my friends jumped on the bandwagon, ordering several units for themselves and their families. I didn’t bother. The deal seemed too good to be true. Long story short, orders were cancelled by Lenovo which set off the online firestorm #lenovogate. I wasn’t surprised. In fact, I’ve been burned by Lenovo before.

Lenovo advertised the sale of two mice for nearly 90% off back in 2011. Each mouse, which regularly retail for around $80-90, were available for $6 and $20. I quickly made my order online and promptly received a confirmation email indicating a successful transaction had occurred. A day later, I received another email indicating that there was a price error for both mice; Lenovo cancelled the order.

In 2012, Lenovo advertised their high end laptop ThinkPad X220, retailing around $1500, for $350. That time, orders went through, cards were charged and laptops were shipped – only to have Lenovo intercept the packages and reroute them all back. To add insult to injury, it took a couple weeks for consumers to get their refund.

Lenovo has offered $100 off the future purchase of a laptop until August 3, 2014 as a gesture of goodwill for cancelling the Y410p and Z510 orders but with a history of pricing bumbles, the effort is too little too late. Rather than appeasing potential customers, Lenovo is effectively allowing the brand to be associated with pricing errors and disappointment. It’s understandable for companies not to honour pricing errors and consumers technically aren’t owed anything if money has not changed hands. Lenovo may not be required to fulfill the orders but from the looks of it, they’ll lose out on several future orders.

At what point should companies honour their price errors?

Financial Implications of Private School

(schooled!)

Thursday, 29 May 2014 | by | 5 Replies

The Cost of Private School

Our little one turned two this weekend. TWO. I was an emotional mess, a cross between very happy that I had a sweet, healthy, happy two year old and very sad that my baby is no longer a baby. I kept envisioning him heading off to university which would results in pools of tears welling up in my eyes. Drama queen? Just a tad. Continue reading

Re-balancing the Budget

(breaking it down... again)

Wednesday, 21 May 2014 | by | 3 Replies

Rebalancing the budget

It’s midway through spring and the sun is finally out, seeping into every corner of our little condo. While the sunlight is lovely and much welcomed, it has revealed the some ugly truths: our home is looking rather grim. There is so much dust collecting under furniture, our cream-coloured couch is more day-old cream than its former freshly poured white, and there are little handprints on practically every mirror and windowpane. It’s time for spring cleaning.

It’s not just our fixtures that need some sprucing up; our financial budget is in need of tidying as well. It’s time for a budget re-balance. Continue reading

The Weekend Edition No. 19 – Sushi, ETFs and a Million Dollar Plan


Friday, 16 May 2014 | by | Leave a reply

Weekender19

Community Garden, Toronto

Emily’s off bachelorette-ing in Las Vegas this weekend with her best friend leaving me to fend for not only myself, but the kid too. I’ve been regularly travelling for work over the past little bit and my let me say- she makes it look easy. I was supposed to make pasta for dinner today; I boiled the pasta, had the ingredients ready to go and proceeded almost to feed the kid pasta sauce that expired in July 2013. Sushi dinner was delicious.

Millionaire Teacher Andrew Hallam has been pitting mutual funds from different institutions against comparable indexed funds. His latest fund comparison: Manulife.

When it comes to investing, our behavior can be our worst enemy. Dan Bortolotti breaks down the most common behavioral biases in his latest piece for Moneysense Magazine.

I’m going to include this one so I can reference it in the future. Rick Ferri breaks down the different types of ETF products and outlines their structures. I think this’ll come in handy further down the road.

And in case you missed it, give William Bernstein’s If You Can: How Millennials Can Get Rich Slowly a read as he breaks down an investment strategy that a seven year old can understand and will outperform 90% of financial professionals in the long run.