eBay’s woes

I found this great article about eBay’s problems on the New York Times website (although it was unfortunately centered around the hypothesis that Amazon should buy eBay), along with this follow-up on Wired.

From the Wired article:

From where we’re sitting, it looks pretty chaotic. eBay’s CEO is out playing politics; one of the highest-ranking executives is publicly trashing the business; and customers are apparently planning a revolt. There are roughly 248 million registered users on eBay — and while not all of them are going to be happy, the company’s listings fell 3 percent during the first nine months of 2007, which indicates that a huge chunk of its customer base is taking its business elsewhere.

I personally have come to hate eBay. After:

  • 2 of my 3 attempts to sell an old laptop were foiled (the first time, a Nigerian scammer won my auction; the second time, a Nigerian scammer hacked into the winning bidder’s account and then won my auction)…
  • Spending 3 months trying to repeal the fees eBay charged me for these 3 listings…
  • And spending many hours trying to just look around their clunky, confusing website to find even slightly relevant information…

I have all but given up on using them. Too bad there are no really valid competitors to put real pressure on eBay.

CompUSA closing down

This one is close to my heart.

The consumer electronics chain CompUSA will be a thing of the past by next year, as the chain announced over the weekend that it will close its remaining 100 stores once the holiday season is over. According to Reuters, the restructuring firm Gordon Brothers Group will purchase the company’s stores and resell its remaining assets.

Expect some big holiday sales, for those of you who still live near a CompUSA.
More from the story:

With the closure, customers will likely be looking at some bargains at the holidays.

Founded in the mid-1980s, CompUSA has been controlled for most of its existence by the Mexican billionaire Carlos Slim. The company closed about half of its stores in March in a restructuring, and was reported last week to be considering selling some of its stores to rival Circuit City.

In high school, many years ago, I used to work at CompUSA. I stocked shelves for about two weeks, then sold computers for about 8 months (and only on the weekends during the school year). I made good money there as a high schooler, as they paid 1.5x minimum wage, plus gave incentives for selling service plans on computers. I probably netted $10-13/hour all in. Plus I won a Playstation 1. Not bad for a part time job where I got some great discounts.

The Chicago Bureaucracy

I recently spent a miserable 2 hours and 15 minutes at the Chicago Department of Business Affairs & Licensing, and wanted to share my experience in case anyone in the Mayor Daley’s bureaucracy is listening.

My experience
Our company was recently given a fine for not having and posting a City of Chicago Business License. Well, we didn’t know we were supposed to have one. So, fine, I was going to figure this out.

I go to the city’s website and request to schedule an appointment online. The website says “Your appointment will be confirmed via email within one (1) business day from receipt of the original request.” Two business days come and go, and I hear nothing, so I decide to call them.

Two days later, I go for my appointment. In preparation, I had spent 30-40 minutes gathering information for and completing the 2 page application. I arrive, check in, and am told to wait in the waiting area with about 30 chairs, 15 other people, and CNBC blaring at a ridiculous volume. A giant painting of Mayor Daley watches over us paternally, and signs below him indicate in big letters that

  1. All cell phone use is prohibited, and
  2. The office is monitored by the Chicago Police Department, should I decide to do something rash because of, say, extreme frustration at the process I am about to endure.

10 minutes after arriving, the “Business Consultant” with whom I have an appointment (let’s call her Joan) calls me in. I sit in Joan’s cubicle and give her my 2 pages of forms. I then proceed to watch quietly as she very slowly copies the information on my forms into her computer. During the process, she asks me to clarify a few things (e.g. “What are the home addresses of the members? What does this word say?”) This takes 30 minutes. To enter… 2… pages… of… forms…

Joan then tells me to wait in the waiting area for a response, which will be approximately 20 minutes.

40 minutes later, as I’m trying to figure out why its taking so long, Joan finally calls me back in. We sit at her cubicle again, and she explains to me that the city’s zoning division could not approve our city license without asking a single follow-up question: do we do repairs on-site? No, no repairs. “Okay, I will convey that information to them. You will need to wait outside for another 20 minutes for the zoning department to review your answer and approve your license.

What?

So, I head back out into the waiting area, where members of a CNBC panel are yelling at each other about whether mortgage rates will rise or fall. This time I notice that, while waiting for a response, she had called in two other people to help them out. I’m all for parallel processing, but if what could have taken less than 5 minutes to get a response now requires me to wait 30 minutes because Joan decides to see two other people, I tend to get frustrated.

Joan finally appears. She tells me that the license has been approved, and I can either wait for it to be printed, or have it mailed to our business. I figured, since I’m here, I will wait. What’s a few more minutes?

I pay for our license ($250), taking another 5 minutes, and sit back down to wait.

I should have had it mailed. Another 20 minutes pass before I am called back up and given a license.

Why is this frustrating?
I spent over 2 hours at the Chicago Business Affairs & Licensing Department. ~75% of my time there was spent waiting, the other 25% spent watching Joan type in my information. My company had to pay me to wait, and my tax dollars had to pay for Joan to be an overpaid order entry monkey.

Why could I not have just typed this form into a website directly? Sure, some people will not be able to follow simple instructions online, and will require someone from the city to walk them through it. But my guess is that this comprises no more than 30% of business owners who come into the department.

Come on Chicago, get with it! The cost of this license wasn’t $250. It was $250 + my >2 hours + the “Business Consultant”‘s time + overhead maintaining a giant Business Affairs & licensing Department.

The kicker
Two days after this ordeal, I get a call from the Business Affairs & Licensing department. They are calling to respond to the original website submission, to help me schedule an appointment. Remember that one? The one that was supposed to be “confirmed via email within one (1) business day from receipt of the original request.”? Right. It took four business days to give me a call.

RLS

You may have been comfortable not knowing this existed, but I’m about to clue you in on a new drug. It’s called Requip, and it can treat Restless Leg Syndrome. That’s right, you read correctly.
Straight from TreatRLS.com:

Do you have trouble falling asleep because of strange sensations in your legs? Do you dread long business meetings, going to the movies, or traveling on an airplane because you know your restless legs won’t let you sit still?

How did I learn of this new medical condition? The way I learn about all new medical conditions these days: a TV commercial telling me that I may have it, then telling me how I might cure it.

The best part of the website is the warning:

Also tell your doctor if you experience new or increased gambling…

Employer charging unhealthy employees

I love this idea.

In late June, the Indianapolis-based hospital system announced that starting in 2009, it will fine employees $10 per paycheck if their body mass index (BMI, a ratio of height to weight that measures body fat) is over 30. If their cholesterol, blood pressure, and glucose levels are too high, they’ll be charged $5 for each standard they don’t meet. Ditto if they smoke: Starting next year, they’ll be charged another $5 in each check.

In short, the healthy will not subsidize the unhealthy as much.

Question 1: Is this move legal? The article hints that this is within the guidelines of HIPAA. However, is this/could this be a form of discrimination? There is more discussion of this at the end of the article.

Question 2: Will these penalties even matter? The average consumer carries over $8000 of credit card debt, probably at a very high interest rate. There are many many options to consolidate that debt to lower interest options and save thousands in interest per year. Would a consumer that does not take charge of their credit card debt, notice and take charge of deductions off of their paychecks?

Despite the outstanding questions, I applaud Clarian Health for taking the lead in fighting rising costs.

PubPat overturns Monsanto’s patents

PUBPAT (site down at time of posting), a not-for-profit legal services organization that works to “protect the public from the harms caused by the patent system”, helped overturn four patents owned by Monsanto that had been used to “harass, intimidate, sue – and in some cases literally bankrupt – American farmers”.

The USPTO held that evidence submitted by PUBPAT, in addition to other prior art located by the Patent Office’s Examiners, showed that Monsanto was not entitled to any of the patents.

While Monsanto can appeal the decision, in 2/3 of past cases the overturn holds.

What strikes me is how noble PUBPAT’s cause is. By taking on overbroad patents owned by IP-focused “companies” that turn feral and demand licensing fees from anyone and everyone, they are providing a secondary policing mechanism to the overworked USPTO and providing a huge public good.

Other notable events for PUBPAT include:

What the Geek Squad client doesn’t know won’t hurt them


Geek Squad, the lovable collection of nerds in every Best Buy, may see a shake-up shortly. The Consumerist ran a 3-month sting on their operations and captured video of Geek Squad agents stealing customers’ computers for porn, images, and music. Check out the link for a video of the agents at work. From the article:

This is not just an isolated incident, according to reports from Geek Squad insiders alleging that Geek Squad techs are stealing porn, images, and music from customer’s computers in California, Texas, New Jersey, Virginia and elsewhere. Our sources say that some Geek Squad locations have a common computer set up where everyone dumps their plunder to share with the other technicians.

Can you blame them? Maybe this can be considered as the personal “tax” of having a strange man in white shirt and skinny black tie come into your home to fix your computer…

Kwik-E-Mart, live


The Simpons Movie will be released July 27 (I give the series one more season, tops, after the movie). 7-11 and Fox are engaged in a fascinating promotion.

Over the weekend, 7-Eleven Inc. turned a dozen stores into Kwik-E-Marts, the fictional convenience stores of “The Simpsons” fame, in the latest example of marketers making life imitate art.

Those stores and most of the 6,000-plus other 7-Elevens in North America will sell items that until now existed only on television: Buzz Cola, KrustyO’s cereal and Squishees, the slushy drink knockoff of Slurpees.

An interesting photoset is here.

Disallowed interest

From the Becker-Posner blog (this one from Richard Posner):

Medieval Christianity forbade the charging of interest on the ground that it was unnatural for money to increase (as by lending $100 at a 10 percent interest rate so that at the end of the year the $100 has grown to $110), because unlike pregnancy there was no mechanism by which an inanimate object such as money could reproduce itself. Behind this superstition lay undoubtedly a hostility to commercial society, which persists today in some quarters of the Muslim world; Islam forbids charging interest although substitutes are tolerated. The concern with lending has persisted into modernity even in Western societies. Usury laws, which set a ceiling on interest rates, and the Truth in Lending Act, which requires detailed disclosure of annualized interest rates in consumer loans, are examples of this concern.