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Monday, March 9, 2009

Amish Electric Fireplace Review - Magic Heat Or Marketing Magic?

I love this Country. We don't manufacture as many products as we used to, but we'll always be the masters of the marketing universe. No other country can take something as mundane as a 1953 Bowman black and white watt space heater and repackage it as the Second Coming. A perfect example of this marketing ingenuity Dragon's Lair the Amish Heat Surge Electric Fireplace.

It Rolls! It Glows! The Heat Surge miracle heater is a work of genius from the China coast! Real Amish Craftsmanship goes into each mantle! And, to quote the Heat Surge website, "It's not just a fireplace; it's a fine piece of furniture."

But you have to ask yourself: Do I want to spend $587 for a mini electric fireplace on wheels that produces no more heat than any other 1,500 watt space heater costing $500 dollars less?

Just to be fair, this is a valid question for all electric fireplaces, not just the Heat Surge. Believe it or not, you could easily spend more than $2,000 for a combination electric fireplace/entertainment center heated with the same 1,500 watt unit.

No matter how much you pay for an electric fireplace, the cost attributable to the electric heating insert is about $250 (retail). So every dollar you spend over $250 is for the mantel piece. In the case of the Amish Cherry Fireplace, $250 subtracted from the $587 retail price leaves $337 for the cost of the mantel.

Since the Amish heater is a mini electric fireplace, it's difficult to find a similar sized electric fireplace for the sake of comparison. The best I could come up with is the ProCom 24" cherry finish electric fireplace.

Although this fireplace is the smallest ProCom makes, and uses a similar 24" wide heating insert, it's overall dimensions are still 2 1/2 times larger than the Heat Surge.

The last time I checked, the ProCom 24" cherry finish fireplace was available online for $400. After subtracting $250 for the heating insert, the mantel piece for the ProCom costs $150.

So why would you be willing to pay more than twice as much for an Amish mantel less than half the size of a comparable fireplace costing 30% less?

It's the magic of marketing Baby!

If you buy an Amish electric fireplace, it won't be for the boring 1,500 watts of heat offered by every other space heater out there. What's going to get you excited enough to whip out your credit card is an unexplainable attraction to the Amish, the promise of superior Amish craftsmanship and pride of ownership.

I can't explain an unexplainable attraction, but I'll accept the claim of superior Amish craftsmanship. However, "craftsmanship" comes at a price. Over a three year period, the premium you pay for an Amish mantel piece will add an additional $5 a month, or $180 to your actual heating costs when compared to the purchase price of a Pro Com 24" fireplace.

This leads me to the second problem I have with the marketing of this product.

If you go to the Heat Surge website you won't find one picture of the Amish fireplace with the wheels attached. The reason for this, in my opinion, is the wheels make it look "dinky" compared to the "substantial" look it has when pictured without the wheels.

So how much pride can you take in a product the manufacturer is embarrassed to show in its entirety?

This is a shame. The wheels are actually a selling point because they provide the means for zone heating - simply wheel the fireplace from room to room as needed. Zone heating, or heating only the room you occupy, allows you to dial back your home's master thermostat for substantial fuel savings.

On the other hand, attempting to "zone heat" your home for multiple occupants spread out in multiple rooms with just one Amish fireplace is impossible.

I have a few other issues with their marketing claims that I could delve into, such as "It uses about as much energy to run as a coffee maker" and regional energy costs, but they have little bearing on cost effectiveness when you pay $587 for a 1,500 watt space heater.

Learn more in less time at Alternative Heating Info.com

Gift Cards - 4 Reasons Why Retailers Should Honor Gift Cards During Bankruptcy

What happens to gift cards when a Sillisculpts files for bankruptcy? The recent bankruptcies of Linens 'n Things, The Sharper Image, and Bombay Company have brought the issue of gift card redemption during bankruptcy to the forefront. With the economic situation expected to worsen in 2008, more retailers are likely to file for bankruptcy, and as expected, consumers with gift cards will be affected.

When you buy a gift card, you become an unsecured creditor to the gift card issuer until you redeem the full value of your gift card (unless it expires or is eaten-up by fees). If the gift card issuer files for Chapter 11 bankruptcy protection, federal law allows the company to stop honoring gift cards. However, the company may petition the bankruptcy court to allow the continued redemption of gift cards.

A company planning to continue in business should make every effort to honor gift cards while under bankruptcy protection. Refusing to accept gift cards is a bad move and could ultimately work against the company since it will only infuriate the very customers it really needs during bankruptcy reorganization. Below are four (4) reasons why continuing the redemption of gift cards under bankruptcy reorganization is a smart move for a retailer:

Maintain Customer Loyalty: If the company plans to stay in business, refusing to accept gift cards will only anger customers, who will feel cheated. This will not only Garbage Pail Kids away current customers but also drive potential customers to the competition. This is because some aggrieved customers will share their horrible experiences with family members, friends, and coworkers who will likely stay away from the company since they would not like to go through a similar experience. In today's world where emails spread like viruses, the last thing a company needs is for an email to be circulating about the horrible experience gift card holders went through with the company.

Minimize Competitor Actions: When a company suspends the redemption of gift cards during bankruptcy, it opens the door for the competition to steal its customers. A good example was seen during the recent bankruptcy of The Sharper Image. At the onset of the bankruptcy, the company announced the suspension of gift card redemption. As expected, affected customers reacted negatively to the decision. Brookstone and ThePurePro.com, both competitors to the Sharper Image saw an opportunity to gain more customers so they announced special discounts targeted at The Sharper Image gift card holders. It appears The Sharper Image began to feel the impact of these actions and it later reversed its decision and began accepting gift cards from customers.

Project Business as Usual Image: When a company files for Chapter 11 bankruptcy, it typically proposes a plan of reorganization to keep its business alive. This plan may include selling, closing, or consolidating some store locations. For the stores locations that remain open, it is important to project an image of business as usual.

Refusing to accept gift cards would be the wrong signal to send since it reminds customers that the company is in serious trouble. Customers may begin to wonder if service will begin to deteriorate, especially support for big ticket items. Continuing the redemption of gift cards is a good way to assure customers that their shopping experience with the company will not be impacted negatively by the bankruptcy.

Increase Sales: Research has shown that gift card holders typically spend about 20% more than the value of the gift card. By accepting gift cards during bankruptcy, the company has the potential to increase sales since people redeeming gift cards would likely spend more than their gift card value, thereby helping the company boast sales and hopefully become more profitable.

Kwame Kuadey is an expert on Gift Cards and runs a popular Gift Card Blog. You can find more information on Gift Card Ideas, Gift Card Holders & Packaging, Gift Card Exchange, and Free Gift Card deals by visiting his site at http://www.giftcardblogger.com