Archive for Fail
Businesses In Israel charge more for convenience
Posted by: | CommentsBusinesses of all types should be concentrating on how to make their customers life easier and for less money. If they can fous on these two things while maintaining their profit margins then that will lead to success.
I believe I wrote about this in another post on buying Tuna in Israel and how they charged you more money for a package of four cans then if you bought four separate cans. And I remember hearing that if you buy in bulk in Israel you end up paying more money. One of the reasons behind this is that if you buy in bulk then you may come shopping less often which means less impulse buying. The stores want you to keep coming back.
Seems like most companies in Israel charge you for convenience. If you want something delivered it will cost you money. If you buy in bulk it will cost you money. If you want to private park it will cost you money.
Here is an example that I saw today. I was at ACE today helping out my cousin who just made Aliyah and I was a bit thirsty but did not have any cash on me. I saw the soda machine took credit cards and I was thinking about spending the 7.5 NIS for a bottle of ice tea (very expensive in it’s own right) and then I saw that they would charge me .60 more if I used my credit card briging up the price of a small bottle of ice tea to 8.10 NIS.
Now I understand that it costs more to the vendor when you get a credit card order instead of cash, but you are already paying a lot for the drink. And .60 is about 8% higher for the product and it’s only costing them 3% or less for the credit card charge. I know in the United States it is illegal to charge more for paying by credit card, but I guess that law does not yet exist in Israel.

Calling Haaretz.com out: Stop with the auto-refresh!
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- Image via Wikipedia
When will Haaretz stop with the Auto-Refresh?
Haaretz seems is the only site that I know of that still auto refreshes it self. This was a trick done about 10 tears ago as a way to increase CPM which is a metric that is used to charge advertisers. You see a lot of advertisers pay lets say $10 for every 1000 impressions there advertisement gets. So the more refreshes there are the more you can charge your advertisers for page views.
Now I am not going to talk about the legitamcy of such an action or whether Haaretz notifies their advertisers about this or if it is even more effective for advertisers. The reason I’m writing about it is because as a reader it is simply annoying! Many times I will be knee deep in an article just to have it refresh and then have to scroll down and find my place again. So Haaretz, do me a favor and stop the ploys from the 90’s. We are in 2009!
What is the statute of limitations on calling a product “New”?
Posted by: | CommentsWhat is the statute of limitations on calling a product “new” in Israel? In our last post on this subject about 5 months ago we talked about a package of tissues. This time we are talking about a “bowl of soup” which has become a staple of start-up offices everywhere. Problem is, as you can see in the pic below, they are still marketing this product as Chadash when it has been around in the very same packaging for the last 2-3 years! Come on guys! Change the marketing message. Do you think anyone buys this product because it says it’s new? The only thing that it makes us think is that it must be old!

Seize the Moment: A true Entrepreneur has no fear
Posted by: | CommentsWe have talked about in the past about “failure” and how it is a good thing and a learning experience and how entrepreneurs are not afraid to fail. We have seen VC’s that would rather invest in an entrepreneur that has failed then from one fresh out of college who has not yet gone through closing a company he started.
But this post is about seizing the moment. Some times an opportunity arises that if you don’t take advantage of you regret it for the rest of your life. People have a natural fear of rejection. No one wants to be rejected and sometimes that fear is what keep us from success and missed opportunities.
Have you ever come close to a famous person or a business leader that you felt too shy to go and introduce yourself? Have you ever been in an audience and had the opportunity to answer a question but didn’t jump on it? Perhaps you have a fear of sounding stupid? Could be, again, no one likes to be looked down upon, but an entrepreneur knows that it is going to happen. Not everyone is going to like you or your product. Not always are you going to sound like the genius that you think you are.
So what do you do? Start practicing. I have purposely said things in conversations that absolutely makes zero sense but said them in a serious manner and had people nod their heads in agreement. I have stood up at conferences and introduced myself and asked questions that I thought were relevant. I have spoken on panels at trade shows and have given presentations infront of people who are worth billions of dollars. The fact that I never read over these posts or edit them before posting them shows that…. Well, anyway.
Below is a picture of me from my cousins wedding a couple of months ago. I was sitting at my table and saw the opportunity. I litterally jumped out of my seat and dived in. The thumbs up I got from the photographer and the smile on the Brides face made it all worth it!

As an update to my post on Mei Eden VS. Tami4 I announced that after 7 years of Mei Eden I finally pulled the plug. They even had a guy come over to take back the empty bottles of water, but he refused to take the machine back saying he answered to a higher authority.
That “Higher Authority” after trying to convince us to stay by reducing our bill by 50% told us that it would take two weeks before someone can come and take back the machine.
Now I know that 30 years ago someone from Mei Eden probably thought to himself that if a customer cancels, but you leave the machine behind for two weeks, they may come to miss it and uncancel their canceled order.
NOTE TO MEI EDEN: WE ARE NOT THAT STUPID
If anything it just frustrated us more wanting to end the chapter but not being able to. Today when they finally came to pick up the machine they again tried to convince us not to cancel and again he made my wife the “huge savings” offer.
My wife said to him, why after 7 years are you now coming to us with this offer? Where were you before we canceled? He said “Your right”.
And with those words he took the machine and left; and our time with Mei Eden has come to an end.
Good bye old and trusted friend. Its been wet, its been cold and at times its been boiling hot. But what broke us up was that it just became too expensive.
Do not PazGaz, do not collect 200 Shekel
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Saw this posted on an email list. I also got a follow up response which I will post below the initial email. These type of stories need to get out, not only to protect those of us living in Israel, but also to hopefully effect change.
Part 1 – The PazGaz Horror Story
Before you phone Pazgaz to report a leak, I will share with you what
happened to me a few days before Pesach.
After hearing numerous times the Pazgaz jingle which recommends and
promises a free gas check in one’s home, I decided to take them up on
it as we have one outlet that has had an odor for a very long time
ever since it was installed. I decided to call Pazgaz instead of Mantzur from Bat Ayin, who is a Pazgaz technician but also does work privately for a lower fee because I obviously preferred the option that was free.
No one answered any of the Pazgaz phone nunbers, and only after 2 days
I received and answer to my cellphone regarding the message I had left
about a smell of gas. I explained that nobody was home and we would
be out all day, but nonetheless the woman said that she must send
someone out to check the leak. She added that the service is free
ONLY IF THEIR TECHNICIAN FINDS THE CAUSE OF THE ODER but if he
doesn’t, I will be charged 200 SHEKELS!! i immediately told her that
is outrageous, as they constantly advertise their jingle saying the
the gas check if free! She replied that it is in fact free only once
in five years and mine was checked a few years ago. I told her to
forget my call, especially as they ignored it for the past 2 days,
and I will call a private technician (Mantzur who also works for them)
who will certainly charge much less. She said that by law she cannot
cancel my request and must send me their technician even against my
will. About ten minutes later a Pazgaz technician phoned me and
told me he is outside our home in order to check for a possible leak.
I repeated that I am in Jerusalem for the day and nobody is home,
and I don’t want him to do the check as I refuse to pay 200 shekel if
he doesn’t find the cause. He gingerly replied that he will go away
but first he will disconnect my gas supply – until I agree to his
visit and possible charge of 200 shekels!! I told him that he dare
not disconnect my gas just before Pesach, as I was to begin my
non-stop cooking for dozens of guests the next day – but he insisted
that I will have no gas until I meet their demands.
I felt threatened and bullied but had no choice but to call someone in
Alon Shvut to let him in our home and do the check, while I insisted
that I refuse to pay if he does not find the cause of the odor because
this visit is against my will.
Guess what?? He identified the odor immediately, but did not find the
cause. A few days ago I received a bill from Pazgaz for 200 shekels,
stating that I will be charged interest if it isn’t paid on time. I
have been trying to contact the “boss” at Pazgaz since then, to no
avail. His secretary said he will return my call but of course I
haven’t heard from him.
How do I know that there is not a racket involved here – such as the
technician receiving a small kickback for every time he doesn’t find
the cause for the odor he himself smells and Pazgaz gaining the rest
of the 200 shekels?? How can they say that I am legally bound to
take only their technician when they advertize falsely about the check
being free and only informed me of the costly charge after I
notified them of the smell, when had I known the truth I could and
would have called in some other qualified technician of my choice?
If you have suggestions as to whom I should report this issue to, I
would appreciate it.
Meanwhile, don’t believe Pazgaz ads and shop around for a technician
like for anything else if you don’t want to be forced to pay 200
shekels and yet be left with the same odor of gas as before.
Part 2 – The aftermath and PazGaz correcting a wrong
Thank you for the many responses and words of advice in response to my
description of the “trap” I found myself in when I responded to the
Pazgaz jingle on their phone- lines which recommends consumers to
invite their technician for checking out one’s gas line “without
charge”.
I am happy to convey to all of you that thanks to the advice and
information provided me by S. Yisrael from Efrat, I wrote detailed a
letter to the heads of Pazgaz conveying the facts of their
unnacceptable and outrageous conduct, beginning of course with the
fact that they were falsely advertizing on the phone. The director
phoned me and profusely apologized for what he worded as the many
facets of thier wrongdoings on this matter. He said the company
directors had discussed my complaint and accepted every aspect of it,
and immediately cancelled the 200 shekel fee Ithey had demanded, and
in addition they insisted on providing me my next gas tank without
charge. He promised to reassess the legality of their advertizing a
free check-up when in fact that is not so. I suspect that the fact
that they knew of my letter being posted on the various yahoo lists
helped encourage them to take this issue seriously. I hope that
they were sincere in their promise to change their policy in such
matters in the future.
Thanks for your advice and encouragement. Hope the lesson has been learned.
—————-
This is actually good news and shows that you don’t just have to accept being wronged. I am looking for similar stories of those that have been wronged by businesses/companies in Israel and how they eith had a positive or negative outcome so please share to make this country a better place for all of us and to help create businesses that are worthy of being successful.
Now I don’t know about you, but when I see that header I’m thinking “Wow, that’s an amazing price, with tax and fuel how much can that be all together? $575.00?”
Then I open the email and see this:
We are pleased to inform you that El-Al has released very few seats for spring travel New York to Tel Aviv, for $499 plus tax and fees for a total of $794. The offer is only available for departure on certain flights between April 28th and May 23rd 2009. Maximum stay is 21 days.
Tickets must be issued by April 22nd.
Come on! $794.00? That’s an ok price, but I have seen cheaper with less restrictions. It is almost $300.00 more then the header in the email!
To me this is just wrong. You made me think it was an unbelievable deal and then you pull the rug out from under me. This is a Fail advertisement and I would not do business with them.
Please pass over the opportunity to rip us off
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Now I know that Passover is one of the most expensive times of year. Believe me I know. There is a reason why they call Matzah Poor Mans Bread. Now I can understand why some things are more expensive during this time of year. There is an expense in creating products that are only useful for 7 days a year, but don’t jack up prices if there is no reason too just to make a bit more money off of those that need it most.
I’ll just give one example because it happened to my wife. Last week she took the car to the same car wash we always go to which is probably about 3 times a year including right before Passover. Now the normal cost for our Van is 80 NIS for cleaning both inside and out. It is the same amount of work any time of year and they don’t do anything extra because it is soon to be Pesach. So this time when my wife drops off the car she asks how much it is and this guy tell her 150 NIS. Almost double what is normal! Now it was not like there were hundreds of cars waiting to get in to be cleaned. So my wife complanied how come so much. He said “ok, 120 NIS”. Just like that he dropped it 30 NIS. My wife was still not happy with being robbed so she went in to speak to the manager and told her what happened. The manager answered “ok 100 NIS”. So just like that they dropped the price 50 NIS and not wanting to argue anymore we accepted to pay 20 NIS more as a PPP (pre-Pesch-Premium).
Now this bugs me because what if the next person in line didn’t say anything? It seems they look at Americans and assume we would be willing to pay more because we can??? (I guess they don’t read the Wall-Street Journal). There was no posted price list and it seemed they were just looking for suckers to take advantage of. Not what I call good business!
Store owners in Israel, please keep enough change in the register!
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This is Store Ownership 101. Always have enough change in the register for your customers. Now I can understand if someone comes to you for change and you don’t want to give it up because you need it for your clients, but there is really no excuse (unless you run out) not to start off your day with enough change in the register. It’s called a float.
Listen to this true story that happened to me today when I was shopping in Bet Shemesh. The first store I went too was to purchase an item for 18 NIS. Since I had just come from the bank I did not have anything smaller then a 200 NIS bill. The cashier told me that she did not have any change. As I was taking out my credit card I was thinking “Lady, I am giving you cash and you are turning it away”. After I gave her my credit card and she rang up my purchase she said to me, and I quote, “In the future please keep in mind that we have a 25 nis minimum to use a credit card”. Enough said.
The next store I went to I made a 39 nis purchase and again handed the 200 nis bill. This time they also asked me if I have something smaller and gave me a grunt when I said I didn’t so they reluctantly gave me change.
Come on people! How about a little customer service? Is it really so hard to make sure each morning you have a few hundred shekel in change? Take care of your customers since it is usually the little things that mean a lot.
Why of why do banks in Israel charge you for depositing large amouns of cash?
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This is something that has always irked me. Banks in Israel (and in the world for that matter) charges you if you deposit a larger then normal sum. In the case of my bank it’s 10,000 NIS (about $2500.00). Sure I get 50% off of my bank fees, and sure it ends up being just a couple of bucks, but it’s the point of it that kills me. Banks thrive on money. When they take our money they are able to lend it out at higher interest rates. So one would think that the more money you put in, the happier the banks would be and they would perhaps give you a gift for depositing large amounts of money and not tax you for it! It’s not like the tellers are working harder. The money counting machines take perhaps 2-3 seconds longer max and printing out the reciept is the same amounf of effort no matter how many zeros are on it. So why charge us?
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