Bank Give-aways

ING Direct has a referral program where the person who provides the referral receives $25 per qualifying account opened and the person who opens the account receives $50. I took advantage of this offer about 8 years ago. I forgot about the account for about 4 years and eventually came back to it. I made like 5% back on $70 or something that was in the account. Not bad for a savings account with very low balance.

I am now signing up for an account with Bank of the West. Free ipod touch for signing up by 8/20/2010. I read the fine print and its not too shabby. Just open an account and use it through 10/31/2010.

I am not sure how banks can be profitable doing this kind of sign up promotion. I stuck around with ING. They had less than $100 bucks from me for 4 years but I am a loyal customer now. Maybe they can afford it because they know they have a good product.

Qandy Question

When is the last time you were in a grocery store (or anywhere for that matter)and thought, "Hmmm, I have a strong hankerin' for a tootsie roll."

How is that company still in business? Here are my ideas:

1. Halloween revenue lasts them all year
2. They have no marginal cost and extremely low operational cost. Think about it, same wrapper for years, the candy is always hard and have you ever seen one go bad? No expiration date. Their production could be a fixed cost in 1963 and they have a gigantic warehouse full of pre-made candies. The only operational cost is shipping.
3. Revenue is from royalties of hip-hop music ("Let me see your tootsie roll")
4. They may own other candy brands and have a broader product line than I know off.