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Thursday, April 03, 2008
Vending Machines Selling High-End Gadgets Pop Up Around Country
Donna Fuscaldo
FOXBusiness
Forget about buying a can of soda or a bag of chips from a vending machine. Now you can get an iPod or a high-end digital
camera.
In the last few years, vending machines selling high-end electronic gadgets have been popping up at airports,
hotels, malls and department stores across the country.
The brain child of San Francisco-based ZoomSystems, these machines
sell everything from $400 digital cameras to Apple’s (AAPL) iPod digital music players
to even Sony Corp.’s (SNE) Playstation Portable PSP, and allow consumers to make a purchase without any human interaction.
“Consumers don’t want to wait in line and don’t want to deal with a person that knows less then they do about what
they need,’’ said Gower Smith, chief executive of ZoomSystems. “It creates a very efficient way to get the products from the
OEMs [original equipment manufacturers] directly in the hands of consumers.”
Currently Macy’s (M) is the only department
store to sell iPods through ZoomSystems' vending machines. The machine, which sells the iPod Touch, Nano and Shuffle, iPod
accessories, speakers, Belkin headphones, as well as digital cameras by Canon and Samsung, enable consumers to quickly get
their hands on their electronic gadgets at the swipe of a credit card.
At airports, there are Sony-branded machines
that sell the PSP and games, digital cameras, memory products, headphones and even Sony’s new digital book reader. Popular
items purchased at airports include headphones, adapters and accessories, the typical things left behind by travelers, said
Gower.
FOX Translator
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Some mutual funds want you to pay for the privilege of them (or your investment adviser) taking your money to invest. It's called a load, and it works like a cover charge to get into a nightclub. Luckily, there are such things as no-load funds. As the name implies, shares of these funds are sold without a fee paid to a broker or investment advisor.
The entire amount you invest in no-load funds goes to work for your returns. On the other hand, with load funds, right off the bat you're charged commission (not to mention other fees incurred over the life of the investment). Let's say, for example, you invest $25,000 into a load fund that charges a 5% commission. This costs you $1,250 off the top, bringing your actual investment down to only $23,750.
The often-cited horse race analogy argues against investing in load funds. Here's the logic behind it: Would you place a bet on a horse that had to start a race 200 yards behind the others? Well, maybe you would if you got a tip from a sketchy, trench coat-clad man in a dark alley. However, under most circumstances, it's not smart to put your money on that handicapped horse.
But some argue that at times that man in the trench coat (aka your broker) knows more about the horses than you do, and has a better shot at picking a winner. Also, sometimes these fees are unavoidable because some funds are available only through investment advisers.
Cost-benefit analysis can help determine when a load fund is worth it (in other words, when it will score you a load) and when it is better to "do it yourself" and avoid the fees. Load-fund fees range depending on share class and can cover a variety of costs, such as paper work and fund management.






