September 29, 2004
When Free isn't Free...
You might have heard about Oprah 'giving away' the new Pontiac G-6 a week or so ago. This 'story' really bugged me. Big time. Why? Oprah did NOT give away any cars. Not a single dime came out of her pocket. Pontiac gave the cars away. It's called advertising. It's an advertising stunt that got covered nationwide. Nothing more, nothing less. It makes Oprah look good, and hypes up yet another look-alike Pontiac.
So needless to say, I was rather quite amused to read this news, posted on CNN Money.
Whoops, looks like this wasn't that well thought out of a giveaway after all.
And anyways, who's the genius who didn't realize that the 'winners' would have to pay income tax when they are given a $28,000 car.
So what we have is an advertising stunt, and 270 people that basically had the wool pulled over their eyes.
But hey, it helps to move product.
Erik...
So needless to say, I was rather quite amused to read this news, posted on CNN Money.
Whoops, looks like this wasn't that well thought out of a giveaway after all.
And anyways, who's the genius who didn't realize that the 'winners' would have to pay income tax when they are given a $28,000 car.
So what we have is an advertising stunt, and 270 people that basically had the wool pulled over their eyes.
But hey, it helps to move product.
Erik...
Comments:
i think it's rather silly to lambaste the show for coordinating the giveaway of almost 300 cars because of the income tax imposed on prize winnings. even if it a recipient has to pay (should they be in the highest of tax brackets) the top $7000 amount, they're still getting, in essence, $20,000.
And more than a dime came out of Oprah's pocket - the man-hours spent coordinating the effort with Pontiac have a price tag attached. None of her producers or staff work for free. Now, I'll admit, there was a bit too much press attached to the whole thing - but it's a tv show, and that's what they want.
Any audience member who is snickering about having to pay income tax on the amount is obviously oblivious to the fact that they just got a free check for at least $20,000, essentially. Not a bad deal, I think.
And more than a dime came out of Oprah's pocket - the man-hours spent coordinating the effort with Pontiac have a price tag attached. None of her producers or staff work for free. Now, I'll admit, there was a bit too much press attached to the whole thing - but it's a tv show, and that's what they want.
Any audience member who is snickering about having to pay income tax on the amount is obviously oblivious to the fact that they just got a free check for at least $20,000, essentially. Not a bad deal, I think.
Fair enough, but I still stand by my statment. It was an advertising stunt. Not figuring in that the 'winners' might not be able to afford the tax (I've read that they were all from 'needy' families) was a major screw-up. And of course the employess of the Oprah show spent time on this, but that's really their job, to make a show that people will watch. So, they were paid for their job, and still, not a dime of Oprah's money went to the giveaway. The story was not that the people who worked on Oprah's show put in a hard day's worth of work, but that Oprah gave away cars. Not the Oprah Show, nor the Harpo company.
And yes, it's still not a bad deal if you just take the cash, minus the tax. If Oprah donated her salary for that day to cut everyone a check for $20,000 to buy a new car, that would be a nice thing for her to do. Which is not what she did. She basically fooled people into thinking they were getting a free car. All in the name of good press for her, and free advertising for Pontiac. That, is why the whole story stinks to me.
Post a Comment
And yes, it's still not a bad deal if you just take the cash, minus the tax. If Oprah donated her salary for that day to cut everyone a check for $20,000 to buy a new car, that would be a nice thing for her to do. Which is not what she did. She basically fooled people into thinking they were getting a free car. All in the name of good press for her, and free advertising for Pontiac. That, is why the whole story stinks to me.
