Saturday, December 27, 2025

A Salesman Problem

 

I faced a peculiar “salesman problem” recently, which was difficult to believe first.

If you are getting a carpentry work done, and select a sun-mica, the carpenter would criticize your selection and would force you to pick another design. If you are getting walls painted and pick a colour, the painted would say that your choice is not good and would ask you to pick another colour, mostly a copy of some other house he had painted. If you are buying a vehicle, again, the salesman would mandatorily criticize your choice of colour and would force you to buy one of the popular colours, e.g. white or black. And then come the curtains.

While buying curtains at a local shop recently, I came across an interesting salesman. After entering the shop, I told the shopkeeper that I did not want the kind of curtain where a plastic ring is used on top to hang the curtain from the rod, and I need the type where the curtain is hung by stripes made of cloth. This way, I would avoid plastic in the curtain and would feel safe washing the curtains in the washing machine. The shopkeeper sent me with a salesman to make my choice from the available options on the first floor.

There was no one else on the first floor where curtains were kept. The salesman first started saying that “no one buys the type of curtain you are buying, and these have gone outdated now. Everyone buys curtains with plastic rings only these days and very soon, production of such clothes-only curtains would be stopped totally by companies”. I said, “Okay. But I like only these curtains.” Then, he stopped for a while and started his tirade again, in totally unsolicited manner.

He said, “the curtain you are buying will run for several years and decades to come”. I thought he was giving a compliment for selecting “clothes only” (no plastic) curtain. So, I said, “Yes”. Then he said, “The problem with middle people (he omitted the word “class” so as not to offend me) is that they do not have money to buy new curtains every year. So, what option they have other than keeping the same curtain for many years to come?”. I was busy selecting a curtain for purchase. But since I heard him, I replied, “The question is, why would one change curtains every year? Curtains do not get old in just one or two years. If curtains start looking old, or if there is a function or a marriage in family, on such occasions one would change all curtains of one’s house. Otherwise, it makes sense to keep the same curtains which are in good condition.” He still repeated his stand that “if one had enough money, one should change curtains every year”. I said, “Okay”. I selected two sets of curtains I liked, took their pictures, and came down to give my order.

Later that day, I happened to recall this incident and then I noticed how the salesman had argued unnecessarily and how any customer could have taken offense with his statements. I did not mind because I did not notice any wrong intention in what he had said. But, his statements could be taken as if he was “harassing” me.

I am not sure about the reason for the “salesmen’s” pattern mentioned above, but most likely it is due to lack of training and professionalism with the particular folks involved. I don’t understand what their problem was if they allowed a customer to buy what he wanted to buy, instead of criticizing their choices and giving unsolicited advices on what to buy and what not. Most likely it seemed they were trying to force their own choices over the customers, due to some kind of “self-validation” psychology. I have read that excessive watching short videos on YouTube changes people’s brain activity and impacts their psychology, is this weird behaviour by salesmen related to that?

Whatever be the reason, I hope the salesmen stop this pattern and they need to get trained better in valuing their customers.

- Rahul

Wednesday, November 26, 2025

Travelogue: Some Pictures from Muzaffarpur, Bihar

 


Clockwise from Top Left: RTO Office Muzaffarpur, Bharat Mata Idol at Bharat Mata Naman Sthal, Sub-Divisional Office (Anumandal Karyalay) Muzaffarpur, Dr. Rajendra Prasad's statue, Rajendra Park Muzaffarpur

Monday, November 24, 2025

Travelogue: Pictures from Rural Areas Near Muzaffarpur, Bihar

 


(Top) A water cenal under construction near Muzaffarpur, Bihar. 

(Below) A low lying area outside Muzaffarpur, Bihar 

Thursday, November 20, 2025

How Customer Can Gain Instead of the Bank While Using Credit Card


This is a common question among financially savvy consumers. The goal of making profits instead of allowing the bank to do so while using its credit card, in a legal and ethical way, is essentially the strategy of maximizing your value extraction from the card's rewards and benefits while ensuring the bank collects zero revenue from interest or fees on your account.

Banks primarily make money on credit cards through below major sources, and your goal is to eliminate these:

1.  Interest Charges: (Biggest revenue source)

2.  Fees: (Annual fees, late fees, over-limit fees, cash advance fees)

3.  Interchange Fees: (A small percentage fee paid by the merchant on every transaction, which the bank shares a portion of with you as rewards).

Here is the strategic approach for maximizing your benefits (Interchange Fee rebates) while costing the bank revenue from interest and fees:

1. Eliminate ALL Interest Revenue

This is the single most important step to minimize the bank's profit from your account.

Rule: Pay your full statement balance on or before the due date, every single month.

Why it costs the bank: The bank makes the most money from cardholders who carry a balance and pay high APR interest (often 20% or more). By paying in full, you make use of the card's interest-free grace period, and the bank earns zero from this primary revenue stream.

2. Eliminate ALL Fee Revenue

Avoid all unnecessary fees, which are pure profit for the bank.

Rule: Avoid all late payment fees, over-limit fees, cash advance fees, and foreign transaction fees (by using a card that waives them).

Strategic Annual Fee Management:

Choose a No-Annual-Fee Card: The most direct way to eliminate an annual fee is to simply use a card that doesn't charge one.

Offset the Fee: If you use a premium card with a high annual fee (e.g., \$500), ensure the value you get from the perks (e.g., complimentary travel credits, free night certificates, lounge access, statement credits) is significantly greater than the fee. If the card costs you \$500 but gives you \$1,000 in benefits you would have bought anyway, you are extracting value.

3. Maximize Interchange-Funded Rewards

Your rewards (points, miles, cashback) are mostly funded by the interchange fee (a fee the merchant pays to the bank). Your goal is to get a greater share of this fee back as a reward than the bank is typically willing to pay out.

Use Category-Matched Cards: Use the right card for the right purchase. If a card offers 5% back on groceries and 1% on everything else, use it only for groceries. The bank earns a standard interchange fee (usually 1.5% to 3.5%), but they are paying you 5%, making that transaction less profitable for them.

Example: Use Card A for 5% dining, Card B for 3% gas, and Card C for 2% flat-rate everywhere else.

Chase High Sign-Up Bonuses (Safely): Banks offer massive welcome/sign-up bonuses (SUBs) that are often worth hundreds of dollars in value, requiring you to spend a certain amount in the first few months. This is a deliberate loss-leader for the bank.

The Strategy: Time the opening of a new card to coincide with large, pre-planned expenses (taxes, insurance, home repairs) that you can easily pay off immediately, thereby securing the large bonus without overspending or carrying a balance.

4. Redeem Points for Maximum Value

The bank assigns a fixed "cash" value to your points, but often allows you to redeem them for a higher "travel" or "transfer partner" value, creating a higher liability for them.

The Strategy: Look for opportunities to transfer points to airline or hotel loyalty programs (e.g., converting 100,000 credit card points to 150,000 airline miles), where you can redeem them for a premium flight or hotel room that would cost you much more cash.

Example: 50,000 points redeemed for a \$500 statement credit (1 cent/point) is less valuable to you than redeeming them for a First Class flight that sells for \$1,500 (3 cents/point). You are extracting 3x the intended value from the bank's rewards pool.

5. Utilize Free "Coupon Book" Perks

Many premium cards offer statement credits for specific services (e.g., travel, streaming, dining, cabs).

The Strategy: Only use cards whose free perks are for services you already use or were planning to purchase. If you would have paid \$15 for a streaming service anyway, the card giving you a \$15 credit is 100% extracted value from the bank. If you use the perk to buy something you didn't need, you are still losing money.

By paying in full, avoiding fees, strategically using the highest-return cards, and redeeming points for outsized value, you become a "transactor" who is highly profitable for yourself but unprofitable for the bank's traditional business model (which relies on interest and fees).

Note: This article is generated by a free to use AI model.