THIS IS MY 112TH BLOG ON UNDERSTANDING MONEY
TOOLS.
Let’s continue on a journey of “stuff” that might help
you. In blog 111 we discussed
sales. Let’s continue that for a
second. (A prior blog covers sales tools more completely.)
I see sale’s people making a common mistake over and over
again and that is in the direction of “what is a customer”. The exact product is immaterial. This seems like common sense, however I
see this situation all too often.
Unless you have a “ready, willing and able” buyer you “ain’t going to
make a sale and wasting time. What
is a ready buyer? Someone who is
ready or in the near term ready to buy the product or service. What is a willing buyer? Someone who is wanting or needing to
make the purchase. What is an able
buyer? Someone who has the money
or another vehicle (a substitution for money acceptable to buyer) to buy. Without these ingredients sale’s people
are wasting their time.
Once these three things are in alignment it will be possible
to make a sale. Then, most people
are close to buying, but are still placing more value in their money than the
product. The sale’s person needs
to create more value in the product exceeding the value of the buyer’s money. So you are taking the person from 48%
negative to a 52%, or so, positive relationship, and then you have a sale. Few people are ever 90-10 against a
purchase or 90-10 for a “slam dunk” sale.
Let’s move on.
I get together with a friend to brainstorm everything from economics to
education. This past week we discussed the world’s transformation into the
exponentially advancing technology field, especially as to how it relates to
sales. This friend is going back
to school for another degree, a master’s in communication in the technology
world. People, educators and companies are trying to figure out selling to
Generation X, and communication.
It is a big topic and educators are trying to figure this one out;
product or service, then selecting a platform and communication/reaching out to
the targeted audience.
Here is what is difficult to grasp. The future is not bright for employing
humans. We have driverless cars,
drones, and Watson, IBM’s genius computer. Computers can analyze more quickly
than a human and come up with a more accurate diagnosis. This illustration was
proven by Watson against MD doctors.
Robots can now self-code software and re-program other robots; you won’t
need design engineers! An idea for
making money in the world of the masses; apps on phones. There are apps for so many things today
from music tuners to working out.
The essentials for success with an app are good product,
especially unique or proprietary, then to attract the worldwide consumer who
can’t live without it! A good
“platform” is essential. Pricing
needs to stay in the range of $.99.
The whole key is to attract a million people or more; exposure. It adds up! You are going to have development costs, so you need to run
the numbers, and there is risk.
There is a very ubiquitous situation in the air, it is the
unknown. Mr. Trump wasn’t to win
the presidential election, but he did.
Nationalism hails. So very
little makes any sense. I have given up on attempting to analyze the stock
market. When Mr. Trump was elected stocks were to go down, and we had a Trump
rally. George Soros, the
billionaire, is pretty smart when it comes to markets and it is said he lost $1
billion shorting the markets on a Trump victory.
People think our strong US dollar is great as it buys more
imported goods, however on the other hand it hurts us and the world in several
ways including third world countries paying back debt based on the dollar. Our US exports are down about 6.8% as
the foreign market is paying more for our manufactured goods. These are dollars leaving the country
and most likely will not come back.
I think if the Federal Reserve raises interest rates in the future it
will be temporary, as it will be counter productive for exports, our economy
and other countries in the world.
When Mr. Obama came to office he inherited a $10.6 trillion
US debt, it will be $20 trillion when he leaves office. It is somewhat his fault with the
decisions he made over the last 8 years, and in ways not as we have a
government that should act as a team and it has not. Wars are so costly and we
have been in the Middle East now for 16 years with no end in site, with even a
larger mess at hand. Hegemony costs money, and we have politicians who
apparently never studied the Empires who tried to expand controls like the
Greeks, Romans, French, English, and Germans with Hitler. Cause and effect! Whether a “hot” war or “cold war” it
will take you financially down the drain.
There is an inverse relationship between any debt and
growth. I am afraid the rally
around Mr. Trump will die shortly after the inauguration, the same as it did
after Ronald Reagan came into office. The US economy is like a huge ship and it
can’t be turned quickly. We are
now proposing to pass an extension of the debt with another $9 trillion. Corporate tax cuts will pay off long
term, however short term it will leave a larger deficit. We will have to extend tax incentives
for large companies to remain here and build new manufacturing plants.
Here is one example of the hyped news playing us. Mr. Trump is taking credit for keeping
a Ford manufacturing plant in the US.
Let’s take a look at reality.
The new plant will cost $700 million for mainly capital items such as
buildings and manufacturing equipment, versus expensed. They are estimating the creation of
only 700 jobs; that is one job for every million dollars. On a positive note, it will take
workers to build the plant, but once operating it will be robotic and
automated. The US, and I am sure
the state, will provide TIF, tax incentive funding, which means Ford will
shelter net income for years without paying taxes.
China has lowered its currency, the Yuan, even more to make
their products more marketable.
President Xi, who is a great proponent of Globalization needs it. He needs to export a ton of
manufactured goods to keep his economy afloat. He is currently in Davos, Switzerland, along with the
world’s big power players pitching China, Globalization and trade. The world’s elite want Globalization. It is a great vehicle to further low
taxes, skirt tariffs while exploiting the environment and worker’s rights and
gaining global control.
Here are some figures to look at for long-term and
investment consideration. New auto
sales were down 42% 2016 versus 2015.
Computer sales for another year went down about 6%. Even with advanced new technology, the
old computer is still fine and more people will use their phones in a similar
fashion. Popularity is for
smaller, more portable devices.
How do we sell to Generation X and younger Millennials?
Europe is in deep financial straights. Germany is holding the Union together, however economically
they rest upon exports of manufactured goods. If that slows, they fail. I predict the immigration we have seen
over the past few years, mainly created by the US and Britain in wars, will be
the downfall for the European Union. As in the US and around the world, in the
long term we will not need more workers and the result will be millions of
people being subsidized by governments.
Also, immigrants typically do not integrate into society well, which
makes it more difficult.
Finland is experimenting with substituting a monthly payment
of 800 Euros to citizens rather than pay benefits. Some day here and around the world I believe the largest
corporations are going to have to set up trusts to do something similar in a
grander scale as there will be less need for human beings!
