Folks,
As you may have heard me say, in spite of asia hoping to "export its way out
of trouble", I recommend one not take advantage of the situation and squeeze
the supplier for a low price..,instead pay a higher price since the customer
in america does not know quite what the price ought to be on your innovative
item, and also, since int'l trade is about relationships, start building for
the long term now by paying a fair price, a price very attractive to even the
best suppliers.
Japan's interest rates are low, which would suggest even further advantage
possible..that is using Japan interest rates to finance deals, something I
have recommended..when Japans are lower than even ours...now here comes advice
that would make that move a bad idea if this advice were taken by Japan banks
(advice I would like to see taken).here is a report on Japan's banks..,
Today's Investor's Business Daily (Nov. 9, 1998) leads its economics section
with a piece on Japan's banking troubles by Charles Oliver. He quotes
economist Frank Shostak, an adjunct scholar of the Mises Institute:
Japan has spent 10 years in an economic swamp, and its troubles have damaged
other economies in the region. Many Western economists say that if Asia is
ever to get out of that muck, Japan must lead the way.
After years of political inaction, Japan finally is starting to deal with its
crippled banking system, which many say is at the heart of its economic
catastrophe.
Until recently, near-zero interest rates have been the government's biggest
contribution to the save-the-banks effort. Now it's actually giving taxpayer
money to troubled banks.
So what's next?
There seems to be a growing consensus among economists: Japan needs to pump up
its money supply - big time. If you add enough money to the system, the
argument goes, banks will lend it - then people will spend it. That should
translate into a much-needed boost in domestic demand....
Maybe, say other economists, but that doesn't solve Japan's real problem....
''Japan's real pool of funding is shrinking. Its real wealth is declining, and
that's due to loose monetary policy and bad fiscal policy,'' said
FrankShostak, an economist with Ord Minnett Jardine Fleming Futures in Sydney,
Australia.
When central banks create money, they pump it into credit markets, which
causes a credit boom. Banks, flush with cash, fall over each other to lend it
out. In the short run, that actually brings interest rates down.
In Japan, that money fueled stock market and real estate bubbles that burst in
the late '80s. A lot of capital ended up in projects that never should have
gotten off the ground.
When the dust settled, banks were left with a mountain of bad debt, this
argument goes.
''Japan should focus on rebuilding its pool of funding, its real wealth,''
Shostak said.
That means it must stop throwing money at bad projects, let the banking
system clear out its bad loans and let unprofitable plants and firms go under.
Shostak also says the government must make big, permanent cuts in taxes and
spending to get resources back into the more-productive private sector.
****
So cut taxes (expenses), let interest rates rise, take the write-off on bad
debts, let what money there is flow to sober investments, and grow the economy
thus. Sounds like advice to a young married couple whose credit cards got
them in trouble...,
I advise in my classes you develop a product that provides a real value, build
it slowly over time, with a viewe to long range benefit. It still applies. I
remember in the mid-70's meeting in Asia the wealthy people who had started
trading a decade earlier, when Asia was a mess and they were poor too. the
conditions today are not unlike then, in many respects. Time to get
going...,building those relationships...,
John Spiers
Wednesday, November 11, 1998
Japan's Business
A More Basic Problem...
Folks,
Although I have my head in the clouds over ivory-tower econ issues, I am still
happy to take questions like the wone following..,which includes my
answers..,.
the person here is asking why, in spite of my arguments in the lessons, he
cannot simply subscribe to lists that announce cool new products and pick one
of those...and here are his follow questions and my answers...,
***
****This is just an on-line source. Like I said if I was into Importing gifts
or pencils every time a new pencil or gift for the home came out I get an e-
mail telling me hey new
pencils goto www.emptyforest.com or dustcollecters.com :)
>>>maybe a good way to see if someone comes up with a similar idea to yours<<<
Someone asked last night about a Import/Export on-line information place.
There is lots another one I have been
to is like a buys/sellers place. Have 20 tons of wheat for sell, looking for
used clothing ect.ect.
>>>I never see those pan out though, even though I have met literally hundreds
who've tried..plus, I have met dozens burned in those deals<<<
Right now Iim trying to do XXX product
I want to know what it takes to get XXX product in to the USA.
>>>the details on those specifics are free from a customsbroker<<<
Also I have folks in other countries wanting to Import this Product line but I
don't know how to do it yet.
>>>if it were your design, you could simply take a royalty<<<
Do I just work a deal with the Trading Company to Drop Ship or bring it here
from HK and send it back out.
>>>Whew, way too troublesome..try drop ship, but remember..some biz is not
worth doing<<<
What about coming out with my own line. This can be done easily but would cost
a fortune.
>>>Why? only samples first<<<
Or a Kirkland line for Costco. Product XXX fall under the same category of why
they came out with a Kirkland brand name to begin with.
>>> 1. get the kirkand logo off a kirkland product. 2. Send to supplier asking
for a model sample with the logo on it. 3. Take finished logoed Kirkland to
Costco. 4. Get order.<<<
>>>although you know my views on mass merchandisers<<<
Do I buy from the Trading company Import them myself or just keep buying them
from a dealer in Calif. and forget about selling this wholesale or exporting?
>>>when we've finished costings, do one and compare<<<
I feel this is just the start. I need to get something going that will allow
me to work out of my home and keep the security I have. Importing/ Exporting
looks like something but is this a risk it all thing.
>>>No reason to take any risk whatsoever if you follow the rules laid
down...even if they charge you for a sample of a kirkland product XXX, big
deal...you use em anyway<<<
Is it something that can be done
a little at a time say like one product line of product xxx
>>>Yes, think dell computer starting in a dorm room, now at 34 years old..he
is somethiing like 6th richest person on planet, and far richer at his age
than bill gates was at same age.<<<
Now Cartridges this is a great line also. What I could do with these is buy
the parts. Have them assembled in a warm place ( just not Seattle J) bring
them in. But then you have the patent thing we spoke a little bit about last
night What can be do is buy up used Cartridges take them to Mex.
Re-manufacture them re-sell them as Re-Manufactured Cartridges. This idea I
believe is already being done but Iim going to look into it.
>>>let me know if it wouldn't be simpler, all in all, to simply come up with
your own product<<<
***
Folks, I love helping people get going in intl trade. I know that the only
hope for success is to develop your own product. I believe I am the only
person ever to describe the process the people who thrive in intl trade use to
succeed. apparently, to describe it and recommend it is not enough... people
still want an easier way...so now I work on how to get people to go through
the process I describe. Not sure how to do that yet, but it keeps the
challenge of teaching interesting.
In te mantime, this list is for you..
John Spiers