Thursday, August 30, 2001

Currency

Folks,

I carry HK$100 in my wallet for the pleasure of carrying a stable, solid
currency. It is so because it is issued by private companies, just as we
once had in USA. Indeed, the legal fiction is the Federal Reserve Board is a
private bank, so strong was once the American aversion to government having
anything to do with currency.

The Europeans have crafted a disaster in the Euro, and here is just one more
example of he problems mounting for that currency:

By NIC CECIL
Political Reporter

EUROPE is to be flooded with a tidal wave of fake
euro
notes in the biggest money scam ever, crime
experts
warned last night.

Gangsters from Italy, Russia, the Balkans and
Syria are
poised to cash in as the single currency turns the
Continent into a gangsters' paradise.

The enormous sting could potentially see up to
£210
BILLION of forged and laundered notes and coins
circulating in euroland.

Master criminals will use two methods to make
fortunes
when the euro becomes the official currency of 12
countries including Germany and France on January
1,
2002.

They will print near-perfect counterfeit euro
notes that
their lackeys will exchange at bars, restaurants
and
shops while punters are still adjusting to the
look and
feel of the new currency.

Gangsters will also exchange phoney marks and
francs
for euros in hard-pressed banks amid mayhem caused
by millions of citizens queuing to swap their old
money.

The forgery boom will also trigger a surge of
illegal
drugs, guns, stolen cars and counterfeit goods
being
peddled across Europe as gangs rush to spend their
profits.

Mark Tantam, financial crime specialist at
accountants
Deloitte & Touche, said last night: "The advent
of the
euro is the biggest shot in the arm for organised
crime
since the sale of alcohol was outlawed in the US.

"It isn't surprising that - according to Europol
- Russian,
Italian and Balkan crime syndicates are now
intending
to drop the 100-dollar US note as their currency
of
choice in favour of the euro next year."

US author Jeffrey Robinson, who wrote The
Laundrymen
book about counterfeiting, branded euroland
politicians
the "morons of Brussels" for allowing a 500-euro
note
to be printed - the equivalent to £315.

He stressed this would allow criminals to put
£1million in
euros into a single briefcase, making it much
easier to
move "dirty money" around in order to launder it.

Mr Robinson said: "It's the height of insanity
for law
enforcement. There will be tidal waves of
counterfeit
euros. It will be a Disneyland for organised
crime."




Thu Aug 30, 2001 8:16 am

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Tuesday, August 28, 2001

Guerilla Marketing More

Dear John,


Thanks for the speedy reply. Here are the answers, in order:


The hats are made in China, and I import them FOB Hong Kong. I ship the

fabric to my agent in Hong Kong.

***Has your supplier ever suggested he might get it the fabric cheaper/better
than you can?***

Re discounts: I don't have to pay shipping

from HK to the US, as I normally do for my domestic sales.

***Do you mean in the instance of these foreign orders, or do you mean ever?
To my mind one always pays for shipping from HK to US (importers always pay
inbound freight) and NEVER pay domestic delivery to customers...they pay. So
this sounds exactly backwards, depending on what you are saying.***

Also, my supplier

gives me a discount because they don't have to buy quota for shipping to the

US.

***Because it is usa-made fabric?***

The sale would be FOB Hong Kong to France or Germany, and the buyer

would be responsible for paying for shipping from HK to Europe.

***This you did not mention in your original email, and it is the simple
solution.***

Also, the

buyer asked for a discount, and I normally give a discount to anyone who

orders a large quantity. My definition of a large quantity is 500 pieces and

up. I do that because it is more efficient to ship a lot to one place than

to ship several small quantities to several different places. Plus my

production is cheaper if I order larger quantites.

***OK, sounds right, if true.***


"Importers Prepay" This is great news. So these guys will expect to prepay?

How soon before shipment?

***With an LC, as they receive the goods. Any other method, it depends. See
below...***


The rough dollar amount is $25,000 for the French, $12,500 for the German.


***sounds too high for Visa/mc...sounds like LC.***


What IS the "simple profitable solution?"

***Part A, you figured out. Ship directly from the supplier to the european
customer. Very good. Part B is to simply have the supplier bill the
european customer directly, not you. Then you completely avoid any problems
with payments, etc, and make money while you sleep. The price you charge the
europeans is the cost of goods (what you pay the supplier) plus your NET
profit.

Say you buy these hats first cost at $8 each, add $2 cost for importation,
and then wholesale in usa at $20 each. Your gross profit is $10, cost of
goods is $10. Then you take out all of your expenses, and say you net $3 per
hat net profit to you. Then direct the supplier in hong kong to simply sell
all of the hats he can at the price of ($8 cost + $3 net profit to you) = $11
to europeans. In fact, have him push these hats to every customer of his
worldwide at this price.

In this way, as mentioned, you make money while you sleep, and do not have
the hassle of letter of credits, etc.

Now, I am sure 2 concerns arise, why would he do this and how do I track him?
Apparently shipping directly he has already agreed to; so we are just
wondering why he will bill for us? Well, obviously he has the ability to
bill now, he does so with you. So you are just directing him to bill the
customer, not you. And he will do this becuase it is done all the time, it
is standard operating procedure.

And how do you track him for honesty? Well, is he a crook? Are you working
with someone who you suspect is dishonest? If so, why? If not, then trust
him. People in Germany and Hong Kong and Korea get rich delivering products
to specification on time at a fair price. Honesty is a given, and a minimum
requirement.

There is a added benefit... if your product ever becomes super successful,
this factory will have a vestd iinterest iin seeing no one knocks you off,
since if this happens it is money out of YOUR suppliers pocket. He will use
local methods to see to it no one rips off your design.

So the simple solution is to confirm this with your supplier, connect the
europeans and the supplier together, and then take a nap and make some money,
the same net profit you would have with none of the work and none of the risk.

The only other caveat is this $3 times X sales = income reportable to the
IRS, even though it is left overseas.***


RE Small Co. Owner needs Guerilla Counsel for an International Sale

I've longingly eyed your course description in the College of Marin class
schedule ever since I started my business 3 1/2 years ago.


***You'll enjoy the class...***

I am now successfully importing a product I designed. At a recent trade show,
I was approached by a French company AND a German company who both want to
order a large quantity of my product.

***I am guessing the hat supplier is not european, so what is being proposed
is you sell something you import and export it to europe?***

I need a quickie consultation re: how to respond to them. I know my numbers,
i.e., the discount I can give them.

***Why give a discount if you do not have any economies of scale? Rarely do
small biz have economies of scale, so there ought to be no room for
discounts.***

The part I'm nervous about is how do I get paid from them?

***Fortunately importers prepay, so these customers would be prepaying.***

I haven't used letters of credit yet because my dollar amounts are small.

***Are these amounts large?***

The last time I checked, LOCs take lots of time to set up.

***Well, less than $5000 they dont make any sense...less than $5000 maybe
credit card is ok..with frequent flier miles attached to cards, some biz dont
mind.***

I can accept credit cards. Would it seem terribly unprofessional to suggest
they pay me by credit card?

***Depends on amount, but there is a better plan.***


I assume this is the kind of stuff to which you know the answer.

***Yes.***

Would you consider consulting with me?

***yes.***

How much would you charge me?

***What I always charge, $10,000. This is a simple problem with a solution
you haven't thought of yet...confirm the country of origin of your hats, and
give me a rough dollar amount, and I'll give you a simple profitable
solution. I do not need to know any prices or profit margins. After you
respond I'll reply and you can decide whether to send me $10,000 or just take
my class again.***

John


Monday, August 27, 2001

Re: Help

Re: [spiers] help

One of the recommendations I got from John's class was
to accept credit cards as a form of payment -
particularly foreign accounts. Actually, it's got a
big advantage because payments can be made directly
into dollars (No conversion headaches and such). I
would not hesitate for a second to do so. Do you agree
John?
Alex

--- wileyccc@aol.com wrote:
> Dear John,
>
>
> I've longingly eyed your course description in the
> College of Marin class
> schedule ever since I started my business 3 1/2
> years ago. I am now
> successfully importing a product I designed. At a
> recent trade show, I was
> approached by a French company AND a German company
> who both want to order a
> large quantity of my product. I need a quickie
> consultation re: how to
> respond to them. I know my numbers, i.e., the
> discount I can give them. The
> part I'm nervous about is how do I get paid from
> them? I haven't used letters
> of credit yet because my dollar amounts are small.
> The last time I checked,
> LOCs take lots of time to set up. I can accept
> credit cards. Would it seem
> terribly unprofessional to suggest they pay me by
> credit card?
>
>
> I assume this is the kind of stuff to which you know
> the answer. Would you
> consider consulting with me? How much would you
> charge me?
>
>
> Sincerely,
>
>
> Abby


Help

Dear John,


I've longingly eyed your course description in the College of Marin class
schedule ever since I started my business 3 1/2 years ago. I am now
successfully importing a product I designed. At a recent trade show, I was
approached by a French company AND a German company who both want to order a
large quantity of my product. I need a quickie consultation re: how to
respond to them. I know my numbers, i.e., the discount I can give them. The
part I'm nervous about is how do I get paid from them? I haven't used letters
of credit yet because my dollar amounts are small. The last time I checked,
LOCs take lots of time to set up. I can accept credit cards. Would it seem
terribly unprofessional to suggest they pay me by credit card?


I assume this is the kind of stuff to which you know the answer. Would you
consider consulting with me? How much would you charge me?


Sincerely,


Abby