Re: [spiers] Colombia Organics
Nice web site! I was wondering how it will fit in with your marketing
to retailers. Is it a wholesale site, or a retail site?
Good luck with your meeting.
Richard Ingels
Saturday, May 13, 2006
Colombia Organics
Friday, May 12, 2006
Colombia Organics
On Thu, 11 May 2006 23:53:15 -0400, "angelahall"
wrote :
> I enjoy very much the group, but i am very shy and sensitive to write to so
> many people..(my english is not that good!), and some people have very
> strong opinions..
***Yes, like me... but you mustn't be afraid...join in any time...***
>
> I have my website for my organics products (My investment was $8.96)
> www.organicsoverseas.com, and I gave a try with the organic ingredient (I
> dont know if you remember, the organic shortening), but I think I am very
> close to sell this product...
***Very good...***
>
> The producers are coming from Colombia Next week to visit the customers with
> me (and other customers in MN, Wisconsin and California (Unfortunately, no
> budget for me to go to Ca..), but my father and brother insist that i must
> have a contract with the producers...
***A contract will not hurt, but what does it say?***
I learned in your class the importance
> of the "word" in international trade, but I think I should may be have
> something in writing. They gave me a price and I sent an offer with an
> additional 20%to the potencial customers in MN, and WI, we will have a
> meeting in Miami, and then we travel to see them..
***Well, makes notes on all of your discussions, and especially when the two
sides agree to
anything... and then later you send a letter that says:
" My dear friends in Colombia,
Glad to meet with you... this is what we discussed, this is what we agreed to...
1
2
3
If this does not meet with your understanding, please let me know.
Le reitero nuestras mejores consideraciones de respeto y alta estima,
Angela Hall"
Silence is agreement under the law, and if they do not respond, this is as good
as a
contract.***
> I dont know if I am loosing my time...
>
> What do you think?
>
> Thanks for your recomendation
>
> Angela Hall
***You only waste your time if you quit, there is always biz there somewhere...
if it is
something you love you keep responding to the good advice you get from your
custoemrs
and eventually it becomes viable.***
John
Re: FW: Geopolitical Diary: China, Currency Manipulation and Congre
Paul,
Indeed I do, punitive tariffs always lead to war, so these politicians are
threatening war. It
looks like republicans will have to move over to the passenger side for a while
and let the
democrats drive in the same direction. The neocons are about permanent
revolution, and
permanent power, so they are preparing to do their backseat driving with the
dems at the
wheel. Rupert Murdoch, he of Fox news, is now doing fundraisers for Hillary.
Keep in mind
the patriot Act and the invasion of the middle east were suggestions the neocons
made to Bill
Clinton back in the ;90’s...as a way to change the subject from his scandals.The
neocons had
to wait for a man of lesser moral fiber than bill clinton to implement their
program. The
supreme court delivered that man.
With the blood of iraqis on the hands of both parties, the subject has to be
changed. So, it is
all the Mexicans fault for working here. It is all the Chinese fault for taking
the other side of
the USA currency policy bet. It's not our fault!
John
On Fri, 12 May 2006 08:44:27 -0700, "Paul Cifka"
> Hi John,
>
> I thought you might find this interesting.
>
> Best,
> Paul
>
> Paul Cifka
> Anzen Markets LLC
> Innovative Product Design, Trade & Marketing Specialists
> 1319 Dexter Ave N Suite 117
> Seattle, WA 98103
> (206) 310-6237 - ph
> (206) 374-8293 - fax
> paul@anzenmarkets.com
> www.anzenmarkets.com
>
>
> -----Original Message-----
> Subject: Geopolitical Diary: China, Currency Manipulation and Congress
>
> Geopolitical Diary: China, Currency Manipulation and Congress May 12, 2006
> 04 51 GMT The U.S. Treasury has decided it will not brand China as a
> "currency manipulator." The announcement brought an outcry from U.S.
> lawmakers on Thursday, with members of Congress demanding action to mitigate
> the trade imbalance with China. Barring a complete breakdown in Iraq or a
> sea change in relations with Iran, this issue will remain a hot topic until
> the November elections.
>
> Prior to the Treasury's announcement, several measures had been floated in
> Congress that would punish China for its policy on the yuan, which is seen
> as undervalued. But after Sen. Charles Schumer
> made a trip to China in March and returned to say that Beijing was making
> significant progress in addressing the trade imbalance, the discussion was
> put on a back burner.
>
> Now, the topic is heating up again on the Hill. The bill by Schumer
> (D-N.Y.) and Sen. Lindsey Graham (R-S.C.) would be the most punitive
> proposal, imposing a 27.5 percent tariff on all Chinese imports -- and it is
> now back on the table. Other measures have been put forward as well,
> including one by Senate Finance Committee Chairman Charles Grassley (R-Iowa)
> and Sen. Max Baucus (D-Mont.), which, unlike the Graham-Schumer proposal,
> does not hinge on China being labeled a "currency manipulator" in order to
> take effect. It also conforms to World Trade Organization rules in that it
> does not promote a blanket tariff; rather, it would allow Congress to impose
> broad penalties, such as blocking a country's voting rights in the
> International Monetary Fund, in the event of "currency misalignments."
>
> The congressional debate is being renewed in a period when Washington's
> approach to Beijing has seemed rather disjointed. On the one hand, the Bush
> administration publicly humiliated
> Jintao during his visit to the White House in April. But it also appeared to
> be offering an olive branch of sorts to Beijing shortly afterward, by
> denying Taiwanese President Chen Shui-bian
> permission to make a refueling stop in the continental United States en
> route to Latin America. The truth is, the United States cannot afford to
> alienate China completely, particularly while the matter of Iran's nuclear
> program remains unresolved. It is not so much that Washington needs
> Beijing's backing within the U.N. Security Council as that it does not need
> another fight on its hands while focusing on crucial issues in Iraq and
> Iran.
>
> Nevertheless, Congress felt the need to immediately adopt a tough stance on
> China. There are two reasons for this. For one thing, the Treasury's
> statement would tend to make the United States appear weak from a Chinese
> perspective -- and that will not bring Beijing any closer to revaluing the
> yuan. To date, the rhetoric from Washington has been just
> that: rhetoric. Lawmakers now are sounding a hawkish note to counteract this
> perception -- and for the second reason: There is an election coming.
>
> Congress will keep China's currency -- an issue that plays well with voters
> -- on its agenda prior to the elections, and a punitive bill that seeks to
> address the trade deficit likely will be passed during the campaign season.
>
> The Grassley-Baucus bill or a similar measure -- meaning one with sweeping
> implications but that can be loosely translated, and with no immediate
> action required -- likely will win approval not only in Congress, but with
> the Bush administration. For one thing, forwarding such a bill to the White
> House will allow lawmakers to be seen as getting tough with China (which is
> good for their image); in signing it, the president (whose approval ratings
> are hitting new lows) could ride the same wave. Second, there is vital
> "wiggle room" in a measure like Grassley-Baucus. After a "misalignment" is
> identified, the government has six months to determine whether the offending
> country has made progress (with the definition of "progress" left
> intentionally vague) in addressing that problem. During that time, the
> administration can work with the offending government to alleviate the
> problem, in ways that will not hurt American businesses.
>
> We would expect a bill to be passed before November's elections. Despite the
> conciliatory note struck by the Treasury Department, it is not in lawmakers'
> interests to promote closer ties with China at this time, as that would
> jeopardize votes. And unless Chinese support is viewed as vital on another
> foreign policy issue of greater importance to Washington, Congress will keep
> the heat on Beijing for some time to come
> -- even if the legislation being debated ultimately turns out to be more
> sound than fury.
Thursday, May 11, 2006
419 Scams
Re: [spiers] 419 Scams
On Thu, 11 May 2006 11:30:51 -0700, Roman Brenes
> Then again, it provides a great opportunity for innovative individuals
> to mess with the scammers.
> Can you come up with a better way to bait the scammers? Compete on
> design! :)
>
> http://www.419eater.com/
The scammers take advantage of gullible people, this website does too, although
turn around
is fair play. I have a nephew who engages telephone solicitors: he listens to
their pitch, and
then explains sadly he cannot afford their offer, but he did notice what a
terrific telemarketer
this particular individual is. Based on that, would the telemarketer consider
selling my
nephews offerings over the phone, for a fine commission?
The telemarketer is a pro, has all the latest equipment, gets a bigger
commission on sales
selling my nephew's products than the bosses products, and to learn more, the
telemarketer
could just email my nephew.
I am not sure how many telemarketers are now working for my nephew, but only one
would
be sweet revenge on the telemarketers.
John
This article is really interesting
Re: [spiers] This article is really interesting, "Can it work with cars?"
I wonder if you can use the technique for buying a
car. Get 100 people who want to buy a Honda Accord
and get a fleet price for the cars. I hate wrangling
with car salespeople. I thought for sure the internet
would bring an end to car dealerships.
Anthony
--- Randal Tietz
> Here is the confluence of internet clicks and the
> consumer in bricks and mortar stores.
>
http://www.csmonitor.com/2006/0511/p01s01-woap.html?s=hns
419 Scams
Re: [spiers] 419 Scams
Then again, it provides a great opportunity for innovative individuals
to mess with the scammers.
Can you come up with a better way to bait the scammers? Compete on
design! :)
http://www.419eater.com/
John Spiers wrote:
> Folks,
>
> Like all of you, I get these offers to earn millions by helping people
overseas move ill-gotten
> gains. What astonishes me, is people actually fall for it.
>
> This is the first time I've ever read how the process unfolds:
>
> http://tinyurl.com/kjgpa
>
> John
Protecting Design
Re: [spiers] Protecting Design
On Wed, 10 May 2006 09:13:27 -0500, "sudhakar gadkari"
wrote :
> Hi John,
> If I have an idea which changes the way certain clothing are made radically
> but very attractive as convenience for consumer, how would I go about
> discussing this idea with manufacturer making sure that he would not by-pass
> me if he decides to use it in his product? I know from your class that
> patenting is not a viable option. Any suggestion?
> Sudha
>
Sudha,
I very much like this question, and I decided to reflect a bit before answering,
which means
my answer will be long.
A couple of things to keep in mind: first, we all think our ideas are going to
change the
world, and there is a lot of money to be made on our idea. Aside from the fact
that all our
ideas are based on other ideas, the fact is it takes time for an idea to work
its way out into
the popular world.
Normally the process is something is introduced initially, and it is actually
not yet the best
version, limited in usefulness, takes a while to get and of course is quite
expensive.
Over time it ever improves based on market feedback, leading to more, better,
cheaper
faster.
Usually what motivates someone to introduce something new is the thing itself,
to be
introduced. And the person who does the introduction is someone with a passion
for the
introduction.
Working at the high end of the market, we invest say $5000 and earn $5000 gross,
and
continue to do so as we ever improve our item, and add complementary items as we
grow our
business.
Over time, as our items become more popular, a couple of things happen.
Competitors begin
to offer our customers alternatives to our items. They do not steal our ideas,
they simply
offer something that is more attractive. We sell blue hats, and a competitor
says to a
customer of ours. "try this red hat." We sell chocolates, and a florist says
"give flowers
instead." An early form of competition is items not like our own, merely
alternatives for our
customers. Nothing can protect you from this competition, you can only endeavor
to ever
better serve your customer.
Now we either continue to change the item, or we listen to our customers for new
unique
items. As long as we do this, we invest $5000 and gross $5000, as in the
example above.
Even if we do, our original items, the best sellers begin to get competition in
the form of
similar items. You begin to see diminishing returns. Invest $5000, gross
$5000; invest
$5000, gross $4000; invest $5000 gross $3000... when you see returns
diminishing, you
dump the item because there are so many other items you can work on where you
invest
$5000 and gross $5000.
Now here is a key point... since you love the field you are in, there is nothing
more interesting
to you than developing new products in that field, and to make it work you must
be gaining
$5000 on $5000 (or whatever the standard is in the field). When the money on an
item
begins to dwindle...fine, you are on to something else in the field.
What motivates the people you see thriving in small business international trade
is the
lifestyle they lead, not the money. Bill Gates himself has said it is not the
money, recently he
made the point of being the worlds richest man in fact limits his ability to
enjoy what he has.
Poor lad.
One reason he is so rich is because of intellectual property rights, which I'll
get back to.
For now, what happens to the item the small business person has abandoned since
he is not
getting his $5000 gross out of a $5000 transaction? Well, the factory has
production
capacity and the item is selling all the more, but the originator is losing
interest in the item.
Through some magical process, larger companies get ahold of the original idea,
and apply
economies of scale in manufacturing, finance, distribution and many others, and
lower the
cost of the item. This process makes the original good item available to an
ever wider group
of consumers, ultimately achieving the universal access to a material benefit.
Think of the
history of the cell phone. Think of the economically just distribution of
material benefits
from this system.
Now, when a big company uses economies of scale I do not have, and do not want,
to lower
the costs on an item by means I do not have and cannot afford, to make an item
available to
people I could not serve, what do i care? None of these people were my
customers anyway,
so why should i try to prevent anyone else from serving them? Or try to extract
some fee
when they do? It is just using the government to steal from the poor.
Now the argument will be as the 'inventor' of the item, I should be given some
royalty on
every unit that sells whether or not I am ever involved. There is nothing in
natural law to
support this argument, so it had to be developed in prescriptive law. Well, in
fact this is a
secondary reason, the primary reason for intellectual property is without it, no
one would
bother ever developing anything new and useful. Of course, this is sheer
nonsense. People
develop the new and different constantly without any thought of downstream gain.
In fact,
there are plenty of people who develop useful items specifically assuring they
will not get
downstream gain. In the software industry alone, there is "Eric Allman, author
of SendMail,
the program that delivers your words over the wires.. Larry Wall wrote Perl,
the freeware used
to organize Web sites... Brian Behlendorf created Apache, the program that
serves up Web
pages on demand; Paul Vixie ...wrote Bind, the program that translates words
into numbers,
letting us type www.sfgate.com instead of the string of numbers that really
constitutes a Web
address." (thanks to SFGate for that riff) all of these people developed these
items for free
and gave them away. Cuz they like it.
The whole intellectual property rights regime is a fraud on the consumer, in
which an
extremely few people benefit from a government-granted and enforced monopoly.
In certain fields, like medicines, the fraud is exponential, as govt agencies
erect barriers to
entry, which allow prices to go higher, profits to widen, which in turn are fed
into republican
think tanks who write articles saying how swell patents on medicines are for the
people.
(democrat think tanks are outraged over the rip-off, and want more taxes to
solve the
problem.)
So there is a small business person. He is living his chosen lifestyle, fully
engaged and
consumed by his work. He has left off an item someone else has now picked up
and is selling
the item to others. These others are customers the small biz person could never
have served
anyway. Why would the small business person possibly care if someone else does
serve the
poor? Usually, they do not. If anything, it sounds like a good idea for
someone else to lower
the price and make it available to the poor.
So to answer your question, you simply do not worry about intellectual property
rights. You
do not need them to live a happy and fulfilled life.
Unless. All govt programs create a "moral hazard." Although intellectual
property rights are
a fraud, we do have the regime in place. The moral hazard is it invites people
to join the
government in restraining the natural benefit of the price drop in goods and
services, making
them available to more and more people.
On the other hand, another chosen lifestyle is to jump on the bandwagon. Take
an idea you
inherited from the creativity of everyone before you, and hire lawyers to work
up intellectual
property rights contracts, file the forms, draft nondisclosure agreements, all
the steps
outlined in any college business textbook.
Bill Gates made an early mark by writing to the Stanford computer group to
criticize them for
giving software away when they should sell it under intellectual property rights
regime. He
has done very well playing by the book, and I suspect he does not regret his
wealth as much
as he says he does, if at all. Indeed, he has an army of tax lawyers in place
to make sure he
keeps it all.
The lawyers, the contracts, the lawsuits, the depositions, the time in court...
that too can be a
chosen lifestyle. Or something between the small business person I described
above, and the
Bill Gates character.
Extremely little of anything ever patented in USA has ever turned into an actual
product. Any
patent attorney can tell you this. The reason is the process for protection
naturally keeps an
item from gaining market feedback. So to go the protection route in biz is all
the more
unlikely to yield anything good for you.
If the supplier to whom you bring the idea for new clothes manufacturing process
will
continue to sell to you as long as you bring orders to him for customers you
gained by your
efforts, what do you care as to what else he does? If he will charge a premium
over his price
to you, to anyone who wants to buy your product directly from your supplier, and
he will give
this premium to you, then all bases are covered, it seems to me.
So, to my mind, the whole intellectual property rights question gets down to
what lifestyle do
you want?
John
419 Scams
Folks,
Like all of you, I get these offers to earn millions by helping people overseas
move ill-gotten
gains. What astonishes me, is people actually fall for it.
This is the first time I've ever read how the process unfolds:
http://tinyurl.com/kjgpa
John
A Visit with My Hong Kong Banker
Shall I share another wee story?
I sit with my banker in Hong Kong, and yes, my account has an investment module
attached
which allows trading in any foreign currency, allows me to hold currency in any
denomination, buy gold and store it in Hong Kong Shanghai Banking Corporation
(HSBC)
vaults, and trade securities on the Hang Seng. Just like any self-respectiing
cab driver in
Hong Kong would have.
I am pleased to hear this.
Except, she notes, as a US citizen, I may only hold hong kong dollars, using the
ATM and
write checks. And I can use my atm card to withdraw RMBY out, but it is RMBY
after
conversion from HK$, Well, heck, I can do that with my Bank of America ATM in
Hong Kong.
It appears the price of having a banking license in USA, HSBC will not allow US
citizens to do
what they let any other Hong Kong account holder do. I guess the thinking is if
Americans
can get out of USA currency and invest easily through Hong Kong, they will.
(Question: is there any US citizen on the list, who is not a dual-citizen, who
has a non-HSBC
bank account in hong Kong, who is allowed to do all the investment goodies thru
his
account? I wonder if this is just HSBC policy.)
I expressed consternation over this, and she seemed pleased.
Yes, everyone knows at some point the dollar will get hammered. Of course, if
the Fed cuts
interest rates later this year to get the republicans re-elected, the real
estate boom will take
off again for a while, but the crack-up will be all the worse afterwards.
Anything can happen,
so it's best to be positioned to deal with anything. Putin is recommending
Russian resources
be sold in rubles, not dollars, so it seems everyone is positioning themselves
for a dollar
crack-up eventually.
Yet, even though we can see the truck coming down the sidewalk, we are not
allowed to step
out of the way, as we see with HSBC policy.
On the other hand, the Hong Kong and Shanghai Bank is allowed to be the #1
Mortgage
handler in USA. Extremely few people know this, because rankings are expressed
in
originations. But whether it's a mortgage banker or mortgage broker originating
the loan,
they all bundle up the loans and sell them off immediately. These mind boggling
sums are
handled in the bankground, with HSBC as a major player, When the dollar gets
hammered, a
foreign company will have quite a bit of control over what happens to you and
me.
Well, gold crossed $720 today, and silver may cross $15.00 today so those
investments still
seem to offer protection, but the problem is the govt has seized that asset
before, during the
last big government-caused financial disaster. Sigh.
If things do go bad, happily there will be enough of us to say, "there is an
alternative."
John
New Service Idea
Re: [spiers] New Service Idea
On Wed, 10 May 2006 21:52:37 -0700, Paul Snyder
wrote :
> But let's say your approach is pitched to the customer. Why would
> she take a bundle of 10 currencies to the bank, put it in my drop box
> and wait for me to come in and exchange it then make the EFT back to
> her in a day or two minus 10% service fee, when she could just have
> the bank exchange it on the spot and put it in her account without my
> royalty fee?
***a "drop box' is an envelope that goes thru the bank mail to a particular
location, your box.
Waiting for money from transactions, banks and such, is part of the cashless
society
structure, so i don't see a problem there. The retailer experiences no
'service fee" siince you
nailed the customer already on the exchange rate. The branches of a bank that
will exchange
currency are few... the lines are long, get behind someone changiing more than
$10,000 and
you might as well put in for a change of address cuz you ain't going anywhere.
And a thought occurs, you may in fact never be exchanging these foreign
currencies, you may
find backers that wish you to just accumulate foreign currency, here in USA.
John
Wednesday, May 10, 2006
New Service Idea
Re: [spiers] New Service Idea
>
> ***No no no..this is too much trouble... the retailers check
> exchange rates daily off your website
> and they drop off the foreign currency into a drop box accoount at
> your bank when they do any
> other deposit. Forget about fedex and carriers etc... let the banks
> do all the work...***
That was my first inclination, but then I thought I would make it as
easy as possible for the retailer, eliminate any obstacle for her.
But let's say your approach is pitched to the customer. Why would
she take a bundle of 10 currencies to the bank, put it in my drop box
and wait for me to come in and exchange it then make the EFT back to
her in a day or two minus 10% service fee, when she could just have
the bank exchange it on the spot and put it in her account without my
royalty fee?
This article is really interesting
Here is the confluence of internet clicks and the consumer in bricks and mortar
stores.
http://www.csmonitor.com/2006/0511/p01s01-woap.html?s=hns
New Service Idea
Re: [spiers] New Service Idea
On Tue, 9 May 2006 19:42:34 -0700, Paul Snyder
wrote :
the real opportunity with people who
> get big "face" from spending foreign dough at fancy restaurants? I'm
> guessing that is it.
Perhaps, b ut when a business gets going, everyone is surprised at what the
custoemr wants, and
who they are... no one is more surprised thgatn howard Shultz that Starbucks #1
seller by far is a
caffe amchiatto caramel (or whatever it is called) making starbucks really a
candy store...***
>
> So here's what I envision: I sign up the retailers, send them a
> Fedex envelope and a rate sheet (with my cool logo, for branding
> purposes) that fits in a bill caddy (rates good for 1 month). They
> use a rate sheet both to show to the customer and to get paid by me -
> it's got a tally grid on the back for the bills they send me. After
> Fedex returns it to me, I send them back a new Fedex envelope, a new
> rate sheet, and a check containing the exchange money plus a royalty
> for them. The more the business, the bigger the royalty rate, thus
> incentivizing them to promote my service.
>
> Business can scale to other regions and can still be operated from
> the same place (magic of Fedex). I then hire someone to lift the
> enormous pile of bills to carry to the bank. Later, as you say,
> Thomas Cook buys the business in order to get wider brand
> recognition. One additional risk to those you mentioned would be the
> exchange rate variations over a month. As the U.S. declines,
> however, that may add to the profit margins. Insurance can be
> bought, in any event, through currency futures as revenue flow
> warrants. The other risk is inventory theft, as folks figure out
> that I have $100K per day flowing to my house. Of course, that's
> $100K in dong and peso, so maybe it's not so appealing to the average
> thief.
***No no no..this is too much trouble... the retailers check exchange rates
daily off your website
and they drop off the foreign currency into a drop box accoount at your bank
when they do any
other deposit. Forget about fedex and carriers etc... let the banks do all the
work...***
>
> Hmmm....interesting idea. What's the best way to see if demand
> exists for it?
***Try to pay for a meal with afghanis and when they say heck no ask why not?"""
John
Protecting Design
Hi John,
If I have an idea which changes the way certain clothing are made radically
but very attractive as convenience for consumer, how would I go about
discussing this idea with manufacturer making sure that he would not by-pass
me if he decides to use it in his product? I know from your class that
patenting is not a viable option. Any suggestion?
Sudha
New Service Idea
Re: [spiers] New Service Idea
Short term it would work. Long term I think we are
moving towards a cashless system. I saw a news story
showing how in Europe (Finland) you can buy a coke out
of a vending machine using your cell phone.
--- John Spiers
> Folks,
>
> It is not uncommon for airport vendors (outside of
> USA anyway) to accept payment in a foreign
> currency and give the change in a local currency.
>
> What happens is the vendor takes say JPY1000 (which
> is about US$10) and converts it to about HK
> $70, charges the HK$34 for the mocha grande and
> gives the patron (70 - 34 = 36) HK$36 in
> change.
>
> Now, what if someone were to develop a program that
> that converted foreign currency at a
> handsome profit (that part is simple) for retailers
> to use so they could accept foreign currency
> from retailer customers in USA.
>
> Some traveller has a 500 euro note left over from a
> trip, is buying dinner at a fancy restaurant, the
> restaurant accepts the EU500 , converts it to
> US$650, takes out the US$400 tab, and gives change
> of US250.
>
> Retailers in USA who sign up for this service agree
> to use your exchange rate and sell the foreign
> currency to you. You in turn sell it to the banks,
> at a nice profit.
>
> Of course, you'd have to build in a premium for
> counterfeit bills, and you'd have to have some sort
> of loss limits, but by introduciing this at the
> super premium level, the quantities would be small
> and generally the "customer" would be known to the
> retailer.
>
> The vendor gets an enhanced image of sophistication,
> may make news and certainly any time one
> can accept more forms of payment, ones business
> grows. The fact that you are makiing say 15%
> overnight on your money, with ever growing velocity
> is something no one will notice or care about
> at this level.
>
> Later this biz could be sold to the people who turn
> pocket change into dollars at the grocery
> stores (I heard copper in pennies is now worth 1.25
> cents.)
>
> The job would be to vacuum up all those residual
> stashes of foreign currency people have in their
> dressers, and make money of course.
>
> Who will take this?
>
> John
Tuesday, May 9, 2006
New Service Idea
Re: [spiers] New Service Idea
I love the idea. I live in Las Vegas and I think it would work well here. From
my research of 2005, 12% of our 36 million visitors were from another country.
I am sure there is quite a bit of foreign currency. Further we have more and
more high end shops opening up every day.
I know that certain casinos will provide exchange services for their high end
customers. I do not know on what terms but I do know how to find out. I also
am unaware if the casinos will do this for businesses renting space on their
property.
From what I learned from the class and the book, it seems to me that my first
step would be to go into these high end shops and find out if they take foreign
currency and if not, why?
There are a lot of logistics to work out but this is the exactly the type of
business that I have a passion for so it is a challenge that I look forward to.
Tom
P.S. I welcome suggestions that any of you may have to help me steal this idea!
John Spiers
It is not uncommon for airport vendors (outside of USA anyway) to accept
payment in a foreign
currency and give the change in a local currency.
What happens is the vendor takes say JPY1000 (which is about US$10) and
converts it to about HK
$70, charges the HK$34 for the mocha grande and gives the patron (70 - 34 = 36)
HK$36 in
change.
Now, what if someone were to develop a program that that converted foreign
currency at a
handsome profit (that part is simple) for retailers to use so they could accept
foreign currency
from retailer customers in USA.
Some traveller has a 500 euro note left over from a trip, is buying dinner at a
fancy restaurant, the
restaurant accepts the EU500 , converts it to US$650, takes out the US$400 tab,
and gives change
of US250.
Retailers in USA who sign up for this service agree to use your exchange rate
and sell the foreign
currency to you. You in turn sell it to the banks, at a nice profit.
Of course, you'd have to build in a premium for counterfeit bills, and you'd
have to have some sort
of loss limits, but by introduciing this at the super premium level, the
quantities would be small
and generally the "customer" would be known to the retailer.
The vendor gets an enhanced image of sophistication, may make news and
certainly any time one
can accept more forms of payment, ones business grows. The fact that you are
makiing say 15%
overnight on your money, with ever growing velocity is something no one will
notice or care about
at this level.
Later this biz could be sold to the people who turn pocket change into dollars
at the grocery
stores (I heard copper in pennies is now worth 1.25 cents.)
The job would be to vacuum up all those residual stashes of foreign currency
people have in their
dressers, and make money of course.
Who will take this?
John
Compete on Design!
www.johnspiers.com
New Service Idea
Re: [spiers] New Service Idea
This service idea sounds good to me, as I recall spending $20 on a
soda in the Copenhagen airport and did not want to then deal with the
currency exchange, I just wanted to have a drink. So I showed up in
Los Angeles, tired and with Danish kronor in my pocket. It's been in
my dresser for years.
But let me challenge the idea a bit. How often would diners/shoppers
remember to dig out their old kronor before they leave the house?
Seems like it would be a more or less random event. I suppose the
frequent travellers would always carry 2 or 3 currencies in their
wallet, but they would be silly to spend it on my premium service
when they can simply use dollars until they return to Tokyo or
wherever. Heck, I'm still holding out for my next trip to Denmark.
The opportunity seems to be for people who actually remember they
have currency, aren't going to the airport anytime soon, and don't
mind paying the "worse than Thomas Cook" premium I would charge. Or
am I missing the point, and is the real opportunity with people who
get big "face" from spending foreign dough at fancy restaurants? I'm
guessing that is it.
So here's what I envision: I sign up the retailers, send them a
Fedex envelope and a rate sheet (with my cool logo, for branding
purposes) that fits in a bill caddy (rates good for 1 month). They
use a rate sheet both to show to the customer and to get paid by me -
it's got a tally grid on the back for the bills they send me. After
Fedex returns it to me, I send them back a new Fedex envelope, a new
rate sheet, and a check containing the exchange money plus a royalty
for them. The more the business, the bigger the royalty rate, thus
incentivizing them to promote my service.
Business can scale to other regions and can still be operated from
the same place (magic of Fedex). I then hire someone to lift the
enormous pile of bills to carry to the bank. Later, as you say,
Thomas Cook buys the business in order to get wider brand
recognition. One additional risk to those you mentioned would be the
exchange rate variations over a month. As the U.S. declines,
however, that may add to the profit margins. Insurance can be
bought, in any event, through currency futures as revenue flow
warrants. The other risk is inventory theft, as folks figure out
that I have $100K per day flowing to my house. Of course, that's
$100K in dong and peso, so maybe it's not so appealing to the average
thief.
Hmmm....interesting idea. What's the best way to see if demand
exists for it?
On May 9, 2006, at 10:10 AM, John Spiers wrote:
> Folks,
>
> It is not uncommon for airport vendors (outside of USA anyway) to
> accept payment in a foreign
> currency and give the change in a local currency.
>
> What happens is the vendor takes say JPY1000 (which is about US$10)
> and converts it to about HK
> $70, charges the HK$34 for the mocha grande and gives the patron
> (70 - 34 = 36) HK$36 in
> change.
>
> Now, what if someone were to develop a program that that converted
> foreign currency at a
> handsome profit (that part is simple) for retailers to use so they
> could accept foreign currency
> from retailer customers in USA.
>
> Some traveller has a 500 euro note left over from a trip, is buying
> dinner at a fancy restaurant, the
> restaurant accepts the EU500 , converts it to US$650, takes out the
> US$400 tab, and gives change
> of US250.
>
> Retailers in USA who sign up for this service agree to use your
> exchange rate and sell the foreign
> currency to you. You in turn sell it to the banks, at a nice profit.
>
> Of course, you'd have to build in a premium for counterfeit bills,
> and you'd have to have some sort
> of loss limits, but by introduciing this at the super premium
> level, the quantities would be small
> and generally the "customer" would be known to the retailer.
>
> The vendor gets an enhanced image of sophistication, may make news
> and certainly any time one
> can accept more forms of payment, ones business grows. The fact
> that you are makiing say 15%
> overnight on your money, with ever growing velocity is something no
> one will notice or care about
> at this level.
>
> Later this biz could be sold to the people who turn pocket change
> into dollars at the grocery
> stores (I heard copper in pennies is now worth 1.25 cents.)
>
> The job would be to vacuum up all those residual stashes of foreign
> currency people have in their
> dressers, and make money of course.
>
> Who will take this?
>
> John
New Service Idea
Folks,
It is not uncommon for airport vendors (outside of USA anyway) to accept payment
in a foreign
currency and give the change in a local currency.
What happens is the vendor takes say JPY1000 (which is about US$10) and converts
it to about HK
$70, charges the HK$34 for the mocha grande and gives the patron (70 - 34 = 36)
HK$36 in
change.
Now, what if someone were to develop a program that that converted foreign
currency at a
handsome profit (that part is simple) for retailers to use so they could accept
foreign currency
from retailer customers in USA.
Some traveller has a 500 euro note left over from a trip, is buying dinner at a
fancy restaurant, the
restaurant accepts the EU500 , converts it to US$650, takes out the US$400 tab,
and gives change
of US250.
Retailers in USA who sign up for this service agree to use your exchange rate
and sell the foreign
currency to you. You in turn sell it to the banks, at a nice profit.
Of course, you'd have to build in a premium for counterfeit bills, and you'd
have to have some sort
of loss limits, but by introduciing this at the super premium level, the
quantities would be small
and generally the "customer" would be known to the retailer.
The vendor gets an enhanced image of sophistication, may make news and certainly
any time one
can accept more forms of payment, ones business grows. The fact that you are
makiing say 15%
overnight on your money, with ever growing velocity is something no one will
notice or care about
at this level.
Later this biz could be sold to the people who turn pocket change into dollars
at the grocery
stores (I heard copper in pennies is now worth 1.25 cents.)
The job would be to vacuum up all those residual stashes of foreign currency
people have in their
dressers, and make money of course.
Who will take this?
John
Monday, May 8, 2006
We Pay Most for Mass Transit
Folks,
Here are some figures from The Standard, a Hong Kong business paper, on what
China is
paying to get Mag Lev Transport, with the help of the Germans, and compared with
some
figure for mass transit in Seattle. All figures in dollars...
Location Mode Cost per mile Cost per kilometer
USA
Monorail 1 billion 620 Million
Light rail 208 Million 129 million
China
Mag Lev 60 million 37.5 Million
As you can see, China is leapfrogging us, while we mess around with 1820's
technology, yet
we pay far more. The article stated the Chinese believe they could shave a
third off those
prices for mag lev, while in USA every few months they announce the cost will be
higher than
anticipated.
Of course the super-premium cost in USA is largely waste, fraud and abuse as was
made
clear when C C Meyers rebuilt the LA Freeways in 66 days back after the '94
Northridge
earthquake in LA, 34 days ahead of schedule and for a mere 30 million. IN this
case it was
achieved by having the gov't step aside.
In China,with the German
advisers... perhaps they are doing the same thing.
John
Reply - How I got into China
Re: [spiers] Reply - How I got into China
On Mon, 8 May 2006 14:09:25 EDT, modeangru@aol.com wrote :
> did you ever check out the prices at Office Depot, they will change prices
> on quantity. More for less .....they can come down to less then 3 cents a
page.
>
3 cents times 350 pages is 10.50, and we still have not book-bound it... your
suggestion
intimates you do not have your own copy of the book! I am alarmed! You may
sort this out
by getting a copy at www.johnspiers.com.
John
Reply - How I got into China
Re: [spiers] Reply - How I got into China
did you ever check out the prices at Office Depot, they will change prices
on quantity. More for less .....they can come down to less then 3 cents a page
Reply - How I got into China
Re: [spiers] Reply - How I got into China
On Sun, 7 May 2006 18:09:42 -0700 (PDT), sourcesf
> I fanticize about the idea of mom & pop businesses (or just any
> individual) having the ability to make a small transaction with a
> company or person on any side of the world (with ease).
***Well, this has always been the case, and so much more now with improvements
in
communications and transportation. Anyone can go on the net, google whatever,
find it
wherever, translate the page if it is in a foreign language, buy it with a
credit card and have it
fedexed home. I put up courses on the internet and the last time I checked I've
sold to 21
countries.***
So, in the example with your book printing, I
> wonder about the possibility of being able to do small quantity
> purchasing with China/HK and still benefit from a much cheaper price
> than $10. (and i know shipping cost would probably be another
> important component in the mix.)
>
***Yes, tbis is precisely what I am working on with this particular printer, and
when I've
worked out all the details, I am going to write it up as a case study and post
it to the list.***
>
> 1) Can you expand a little, if you would, on how you got $3USD landed
> USA from HK or China? Is it a high minimum order?
***The minimum is 1000 of MY book for that price, 1/5th the price I am paying
now. Or, you
could say, I coulod pay $3000 for 200 books printed here in usa, or $3000 for
1000 books
printed in Hong Kong. The problem here is with "print on demand", every book
costs the
same, the first one and the 1000th one. Obviously, somewhere between 100 and 200
books,
one ought to switch over to Hong Kong. I'll show them how for a fee, and if
they do I'll earn
a fee, and I'll give people enough info so they can go around me if they want,
but they won't.
My fees will be cheaper than figuring it out themselves.
Right now, Hong Kong cannot beat Print on Demand prices that is offered in USA,
using the
IBM Infoprint 4100 to produce a book. The IBM Infoprint 4100 costs about
$500,000. We
studied investing in this machine, but the Hong Kong side said, "why not just
duplicate the
machine functions without the machine?" Quote I, "Can you mange that?" Of
course,
international trade is about management , not labor.***
My nieces and their
> friends are into writing books, manga, etc. (seems to be a fad for kids
> these days I guess). I was making books out of their works so they can
> share them with their friends, and also to give them the experience
> creating something like this so they'll see their creation actualized.
> I'm hoping they'll get used to and believe they can create anything and
> actualize it. I checked out this website (local US site) for mom & pop
> people who want to print their book, but the price is as you said:
> http://www.cafepress.com/cp/info/sell/products/books
>
***Excellent website! Clear, focussed, well executed, no nonsense. I bet they
do well. I will
crush them.***
John
Sunday, May 7, 2006
Reply - How I got into China
Re: [spiers] Reply - How I got into China
Hi John,
Here's my other question, which was partly for fun and partly serious.
I fanticize about the idea of mom & pop businesses (or just any
individual) having the ability to make a small transaction with a
company or person on any side of the world (with ease). To borrow from
Tom Friedman's terminology, basically to make the world come flat for
every regular shmoe. So, in the example with your book printing, I
wonder about the possibility of being able to do small quantity
purchasing with China/HK and still benefit from a much cheaper price
than $10. (and i know shipping cost would probably be another
important component in the mix.)
Thanks!
Victor
1) Can you expand a little, if you would, on how you got $3USD landed
USA from HK or China? Is it a high minimum order? My nieces and their
friends are into writing books, manga, etc. (seems to be a fad for kids
these days I guess). I was making books out of their works so they can
share them with their friends, and also to give them the experience
creating something like this so they'll see their creation actualized.
I'm hoping they'll get used to and believe they can create anything and
actualize it. I checked out this website (local US site) for mom & pop
people who want to print their book, but the price is as you said:
http://www.cafepress.com/cp/info/sell/products/books
--- John Spiers
> Folks,
>
> Someone emailed me and asked why I did not just get a Visa from the
> Chinese consulate in
> USA. I thought I sent the through to the list so i could reply, but
> apprently it did not make it.
>
> Anyway, to wit, since I was leaviing in less then a week from the
> date I got my ticket, I did not
> want to send my passport through the couriers to San Francisco, with
> all that time and risk.
> Face to face in Hong Kong the better bet, I thought. It worked out.
>
> I think there was another question in the email in question, but I
> don't recall it, but feel free
> to ask.
>
> John
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