Wednesday, March 2, 2011

You Pay For My Competitors To Be Jailed

Add to the list of advantages I want, when customers prefer a small business offering over a big business offering, you and I pay to chase down and jail the customer and the small business person.  In australia, for instance, smokers so prefer chop chop tobacco to that of the big three, that chop chop now has about 16% of the market.

Ostensibly these people are criminals for not paying taxes on their sales, so instead of making chop chop tax exempt, taxpayers have to pay to chase down people to tax. The main reason they are not collecting taxes is tobacco is regulated, and licenses near impossible to get.  So instead of tax exempt, how about open competition.

No way, big tobacco covers a multitude of sins with their high prices, and small competitors would charge less, and do, so competition would force big tobacco to stop featherbedding and bribing.  From the article...

"People are buying chop chop because the average price of unbranded tobacco is about $45 for 250g of loose tobacco, compared with $165 for legal tobacco, it said."
Tobacco does not cost that much, it is just what they charge, since there is no free market in tobacco.


Finding the Best Customs Broker or Freight Forwarder

When you need the name of a freight forwarder who handles the government export paperwork for your exports, (or the reverse for imports)...  you can just call freight forwarders in any phone book, google, or...

you can find one already in the business...

Get the HTS number for barrels, then go to the directory of US exporters...

to find one in a library near you...


and enter your zip...

you'll get a listing of libraries that have it...

if not near, then call the library and see if they will look up your hts # for names of exporter, or if they will email you a .pdf of the page...

Then cross reference the name on the list with freight forwarders... (simply google each name, and any that comes up a freight forwarer, necessarily is ex[ert in your product area...

Contact that freight forwarder... and ask away, have them inform you what documents are necessary...

The same process of imports...


Tuesday, March 1, 2011

aHistorical Reasoning

Comes a criticism:

“I am moved to let you know that I disagree with the idea of telling everyone your ideas and speaking openly about them to suppliers, customers, competitors and so on. I had my idea stolen as I was talking shop with someone who then passed it onto a competitor. They then switched their focus entirely to the market they were unaware of which I knew about. Occasionally I see their posters, Facebook ads and so on popping up and it just sickens me. I would not be in the situation I am in but in business if it were not for this slip and I cannot believe how naive I was. Yes they were quicker to market, and they were already in the business whereas I would've been a new entrant, so perhaps they deserve it. But I feel it really is a cruel lesson in life and business for me.  I would strongly caution against telling other people your ideas and for getting NDAs, and not revealing all details whenever possible. You should let people know your ideas only when it is absolutely necessary and there's a chance you will work with the person you are talking to. I get the argument that a lot of business ideas don't come to fruition because the owners won't share their ideas, but I think that only applies to startups needing a lot of investment, which kind of necessitates others knowing about it. Bottom line, I would've been in business by now if I hadn't been so stupid, and I would've been a heck of a lot further along the way to starting something in my true passion which is international trade. What extra time it will take me now I will only see in due course.”

Comes a response:

The error you are making in thinking is called "ahistorical."  You propose to learn from something that did not happen, and thus you imagine you lost something.  You do correctly state something did not happen, and this is where people get their certitude.  In your case you are not in business yet.  This you know, this is certain. Then you attribute this to something you cannot possibly know if it is true or not.  There is the error.

You cannot know if your idea was "stolen" as you were talking shop with someone, you cannot know if they passed it along.  You cannot know if the competitor received the information, nor can you know if they acted on the information if in fact they received it.  That is pure guess on your part.  All you can know is 1. You mentioned the idea.  2. Another company put forth the idea.  Far more likely, in life, is the idea was not unique to you, the competitor was working on the idea anyway.  You had nothing to do with the fact they were working on the idea.  A famous case is Darwin was working on natural selection, and so was Wallace.  Darwin came out first.  Wallace said it was his idea. Never mind Darwin was at it for 30 years, unbeknownst to Wallace.  (And never mind they both got the idea reading Malthus.) There are countless versions of this in all history and all cultures.  In the unlikely event you could document the idea moving from your voice, via the listener, to the competitor, all you would learn is the principle of 6 degrees of separation, and the likely event that if someone is working on an idea, that someone hears of others who are doing so too.  I cannot tell you the times I hear people are doing what I am doing.  Of course I would hear about it, because mutual connections would make it known, going both ways.

A side error here is the idea you have only one good shot, and if you miss it, you've lost something.  No, we are in service to customers.  If we can, we do, If we cannot, we do not.  If someone else beats us to something, then that is good for the customers we propose to serve.  We are evil if we delay customer needs so we might prosper.  We are evil if we inhibit others who would serve the customer better; and sooner is one way customers are better served. Why should it sicken you that others are happy with another supplier?  I in fact try to get competitors to do what I propose to do. In every instance, they have told me directly, no.  It is not their thing.  I have watched people go out of business for failure to steal the idea I offered.

To say you would have been in business by now, and a lot further along is a conclusion based on an ahistorical, that is false, premise.  You are not in business now because you are yet to serve the customer with an offering that gets enough orders to cover the suppliers minimum production run, in a workable amount of time, profitably.  There is no other reason someone is not in business.

I do not buy the idea that some ideas do not come to fruition because the owners won't share the idea.  Sheer nonsense.  If not, someone else will in time, just as I lay out above, the same idea, or there is an alternative that does the trick. The people who argue the idea that some items do not come to fruition because the owners won't share the idea are making the exact same ahistorical argument error you are making. NDAs and NCAs and secrecy and "intellectual property rights" are all about control, and not about marketing.  These things are not grounded in natural rights, and thus are easily contrary to human rights, and indeed in these applications very much are contrary to human rights.

So here is an exercise we can use today, showing the error of ahistorical reasoning.  We see perhaps a dozen Moslem nations overthrowing their repressive governments.  We saw Iran do the same thing in 1979, when the Shah of Iran was thrown out.

If we argue "Iraq could not be free of Saddam Hussein without USA intervention" as many people do, that is ahistorical.  Saddam Hussein was thrown out with USA intervention.  This much we know.  We know cannot assert Iraq would not be free of Saddam Hussein without USA intervention, because USA intervention happened, and the proposed alternative did not happen.  At the same time, we can very well assert Saddam Hussein would have been overthrown without USA intervention.  We can assert that because so many other Saddam Husseins, more or less, have been overthrown without USA intervention.

aHistorical reasoning:  Iraq could not be free of Saddam Hussein without USA intervention.

Historical reasoning: Saddam Hussein would have been overthrown without USA intervention.

Being self-employed is about personal transformation among other things.  One part of the transformation is the thinking.  Get rid of the ahistorical analysis, and the picture becomes clearer, the process simpler.

Thanks for provoking this essay!


Monday, February 28, 2011

Should He Have the Patent as Inventor

You can see for yourself who invented the air guitar.  If you have not time for the whole video the move ahead to minute seven, but here it is...


Should everyone else be required to pay him a fee to play the air guitar, or be forbidden to do so?


Extremely Encouraging

If in 1976 when I first heard of Apple Computer, I would have had no idea what Jobs and Wozniak were talking about if they explained the microcomputer to me.  Today I have no idea what these people are talking about in this video, but it sure looks like the start of another Apple Computer, but this time for energy.   Note their initial design.


Here is their channel:  http://www.youtube.com/user/allpowerlabs

Note Apple's initial design:


We innovators introduce items that are unique, not very good design, expensive, and hard to come buy.  Over time the innovator ever improves the item, selling more and more.  Here is the apple computer today.

Expect all power labs to make similar advances.  The lesson is it does not take much to compete on design.  You merely need to get a product, rough as it may be, good enough to get enough orders to cover a suppliers minimum production run, in a workable amount of time, profitably.  Then you ever improve the product (or service) based on ever wider customer feedback.  At some point, by conservators acquiring the innovators idea and applying the economies of scale to the ultimate design, or the company going IPO and acquiring the heft to achieve economies of scale, either way, the price falls to the point everyone has access to the material good that the innovator introduced, lo those few years go.  The market provides more, better, cheaper, faster.

As an aside, I could not help but think this duo above is an energy version of pomplamoose.

I am getting encouraged that we may in fact have a depth of talent among the young to pull us out.  I only regret that government commandeers so much money cures for diseases like that which afflicts Jobs are not available.  In a free market we would have such things.  In capitalism, we just have extremely rich people, which is rather pointless.  Wealth is in options, not exceptions.

Thanks to anthony for this tip...


Compete on Design in Apparel

Clothes are essentially protection, but beyond that they can do many things.

I’ve heard it said that tailoring and fashion are two different things.  Fashion is about the designer, tailoring is about the client.  Wearing fashionable clothes allies the client with the lifestyle being portrayed by the designer, in tailoring the tailor highlights the lifestyle of the client, and in so doing makes the client look as good as possible.

Clothes can communicate aspiration, and this is essentially what fashion is about.  Here people ally with a fashionable designer, like Ralph Lauren Polo, saying I aspire to the country squire life, or Tommy Bahama with its retired-to-a-Caribbean Island lifestyle.

Apparel can be utilitarian design, like Filson hunting clothes, or fashion utilitarian, like Obermeyer ski clothes.

Competing on design in apparel is about the aspirations of the customers.  Apparel designers offer to fulfill, to some degree, the aspirations of the clothes buyer.  This is difficult to achieve, but design is all the more critical.  This is also important in areas of design such as household products and fashion accesories like jewelry and scarves.

When competing on design in clothes and interior decoration and jewelry and such, if not utilitarian, then what you are selling is lifestyle, and you are offering a change in lifestyle.  The world is in upheavel right now, no better time to compete on design on apparel. To what do people aspire now?  That is where you find the lack that causes pain, where you design the solution to the problem.


Madoff On Ponzi Schemes

Of course, Madoff is a connoisseur of Ponzi schemes, so when he says government is one, he knows well of what he speaks.  Supposedly his son committed suicide, but I doubt it, I think his other children are encouraged to be more forthcoming with the missing billions now that their brother was suicided.  Just my guess, but not that anyone is going to care.

And since govt is a Ponzi scheme, those who in government are charged with sniffing out ponzi schemes, the regulators, are not able to pick up the scent, since what stinks to the rest of us is what regulators, like Chris Cox, sniff all day long, thus cannot discern any problem, in spite of the fact that plenty of people named Madoff, and what he was doing, for the ten years it was Cox's job to police the markets with the SEC.

Anyone who believes government can regulate markets is quite foolish.  Anyone who does not know private initiative can and does regulate the market, is ill-informed.


Designer Royalties

What the record companies and publishers do, is say, invest $5000 (or $5 million) getting a book or CD out in the market place... then the first $5000 (or whatever) the design earns in royalties for the designer, the publisher keeps to pay back the costs of getting the work out there...  it’s an illustration of how as a company gets bigger, it starts calling more shots.  The implicit reverse is, dsigners get a very good deal working with small and start -up compaines, with the straight royaltiy deal. 

What then begins to happen, and pharmaceutical companies do a versiuon of this with the "costs" of producing a drug, is they begin to live ever more lavish lifestyles, charge it off to development, and then claim these costs are critical to development.  We just absolutely must have chilled caviar on the private jet taking us to vail for our corporate retreat.  Otherwise there will be no new drugs.

With intellectual property rights, costs go up, quality goes down, options are limited, we are burned.