Friday, June 6, 2014

False Economies

Honeywell is kept alive by its war-machine contracts, when it should have folded long ago.  I blogged on that company before, and innovators have entered the field, grown, sold to Google for $3 billion before Honeywell could not even think of a reply, so they sued to stop competition.

Finally Honeywell has replied.  It has four reviews, all five star, my textual analysis says they were written by the same person.  Why not?  If you never listen to customers anyway, why not just make it up?

Honeywell is one of those countless "we don't care, we don't have to..." companies that depend on government contract.  Sad thing is, we keep them in business with our tax dollars.  This is all so Soviet.

Welfare, war and spying is not the basis of a sustainable economy.  In my book I talk about how how the last USA industrial sewing machine company outsourced its sewing machine production, and with the same domestic capacity began making missile parts for our wehrmacht at ten times the profits.  I was at an Apple store yesterday in which clearly some head honchos had shown up to measure something, and every employee, including the honchos, were dressed like children.  Well, with no sewing machines, perhaps that is inevitable.

Is the pendulum swinging back?  Every USA industry category is subject to get big or get out. Clothes, Gap; Furniture, Ikea; Food, McDonald/Starbucks; Housing, Section 8; entertainment, netflix; medicine, morris dancers; security, TSA; and so on.   So I was pleased to see in Seattle a brick and mortar company that sells beginner suits to people who desire to transition to adulthood, SuitSupply.  Quality seems good, price is fine, and 55 stores worldwide.  That is tiny by today's standards.  Maybe de-escalation of the big-or-get-out imperative is to go from 1000 stores necessary to 100, 50, 20, 10, one being enough to make a living.  No doubt their compensation package, usually min wage plus commission at such places, would have to be adjusted for the new law, which means a separate accounting for the Seattle store, which defeats the advantages of having 55 stores...  no doubt they will adjust, but others considering Seattle will skip it for markets that are not so adverse to small business.

 Feel free to forward this by email to three of your friends.


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