In 1992 when I left high-school and needed a Job, I found that AT&T was hiring. They were hiring for their leased phone division. Since the breakup of MaBell in 1984, AT&T maintained the leased telephone division.

The primary aspect of my job was to convince people that leasing telephones was a viable thing to do. (dumb, huh?) And I was very successful. I would lease cordless phones at $50 per month… and you could go and buy one at the time for $100.

I would very often get calls like, "I just noticed that I had a bill from you all for $4.95 for a Princess Phone. I don’t have this phone, please cancel my bill"

Upon further discussion with the client, we had been billing them since 1984 for that phone at $4.95 per month because prices never changed. (Our records didn’t go before the break-up) Nearly $500 over the 8 years. They often would not have seen the phone in 5 or 6 or more years… yet we were still billing them and they kept making the payment.

How does this apply today?

Well, at my phone book post, there has been a discussion about the thought that if a client buys an ad, he must think that it is worth something… it must provide him some value.

Nope. I don’t buy that sales line for a minute.

Sure, some people may actually see benefit. Some people may actually see an increase in sales, but, just because a salesman can continue to sell someone on something doesn’t mean it is worth the paper it is printed on.

Let’s not confuse the ability to sell something with the actual viability of the value of that product.

When I wrote my post on phone books, I didn’t expect to get some passionate responses in the comments area. I didn’t expect anyone to be so excited about phone books to argue passionately about the benefits of phone books.

One point really struck me as interesting by "kenc". He said, among other things, "The nearly $18 billion that companies spend on print and online YP speaks for itself."

His point, is that since people spend so much on advertising, it must be successful for them.

To that, I respond, "Huh?"

It reminds me of Cosmo Kramer in Seinfeld. In Episode #822, "The Summer of George," Jerry asked Kramer why the producers wanted Kramer to fire Raquel Welch. His response was:

Because they’re terrified of her. I heard from someone that when they cut one of her lines, she climbed up the rope on side of the stage and started dropping lights on peoples heads. Story like that has got to be true.

"A Story Like That Has To Be True!"

Just because businesses spend $18 million on an advertising medium doesn’t mean a darn thing. Business leaders waste money for a variety of reason. Not the least of which is because a skilled salesman showed them a stat that had to be true.

I am sure that some people see success. I would imagine that there are some companies that see success because of phone book advertising… and those are the stats that are bandied about. I tend to think that for the masses, it is a waste of money. In fact, even for those that are successful, I bet there are far better ways to spend those dollars.

Give me some proof other than conjecture and anecdotal evidence and I might change my mind.

I keep hearing people talk about how bad it is to outsource our labor to other countries. Somehow, the act of sending our work to someone who will do it for less is un-American.

The fact is, outsourcing is as American as it gets… almost like apple pie.

I guess it really comes down to is where the division of labor should be. It answers the question of who really is the best person to complete the job at hand. Cost and skill both have to be taken into consideration.

Ken Stewart points us to Master Lock’s labor outsourcing to Asia and Mexico. You can read the full quote there, but here is a part:

In January 1997, Master Lock announced that, after 75 years making locks in Milwaukee, it would begin importing more products from Asia. Not too long after, Master Lock opened a factory of its own in Nogales, Mexico. Today, it makes just 10% to 15% of its locks in Milwaukee–its 300 employees there mostly make parts that are sent to Nogales, where there are now 800 factory workers.

Why is Master Lock willing outsource? Is it because of Walmart? I don’t think so. If it wasn’t Walmart asking for a lower cost, it would be someone else. As a product becomes more prevalent, the price goes down. Just like when a product becomes more scarce, the price goes us… simple law of supply and demand.

I think that outsourcing comes down to two basic reasons.

1. People demand lower prices than the day before. People are willing to pay more when the product is better, the service is better or the perceived value is greater (scarcity causes an increase in perceived value). I have talked about this a lot on this blog here, here and here… to name a few. When the product is the same, the sale will go to the person with the lowest cost.
2. Knowledge is the new commodity of our world… or at least our part of the world. It is common place for there to be many types of workers. People that have different skills sets and different ambitions. Any entrepreneur will understand that it makes business sense to outsource to the lowest cost for the greatest value. Repetitive tasks that can be taught easily should go to an employee that doesn’t have a great level of experience or training… because those people cost too much money.

This may sound a bit crass, but the fact of the matter is there are highly qualified employees outside of this country that are just as qualified to run a stamping machine or answer a phone or code a website. (Bear in mind, I am not saying you should outsource because you can… you still have to consider the customer experience and I would never outsource a phone call to a non-native speaker as a standard.)

Does that mean that our employees are smarter? No. I know plenty of dumb people here in America and my guys in the Philippines and India are very good at what they do for me.

Does that mean that someone from India is less valuable? Absolutely not. I have some very highly qualified people that I work with overseas. I couldn’t be as successful without them.

Every society that has lived on the earth has had a division of labor. The right person for the job. When I send work to India or the Philippines or wherever else I might send work, I make a distinction between what I will allow them to do. I have employees here locally, but I make a distinction of what I will allow them to do as well.

I think outsourcing is critical. I don’t think we sell our soul when we do it. I think we simply make business decisions. If it costs more to outsource, then don’t do it. (Cost can be more than just dollars. It can be customer experience, training time or loss of PR value.)

Of course, you can think of Master Lock providing 800 people with work without encouraging illegal immigration… that has got to be worth some "soul" credit, right?

Ken comments at my post on loving Walmart that big business is becoming soulless. He provides examples of Apple, Target and Google being better brands from a more caring perspective. But, I wonder if the problem that Walmart really has is the fact that as a company gets larger they are simply more of a target.

Let’s put the size of Walmart into perspective.

Here are the annual revenues of the four companies mentioned above.

Apple Computer: $19,314,000,000

Google: $10,604,000,000

Target: $59,490,000,000

Walmart: $378,799,000,000

So, if Walmart is Big Business, does that make Apple, Google and Target small businesses? 

Just to throw another number out there… Laser year, the company that everyone loves to hate right now because of the Vista fiasco, Microsoft earned $51,122,000,000… more than Apple and Google combined, but not even as much as Target… and Target is only 15% the size of Walmart.

Let’s give this one more perspective.

If  Walmart was a country, its revenues would push Saudi Arabia (you know the country that said today, "Get used to high gas prices") out of the top 25. Walmart would take that spot. Taiwan has a GDP of $383,307,000,000 and Saudi Arabia has a GDP of $376,029,000,000.

That would mean that Walmart earns more annually than countries like, Ireland, Iran and Israel. (I like I)

So, yes, Walmart is really that BIG.

We know that the larger the country is, the more people will attack the lifestyle of the country. USA is at the top of the list and we have plenty of people that think we are the woe of the world… and that is people that live here.

How many times have you heard someone say "Oh boy, that Croatia (same GDP as Microsoft) is hurting the world with it’s environmental policies?" or "Can you believe that Ethiopia (same GDP as Apple Computer) doesn’t provide healthcare for its people?"

The bigger you are, the bigger your impact. Percentage wise, it may not be any more than the rest, but you are a bigger target none the less.

But, are your negative perceptions of Walmart simply because you have been told all the bad they do, or is Walmart really that bad?

To be honest, I haven’t seen any compelling evidence.

Walmart is pretty proud to announce their new logo right now. They are focused on creating a new image for themselves.

From the announcement:

But what really matters is what happens out there in the stores. This update to the logo is simply a reflection of the refresh taking place inside our stores and our renewed sense of purpose to help people save money so they can live better.

The "renewed sense of purpose…" is laughable to me, but, I like that the goal is to drive down costs for the consumers… I get to benefit from that. Economies of scale are a great thing when they work in my favor.

Why I love Walmart?

I love that Walmart is a business first. They understand that their main purpose is to provide greater shareholder value. The provide greater profits to those that are stockholders in the company despite the goofy line of "renewed purpose."

They take a lot of heat in the media. At NewsBlaze yesterday, David Nassar says:

But while Wal-Mart unveiled its new logo yesterday, nothing is changing for its workers who need health care, its customers who expect non-toxic toys, and its neighbors who must deal with increased traffic, crime, and pollution.

These issues deserve to be addressed substantively — not with a gimmicky logo change.

Let’s look at these stupid statements just a little.

1. Workers need health care. If this was that important to the workers, they wouldn’t work there. Besides, insurance is just a crutch and furthers our problems in health care. And don’t they provide a whole list of $4 prescriptions?
2. Customers expect non-toxic toys. Wasn’t that the toy manufacturers and not Walmart? Why would Walmart want toxic toys? To kill their customers? That is simply a dumb thing to say.
3. Neighbors must deal with increased traffic, crime and pollution. How does Walmart increase pollution? If increased traffic is a concern, why does the city allow them zoning… are these in cities that don’t have governments run by the people and for the people? I have seen a number of Walmarts with police substations right in the same building… is there increased crime there? Besides, how does Walmart increase the crime… that doesn’t make a bit of sense.

Why is it that when a company is sort of successful people applaud? When a company is very successful, people want to tear it down.

Oh, I forgot, "Big Business Is Bad."

In a free market society, as long as businesses are ethical and adhere to law, those businesses will excel. If as many people hated Walmart as the critics would have you believe, then why is it such a successful business? If Walmart is as bad as they say, why do people continue to work there and shop there?

Why I hate Walmart?

I hate the long lines and the fact they can’t figure out how to open more registers.

I hate that I have to say "hi" to a greeter every time I go in.

I hate that they have employee of the month parking but tow customers.

I hate that they pretend they are going green to protect the environment.

But I don’t hate that they are a business trying to increase shareholder value.

I have just started to contribute to a blog… about Mommy’s no less. On This Mommy’s Gig, there are a few fathers that are posting as well. It is nice because it gives me a forum to talk about my family a little without having to start yet another blog.

My first post is there today at Of Rocks and Trampolines. My favorite part is that down on the right side of the page, I am just one of the "Moms".

Here is an excerpt of what I wrote there.

Civil disobedience in the house. Mass destruction. Defiance of order and peace.

Yeah… I have four kids.

Fortunately, I have a smart wife… with a budget.

My wife reads a lot. She then modifies what she learns to fit our family. She has always taught me that positive reinforcement provides much greater results than anything negative ever could (you can catch more flies…).

One night, about three months ago, she went to the store and came home with a fish bowl and a lot of decorative rocks.

She had a new idea.

She put the fish bowl on top of a platter that she had and then put all of the rocks around the fish bowl.

The next day, we had a great conversation with the kids. Here were the rules.

Go to Of Rocks and Trampolines to read the rest of the post. I hope you like it.

I have chronic heart burn and I have to take medication for that heart burn. The best drug that works for me is Nexium. But, I don’t take that because my insurance co-pay is too expensive. If I did take that, I would only have to take one per day.

Because Nexium isn’t a preferred drug on the insurance policy, I have to take two per day of Priolsec (or its generic equivalent). So, instead of 30 pills per month, I take 60 pills per month. If I miss a pill, I have a horrible few hours until the next pill kicks in.

I thought I would do a little research on what the real cost is.  

The total cost per month for my prescription is $153.99. Because I have a reasonable insurance plan, my co pay for that drug is $10.00 and the pharmacy is proud to say that I “saved” $143.99.

I decided to look at Amazon.com for comparisons.

Here is what I found.

I can buy my drugs over the counter, with no prescription, - the brand name version Prilosec OTC for $38.96 per month. But, the insurance company doesn’t pay anything; I am responsible for the full price.

I can also buy a generic version of the drug for $28.56 per month.

Again, the insurance company is not willing to pay anything, so I have to pick up the full tab.

I choose, like most people do, to have the insurance company pick up the cost. I figure the economic choice is simple.

I can pay $10.00, $28.56 or $38.96 per month. I figure I pay $600 per month for my plan, I am going to use it to it’s fullest. Why should I pay 3 or 4 times the cost when I already am paying my insurance company so much to do that for me.

Which would you choose?

I find this fascinating because they are the exact same drug. Exact same dosage. Different package and different marketing route.

I think my head will explode if I hear one more politician say that we need health insurance for everyone. I am at the edge of dumping mine because of stupid pricing schemes like this one.

Hey, insurance company… I’ll give you a $30 co-pay for a six month supply if you let me buy the generic over the counter stuff…

I’ll save $60 per year and you’ll save $1,445.16.

Oh… they really didn’t save me $143.99… they saved me $18.56.

Last week I was very excited to have found DocSyncer… providing me the ability to synchronize my local MS Office Documents with Google Docs.

I was pretty pleased with the ability to upload my files from my desktop in one fell swoop and then manage the files either on my computer on on Google Docs.

The problem was, it didn’t really work. All my files got loaded up, but I learned that they didn’t synchronize at all… once they were loaded, the versions no longer matched up.

I thought that I would take a few minutes today to see if I could figure it out and get it to work… because it is really cool.

When I went to the DocSyncer website, I found this note.

Thank you for your interest in DocSyncer. Our service will be shutting down on June 20th, 2008. All current users can continue to access and use the service until that time.

DocSyncer began largely as an experiment. When our primary startup (ProtectMyPhotos) began to appear that it wasn’t going to work out, we wanted to try something radically different with our technology. In a very short amount of time, we were able to build DocSyncer for the world to enjoy. However, it was always an experiment and we weren’t sure it could be a business. We’ve figured out in a very short amount of time that DocSyncer is a cool tool - but not a business. With no way to pay for itself, we’d rather shut the service down than let it fall into decay as our team begins to work on a new project. We regret that anyone who’s enjoyed DocSyncer will be disappointed to see it go - we’re certainly disappointed as well. Nonetheless, we made some great progress with DocSyncer that we’re proud of. We synced more than 5 million documents to Google Docs - making us the largest user in the history of the Google Docs API.

Until we meet again, good luck and thank you for the support!

Couple of thoughts I have.

1. Shouldn’t you figure out if you have a business model before you work on building something this cool?
2. If Google can do it for free, why can’t they?
3. It really is a cool idea. If they could just get it to work right, I bet Google would buy it.

Oh well… I’ll have to be careful to do a little more research before I think something is cool.

Businesses who blog can take a few different approaches to how the blog can be presented. If you are going to follow a business’ blog, what type of posts would get you to continue to follow that blog?

Option 1 (Fact Based Information):

An informational blog that provides keys bits of information relating to products and services they sell.

Option 2 (Industry Opinions):

An informational blog that provides opinion on topics surrounding their industry and topics that might interest their target market but not necessarily be related to products they sell.

Option 3 (One Big Sales Pitch):

Every post relates to a product they sell with a call to action like "click here to learn more about this product."

Option 4 (A Little of This… A little of That):

A general opinion blog from someone in the company. Wouldn’t be too unlike a blog you would find on MySpace… just random thoughts and personal commentary.

…

So, what do you think? Which is the best option for a business blog?

I am often at a boiling point thinking about the laws we have. We have so many laws that infringe upon our personal rights. Laws as simple as a requirement to wear a seatbelt to as critical as the laws that protect one against violence from another.

I heard on the radio today that more and more businesses are putting into place no gun policies. As if telling someone, that wants to bring a gun, that it is wrong will magically stop that person from bringing a gun. It is the same with any law that we have. Making a law requiring seatbelts, speed limits, shoplifting, larceny, theft, drugs, etc does not, nor ever will prevent a "thing" from happening.

Congress can pass laws till they are blue in the face. Businesses can have policies that affect customers and, more specifically, employees, but it doesn’t make a difference. People do not follow a law or a policy simply because it exists.

It is the enforcement of those laws and policies (and fear of the consequences thereof) that make law make a difference. People may follow the law out of a sense of right versus wrong… assuming they agree with it. But, even the most OCD of people (you know who you are) won’t agree with all laws and won’t do everything perfect simply out of a sense of right and wrong.

The primary reason people obey the law or policy is because of fear of reprisal of some sort. They are afraid of the consequence. Think about that when you are driving the speed limit when you are in a hurry. Why do you stay within or at least kind of close to the speed limit and not just drive as fast as you can? What do you do when you see a cop?

Consider this when you try to put a policy or practice in place in your business. If you aren’t willing to follow through on that policy or practice it won’t matter. If you don’t enforce, you might as well not make the policy or practice in the first place.