Here today and gone tomorrow. A strange philosophy for a store, but that is the case. A number of retail chains and those introducing new products are doing it in a big way to generate increased sales and media coverage
This holiday season Toys ‘R’ Us opened “pop-up stores ” in eighty shopping malls and added temporary toy departments in its Babies ‘R’ Us stores. Target has been doing it for a number of years. It opens up holiday pop-ups for fifty days offering some of its best-selling holiday products. As the Washington Post reports, “Products are displayed in windows, and shoppers mark their selections on the clipboard menu before bringing the order to a register to check out -- much like at a cafeteria. All stock is pre-wrapped and picked up next to the registers.
“The merchandise includes a Keurig mini coffee brewer for $89.99, a Liv Girls doll for $19.99 and a Sigg water bottle for $21.99.”
These pop—ups are usually opened up in high traffic areas such as Times Square in New York City. However, last year Reebok launched a pop-up shop at an art gallery. My favorite one is a Subway sandwich shop physically attached to the Freedom Tower as it is being built in its World Trade Center location in New York City. According to the New York Post, the sandwich shop is “fitted into a shipping container-like structure fixed to one of the tower cranes, alongside a bathroom and construction offices for the project managers.
“The concession stand will rise with the tower, eventually stopping near the 105th floor -- at roughly the height of the old Twin Towers.”
I expect this pop-up store trend to continue and expand going beyond national chains and those with new products. With so much retail space available, commercial retail landlords will find this option attractive. There also will be cottage industries including suppliers selling or renting display units that can be easily set up and taken down in minutes. Because of the high unemployment, there will be a ready workforce. Also expect the entry of franchisors offering turnkey pop-up store operations.
So don’t be surprised if you see a calendar store from October to December and stores geared to particular holidays only open for a month or two. It won’t be just for Christmas as you will have Halloween stores and stores for holidays only celebrated by certain cultures. Add to this mix, bicycle rental stores in the summer, and state tourism agencies opening up stores in adjoining states for a month to encourage tourism.
These pop-ups are often mobile in the form of vans and other vehicles moved from place to place preceded by advance publicity. Some pop-ups are basically showcases for a retailor’s Web site with limited products to sample and assisted kiosks allowing easy ordering and shipment to the store for pick-up if desired.
Brick-and-mortar retailing is undergoing a remarkable and rapid transformation as online retailing takes hold. This pop-up trend is just one of the ways it can survive and benefit the national chains and the individual entrepreneurs, formerly known as “the mom and pop store owners” with which many of us grew up and loved.
© 2009
For additional reading on the subject, check out:
http://www.trendwatching.com/trends/POPUP_RETAIL.htm
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/10/AR2009121003919.html
http://nymag.com/daily/fashion/2008/11/reebok_store.html
http://popupstores-nyc.com/
http://www.wired.com/promo/wiredstore/aboutus.html
*****************************************************************************
The above is from the fourth issue of my newsletter, Howard’s Inner Circle, which periodically appears on the blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is given credit as the author.
Tuesday, December 29, 2009
Monday, December 21, 2009
Howard’s Inner Circle, No. 3: Two “Bicycle Condom” Business Models
Being unemployed and looking for revenue opportunities, I find potential ones in the weirdest places like standing in the rain waiting to meet someone in Hoboken, Jersey. It was by the PATH station, a commuter subway that goes to New York City. It was 5 P.M. and I was by a bike rack with fifty bikes locked up. Forty-nine bike seats were soaking wet, and one seat was bone dry as it had a plastic bag wrapped around it.
I pointed that fact out to an individual standing by me, whose name I later found out was Mike, and asked him why did he think only one biker protected his or her seat. His answer was, “It wasn’t raining this morning.” I asked a rider who was unlocking his bike and he gave me the same answer. By the way, the prediction was for rain in the afternoon.
I conferred further with Mike and asked him what he thought about the viability of selling plastic rain protectors for seats that could be stored under bicycle seats. They could be different colors and have logos from different teams, fashion houses, or retailers. Told Mike, I didn’t have a name for the product, and he suggested, ‘Bike Condom.”
Saw a brilliant partnership being formed with a 60/40 split of the profits. Just would have to draft a partnership agreement, write a business plan, check out the competition, hire a lawyer, find investors and financing, work out a deal with a manufacturer and a distributor, create a marketing and advertising campaign, develop packaging, and market test the product.
A quick Internet search found that the term “bike condom” was already taken as at http://www.treehugger.com/files/2009/01/bike-condoms-new-for-bike-sharing.php, there is the following statement: “In bike-sharing mecca Barcelona, there's a new way to make waste - put a pair of bike condoms onto the handles of the shared bike you are just about to take for a spin.” And at http://www.instructables.com/id/Bicycle_Seat_Condom, a rider tells us of a method to protect a seat from the rain, “During the Fall semester I started riding my bike to school and learned I hated riding in the rain after a seven hour class. I dreaded the idea of riding in the rain with a wet bike seat causing me to stand while pedaling. Luckily, being surrounded by Low density polyethylene (LDPE) cutoffs in the studio I began experimenting with vacuum forming this material to create a reusable bicycle seat cover that is durable, flexible, and waterproof.” My favorite bike seat cover was selling for $15 and made of durable urethane-coated ripstop nylon at http://www.rei.com/product/623806.
Looks like too much work and risk for Mike and me if we develop our own commercial “Bike Condom,” so let me offer an alternative business model in which we can immediately go to market today at no cost. We simply advise bike riders to stuff a plastic bag under the seat on their bicycle. So if there is a prediction or possibility of rain, they can wrap the plastic bag around the seat. If the rider must make a statement, he or she can use a plastic bag with a logo they like. And for those who decide to do so there is a charge, simply consider making a donation in any amount that you decide to charity or an individual that needs it more than you. With this second business model, Mike and I will still follow the same 60/40 split, but rather than sharing the profits, we hope to profit in a different way.
-------------------------------------------------------------------------------------------------------
The above is from the third issue of my newsletter, Howard’s Inner Circle, which periodically appears on my blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is given credit as the author.
I pointed that fact out to an individual standing by me, whose name I later found out was Mike, and asked him why did he think only one biker protected his or her seat. His answer was, “It wasn’t raining this morning.” I asked a rider who was unlocking his bike and he gave me the same answer. By the way, the prediction was for rain in the afternoon.
I conferred further with Mike and asked him what he thought about the viability of selling plastic rain protectors for seats that could be stored under bicycle seats. They could be different colors and have logos from different teams, fashion houses, or retailers. Told Mike, I didn’t have a name for the product, and he suggested, ‘Bike Condom.”
Saw a brilliant partnership being formed with a 60/40 split of the profits. Just would have to draft a partnership agreement, write a business plan, check out the competition, hire a lawyer, find investors and financing, work out a deal with a manufacturer and a distributor, create a marketing and advertising campaign, develop packaging, and market test the product.
A quick Internet search found that the term “bike condom” was already taken as at http://www.treehugger.com/files/2009/01/bike-condoms-new-for-bike-sharing.php, there is the following statement: “In bike-sharing mecca Barcelona, there's a new way to make waste - put a pair of bike condoms onto the handles of the shared bike you are just about to take for a spin.” And at http://www.instructables.com/id/Bicycle_Seat_Condom, a rider tells us of a method to protect a seat from the rain, “During the Fall semester I started riding my bike to school and learned I hated riding in the rain after a seven hour class. I dreaded the idea of riding in the rain with a wet bike seat causing me to stand while pedaling. Luckily, being surrounded by Low density polyethylene (LDPE) cutoffs in the studio I began experimenting with vacuum forming this material to create a reusable bicycle seat cover that is durable, flexible, and waterproof.” My favorite bike seat cover was selling for $15 and made of durable urethane-coated ripstop nylon at http://www.rei.com/product/623806.
Looks like too much work and risk for Mike and me if we develop our own commercial “Bike Condom,” so let me offer an alternative business model in which we can immediately go to market today at no cost. We simply advise bike riders to stuff a plastic bag under the seat on their bicycle. So if there is a prediction or possibility of rain, they can wrap the plastic bag around the seat. If the rider must make a statement, he or she can use a plastic bag with a logo they like. And for those who decide to do so there is a charge, simply consider making a donation in any amount that you decide to charity or an individual that needs it more than you. With this second business model, Mike and I will still follow the same 60/40 split, but rather than sharing the profits, we hope to profit in a different way.
-------------------------------------------------------------------------------------------------------
The above is from the third issue of my newsletter, Howard’s Inner Circle, which periodically appears on my blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is given credit as the author.
Monday, December 14, 2009
Howard’s Inner Circle, No. 2: Businesses Turning to the Independent Distributor Model
The greatest overhead expenses are often those associated with employees. This is why many companies are reducing severance benefits or eliminating matching contributions to 401(k) plans. Some are being more creative and instead minimizing the size of their workforces by utilizing so-called “independent distributors.”
I have recently seen this with an energy provider to businesses and personal residences as well as a company that sells video telephones. The attraction is savings on guaranteed salaries, payroll taxes, employees’ benefits, and many of the costs associated with supporting inside salespersons. These companies might provide some help on setting up a Web site by providing templates, but the ones I came in contact with didn’t even provide a uniform style for business cards for these independent distributors.
Businesses are doing a great job by promoting this new status, and rather than using the old term “commissions” speak of “residual income” and play up the fact that it is a new industry or a new product subject to exponential growth. In this tough economic environment, any source of potential income draws interest. Because younger individuals might not see the importance or availability of medical insurance and retirement plans benefits and have difficulty finding jobs, independent distributor opportunities have great appeal.
Companies like the fact that underperforming independent distributors won’t hurt their company’s bottom line as much as full-time underperforming employees and are likely to give up after awhile.
There are a number of downsides to relying on independent distributors including the expected government scrutiny asking if these individuals aren’t really employees and should be treated as such for payroll taxes purposes. “Look for an Obama administration to aggressively challenge independent contractor status.” is the prediction (at http://www.webcpa.com/prc_issues/2008_10/29348-1.html?pg=2) from Dean Zerbe, former senior counsel and tax counsel for the Senate Finance Committee and now national managing director for alliantgroup. Another potential disadvantage is the fact that an independent distributor might be working for more than one company at a time and place his or her maximum efforts and loyalty with the product or service that is generating the greatest revenue at the time.
This will be an interesting trend to watch and advisors to businesses especially lawyers and accountants are sure to benefit as they counsel the many businesses who might consider utilizing independent distributors, as well as defend those when federal and state agencies question this status.
-------------------------------------------------------------------------------------------------------
The above is from the second issue of my newsletter, Howard’s Inner Circle, which periodically appears on my blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is given credit as the author.
I have recently seen this with an energy provider to businesses and personal residences as well as a company that sells video telephones. The attraction is savings on guaranteed salaries, payroll taxes, employees’ benefits, and many of the costs associated with supporting inside salespersons. These companies might provide some help on setting up a Web site by providing templates, but the ones I came in contact with didn’t even provide a uniform style for business cards for these independent distributors.
Businesses are doing a great job by promoting this new status, and rather than using the old term “commissions” speak of “residual income” and play up the fact that it is a new industry or a new product subject to exponential growth. In this tough economic environment, any source of potential income draws interest. Because younger individuals might not see the importance or availability of medical insurance and retirement plans benefits and have difficulty finding jobs, independent distributor opportunities have great appeal.
Companies like the fact that underperforming independent distributors won’t hurt their company’s bottom line as much as full-time underperforming employees and are likely to give up after awhile.
There are a number of downsides to relying on independent distributors including the expected government scrutiny asking if these individuals aren’t really employees and should be treated as such for payroll taxes purposes. “Look for an Obama administration to aggressively challenge independent contractor status.” is the prediction (at http://www.webcpa.com/prc_issues/2008_10/29348-1.html?pg=2) from Dean Zerbe, former senior counsel and tax counsel for the Senate Finance Committee and now national managing director for alliantgroup. Another potential disadvantage is the fact that an independent distributor might be working for more than one company at a time and place his or her maximum efforts and loyalty with the product or service that is generating the greatest revenue at the time.
This will be an interesting trend to watch and advisors to businesses especially lawyers and accountants are sure to benefit as they counsel the many businesses who might consider utilizing independent distributors, as well as defend those when federal and state agencies question this status.
-------------------------------------------------------------------------------------------------------
The above is from the second issue of my newsletter, Howard’s Inner Circle, which periodically appears on my blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is given credit as the author.
Tuesday, December 8, 2009
Howard’s Inner Circle, No. 1: Polyglot Your Business Instantaneously
I bet most don’t know that everyone working in the pharmacy departments of the many CVS drugstores in New York City can understand Arabic, Armenian, Cantonese, French, German, Hindi, Hmong, Italian, Japanese, Khmer (Cambodian), Korean, Laotian, Mandarin, Polish, Portuguese, Russian, Spanish, Tagalog, Thai, and Vietnamese.
Unfortunately because of not sufficiently publicizing this fact, my guess is that most current and potential CVS customers aren’t aware of this. The primary way they would know is by seeing an 8-1/2” X 11” laminated paper posted on the cubicles where prescription consultations are conducted.
That paper reads at the top “Interpretation Service Available.” Below that title are 20 boxes for each of the above languages each with a hand with a pointed finger directed at 20 different foreign languages translations of “Point to your language. An interpreter will be called.” The Web site for the company, LanguageLine Services, which CVS utilizes is www.languageline.com. At this site you can see the many more languages available for translation and that an interpretation can be purchased on an as-needed basis. There are many other companies (e.g.,TransPerfect, www.transperfect.com/) out there that offer similar services.
Think of the marketing and business development advantages in offering this type of interpretation service. I have already spoken to someone at Staples and a number of managing partners of New York City accounting firms of the obvious advantages. Can you imagine if contractors and do-it-yourselfers knew at their Home Depot or Lowe’s they could converse via a third party with the expert staff at these stores in their own languages? Not-for-profits can benefit too. Although many hospitals have interpreters on staff, there usually are a limited number of languages available. Think of how many more citizens could utilize government services if they could converse in their language with government officials.
Most importantly, offering and publicizing this type of service promotes community among the various cultures that are part and parcel and make up our nation. With globalization’s continuing increasing impact, it is an imperative to be able to communicate in as many languages as possible. The belief that one language should be supreme to the exclusion of others really makes little economic sense. Hopefully, the expanded availability of reasonably-priced translation services will mean more companies, not-for-profits, and governments will understand and recognize it pays for these entities and their employees to become instant polyglots.
© 2009
-------------------------------------------------------------------------------------------------------
The above is from the first issue of my newsletter, Howard’s Inner Circle, which periodically appears on my blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is given credit as the author.
Unfortunately because of not sufficiently publicizing this fact, my guess is that most current and potential CVS customers aren’t aware of this. The primary way they would know is by seeing an 8-1/2” X 11” laminated paper posted on the cubicles where prescription consultations are conducted.
That paper reads at the top “Interpretation Service Available.” Below that title are 20 boxes for each of the above languages each with a hand with a pointed finger directed at 20 different foreign languages translations of “Point to your language. An interpreter will be called.” The Web site for the company, LanguageLine Services, which CVS utilizes is www.languageline.com. At this site you can see the many more languages available for translation and that an interpretation can be purchased on an as-needed basis. There are many other companies (e.g.,TransPerfect, www.transperfect.com/) out there that offer similar services.
Think of the marketing and business development advantages in offering this type of interpretation service. I have already spoken to someone at Staples and a number of managing partners of New York City accounting firms of the obvious advantages. Can you imagine if contractors and do-it-yourselfers knew at their Home Depot or Lowe’s they could converse via a third party with the expert staff at these stores in their own languages? Not-for-profits can benefit too. Although many hospitals have interpreters on staff, there usually are a limited number of languages available. Think of how many more citizens could utilize government services if they could converse in their language with government officials.
Most importantly, offering and publicizing this type of service promotes community among the various cultures that are part and parcel and make up our nation. With globalization’s continuing increasing impact, it is an imperative to be able to communicate in as many languages as possible. The belief that one language should be supreme to the exclusion of others really makes little economic sense. Hopefully, the expanded availability of reasonably-priced translation services will mean more companies, not-for-profits, and governments will understand and recognize it pays for these entities and their employees to become instant polyglots.
© 2009
-------------------------------------------------------------------------------------------------------
The above is from the first issue of my newsletter, Howard’s Inner Circle, which periodically appears on my blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is given credit as the author.
Tuesday, November 10, 2009
President Obama: With All Due Respect, I Am Still Waiting
The following was sent to the White House via e-mail a number of weeks ago (I checked the box asking for a reply) and the only thing I received so far was a mailing with President Obama’s name on it asking for a political contribution.
“We as a nation need to publicize what an untapped and extremely valuable resource the unemployed are as they currently are. Rather than defining someone’s worth, “being currently unemployed” should be shown as equivalent to a respected profession. I believe the need to change perceptions is a key imperative especially because of the percentage of unemployed, the length of time they will be employed, and the ages of the unemployed. In my opinion, it is a priority similar to providing benefits and training.
“Governments at all levels should take the lead role in this regard by setting up programs where unemployed individuals apply their skills helping business, not-for-profits, and governments in a limited role for a limited time. In return, those individuals might be able to obtained reference and testimonials regarding their work. I written about one way the media can help in my October 7th entry in my blog entitled, “Might Seem Counterintuitive, But It’s Not at http://howardwolosky.blogspot.com/. Please read it as I couldn’t paste the text down because of the limitations of the White House system.
“G-d bless all including all the readers of the e-mail. Hopefully, the last reader will be President Obama
“Sincerely yours,
“Howard Wolosky”
“We as a nation need to publicize what an untapped and extremely valuable resource the unemployed are as they currently are. Rather than defining someone’s worth, “being currently unemployed” should be shown as equivalent to a respected profession. I believe the need to change perceptions is a key imperative especially because of the percentage of unemployed, the length of time they will be employed, and the ages of the unemployed. In my opinion, it is a priority similar to providing benefits and training.
“Governments at all levels should take the lead role in this regard by setting up programs where unemployed individuals apply their skills helping business, not-for-profits, and governments in a limited role for a limited time. In return, those individuals might be able to obtained reference and testimonials regarding their work. I written about one way the media can help in my October 7th entry in my blog entitled, “Might Seem Counterintuitive, But It’s Not at http://howardwolosky.blogspot.com/. Please read it as I couldn’t paste the text down because of the limitations of the White House system.
“G-d bless all including all the readers of the e-mail. Hopefully, the last reader will be President Obama
“Sincerely yours,
“Howard Wolosky”
Saturday, October 17, 2009
A $7.5 Million Open Letter to Michael Bloomberg and Bill Thompson
October 18th, 2009
Dear Future Mayor of New York City,
Complaint: Since it occurred on both of your watches and you are both running for mayor, I thought I would bring this matter to your attention. It involves the fact that in the adult section of the reconstructed Brooklyn Public Library Kings Highway branch there are no signs on the bookshelves indicating the range of the catalogue numbers for the books. To find the book on travel I was looking for I had to walk among the 14 different sets of multi-tiered bookcases.
As reported in the New York Times on June 11, 2009 “After a four-year, $7.5 million renovation that was held up by extensive construction delays, the Brooklyn Public Library is reopening the Kings Highway branch in Midwood — historically the second-busiest branch of the Brooklyn library system after the central library on Grand Army Plaza — on Thursday morning.”
I complained about this problem repeatedly. The latest being today. Interestingly in the children’s section on the second floor, there were signs (handtyped by a librarian) on each of the bookcases with the catalog number for the books
Suggestion: Go to this library and take out a book, In addition to the problem I spoke of, you will find other problems such it is hard to find the few books on travel in the New York State using the computerized catalog searching system at that branch and I doubt if many of the users know how they can reserve such a book from other branches which might be more useful. Additionally, you will find like it hard to check out a book with the self-checkout system. Adopting this hands-on walking-the-walk approach might ensure that $7.5 million is well spent
Respectfully yours,
Howard Wolosky
Dear Future Mayor of New York City,
Complaint: Since it occurred on both of your watches and you are both running for mayor, I thought I would bring this matter to your attention. It involves the fact that in the adult section of the reconstructed Brooklyn Public Library Kings Highway branch there are no signs on the bookshelves indicating the range of the catalogue numbers for the books. To find the book on travel I was looking for I had to walk among the 14 different sets of multi-tiered bookcases.
As reported in the New York Times on June 11, 2009 “After a four-year, $7.5 million renovation that was held up by extensive construction delays, the Brooklyn Public Library is reopening the Kings Highway branch in Midwood — historically the second-busiest branch of the Brooklyn library system after the central library on Grand Army Plaza — on Thursday morning.”
I complained about this problem repeatedly. The latest being today. Interestingly in the children’s section on the second floor, there were signs (handtyped by a librarian) on each of the bookcases with the catalog number for the books
Suggestion: Go to this library and take out a book, In addition to the problem I spoke of, you will find other problems such it is hard to find the few books on travel in the New York State using the computerized catalog searching system at that branch and I doubt if many of the users know how they can reserve such a book from other branches which might be more useful. Additionally, you will find like it hard to check out a book with the self-checkout system. Adopting this hands-on walking-the-walk approach might ensure that $7.5 million is well spent
Respectfully yours,
Howard Wolosky
Wednesday, October 7, 2009
Might Seem Counterintuitive, But It’s Not
Yes magazines are closing down right and left, but here’s an idea for a new one. The working title is “The Unemployed.” The working tagline is “Harnessing Their Untapped Power and Wealth”
It will explore and publicize what an untapped and extremely valuable resource the unemployed are. Rather than defining someone’s worth, “being currently unemployed” could be shown as equivalent to a respected profession at which you can work at becoming better at.
Contributing reporters, copy editors, artwork submitters, and technical support would generally be those who are unemployed. There would be included extensive bios on these individuals. Each issue would have three or four features, departments, and commentaries.
Here are three possible features for the first issue:
“Tales of Charitable Giving” detailing individuals who increase their charitable efforts. E.J., who while searching for his next career opportunity, is delivering Meals On Wheels to the elderly; helping out at Cancer Action, and leading a weekly walking group of seniors.
“Seller’s Guide to Selling Gold” explains that most gold is purchased to be melted down so gem worth isn’t generally considered and offers vary greatly, easily as much as 75% to 100%. When selling, it advises to check with a number of vendors and ask that offer stay open for a stated period of time. It points out items should be grouped and weighted together by their carat type to get best value and applicable state law should be checked.
“Overcoming the Stigmas: Yours and Theirs” deals with the psychological and stereotypical aspects of unemployment from the viewpoints of the unemployed, family friends, former colleagues, etc. There would be a number of personal experience boxes where individuals such as Warren Buffet, Bill Gates, and an out-of- work 58 year old former steelworker describe how they or people they love dealt and deal with unemployment.
Departments could feature reporting on state programs that allow employers to combine reduced work hours for employees with partial unemployment benefits and how industries are combating unemployment such as contractors, landscapers and interior decorators turning to staging and rehabilitation of personal residences. There would be a books to consider section showcasing such books as “No More Mondays: Fire Yourself-and Other Revolutionary Ways to Discover your True Calling At Work” by Dan Miller
The magazine would be print and online and be a paid subscription model with a code of responsibilities and conduct for subscribers, advertisers, and contributors. The annual subscription rate would be from $10 to $250 as determined by the subscriber with a deferral, if desired, by those currently unemployed.
For the purpose of transparency and full disclosure, I am suggesting this publication in part so that I would be considered for the position of editor-in-chief. I was previously editor-in-chief of Practical Accountant, and what particularly qualifies me for consideration was my last column there, which in a sense of poetic justice, was automatically published on the day after I was told it was my last day.
Excerpted Text of WebCPA column
“’New’ Alternatives to Layoffs
(January 13, 2009)
“In these tough economic times, as in others, there are many news items on companies declaring bankruptcies and announcing substantial staff cuts. What is different this time is that I am also reading about a number of cost-cutting strategies that are gaining in popularity and aimed at reducing expenses without disrupting business operations or laying off staff.
“Fortune 500 companies, as well as smaller ones, have stopped their employer matching of employee 401(k) contributions. Factories are being closed down for a specified period of time with the unpaid furloughing of employees. Unpaid holidays are being given. Then there are those businesses that indicated there will be no salary increases in 2009. And I just came across a report that one of the largest accounting firms in Israel is reported to have made across-the-board pay cuts of 5 to 10 percent, except for certain lower-paid staff. We are also seeing the introduction of four-day weeks.
*******
“These creative cost-cutting strategies indicate the economic downturn is impacting more, and they also reflect an expectation that it will continue for some time. On the plus side, in general, they also indicate that companies are developing an arsenal of intermediate moves short of layoffs or a declaration of bankruptcy.
“This aversion to staff reductions can be attributed to a number of factors, including that often operations would be impaired if cuts were made, skilled employees are difficult to replace, and once the economic times get better the company doesn’t want to be understaffed.
“Interestingly, there seems to be understanding and acceptance by many in the workforce who are affected by the end of employer 401(k) contributions, unpaid leaves, etc. It appears to be based on the belief that, ’At least I have my job.’
*******
It will explore and publicize what an untapped and extremely valuable resource the unemployed are. Rather than defining someone’s worth, “being currently unemployed” could be shown as equivalent to a respected profession at which you can work at becoming better at.
Contributing reporters, copy editors, artwork submitters, and technical support would generally be those who are unemployed. There would be included extensive bios on these individuals. Each issue would have three or four features, departments, and commentaries.
Here are three possible features for the first issue:
“Tales of Charitable Giving” detailing individuals who increase their charitable efforts. E.J., who while searching for his next career opportunity, is delivering Meals On Wheels to the elderly; helping out at Cancer Action, and leading a weekly walking group of seniors.
“Seller’s Guide to Selling Gold” explains that most gold is purchased to be melted down so gem worth isn’t generally considered and offers vary greatly, easily as much as 75% to 100%. When selling, it advises to check with a number of vendors and ask that offer stay open for a stated period of time. It points out items should be grouped and weighted together by their carat type to get best value and applicable state law should be checked.
“Overcoming the Stigmas: Yours and Theirs” deals with the psychological and stereotypical aspects of unemployment from the viewpoints of the unemployed, family friends, former colleagues, etc. There would be a number of personal experience boxes where individuals such as Warren Buffet, Bill Gates, and an out-of- work 58 year old former steelworker describe how they or people they love dealt and deal with unemployment.
Departments could feature reporting on state programs that allow employers to combine reduced work hours for employees with partial unemployment benefits and how industries are combating unemployment such as contractors, landscapers and interior decorators turning to staging and rehabilitation of personal residences. There would be a books to consider section showcasing such books as “No More Mondays: Fire Yourself-and Other Revolutionary Ways to Discover your True Calling At Work” by Dan Miller
The magazine would be print and online and be a paid subscription model with a code of responsibilities and conduct for subscribers, advertisers, and contributors. The annual subscription rate would be from $10 to $250 as determined by the subscriber with a deferral, if desired, by those currently unemployed.
For the purpose of transparency and full disclosure, I am suggesting this publication in part so that I would be considered for the position of editor-in-chief. I was previously editor-in-chief of Practical Accountant, and what particularly qualifies me for consideration was my last column there, which in a sense of poetic justice, was automatically published on the day after I was told it was my last day.
Excerpted Text of WebCPA column
“’New’ Alternatives to Layoffs
(January 13, 2009)
“In these tough economic times, as in others, there are many news items on companies declaring bankruptcies and announcing substantial staff cuts. What is different this time is that I am also reading about a number of cost-cutting strategies that are gaining in popularity and aimed at reducing expenses without disrupting business operations or laying off staff.
“Fortune 500 companies, as well as smaller ones, have stopped their employer matching of employee 401(k) contributions. Factories are being closed down for a specified period of time with the unpaid furloughing of employees. Unpaid holidays are being given. Then there are those businesses that indicated there will be no salary increases in 2009. And I just came across a report that one of the largest accounting firms in Israel is reported to have made across-the-board pay cuts of 5 to 10 percent, except for certain lower-paid staff. We are also seeing the introduction of four-day weeks.
*******
“These creative cost-cutting strategies indicate the economic downturn is impacting more, and they also reflect an expectation that it will continue for some time. On the plus side, in general, they also indicate that companies are developing an arsenal of intermediate moves short of layoffs or a declaration of bankruptcy.
“This aversion to staff reductions can be attributed to a number of factors, including that often operations would be impaired if cuts were made, skilled employees are difficult to replace, and once the economic times get better the company doesn’t want to be understaffed.
“Interestingly, there seems to be understanding and acceptance by many in the workforce who are affected by the end of employer 401(k) contributions, unpaid leaves, etc. It appears to be based on the belief that, ’At least I have my job.’
*******
Subscribe to:
Posts (Atom)
