Any Business Lately?

Why places close.

Any Business Lately

It happens to all of us. You travel to your favorite place of business and arrive to see the place shuttered. Another shop closed. How did this happen? Sometimes we can see it coming, but other times it comes as a complete shock, tragic and disheartening.  This year alone, two of my favorite products stopped being made. My favorite hot pepper jam, because the company apparently folded. The website says online items are all out of stock, the phone call I made went unanswered to voicemail, and the owner was absent at a local food festival. Just this week, I went online to order a few cases of this awesome specialty iced tea, not sold in stores. I always order six to twelve cases at a time, extra of  the diet blueberry flavor. I was devastated to learn that Two If By Tea  had been discontinued due to rising production costs.

As upsetting as it may be for us, often it is many times worse on the owner of the business because although we were loyal patrons, the business was their brainchild. What do you do when your dream dies?

The reasons why places shut down are as varied as the businesses themselves, but there are often several main reasons business close.

Declining customer base.

The first espresso bar to open in Lancaster PA was The Monk’s Tunic. It made the local newspaper. (That local newspaper has since folded also.) When you are the first business you often inspire imitators.  Competition for customers is often fierce when several shops of the same type open in close proximity. Customers are the life-blood of a business, and losing too many customers will kill a business. Although it is speculation on my part, I blame the press release, because within the first year of business, at least a half dozen similar cafes opened all within two blocks of each other.  That same newspaper article also mentioned a national bookstore chain that was opening at the mall, BORDERS BOOKS which would have a sit down espresso bar.

Why do I blame the newspaper? Think of the California Gold Rush of 1848 which brought over 300,000 prospectors to California when newspapers announced gold had been found at Sutter’s Mill.  Here was the local newspaper proclaiming the discovery of ‘Black Gold’ in the city.

I did manage to visit all of the cafes which opened during the ‘Great Espresso Rush’ to sample their drinks. I’m a coffee snob, so it takes more than just what’s in the cup to leave an impression on me. The ones that offered poetry readings and live music often brought me back rather than the coffee, all of which tasted pretty much the same. They must have all been using the same local roaster. The Monk’s Tunic put up a valiant fight, outlasting all of the newcomers except BORDERS, which in turn folded a decade later. Each of these shops were unique in their own ways, but I really miss both The Monk’s Tunic and BORDERS the most.

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Location, Location, Location.

Where you sell your goods is often as important as what you sell. Unless you sell a highly coveted item and have a rabid fan base clamoring for it, customers will not usually go out of their way to visit your establishment. A highly visible location with vibrant signage and easy access and exit are key. If your customers can’t see you easily, or get to your shop, they won’t stop and just pass on by. And don’t forget about parking, no one wants to fight for a space, or pay to park just to go to your store.

Accessibility.

Most new construction in the USA conforms to Americans with Disabilities Act standards. The ADA sets standards for construction of accessible public facilities.  However, if you buy an older property built prior to the establishment of the ADA to house your business, you may need to make modifications. This can include ADA bathrooms for customers, a designated check-out counter space set lower, designated seating and parking for disabled people, ramps, and even wider doors in some cases to accommodate wheelchairs or motorized carts.  Depending upon the modifications, this can be quite costly.

Staff.

When I was a young boy, I used to walk two extra blocks to a small grocery store to buy Pepsi for my aunt, because it was a nickel cheaper per bottle. The store was run by an old man. Two weeks in a row I went in and he was out of Pepsi, and I had to go back to the bigger grocery.  So I stopped going to his store for a few weeks. Sometime later, I went back to his shop, and there was one six-pack of Pepsi so I brought it. As I was walking out, I heard the old man grumble angrily to himself how ‘the boy doesn’t come in for weeks, then buys his last six-pack’. I NEVER went back to that store again.

You and your employees are the face of your business. A customer should always feel like you appreciate their business, not like you are doing them a favor by being open. Staff should be friendly, courteous, clean, identifiable, competent, and well versed in your product. Your employees may be well extremely versed, but NO ONE should know more about your business, or be more skilled at it than you. You should be easily reachable by both staff and customers to solve problems that your employees may encounter.  Yes, there are SOME high-maintenance customers who think the world revolves around them, but they are the exception, not the rule. I try very hard to be nice to ALL my customers, including the ‘difficult’ customers. IF you have a ‘difficult’ customer, it may be necessary for you or a trusted high-level employee to personally  deal with them. By isolating this E.G.R. (Extra Grace Required) customer, you are protecting your staff from them, and vice-versa.

Word of Mouth.

Do your customers rave about you and your shop? Do they leave positive reviews on social media? Do they even know you exist at all?

Thirty years ago, most people looked up businesses in the Yellow Pages phone book. They saw advertising on TV, in magazines, newspapers, and on bill boards. Reviews were often by word of mouth. Today however, social media is the main go-to.  It is very important to have an online presence. Although I am still in the process of trying to establish That Coffee Place, I do have a Twitter and a Facebook page already established. Both have been dormant for years waiting for my brick-and-mortar location to open someday.  When it does, I’ll probably expand my online presence to Yelp! and Trip Adviser, as well as Google. When that does happen, positive reviews will be very important. One bad experience at your place of business can be all it takes for a disgruntled customer to leave a negative review online which can harm potential sales.

Incompetence and mismanagement.

The saddest reason a business can fail is because the owner failed to do their homework. There is much more to opening a shop than signing a lease and hanging an OPEN sign. As the owner of your shop, you need to know everything there is to know about your business and the location BEFORE you even open the door. I know of a struggling pizza place that is barely keeping its lights on because they opened in the same ‘Turn-Key’ location as FIVE other pizza places before them, all of which folded. In the same little strip mall, there is an empty restaurant which was a ‘Turn-Key’ restaurant that in the last seven years had 3 different Spanish restaurants, 2 African restaurants, and a Jamaican restaurant.  Just because it’s a ‘Turn-Key’ location selling all the necessary equipment and furniture included with the lease does NOT mean it’s a great place for a restaurant.  There often are very good reason these shops closed.

The neighborhood changed.

When you’re surrounded by a large population of very poor people on public assistance, these people do not dine at restaurants often, if ever. When a neighborhood goes into decline, litter, graffiti and crime increase. This alarming trend often discourages patrons from more affluent areas, who tend to avoid such slums and favor more inviting places.

Parking.

Not having a well-lit attached parking lot with adequate spaces will discourage patrons.

Tastes changed.

What you’re selling may no longer be desired.

Staffing issues.

You can’t pay people enough to stay, or find good help.

Money Issues.

You ran out of working capital and are robbing Peter to pay Paul. No Ponzi scheme on Earth will keep your Money Pit open long term.

Health Issues and Retirement.

No avoiding it, we will not be young and healthy forever. Everyone one of us will grow older, feebler, and eventually die.  When this happens, we are often forced to downsize, and this will also include either shutting down, passing on, or outright selling our businesses.

The Pancake Farm in Ephrata PA will be shutting its doors in eight weeks on December 1st, 2018. The owners are retiring. The business has been these since 1960, and owned by them since 1982

The owner of The West Reading Diner sold the business to his son, who re-branded it as The American Diner.

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After decades of business, my guitar teacher Ken Rohrbach shut down Ken’s Music Studio on 10th St several years ago,  and retired. We all have our strengths and weaknesses. I may be a coffee expert, but I’m no guitar player. I could probably earn a fortune standing on a corner asking passers-by for tips for me NOT to play my guitar. Just goes to show, pobody’s nerfect. As always, I wish success and happiness!

GOING CLUBBING?

Membership has its rewards.

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Last weekend, Wegman’s held a grand opening for its newest store in Lancaster PA. This would be the second largest supermarket in the county. (The largest is Shady Maple.) It was a rainy day, but I kid you not when I say it was standing room only. Everyone and their mother living in a twenty mile radius was there. People were lined-up ten deep in three different queues to sign-up for the store loyalty reward program. You could not move one foot in any direction in the store without encountering someone with a shopping cart, and state police were directing traffic into and out of the fully occupied parking lot as drivers circled the lot, jockeying for position. It was a total madhouse. I left after 15 minutes without buying a single item.

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Now there may only be ONE Wegman’s Supermarket in Lancaster county, but there are more than a hundred supermarkets owned by at least a half-dozen chains. Wegman’s has things that you cannot get anywhere else. It is the ONLY place I have ever seen that carried Oaxaca cheese! Oaxaca is a white, semihard cheese from Mexico, similar to unaged Monterey jack, but with a mozzarella-like string cheese texture.

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Loyalty has its rewards.

It seems that every chain store in the world encourages people to join their loyalty rewards program. Signing-up is free, you save money on specials, and you get a wallet card and or a small fob for your keys that you have to scan at the checkout.  I have so many of these that I ordered a small loyalty-card holder for my key ring to protect and organize these flimsy, plastic-coated card-stock tags. 

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Aside from the initial hassle of filling out the application, it’s a smart way to save money for the customer, often on products you already use.  On  National Coffee Day, I got a free cold brew coffee from Sheetz, after I downloaded their app to my smartphone and ordered online. A minor inconvenience for a free $2.99 drink.

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The downside is that you’re supplying personal info and shopping habits with that company. I know people who refuse to provide their contact info and insist on asking the checker at the register for ‘the store card’. Some chains used keep a card at each register for people who ‘forgot’ their card, which they would scan so you can still get the discount on the specials, but this is slowly being phased out.  As more and more people have smart phones, loyalty programs are switching over from cards and fobs to apps you download right to your phone.  Stores really want you to sign up for these reward programs.  It provides their company with vital market research as they track your purchase history. Knowing what brands and items you buy allows them to stock greater quantities.  Knowing where you live can help them determine the potential viability of opening new stores in your neighborhood. I used to shop at Wegman’s sporadically because prior to last week, the nearest store was over 35 miles away. The same goes for Trader Joe’s, I’d love to have a local store.          

Membership has its rewards too.

“I don’t want to belong to any club that would accept me as one of its members.” – Groucho Marx

There are several store chains such as Costco, BJ’s and Sam’s Club which require an annual membership fee for people wishing to shop there. This may sound crazy to some people.  Who would want to pay $60 a year for the ‘privilege’ of shopping at a wholesale ‘club’? Firstly, let’s go back to my harrowing tale of the Wegman’s grand opening.  You NEVER encounter crowds like that at a wholesale club. EVER. Every person with a cart paid their membership to shop there.  If you’re curious and want to look around just to determine if a wholesale club membership is for you, you can go to the customer service desk and they will allow it (and probably offer you literature and an application form). I used to belong to BJ’s years ago when I was in charge of supplying drinks and snacks for the employee break room, until the honor system broke down and the till dried up. I don’t understand people stealing snacks and sodas when we get paid as much as we do.

Wholesale clubs eliminate the cost of shipping and distribution of items from the warehouse to the retail store, because the warehouse IS the store. Also because these items are special packed in larger quantities, the per-item cost is much lower for the consumer. So if you have a large family, buying in bulk at a wholesale club will save you a significant amount of money, and allow you to recoup the initial investment you made when you brought your membership. 

But what’s a single person going to do with a hundred-roll case of Charmin?

Fortunately there IS an online alternative to the warehouse wholesale club. There are two members-only online shopping clubs that I know of. Like the warehouse clubs, you pay an annual fee. BUT you get free shipping IF you buy a certain amount. You are also buying only their unique brand, so don’t expect to order Pepsi or Doritos. Now there are store brands that meet or exceed the quality offered by national chains. The organic specialty health food chain Trader Joe’s sells almost exclusively their own unique brand with very few exceptions. I LOVE Trader Joe’s. They really have the best groceries, but they are pricey. Again, many  of these items are organic, free of artificial preservatives and chemicals, and are much healthier so they are better for you. (Isn’t your health worth the cost?) Costco sells KIRKLAND brand exclusively, GNC sells its own brand, I could go on.

So back to the two members-only, online shopping clubs which offer only their own brand. Both launched in past two years.  Their mission is to provide the customer with a high quality product at the lowest cost possible.   

They offer factory direct non-branded products with simple black and white no-frills labels with just the company , product name, ingredients, and nutritional info. You won’t see a photo of a tomato on the tomato sauce. It will say TOMATO PASTE. From the few examples I’ve seen online, the labeling is ONLY in English, which I consider to be a plus because it always irks me when foreign language is forced upon me in my native country by social justice warriors in the name of diversity and inclusiveness. I would never think of living in any country where I didn’t have a firm grasp of the local language. It may be true that the USA has no official national language, but since the country was founded it has been the consensus that it is English.  

The ONLY two possible drawbacks I see are that the new companies might fold, as new business have a high failure rate, and that you can’t sample the goods before you buy them, so you really have to rely upon customer feedback. Most of the reviews I’ve read have been favorable, and I do plan on trying out both companies in the very near future. I always believe in supporting small businesses and  the independent operators. Without customer support, these companies cannot last. Their prices do seem fair, and a smart consumer should be able to seamlessly work these goods into their personal budget plans to both recoup the cost of membership and save money in the process.       

The two companies  are: BRANDLESS and PUBLIC GOODS.

BRANDLESS https://brandless.com/

Only $36/year after your free trial.

BRANDLESS Their mission is to provide better everything, and sell it at a fixed price of just $3. Since every item is $3, be sure to check the size. You’re not going to get a pound of organic coffee anywhere, even at BRADLESS, but ounce per ounce it will be a better deal than Starbucks.

PUBLIC GOODS https://www.publicgoods.com/

Public Goods. They too are attempting to provide healthier alternatives to commercially available products at cost, making as little on the item as possible. It’s a counter-intuitive business strategy that relies upon the sales of the memberships to cover costs. I think it’s an interesting social experiment, but only time will tell if it’s economically viable for a company to operate long term under that business model. I am intrigued enough that I’m willing to gamble on a LIFETIME membership deal, offered through KICKSTARTER  until November 8th 2018.   

Only $59/year after your free trial.

If you want to gamble on the LIFETIME Membership deal like I did yesterday here’s the link for that ‘possible’ money saving offer: 

https://www.kickstarter.com/projects/494595922/public-goods-healthy-wholesome-food-affordable-to

Hopefully, these suggestions will provide money-saving opportunities that you can take advantage of. Always remember that every dollar you can save, and every cost-cutting measure you can find will get you closer to attaining wealth and achieving your dreams. Good luck! As always, I wish you success and happiness!

BIGGER IS BETTER!

More bang for your buck!

bigger is better

Life Is a Journey, Not a Destination – Anon.

Benjamin Franklin is quoted to have said: “Early to bed and early to rise, makes a man healthy, wealthy, and wise”.  As part of my journey to ‘a better me’, I’ve been paying a lot of attention to not only my wealth and knowledge base, but also my health.  After all what’s the point of being wealthy if you’re too sickly to enjoy the fruits of your labor. All of the major self-help gurus stress the importance of a healthy mind and body as being key elements of being a successful person.

Proper nutrition is essential to good health. The problem is good food is expensive. As I previously in last week’s blog, you can grow your own fruits and vegetables at home and preserve them yourself. You’ll have the comfort of knowing that your produce is organic and that you canned them free of artificial chemicals, additives, and preservatives.   But there are just some things that you can’t grow at home. Take bananas for example. More than likely you aren’t going to be growing those in your back yard. I do know of some people who have their own free range chickens producing eggs for them, but that’s out of the question for most of us as well. And who wants to milk a cow to get milk for their coffee? Some things just have to be purchased commercially but  there are ways to trim the fat from your expenses at the same time as you trim it from your waste.

This past year, I went on a very aggressive diet and exercise program. It’s self developed, but the main elements are that I eat healthier and exercise. I’ve been eating a lot of organic foods, cooking healthier dinners from a meal kit service called Hello Fresh. I go to the gym when possible, and I’m a lot more physically active during the summer. Kayaking, and riding my mountain bike are quite fun. I’ve managed to lose 40 lbs. and I’m back to where I was before the bout of depression hit me when the ex-girlfriend left.  Another 30lbs more, and I’ll be back to what I weighed in college.

Fad diets come and go, but every person is different, and every BODY is different.  I found something that works for me, and if it works, don’t fix it! It irks me when people tell me I should be doing something other than what I’m doing because they read something somewhere that said (FILL IN THE BLANK) is better than whatever it is I’m doing.  If they want to try whatever it is they read about, good for them. I’ve my own results to show that what I’m doing is working, and I feel wonderful.

There are a lot of dietary supplements that I take during the course of a day. Many of them are quite pricey, but just as you have to spend money to make money, you need to spend money on better nutrition.  The good news is, many of these items do have long shelf lives, so you can take advantage of sales, economy packs, bogos, and clearance specials each of which will stretch your hard earned dollars and give you more bang for your buck.  Stocking up and buying in bulk will drastically reduce the cost per serving, save on shipping, and prevent the accidental impulse buy when you go to the store for one item and leave with a dozen.

Economy Size

If you know for a fact that you will definitely use a product, often buying the larger size will save you money on the cost per servings.  A  single 60 serving  can will always cost less than two 30 serving cans, UNLESS the smaller size is on sale. Always pay attention to the cost per unit.

ecconomy

BOGO

The infamous BOGO or ‘Buy One, Get One’ sales will allow you to double the amount purchased and reduce the cost per unit. Taking advantage of these will allow you stock up. You can also try a different flavor, but if you buy it, use it. Waste not, want not.

bogo

Clearance

If you see an item you use (or something similar that’s equal in quality) on clearance, buy it! Always check the ‘best by’ date to be certain that you can use the item before the expiry date. Certain supplements lose their potency with age, so if it’s been sitting on a shelf for months, the bargain might not be much of a bargain. Every item is different, some will be just fine, so do your homework. It’s very easy to check, just whip out your smart phone and  Google information on the products and how long they’ll keep.

clearence

Brand X

Brand loyalty means that sometimes you’re paying for the name on the box, and not what’s in it. There are many generic or store brands that are every bit as good as national brand names. Often, these items will be sitting side by side on the self with the competing product. They will have similar packaging, and will probably have some statement on the label telling you to compare the ingredients. Some of these products are just as good if not better than the name brand, and will save you pennies on the dollar.

Automatic shipments and free shipping

Many of the health places like GNC and The Vitamin Shoppe have automatic subscription services you can sign up for which will offer a discount on the supplements, and offer free shipping if you order a certain amount. The beauty of these automatic subscriptions is that you never run out accidentally of your favorite vitamin, or go to the store and discover they’re temporarily out of stock. Also, these services occasionally include bonus trial sample items for free, so you can try new products that you might also enjoy.

free

Of course there are always sales going on, so it always pays to shop around at competitor sites. I was at GNC and the sales associate told me that they’ll price match an identical item offered on AMAZON which they happened to stock as well. Some of these brick-and-mortar stores are really having to fight for your business because online retailers are stealing their customers, so they are occasionally willing to make a deal.      

Following these all of these tips might mean you’ll eventually need to buy both a smaller belt, and a larger wallet. As always, I wish you success and happiness!

LIVE BOLDLY!

Don’t DREAM it, BE it!

live

Almost a year ago, on Sep 10, 2017 at 9:58 AM I launched my blog.

My first article was The 52 Week Challenge, and the purpose of that first post was to serve as both an introduction, and as a source of encouragement. Every Labor Day Weekend I enjoy a fun-filled vacation at the shore in Ocean City MD. It’s my ‘happy place’. If you followed the advice of that first post, by saving away just $25 every week, then you too should have been able to afford a fantastic getaway vacation to a destination of your choice. This year I spent even more days at the shore going down every weekend in August. I jet skied and even parasailed for the first time. I had a blast being 800 feet in the air, strapped to a parachute, while being towed by a speedboat.  

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I was not always as wealthy as I am today, but I did not get to where I am by accident. I helped myself by reading self-help books and studying the habits of highly successful people. The knowledge I gained helped me grow as an individual and I’ve changed for the better as a result.

For years, I tried imparting the wealth building tips and tricks to friends and family, but sadly many of them ignored my well-meaning advice. I want everyone to be happy and successful. Now, through the magic of the world wide web, my blog posts have been read by people in 48 countries around the world. Hopefully each and every person who visited this past year found some useful and encouraging tidbit they could utilize in their own personal journey.

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Climb every mountain 
Ford every stream 
Follow every rainbow 
‘Till you find your dream…

“Climb Ev’ry Mountain” Song from the  1959 Rodgers and Hammerstein musical The Sound of Music.

We all have dreams of a better life and a prosperous future. These things don’t happen by accident and rarely are they handed to us. We need to work hard and plan if we want to be successful in our endeavors. Sometimes, this means long shifts at the day job. But if you’re working to have just enough to cover your bills, your dreams will disappear in a cloud of smoke. I’ve known people who toiled away at dead-end jobs, or who took meaningless ‘promotions’ that were paid little more than their underlings, but were filled with nightmare time demands and far more responsibilities.  I’ve had co-workers who died young from fatal heart attacks due to stress. My own father died at 57, never living to see retirement. Life is too short to be miserable.  If you’ve worked at the mall, or waited tables for years because ‘you like it’, or ‘it’s easy work’, then the only thing you’ve accomplished is to help someone else fulfill their dream.

It amazes me when I hear people advocating for a higher minimum wage because they can’t live on minimum wage. Minimum wage was never intended to be a ‘living wage’. I do understand that sometimes it’s hard to find a better paying job. When I was in college, I worked three different minimum wage jobs each week. I applied for my current job five times, and went to eleven interviews before I was hired, as a temp! The entire time I spent working multiple minimum wage jobs, I was doing little more than working or sleeping, but the point is that all the while I was also seeking the better paying job and actively pursuing it.  I never considered staying at any of my low paying jobs longer than necessary than to establish my credentials and prove that I was deserving of better jobs with higher salaries.  I also never gave up striving to improve myself.

You need to examine your life, as well as your financial situation. It’s the quality of the time you spend living your life vs. the quantity of time needed at work to reach your goals. A minimum wage job will not cut it.  The purpose of a minimum wage job is to provide training to a new employee, establish a work history, show responsibility, and prove dependability.  No employer will retain or promote a new employee who constantly displays irresponsible behavior, or a lack of dependability. If you have a history of quitting jobs, finding employment will also be challenging. No one is going to hire someone who is going to quit shortly after being hired. Your reputation is important.

Your attitude and charisma will open almost as many doors as who and what you know.

For several years now, I’ve been trying to establish a coffee shop. I’ve done a lot of research and leg work on the subject  as I’ve been building my resources. There have been several false starts. I’ve scouted more than a half dozen potential locations, and met with several potential allies. Three years ago, I received a phone call from the owner of a property I was actively and aggressively attempting to lease. I believed that this location in downtown Reading PA was a prime location as it was located near a movie theater, a community college, and a art gallery, as well as a block away from the bus terminal.
After several phone messages to the number on the leasing sign went unanswered, I crafted a courteous and well-worded business letter, which I mailed to the property owner, along with my business card and a very nice stainless steel coffee mug bearing my cafe logo.

Two days later, I received a personal phone call from billionaire department store tycoon Al Boscov. That ten-minute phone call was the most uplifting and empowering message I have ever received.

Mr. Boscov told me that he was impressed by all I had accomplished thus far, and that he was very proud of me. I can’t tell you what it meant to me to hear those words from such a successful businessman. Even thinking about it today brings tears to my eyes. It was like hearing the words of validation and praise I longed to hear from my father, had he lived long enough to see the man I grew up to become.   Words have power, and you can change the course of a person’s entire life when you give them encouragement and guidance at a crucial juncture.  Although I THOUGHT that the location was ideal, Mr. Boscov gave me several reasons why it was not as great a location as I believed it was. If a billionaire philanthropist tells you a location is not good, you listen. He saved me from a potential bad investment which I was too inexperienced to see. Before he ended the call, he told me that if he found a prime location in the city that he thought was suitable for a cafe, I would be the first person he called. I was on cloud nine for months after that phone call.  Sadly, last year Mr. Boscov passed away from cancer on Feb. 10th, 2017 at the age of 87.  Although I never met the man in person, I will never forget his kind grandfatherly voice, or the wonderful words he said.

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To dream the impossible dream,

To fight the unbeatable foe,

To bear with unbearable sorrow,

To run where the brave dare not go.

“The Impossible Dream (The Quest)” Song Andy Williams from the musical Man of La Mancha.

Don’t quit!

Life is not a destination, it’s a journey. As you travel down the road of life, you will meet many people who will try to discourage you, or dissuade you from pursuing your dreams. Just as it is important to examine your life, it is equally important to examine their lives. Always consider the source. Never take advice from people who are less successful than yourself. You’ll encounter many a wise guy or know-it-all who is filled with anecdotes, but has little results to show to back up their stories. That’s why I studied the habits of highly successful people and learned from their examples.  Knowledge is power, and the more you know, the easier it is to see through charlatans and phony pundits.

Always keep in mind that the hopes and dreams of these detractors and naysayers died long ago.

Because they were not successful, they don’t want you to be successful. Because they are poor, they don’t want you to be rich.  You’re smarter and better than them, and they are just jealous. Don’t let these emotional vampires suck the hope and dreams out of your life.

You will also encounter many false starts and set-backs as you pursue your dreams, but the important thing is to persevere! Don’t quit! Quitters never win, and winners never quit. Sometimes the end of one opportunity is the beginning of another. As I mentioned previously, I’ve scouted a half dozen possible cafe locations which all fell though, including one that was 99% a sure thing until someone threw a monkey wrench into the deal.  I’ve lost some money in the process, but it’s only money. You’ve got to spend money to make money and the knowledge I gained in the process provided me valuable insight.  My coffee shop dream is on hold at the moment while I regroup and rethink how next to proceed. I have not given up and continue to build up my cash reserves in preparation.   

As for the immediate future, I plan to edit, collate, and adapt the past 52 weeks of blog posts into an e-book. Not many people read blogs, but there are people who will download an e-book into their tablet to read,  especially if it’s inexpensive, so I might be able to reach a broader audience with my message.  If you’ve been reading http://www.InstantCoffeeWisdom.com from the start, then you’ll have read 100% of what the potential e-book will contain. Sales of the e-book will hopefully add a second revenue stream towards eventually opening That  Coffee Place.  I’m not sure what other financial topics to cover in the coming weeks, I’ve covered everything I’m familiar with, and I’m running out of ideas.  I’d love to hear any suggestions on money topics you’d like my opinion on.

“Do all the good you can,

By all the means you can,

In all the ways you can,

In all the places you can,

At all the times you can,

To all the people you can,

As long as ever you can.”

― John Wesley

We will not be young forever, nor will we live forever. Enjoy your youth and take advantage of as many exciting and fun opportunities as life presents. Collect memories, not things. Go places, try new things, meet new people and leave your mark on life. Be the best person you can be, and treat everyone with fairness and kindness, even the ones who don’t deserve it. You could be the bright light that leads that person from their dark place.     Make the world a better place when you leave it than it was when  you entered it. Experience in person all the great things that life has to offer, don’t live vicariously through others, or waste your life addicted to your electronics. Take pictures and record your adventures!  There’s so much more to see of life when you don’t waste your time staring down at your smart phone   constantly texting, tweeting, or playing game apps.

As always I wish you success and happiness!

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What’s a Bargain for You???

How much time are you willing to invest searching for deals?

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When I was a still a young boy living back in my hometown of Woodhaven NY,  Woolworth’s was the king of ‘five and dime’ department stores. We didn’t have the internet or World Wide Web in the 1970’s, it didn’t exist.  Walmart was not the powerhouse it is today, and was unknown. I think the first time I ever heard of it was when I was in college and the late Paul Harvey raved about Walmart on his radio program.

The nearest Woolworth department store from Woodhaven was in Jamaica NY, about 5 miles away, and a twenty-minute bus ride on the Q-56 bus. You could also take the J Train and get off at Sutphin Boulevard. Either way, you had to wait for the train or bus, each way, and pay carfare.

In Woodhaven, there was a small town, two-store department store chain called Lewis’ of Woodhaven. It was started in 1933 by Louis Lewis. When he died, he left his two stores to his two sons Larry and Julius.  They in turn passed the stores onto their sons Jeff and his cousin Robert . Sadly the chain finally closed its doors shortly after Christmas of 2003. For me, it was another tragic loss of my childhood as the wonderful hometown I remembered slowly died one location at time.

When my aunt Arleen was still alive, she would often say, “Woolworth’s will have it on sale a little cheaper, but Lewis’ has it too, and we save time and carfare.” The point I’m trying to make is, we brought stuff locally.  If you had to invest time and money hunting down bargains, often you were penny wise and dollar foolish. It was always better to buy local, and support small business.

Video killed the radio star
Video killed the radio star
In my mind and in my car, we can’t rewind we’ve gone too far – Lyics from the song Video Killed the Radio Star by the Buggles    

The Internet is killing brick and mortar stores.

With the rise of e-commerce, traditional brick-and-mortar stores are finding it harder and harder to stay in business. Each year, more and more of the stores and chains we remember from our youth disappear, replaced by just a wisp of memory in the mists of our minds.  There are many problems that arise from the convenience of online shopping. As stores vanish, you lose the natural competition for sales, the variety of goods and services, and the proximity of locations of these stores to your home.  So you go back to the internet, pay shipping, wait a few days and maybe get the item as you thought you understood from its description, and a picture or two.  Had there been a local store you could have shopped at, you might have had it that very day, and supported a local business for about the same amount of money when you consider the cost of shipping.

Caveat emptor! –Latin for Let the Buyer Beware

I’m not going to tell you that there aren’t great deals online, there are. But you really can’t judge quality from a picture and a few words of description.  I read a story about a poor soul who lived in a foreign country. He read a 5-star review of a book on Amazon called Why Socialism Works by Harrison Lievesley. Rave review after rave review. The book costs about ten bucks. So this guy in Turkey though this must be a very  interesting book, and paid very high foreign shipping for a book that is just a gag. Every page is printed with “It doesn’t”.  

It is really not a good joke to have a book with emty pages just saying “it doesnt”. Price of book may be 8 dollars but it costed almost to 25 dollars to get it in Turkey. I am very frustirated with this cold joke –Kahraman Gürcanon February 22, 2018

I feel very badly for Mr.  Kahraman Gürcanon, I feel his frustration. If there had been a local store he could have picked up this book, held it in his hands and saw what it really was, he probably would have laughed at the joke and put it back on the shelf.  He got stung by too-good-to-be-true advertising. It happens. Occasionally, you get something really shoddy, BUT if you know what to look for, you can find amazing deals.

But all the best deals are online!

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Recently, I rediscovered the joy of cooking. As a result, I ordered new cookware, and a new set of chief knives.  The best knife in my kitchen was a used, like-new Chicago Cutlery 10″ chef knife. This blade is razor sharp, and finding it discarded at an apartment complex cost me nothing. I picked it up and put it in my truck, because I was afraid some child would come across it. Although I usually dispose of such things, this was a really good knife and throwing it in the dumpster seemed like such a waste. Seeing and feeling the quality of the knife really was instrumental in choosing to purchase a set of the knives.  Sadly, they are made in China, but they are really great quality knives for the price and eventually I did find a fantastic deal online at Amazon,  (but I wasn’t really actively searching for it). I did do a quick price check, saw that it was indeed a steal, and had free shipping to boot, so that cinched the decision.  I have the 30 day free trial for Prime, so I’m getting free shipping right now. But paying for ‘free-shipping’ is only a deal if you buy often which I do not! Impulse buying is a great way to go broke fast.  There is a difference between needing and wanting, and just because you want something doesn’t always mean you need it, or can even  afford it. In such cases of wants, I save the item to my ‘wish list’ and check periodically for a price reduction or sale. Delayed gratification is the best way to hang on to your hard-earned cash.  As Ben Franklin supposedly said, “The best way to double your money is to fold it in two and put it back in your wallet!”

Consider three things when purchasing an item:

  • Cost– The price of the item is never the full cost. Are you supporting local commerce, or foreign? Is it a quality item, or a cheap knock-off? Was it made by well paid workers, or in a sweatshop? Are you going to use it just ONCE, or are you going to use it very often? Will it last? Does it have to be brand new, or will used be acceptable? 
  • Shipping – Does the price of the item justify the shipping fee? If you’re paying an annual fee to get ‘free-shipping’ is it really ‘free-shipping’?
  • Time– Is it worth the wait, or do you need it right now? How much time are you spending hunting for that bargain?  

“After a time, you may find that having is not so pleasing a thing after all as wanting. It is not logical, but is often true.” – Mr. Spock from Star Trek, season 2, episode 1 (“Amok Time,” 1968)

Comparison is the enemy of contentment.

Do you really need something just because your friend or neighbor owns one?  I’ve only ever brought one TV in my entire life thus far. When I got my first apartment, I furnished it with EVERYTHING I needed or wanted. A TV was a MUST for a twenty-year-old.  I threw that old set out years ago, but I never brought another.  First off, I don’t nearly waste as much time in from of the ‘boob-tube’ as I used to. Anything I ‘need’ to see, I can always watch online somewhere using my laptop. The image is good enough for me. Yet I have friends who are on their 5th or 6th set, because TVs keep changing. The flat screens are getting bigger and bigger, HD is switching to 4D, curved screens, more hook-ups, better sound and resolution. Lower prices! Big sales! Act now!! I guess that’s great if you want to spend your entire life sitting in front of a screen living vicariously, but there is a whole wide world outside your window, and maybe it’s time to cut the cord. As always, I wish you happiness and success!    

Time is money!

The importance of proper time management.

Every second is precious.

With the two exceptions of the day you are born and the day you die, you and every person who has ever lived has the same amount of time allotted to them daily, twenty four hours. No more, no less. Yet despite having the same amount of time, some people are wealthy while others are poor. In some situations circumstances beyond your control may rob you of your economic opportunities, but how you spend your time is largely up to  you.  All successful people share two traits with regards to proper time management. They have learned to maximize their daily schedule to the height of efficiency, and they have a sense of urgency, never delaying for tomorrow what they can do today.

“Time is your most precious gift because you only have a set amount of it. You can make more money, but you can’t make more time. When you give someone your time, you are giving them a portion of your life that you’ll never get back. Your time is your life. That is why the greatest gift you can give someone is your time.” – Rick Warren

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The 40-40-40 Trap

Your greatest source of wealth comes from the income generated from your job.  When you retire, you usually have to depend on a combination of your savings (if any), a pension fund (rare or non-existent), your investments or contributions to a 401K plan (if any), and government social security (which may become insolvent by 2034 due to the National Debt crisis). For the average American, this is known as the 40-40-40 Trap. Because of procrastination or indifference during their youth, they never made the proper choices to ensure a worry-free retirement. As a result, they spend their entire working life employed at a job, working FORTY hours a week, for about FORTY years, then retire and discover they only have about FORTY percent of the cash they had while employed, to pay their monthly bills. You can always go back to work part-time to generate more income, but you can never replace the lost time. If a person fails to plan for their future, they have no future!

No time like the present!

If you have no 401k available at your job, it’s time to seek employment elsewhere. The longer you delay investing for the future, the less likely you actually will. Excuses do not pay the bills. Do not allow yourself to become trapped in a dead-end job. I have known many individuals who stay at a low-paying job for a couple of years, only to move on to another low-paying job. Every time I changed jobs with one, or two rare exceptions, I went on to a higher-paying job, with better benefits.  At my previous full-time job, I was about to become an assistant manager, when the opportunity opened up at my present career. My prior company really wanted me to stay, but they could not offer me a matching salary or benefits program. Leaving for greener pastures was in my best interest. Today, I earn far more than they pay their current managers.    

If you take a position that offers a set salary:

  • Do not work more than the hours required for that salaried position. Generally, there is little or no additional pay for the extra hours. You are wasting your time. Doing it once or twice in an emergency situation is one thing, but doing it all the time just makes you a fool.

If you take a job where you swipe or punch a time-clock:

  • Always work on the clock. If you aren’t logged in, you’re not getting paid. If you are scheduled to start and end at a pre-determined time, start and end at those times. Playing ‘The Time Clock Game’ where you clock in a wee bit early, and clock out a tad late each day to earn a few extra minutes of pay is not only a bad idea, it’s like stealing from the company and could cost you your job.
  • Always show up when you are scheduled to work.
  • If overtime is available at your job, it will generally be paid at your normal rate, plus half. Working overtime is an excellent way to generate extra income, while at the same time impressing your supervisor by your diligence. Diligent behavior is indicative of a work ethic and can open doors for advancement to a higher paying position.
  • Do not become dependent on the overtime income. Overtime is never a guarantee, and should always be considered extra money. Your base salary should be enough to cover your monthly spending needs and still allow you to save for your future.
  • Do not become obsessed by the overtime. The love of money is the root of all evil. I know many individuals who work sixty hours a week or more chasing every overtime-penny they can get.  I’m amazed at their end-of-the-year totals. When the work level reaches that point, it causes home and social problems. It’s one thing if you live alone, but if you have a family, family comes first! The time you spend with your loved ones can never be measured or replaced. It’s priceless. Don’t waste it. Nobody ever had an  epigraph on their tombstone expressing their desire to have spent more time at their job.

Take time to play!

A balanced schedule should always allow ‘breather room’, ‘personal time’ and still allow for work and play. If you over-schedule, you run the risk of causing a cascade of lateness and cancellations. It also causes stress as you race from one meeting or destination to your next scheduled appointment or location. Keeping a tight schedule can be done as long as everything goes according to plan, but if things start to unexpectedly go south, you may not have the wiggle-room needed to stick to the items on your list.

Always be productive

I try to get as much done on my day off as humanly possible. With my work schedule, I don’t have a lot of extra time during the work week. I find as many time saving tricks as I can to avoid wasting any down-time I may find myself with.  I’ve been working overtime this quarter, and I need all the sleep I can get to recover from the physical and mental stress of the added work load.  I always eat a PB&J sandwich for lunch. It’s filling without making me feel bloated or sluggish after lunch, and it satisfies my hunger. The beauty of the PB&J is that all of the ingredients freeze well. Now my peanut butter and jelly sandwiches are healthier because I use the best peanut butter, the best jelly, and use sprouted grain Ezekiel bread. So I Sundays I’ll make a half-dozen PB&J’s, bag each one in a ziploc bag and put them in the freezer.  In the morning packing my lunch takes seconds.   

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Another change I’ve made is having my dinners shipped to my home  from a meal-kit service. I use Hello Fresh. The meals are quick to cook, and it saves me time stopping for groceries or takeout food. Also, as the three meals they send are meant for two people, I only have to cook three nights a week, and just heat up the leftover portions the other three nights.

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When I run errands, I try to make a large circle of destinations to save travel time from point -to-point.

Keep life balanced!

When was the last time you spent time with your friends?  When was the last time you spoke to distant relations or acquaintances on the phone? No man is an island. We are all social beings interconnected by a network of friends and family. When a spider builds a web, it is building a net to catch food to keep itself alive. If one strand of the web brakes, it immediately repairs it. Neglecting to repair the broken strand can weaken the entire structure and cause it to collapse. As we get older and older, we need to strengthen our social network. No I’m not talking about Facebook or Twitter, I’m talking about real life. Go where the people are, out in the real world and spend time with the people you care about. As Always, I wish you happiness and success!

Other People’s Money

Making reward cards, introductory rates and points work for you.

“A penny saved is a penny earned.” – attributed to Benjamin Franklin

I walk a lot outside during the day. It’s rare that a day goes by where I don’t find at least a penny on the ground. On average, I find about a dollar in coins a week, and I still stop to pick them up.  When I was younger, there used to be a joke circulating about Bill Gates, (who is still one of the three richest men in the world). It ran along the lines of this: “If you average out all the money Bill Gates makes in a single year, he  earns over $500 a second. If he was walking down the street and found a $100 bill lying on the ground, it would cost him money to stop and pick it up.”  The most amount of money I’ve ever found lying on the ground at one time was a loose $50 bill half-buried in the snow on Liberty Ave. That was a long time ago, and I was amazed and shocked at my good fortune, but also I felt a little bad for whomever had carelessly lost that much money.  

At a certain point, picking up discarded coins in the street becomes more trouble than it’s worth to some people, but I’m still of the mind-set that every penny saved adds up. To that end, I still use coupons and reward cards when I shop. These are great ways to save a few cents or even a few dollars each time you used them, and over the course of a year that can add up to hundreds of dollars.

The Store Loyalty Reward Card

Using a store loyalty reward card is easy enough, you just have to swipe or scan the card each time you shop. My local grocery store also sells gasoline (petro). At least 3 to 4 times a year, I accumulate enough points to earn a 100% discount on fuel. Gas in the USA isn’t as expensive as it is in other countries, but it’s still a fantastic savings in my book.  Just always make sure when collecting point to check if and when they expire, or you may lose them with noting to show.

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Reward Credit Cards

Some credit cards have a point reward system as well. These can be as simple as 1% cash back on all purchases, to a range of categories which each  have a special point rating. Reward credit cards ONLY work for people with perfect credit and who pay their entire balance in full each month.  The reason for this is twofold.

  • You usually only receive these special offers if you have good credit. The better your FICO score, the better the offers you receive from credit card companies.
  • Failing to pay the balance in full each month will cost you interest fees which will negate any savings earned by rewards.

I once read a post online where a woman was complaining about how her reward credit card was worthless because she was being charged all these fees each month for interest, exceeding her limit, and late fees. Usually the problem is not with the card, it’s user error indicative of a much greater personal problem. Never give a loaded gun to a baby, or a credit card to a fool.

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Special Rates or Introductory Offers

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Another offer reserved for those with stellar credit are cards that offer 0% interest, fees, and balance transfers. There are great during the introductory period, BUT you must exercise extreme caution with these cards. In essence, you are playing with other people’s money. The issuing bank is allowing you to ‘play with their money’ with no fees, in the hopes that you will ring up a huge balance and not be able to pay the balance in full at the end of the promotional offer. People who lack self-control fall victim to this all the time. Interest is calculated from the time of the purchase. If at the end of the promotional period, a balance is remaining, you will incur the full interest charge of the purchase, even if you have a relatively small portion remaining. For instance: Every October, I take my car in for its annual  maintenance inspection. I get all the little issues resolved, buy new tires, replace worn parts etc. Till it’s all said and done, the bill for keeping my car running another year can range from $500 to $2000. I usually pay with my Firestone Store Credit Card. It has a six months same-as-cash special promotion rate for all purchases over $299. Although the minimum monthly payment is about $20, you’ll never be able to pay the balance off in time if you only pay the minimum. The key to these cards is to divide the balance into five equal amounts, and pay that amount each month for 5 months. This allows you ONE extra month in case you need it.  In the image shown below, the six-month promotion ends April 5th. Even though I’ve paid almost the full balance except for a measly $200, if I fail to send the full balance in by the due date, I will incur $54.46 in retro-active interest fees! No thanks! I (almost) never pay interest.

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If you are able to take advantage of special offers like the ones I covered, enjoy yourself but always remember:

  • Pay your balances in full each month.
  • Pay your bill early.
  • Never skip a payment, or pay the bill late.
  • Never spend more money than you can afford to pay back.

As always, I wish you happiness and success!