Tuesday, August 26, 2008

Greg Shrugged


“Civilization is the process of setting man free from men.” Ayn Rand

When I was in high school (roughly during the empirical rein of Tiberius Claudius) the novel “Atlas Shrugged” was required reading. Now, for those who haven’t read it, “Atlas Shrugged” is a large book. Think “War and Peace” and start adding some chapters. It was also one of the most radical books of it’s time, thus boring for a typical teenager. Think someone with ADD sitting through an Al Gore speech and you’ll kind of get the picture.

Therefore, when book report time came I did the only sensible thing, bought the Cliff Notes, wrote some garbage, took my C minus and went to baseball practice.

Now though, like so many things in life, I’ve discovered what the entire hubbub was about. Thanks to iPods and a great site called Audible I’m listening to “AS” and coming to these conclusions:

One, I was not a classic underachieving loser in high school…well, I was, but not because of this. This book has no place with normal kids. It’s way too political for all but the gifted, advanced or mental.

Two, it’s still topical. Although the business example of railroads is outdated its message is as on track now as it was when published in 1957.

Three, if any presidential candidate was to – god forbid – ask me for their vote I would ask them this: “Have you read ‘Atlas Shrugged’? If the answer was “No” I’d tell them to read it and get back to me. If the answer was “Yes” I’d want to know their opinion of it. How they answered would tell me a lot.

“AS” is an opus written by Russian-born American Ayn Rand. Ms. Rand developed a philosophy called “Objectivism” which as the name suggests involves some pretty deep thinking. However, the essence of “AS” is simple. There are those who create wealth (and the capital, jobs, progress, philanthropy, and dynamics) that come with it, and those who plunder all those things from those who create it.

A buddy of mine tells me “AS” is a favorite of Alan Greenspan. Given his unabashed love of capitalism I’m not surprised.

The essential business lesson is this: The first rule of business is to stay in business. If you do not make a profit you cannot stay in business. If you do not stay in business you cannot generate capital, which would generates jobs, which would stimulate progress which would allow the giving spirit of philanthropy, thus creating no dynamics of any sort. And that, my friends, would be a sad world.

I’m growing rather tired of the apologist that today’s culture is cultivating. Set out to work hard, work hard to be successful, measure your success by building wealth and use the wealth to make things better, starting with you, your family and your company. It’s OK, really.

Wednesday, August 13, 2008

Pursuing Moneyness


“Designing your product for monetization first, and people second will probably leave you with neither.” Tara Hunt

Going through the mail today I received a letter from one of my credit card companies thanking me for being a great customer and offering me a FREE book as a show of their appreciation. This $29.95 value was mine for FREE. It was totally FREE. All I had to do was agree that I would pay for any future books that they would periodically send me. Oh, and pay the $2.99 shipping and handling fee.

So, it’s not FREE. It’s $2.99. I mean, free would be $0.00. $2.99 is not free and frankly don’t bore me with “but shipping and handling is a separate thing”. Bull!!! It was a pretty cool looking cookbook, and as much as my family cooks those are always of interest. Frankly, if they would have said, “For only $2.99 you can have this cookbook valued at $29.95” I might have ordered it.

Today I read that Delta Airlines is going to start charging $50 to process your FREE frequent flyer miles. So, they design a program to entice people to fly them by offering free tickets, but then charge to process the free tickets. Got it.

For me what’s worse than FREE (for a charge) is the “the cost is not really the cost” schemes.

Like when you book a hotel room and they tell you the room is $159. But it’s not, its $185.70 after Sales Tax, Local Tax, Luxury Tax and Occupancy Tax. Why don’t they say, “the room is $185.70? I mean, anyone who has stayed one time in a hotel knows it not really $159.

Airline tickets are not $350, they’re $379 after September 11th Security Fee, Passenger Facility Charge, Segment Tax, Arrival/Departure Charges and Fuel Excise Fees.

It’s as if they’re trying so say “it’s not our fault, look at all these things out of our control”. Yeah, it’s called the cost of doing business. What’s next, the local deli advertises Corned Beef at $4.99/lb plus 15¢ shipping surcharge (because, after all, with the price of fuel it costs more for to truck stuff in these days). My six pack of beer is $4.79 plus 39¢ cooling charge.

Hotels have been allowed to get away with this for years but the airlines should be stopped right now. They’re already poster children for the worst run businesses on the globe, they last thing they need are loopholes that make them look dumber.

The next meeting you’re in where someone suggests “a great way to raise prices and make more revenue without it looking like we’re raising our prices” and cites the Airline or Hotel industries as Exhibit A take them out and have them caned and then deduct $100 from their paycheck as a “stupidity extraction fee”.

Thursday, August 7, 2008

Changes in Latitude....


I wrote last year about my good friend Paul Johnson and his quest to sail the five Great Lakes. He's now on his last portion of the last lake. Lake Superior. Mother Superior. Lake Gichigami. I continue to both envy and live vicariously through his adventures.


Here's the link to his blog http://travelwithalbion.blogspot.com/


Read, enjoy and be inspired. This, friends, is what the pay off to hard work, dedication to your profession and it's ultimate reward should look like.


Wednesday, August 6, 2008

How Dumb Are These Guys????

“Everyone is entitled to be stupid, but some abuse the privilege.” Unknown

I have been inundated recently with stories and personal experiences of airline stupidity. I’m finding it somewhat unsettling that an industry that is so low on the profitability and popularity pole continues to make decisions that almost defy imagination.

Recent headlines:

JetBlue now charging for pillows on flights

Delta raising baggage fees

UAL says pilots abuse sick leave to disrupt flights

Lufthansa cuts 10% of flights due to strike

Which of course leads to the inevitable:

British Airways post 88 pct fall in Q1 pretax profits

I’ve had three calls in the last two days from friends whose opening dialog was about a horrible flight experience.

Thankfully I fly very seldom anymore but the two times I have flown in the past couple of months have been horrible. The attendants are surly, the flights are packed, and there’s no longer even an attempt to pretend to take off or land on time.

The funniest – in a sad way – thing that happened was when Northwest Airlines credited by frequent flyer account by 1000 miles because of the 6-hour delay coming back from Montreal. That was nice. The funny part is that they didn’t credit my account for the flights themselves. It was because the ticket was issued under by first name where my Worldperks account is listed under my middle name. Now, if it wasn’t for the fact that I have nearly 2 million miles on NWA and have often flown under tickets using my first name it wouldn’t be much of a debate point. But, given the years and mileage flown it’s safe to say they know me. When I wrote to complain I got a response that began with this: Please note that due to increased security in airports….” Yes, let’s hide behind National Security for our lack of customer service. Let’s hide behind our employees demanding we honor the contract we signed with them for our lack of business service. Let’s create tariffs and surcharges to hide behind our inability to run a profitable business.

The last time I looked commercial airlines had a primary business – moving people. Sure they’ve added package and postal sub-businesses, but moving bodies is somewhere in their mission statement. Today, they want to abuse their one primary customer and ignore their primary mission.

Does this make any sense? We just want to get from place to place with as few delays and irritations as possible.

I’m convinced this is a market absolutely ripe for the taking. The only carrier with a shroud of common sense continues to be Southwest Airlines who continues to do what they do best. Get you there and get you back. The 19 stops can be problematic but for short hauls they’re the best.
What is your company’s core business? Who is your primary customer? Are you making decisions on a daily basis around these? And if you’re not, why?

By the way, if you're going to write a complaint letter to an airline here's the gold standard one to imulate: http://www.stupidvideos.com/pictures/Best_Airline_Complaint_Ever/#43179