Revenue Management

Trends: Revenue Management

One of the hottest new trends today is developing pricing effectiveness solutions. Good pricing effectiveness comes from determining a person’s willingness to pay. Companies specialize in “revenue management” by tracking a customer’s willingness-to-pay and helping a company to optimize its revenue stream based on that willingness. For instance, in the case of that airline passenger, one person absolutely needed to get somewhere at the last minute and therefore he was willing to pay almost anything for a seat on that plane. And the other person was looking for a bargain and only flew because the flight was cheap. Just like the vender in the stall in the 3rd world, if you could determine the person’s desire level, theoretically you could charge the first person a much higher rate while simultaneously charging the second person much less.  Unfortunately for companies (but fortunately for consumers) companies are not mind-readers so they can’t squeeze the absolute last dollar out of you… Or can they?

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Porche Sales

The Greatest Wealth Transfer in History

All governments engage in larceny and fraud, using their authority to transfer wealth and power from the outsiders to the insiders. But the clever government does so by deception… while the clumsy one does so with no pretense or excuses. In the US, for example, the feds deny savers any financial return from their economies under the pretense of “economic stimulus.” Wage-earners get nothing, while bankers, speculators and zombie grifters are rewarded with ultra-low-cost financing, capital gains, bailouts, and giveaways.

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Job Security

In a changing economy, it is important to be confident that your job is secure before you make long-term investments. The future is not certain and if you lose your job you will require liquidity or you could end up in financial ruin. The key is to have at least 6 months of living expenses socked away in liquid assets before you invest in less liquid things like real estate, timber or privately held businesses. Although stocks are more liquid in a sudden downturn like we experienced in 2008 liquidity can be severely impaired (if there are no buyers) or you may be forced to liquidate at a significant loss. Warren Buffet is famous for maintaining massive amounts of cash waiting for just such an opportunity when he can name his price and everyone else is so strapped for cash that they have to accept his offer.

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Business Franchise

Buy a Business Franchise or Start Your Own?

Many people dream of owning their own business, setting their own hours, and being “the boss”.  Some budding entrepreneurs find that it can be a smart move to invest in or buy an established business rather than starting their own. Depending on a number of factors, there can be considerably less risk in acquiring or investing in an existing business rather than starting one from scratch. Another way to limit your risk is to go with a successful business franchise.

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Physical Gold vs. Paper Gold

Physical Gold vs. Paper Gold

Looking at the factors forcing the price of gold down last week caused me to scratch my head a bit. Even though the price of gold was falling on the futures market anecdotal evidence showed that physical gold dealers were doing a booming business as sales volume was actually up by 50% last week as buyers of the physical metal were jumping on the opportunity to buy gold at a discount. So I wondered how could demand for physical gold be up while prices continued to fall? The answer it appears is that there is a major disconnect between physical gold vs. “paper gold”. In today’s article, Bud Conrad looks at the factors in this disconnect.

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Natural Disasters That Have Created Investment Opportunities

Every cloud has a silver lining, and in the case of some natural disasters, there have been great opportunities to take advantage of financial markets after the worst damage has been done. Often when the old has been swept away and new modern construction takes its place an area can be revitalized and get a whole new lease on life.

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Business Insurance

Insurance Tips for Small Businesses

Boats carry life vests and life preservers and have lifeboats. Construction workers wear hard hats, skateboarders wear knee and elbow pads, professional football players and motocross racers wear helmets, and welders wear goggles. Why?  Because they understand the value of protection. In the same way, businesses need to understand the value of protection and that is why insurance is crucial, especially in business.

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