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Sunday, January 27, 2008

It's not a religion

Michael Dell is on record as stating the direct model is not a religion and anything can be changed. I suppose if it were change would not be an option, but that is another matter. What the company has done is it has continued with its direct model while at the same time partnering with WalMart, Best Buys and other retailers in America as well as in Europe and Asia. In keeping with change, Dell annouced several weeks ago it would launch a channel program where it would partner with VARs (Value-Added Resellers). This course of action by Dell is, of course, not without its detractors and skeptics. Nonetheless, the potential sales increase for Dell is
enormous. I think the future looks very bright for Dell.

Some thoughts, or lessons, come to mind as concerns independent apparel retailers and independent technology resellers, VARs (Value-Added Resellers) as they are more commonly known.

1 The willingness to change your mind about how you do business. Dell has effectively admitted if it is to not only survive, but to thrive, it must reassess the competition. The company decided it would be better to partner with that competition, namely VARs and mainstream retailers to their mutual advantage.

Thought: Both, independent apparel contractors and independent apparel retailers in Round Rock and Austin have consistently acknowledged the value of partnering with one another. Yet, the decision to act on that acknowledgement has yet to materialize. Talented, knowledgeable, skilled and experience techology individuals have reponded heartily to the possibility of partnering with VARs, not as employees, but as independent contractors. That is a mutually advantageous relationship for both parties. Independent retailers, whether in apparel or technology, continue to hold to a model that will not allow their growth because they as individuals can only do so much.

2 The realization that it takes time to develop relationships with VARs who were yesterday's competition. Like anything new Dell realizes it has to, and Dell is willing, to make adjustments if the relationships are to grow stronger. Dell's decision to partner with VARs by any other name is a network.

Thought: The Independent Enterprise Network model is not a cure for all struggles, challenges or problems faced by independents. However, because it provides a means for increased sales and service without the burden of hiring new employees, the potential for growth in sales and service is enormous.

Finally, the IE-Network business model as different from conventional business as was the direct model for Dell twenty years ago. You remember the snickering about an upstart company thinking it could sell its computers without a middleman? I hear the snickering of those who think you cannot leverage IE-Networks to create or build apparel and computers, locally. Michael Dell didn't listen. I'm not listening, because I know there those who have worked their existent business model long enough. They are surviving. Now, they want to thrive. Their business model is not a religion. They can change it.

Saturday, January 19, 2008

Hollister CA

I admit I am at a loss to comprehend the mastermind at Abercrombie & Fitch who conceived of the Hollister CA apparel marketing scheme.

Hollister CA apparel is a long way from Hollister CA the agrarian community 100 miles south of San Francisco. It is most certainly not the trendy beach resort marketing makes it out to be to appeal to young buyers. It's about 30 miles inland from the Pacific Ocean.

My daughters love to shop there, as expensive as it is; it's their money. Hollister CA, for myself, is my high school town, class of 69.

The peculiar, though not surprising, thing about the agrarian Hollister CA phenomenon is with classmates and schoolmates I correspond with online. They are oblivious to the hip apparel reputation associated with the name Hollister CA when I describe it for them from deep in the heart of Texas.

Travel a little south to Los Angeles for a reality update. Where the Texas border region was once the jeans tailor shop of America boasting home to the largest of apparel manufactureres including Levi Strauss, Wrangler and many others, it is no more. El Paso, Laredo, McAllen, Brownsville as well as San Antonio were coveted by New York designers for production of their brand. Although Dallas still sees a good level of apparel merchandising business it does not compare with the 70s, 80s and into the 90s. Now, Los Angeles California, alone, has become the hotbed of apparel design and manufacturing for the nation on par with New York.

That said, I want to go to California. I know Jed Clampett would say if the good Lord had wanted me there he wudda put me there. Truth is I was born in south Texas, but grew up in California.

My reasons and interest in California (as a place to live, it faded in my rearview mirror years ago) lie in its position in the world of apparel manufacturing, to be specific. Up until three years ago Texas vied for position among the top five states with New York being a far distant second to California. Texas is number one in the number of displaced apparel workers. In more recent years, that hierarchy has undergone a makeover with Pennsylvania and Connecticut entering the mix. California remains in a distant first place.

Now, I know we hear a lot about business and government partnering to eradicate sweatshops out of apparel manufacturing. However, I remember when my wife and I lived in Alhambra bordering on the east side of Los Angeles. Almost without fail every central American I met worked in apparel manufacturing as they had back in their countries and every one of them knew many others in similar life and employment situations. The media in the 80s often reported there were more central Americans, particularly Salvadoreans in Los Angeles than in El Salvador.

I believe the Independent Contractor Network model suits American and foreign workers who possess the KSE to create apparel. As entrepreneurs they can create apparel for independent retailers. IC-Networks generate residual income for them and their families. That holds far greater promise and value for them than California's top ranking or the hot apparel brands they crank out on the production floor. But, _ first comes Round Rock, Austin, then Amarillo, Wichita Falls, Dallas, Fort Worth, Waco, Abilene, Houston, El Paso, Laredo. . .

Sunday, January 06, 2008

The Outsourcing Song

I had a history professor in college who expounded, "Government exists to do what we cannot do as individuals." At the time it sounded good. It sounded true. I no longer accept it.

Now, I am not going to advocate doing away with government. I am steadfast to the biblical exhortation regarding the rule of authority as being from God. Lets continue to work to improve, rebuild, and in some instances, restore its function as intended in the Constitution. I would like to see less government intrusion, myself.

So, I am perplexed when I hear opposing sides on the role of government singing two-part harmony on outsouring: The song calls for government to stop the greed of outsourcing by imposing heavy taxation of corporations. Government should get back those jobs outsourced overseas.

Exactly, what is the magic number which constitutes greed?


It is easy to throw off on business corporations and rail on them about their greed and all manner of evils, but what are you willing to do? I once heard someone define greed as that amount, which those making the accusation, has eluded. That is, for those who do alright or scrimp on 30 thousand a year, 35 would be better, maybe even 45 or 50, but over 50, well, that's just greed. Those who live in the 50 thousand bracket might draw the greed line at 100 thousand.

Generally, individuals, like corporations, do not expend their energy and resources to just get by. Ideally, they both drive for that threshold where the unimaginable comes true for them. When they do manage to attain that they either build up a huge savings account or become employers to those who are quite content with getting by with an amount just this side of greed.

I would venture to say many, though certainly not all, those who want government to solve all the national problems which affect them probably do not believe or excercise the power of their vote.

It occurs to me many of the jobs that go abroad could be re-established in America through independent contractors. Whether low or high tech, apparel or computer making, these represent just two industries that can be replicated in your community by those same layed-off workers. There's nothing wrong with those eager workers. Between them they possess the Knowledge, Skills and Experience to make the apparel, assemble the computers; the same resources which bustled on the manufacturing floor. Both of these can easily be performed in the individual's home, under their schedule, childcare cost free with a work load they determine
for themselves.

The recent China toy scare serves to illustrate my point. There are at-home, cottage industries in the US northeast which suddenly found themselves overwhelmed with orders during the holidays. Like toymakers, there are apparel makers and computer builders who are quite capable of replicating what they do on the production floor in their homes. They include, designers, pattern makers, cutters, seamstresses and computer hardware and software installers, technicians, electrical and software engineers, hobbyists and more.

I once read a CEO's explanation why his company would not be quick to jump on the outsourcing bandwagon. He said, companies incur transportation and tax expenses to ship those goods to America as well as having to deal with cultures that oftentimes do not possess the American work ethic corporations were built on and to which they grew accustomed. As if these factors were not enough, there are inferior infrastructures which simply are not able to handle the demands of a new high energy consumption and maintenance plant in their neighborhood even in tech-coveted locations like Bangalore.

Two lessons would-be apparel and computer independent contractors can take from American corporations: Leverage tax law and create alliances. A corporation, by its very nature leverages tax law to its advantage. Alliances are an old trick in the book corporations resort to even with rival competitors when it is of mutual advantage. Corporations will not go it alone if they can help it and thereby minimize potential losses through an alliance or partnership with another company.

Our federal government recognizes contractors as sole-proprieterships, or businesses, and as such they can leverage tax law even more so when they are LLPs, LLCs or other business entities. Nobody can stop or prevent you from creating your own business and generating your own income. It's far more proactive for your family than crying about corporate greed and outsourcing. The song doesn't have to remain the same, with apologies to the 70s heavy dirigible. It's in your hand to do something about it.

The IE-Network model creates alliances and facilitates dialogue between independent (enterprises) contractors and retailers, whether in the apparel or computer industry, to replicate the production floor manufacturing model in their communities through at-home enterprises. The Independent Enterprise Network model enables members to generate income three different ways; personal, residual and bonus overrides.

Saturday, December 29, 2007

Women's Apparel Sales Down

I heard this news on NPR radio (KUT 90.5 in Austin) on December 26. It was a takeoff on The New York Times story on the women's apparel sales slump it called an, "ominous holiday sign". Lets assume women's apparel sales are down at your business: What do you make of it? Do you see it as the glass being half full, or half empty? That is, do you see it as opportunity or gloom.

Four points stand out on which I would like to comment.

1 What do analysts see as the reason for this situation? Some, "Analysts blamed a rough economy".

2 Others see this situation as one which could, ". . .could result in steeper-than-expected discounts".

3 Yet another reason for cited for the problem was "lackluster merchandise in the mall", and “There is a lot of sameness” in stores, Mr. Morris said.

4 Finally, analysts expressed surprise at the enduring strength of online spending.

First, the ecomony is a big blanket. It's too easy for analysts in a holiday rush to blurp that one out for inquiring reporters wanting to get the scoop on holiday spending pulse. It says alot and it says nothing for myself, a non-economist.

Second, this speaks to that secret the cat let out of the bag long ago: Apparel merchandise price markups are steep. Yes, that's an understatement, but it also serves to the point that it's an equally steep descent when those prices come down as "discounts" for customers.

Third, "lackluster" and "sameness" in off-the-rack, readywear apparel are synonyms of one another. Rich or poor, people are increasingly aware they need not settle for the same-mold-same-old (truthfully, this is the first time I ever write that phrase and if it's not the one you know I think mine speaks accurately to the issue lol). Robyn Waters, in "The Hummer and the Mini" has written long and well on this trend of consumers rebelling against the "one size fits none" (not her phrase) of manufactured goods.

Lastly, there should be no surprise about the enduring strength of online spending. As I have posted before, women's apparel sales surpassed the behemouth juggernaut of computer manufacturing sales in 2007 for the first since the advent of Internet sales and data compliation.

I am not persuaded women (and moms, as the story relates) let up on their personal shopping needs and wants for the holiday season. The story focuses on sales data mined by a credit card company. Quite likely, those were mega-chain store retailers, not the mom and pop, independent apparel boutique retailers behind those sales figures.

As I have stated before there are over 40 million (per the Home Sewing Association) people in America who sew in their homes. Although the HSA cannot say what percentage do so for leisure or profit when you take into account the number of people who have worked in apparel manufacturing I believe they are behind this sales slump. How, you ask? I'm all alone on this one, but I believe just as we are seeing in Austin so too in other parts of the country consumers, women, particularly, are discovering the wonderful world of apparel fashion and style at local independent retailers. These retailers, particularly if they have are having their apparel made by local individual, independent contractor/designers do not show up on the sales radar for mainstream data businesses such as credit card companies. It's not an ominous sign. The glass is not half empty. It's a great sign of opportunity being taken advantage of by independents. What do you think?

Friday, December 28, 2007

Benazir Bhutto

The assassination on Thursday of former Pakistan Prime Minister Benazir Bhutto in Rawalpindi produced a sick feeling in my stomach.

It was lunchtime in my seventh grade class in 1963 when our classmate Linda came rushing in with tear-soaked face calling aloud President John F. Kennedy had been assassinated.

I do not profess intimate knowledge of Pakistan, its people, culture and issues other than the smattering of news from the media. Still, I was not alone in my hopes for what this remarkable woman held for the future of Pakistan.

Were she my enemy I would not rejoice, for, says, the Lord, "Do not rejoice in the fall of your enemy". Were she my friend, I would grieve her death.

Benazir Bhutto was among those who live their lives in total commitment in the service of a cause for the benefit of others.

I am saddened by the loss of my friend.

Sunday, December 23, 2007

You Who Are Spiritual

Whether in sports, business or home, the pursuit or development of one's spirituality can be second to nothing. At the same time the pursuit of spirituality cannot be an excuse for everything else in our lives running into ruin.

Spirituality is not the domain of "holy men" or recluses. It is neither vague, mystical nor unattainable. It is what enables one to navigate self as well as offer and give guidance to others in life neither one of which a "holy man" or recluse can do in their isolation and detachness from life.

It is not something to claim or boast of self. Its best claim is when it is heard as the testimony given by others of a spiritual person.

Jesus demonstrated the marks, that is, the characteristics of a spiritual.

The link opens to a little bit more as to what constitutes a spiritual.

http://www.associatedcontent.com/article/487313/you_who_are_spiritual.html

As always, your comments are welcome either on Associated Content or this blog.

Thursday, December 20, 2007

Directron

This is a comment I posted on Directron.com regarding technicians, engineers, hobbyists and resellers.

http://directron.infopop.net/2/OpenTopic?a=tpc&s=476097824&f=572091644&m=6791044851

Merry Christmas and Happy Holidays to you and yours!

Saturday, December 15, 2007

The Hollywood writers' right

The ongoing Hollywood writers' strike has put the limelight on the ability of unions to negotiate on behalf of their membership. The latest development in the strike involves the writers' union, the Writers Guild of America, proposal to negotiate directly with studios and bypassing the studios' respresentative; the Alliance of Motion Picture and Television Producers.

The union's strategy would have been anathema twenty-five years ago. Perhaps, after too many loses to count, labor unions have become more resourceful when engaged in negotiations with employers. Too many jobs have vanquished because the strike mindset was one of crash and burn rather than reach an agreement. Those union officials remained union officials in the strikes' aftermath. Those employees became unemployed. If the company didn't go under completely it joined the ranks of offshore, outsourced jobs. Individual and corporate profits will not be lost in the strike. You cannot loose what you do not have so while they may not make any money they can and will survive the writers' strike quite well. They can jump ship at any moment, leave and re-emerge with a new company of their own hiring eager, unemployed writers.

The strike, the first in less than twenty years, has also revealed the extent to which writing, a craft associated with free expression and independence, has allowed itself to be bound to unions, contracts, negotiations and strikes so completely. This holds equally true of writers in other, non-entertainment areas including the press; another American freedom imperiled. Writers' purport to look ahead to secure DVD future residual compensation for themselves. They could review a four point comparison between unions and networks, as well. It's the writers' right. . .if the union permits it.

membership fees

Both require membership fees in order to join the organization. It is safe to say network fees are considerably less. Yes, union membership provides benefits, but many of those benefits are available from non-union employers, as well.

members' compensation

Unions negotiate with employers to establish employee compensation. Network members negotiate their own compensation agreements with their service recipients. Network members determine the growth and expansion of their own residual income generating network.

relationships

Unions stand between the restrictive, contractual (job) relationships of employer/employee. Network member relationships (business) are between themselves as independent service providers and their clients; service recipients. Network members are free to conduct business with or without network members.

other interested parties

Unions negotiate to secure member benefits from employers for their employees. Networks are entreprenuerial. Members are in business for themselves, but not by themselves.



Hollywood writers have done no different than countless other workers in America. They have settled for the illusive "security" of the job. However, writers, too, can take their Knowledge, Skills and Experience they have acquired in their field and create their own Independent Enterprise Network. Who might their clients be you ask? The independent film industry for starters. How long would it take before mainstream studios turned to the writing talent of independent films? The Internet, with its various appendages such as YouTube, could accomplish more for the partnership of independent film/writers than any union contract.

Merry Christmas HO! HO! HO! to one and all!

Friday, December 07, 2007

Independent Enterprise Networks

I am amazed by the spirit of enterprise with which some people launch into their passion. People without abilities many of us possess have done far more. Some either were born without eyesight or lost it, but that did not deter them from realizing their dream. Others without the ability to read launched businesses which provided a livelihood for others. Still, others without all their limbs have been unimpeded in their determined spirit to realize their dream.
Truly, it's not what you possess, but how you use it to accomplish your desired goals.
It's not quite an accomplishment when I come to the realization of a mere matter of word choice. I refer to my use of "independent contractor" when speaking and writng on networks and the decision to replace it. The more accurate word choice is "Independent Enterprise Networks" (IE-Networks) as these networkers include contractors and retailers.
Independent Enterprise Networks can extend into a large and assorted variety of fields and industries. Although the initial focus of IE-Networks in these blogs has been at-home apparel and computer enterprises the business model will extend into:
Floor maintenance
Landscaping
Roofing
Satellite dish installation
Automotive repair
Air conditioning installation/repair
People, whether in Texas or the US who make their livelhood ("have a job") as employees or possess the Knowledge, Skills and Experience may continue to do so. However, they can choose to build their own at-home enterprise AND network. A stand-alone enterprise is "owning a job". Independent Enterprise Networks are systems which grow and generate income for the networker whether or not he/she comes into the shop, today.

Wednesday, December 05, 2007

Dell launches channel program

I wish Dell success with their channel program. However, it does bring to mind the short-lived white-box sales program a few years ago.

Like the white-box program, the channel program is top-hand heavy. Dell, or other computer vendors, could play the channel with both hands on the table with contractors and resellers with products and services. This would be in keeping with Dell's DNA as a direct model vendor, . . .with a slight helical twist. How?

Dell leverages its knowledge, experience and position with suppliers to become a supplier directly to an independent contractor and reseller network. This is a level playing field seeded and strengthened by relationships. Relationships, precisely what was missing years ago and what is essential in reaching the low-income, white-box consumer market in America.