Where the Dough is

It’s amazing how much difference one person can make to a business.

There is a local donut shop I like to go to on Saturdays. The owners have a few in the region and a location where they bake the sugary goodness early in the morning. When I started going I got to know one of the sons of the family who ran the front counter for walk in customers. He had a friendly demeanor and worked quick, always asking if there was anything else he could do, offered deals on dozen boxes. He had a natural customer service attitude, the kind all retailers depend on. He didn’t miss much work, as I could tell, and was always sunny and attentive. He wasn’t likely to leave for another job but anyone needing a salesman for their business might have easily snatched him up.

He does other work now for the family. I talked to his brother this morning who has taken over daily service duties, bagging donuts for walk in customers and selling coffee to hurried workers. He isn’t the attentive employee his brother was. He seems to be fighting off sleep most days and his tone suggests he has better things to do. He isn’t completely rude but he is dismissive and moves slowly through the morning, reluctantly stuffing doughy treats into sacks and punching sales totals into the register. He doesn’t talk much and gives the impression that walk in customers are interrupting something, probably just his empty thoughts.

Customer service isn’t a lost art but I wonder how much businesses really focus on it nowadays. Given enough time people go where the food is good and the service is friendly. Local places can survive for a while on legacy and exclusive offerings but service keeps people coming back. Small companies are especially slaves to friendly sales associates because they lack a managing hierarchy that angry customers can appeal to. 

 Who gets the complaint if the service is lousy? The boy’s mom? She might scold him in the moment but family dynamics always come into play. The dressing down isn't likely to stick. "That's just mom nagging me again" he is likely to think. Family relationships come before boss and employee relationships. Better to hire out, it’s less messy that way.

Successful stores have an established code of behavior for workers and evaluate that behavior on regular basis. This is apparent in companies that expand and grow. When employees understand the specifics of their job and are held accountable they flourish, or get fired. The attitude of one employee should never determine the success or failure of the overall project.

Small companies often don’t consider this when beginning a venture. After securing the financing and selecting the logistics, raw materials, wholesalers, buildings, city code compliance, there isn’t time for training. Just get the project up and running the thinking goes, so training gets overlooked. If they’re fortunate, an effective and eager employee, maybe a family member, handles the job well. If unfortunate, the struggling company will run off customers quicker than a listeria outbreak.

It's tough to add another critical 'to do' to already expansive list owners have to consider, but in dealings with the general public don’t skimp on friendly and attentive. Either teach it or hire git from somewhere else. It should be self-evident that people who are giving you money need to be treated like… well, like someone giving you money.

Don’t overdo it. Just smile, be quick and greet them coming in. Some stores have gone a little far with the warm greetings and “How can I help you?” type queries. I am not crazy about the “My pleasure” phrase that Chik-fil-A uses. I can tolerate the energy soaked barista at the gym juice bar, “Bro! you got to try this, loaded with protein!” But if they go too far it is because they’ve learned the lessons of pissing off the wrong customer. They see value in good service.  

Some, like Quick Trip, are legendary for speed and convenience. The model works. The gas station/short order/market puts up new stores about every 5 minutes (not quite). Keep the employees moving fast and teach them to be nice. Oh and most importantly, fire the ones who don’t get it.

Small shops and businesses hoping to grow should focus on customer service for employees, if not they flip a coin on success. Learn from the big stores on this.  

  

Security and Liberty

I was at a night club in Beijing talking to a slightly inebriated African artist. I say “African” because I can’t remember which country he said he was from. I am sure he told me but it was loud. “I like you’re W Bush!” he said in a straight-forward tone.

 I thought maybe I heard him wrong so I tried a different approach. “You mean the president…our president?” I said loudly hoping to be heard over the energy fueled thumping bass the DJ happily pushed out.

“Yes of course! He is like a parent spanking a bad child” He was referring to the war effort in Iraq, Afghanistan and the despots like Muammar Gadhafi that had surrendered their nuclear programs to international observers.

“I am sorry did you say you were an artist?” I said, shocked at his gratitude for a president who was universally despised outside the United States, at least I thought. Here was an artist (bohemian, liberal) who saw Bush in a positive light. Not only in a positive light but also someone with the moral authority to ‘punish’ evildoers. This was a first for me. After traveling around China and hanging with expats I just assumed the American president to be a figure of scorn and ridicule, at least this president.

I didn’t feel that way myself of course but defending one’s own culture to a vastly different one can be exhausting. I never took it personal. I didn’t understand some of the unsavory aspects of Chinese life either. The open air pet shops are a cultural blight I couldn’t un-see if I wanted to. The dogs and cats were crammed into a tight metal cage without enough room for each one to turn around in place. I felt like buying them all and letting them run away. Culture is unique to different parts of the world and I never wanted to lecture on minor points. So I let the criticisms of the US and Bush slide without much fuss. The harshest critics were back at home anyway.

The encounter with the African man at the expat bar taught me that Africa is different from Europe and America, as if you didn’t know. I can’t say for sure how representative he was of his countrymen but I didn’t meet too many Africans (a few Nigerians) from any country while in China. It is fair to assume a significant amount had no problem with the war in Iraq and even applauded the effort to rid the county of Saddam Hussein.

“You’re the first person to say that to me!” I smiled while shouting over the pulsating tracks. Still a little slurred but being friendly he suggested we visit his exhibit. “I have a show tomorrow at the embassy if you want to come.” he said. He pulled out 2 pamphlets for the event, signed them and handed them to my friend Andrew who was still as surprised at me about the Bush comment. The “show” was for artists from the area, I guess, at the Democratic Republic of the Congo embassy in Beijing. The details of the event were a little fuzzy even at the time but we did attend. It isn’t every day I get invited to any embassy. Turns out they speak French in the DRC, we didn’t understand a word from the speaker.

The incident at the bar was one of my first stark reminders that all corners of the world understand things like war and suffering differently. The reasons are varied. I couldn’t begin to put together all the personal accounts and experiences to fill out a complete picture. National histories, economics and international exposure all come into play. Many people associate ‘greatness’ with recognition only. As was the case with my Mongolian students who told me (through broken English) that Hitler was a great German leader.

I assume they meant “recognizable” and therefore “great”. At least I hope that’s what they meant.

When I say “understand things like war and suffering differently” I don’t mean it in the moral relativist way like, “Corruption is a way of life in every country, who can say it’s wrong”, or apologizing for drug dealing because jobs are hard to come by. Most of us are guilty of doing this logic some of the time. We want to justify wrong by contrasting it with larger wrongs.

Concrete institutions we as Americans take for granted like the rule of law and economic liberalism aren’t fundamental to many others. Not that citizens of DRC or even China wouldn’t love a just legal code with freedom of movement and the freedom of religion. Of course they would, but experience and practicality put those notions out of reach. Also cultural norms often dictate what change is possible.

Corruption is indeed a way of life and changing it requires a herculean effort. Only strong and determined leaders can stop it, and even then only through fear. People hate corruption because it disadvantages those who can’t afford to participate and it puts the 'machinery' of the state up for sale. It sends a strong signal to everyone, “If you want government to work be prepared to pay.” When paying bribes is a way of life no one can imagine life without it.

Much of the world doesn’t get to experience reliable institutions (imperfect as they are) year after year. In the US we have a legal system rooted in notions of liberty and justice, we complain of course but mostly it doesn’t change when the administrations change. In other words presidents don’t get to establish new courts and throw out governors or Senators because they want to. They can’t introduce new currency into the economy or kick in doors in Pennsylvania and arrest Quakers. Attempts at overreach are met with legal smack downs or citizen protests. Presidents aren’t kings. The conflicts are messy but the system prevails and security is maintained overall.

Security is not always transferable in the third world (however you define it) from outgoing to incoming leaders. Transfers of power can be contentious and violent. An official on a losing side can be imprisoned or killed. Poor leaders who are interested in nothing more than power are destructive in the long term.  This is a big part of why security is valued more than liberal thought and democratic norms. For many people it changes like the weather.

My friend from the DRC embassy probably recognized the injustice of those dictators in Afghanistan and Iraq. Or maybe he just had too much to drink.  

  

Tax Man

The sum total of my tax knowledge wouldn’t fit in the upper half of a 1040 form. Just the same I thought I’d wade into this latest plan from Congress. In order to understand it a little better (and be an adult) I’ve skimmed a couple of breakdowns that summarize the plan. My eyes glazed over a few times but I forced myself to focus like my college homework days. Reminding me of my Geology class freshman year and dozing off in front of an open text. It wasn’t a hard class but common, science plus rocks equal sleep.

Since I own a home the Mortgage Interest Deduction is something I thought to look at because I use it. Or at least I thought I did. Turns out I don’t qualify anyway and have to take the standard deduction. I don’t make enough money. Ok so this is good, soak the rich baby! Not sure what the current rate is but I am a safe distance away from it for now. The bill says only those above a certain threshold ($500,000) on new home sales get their deduction capped at a $10,000. So far so good. This might be the most controversial part of the bill since the home buyer groups will oppose it. If it remains in the final version it will certainly affect new home sales, which is bad for construction companies and realtors.

Another part that seemed strange was the limit on deductions for (SALT) state and local taxes. I don’t understand the thinking behind giving federal tax deductions for interest  paid to states and cities. This is like getting a price break on a new muffler from Pep Boys because you had to pay for new tires at Midas. Why should Midas care that you already paid to have a different problem fixed at Pep Boys? There might some give back the states are required to account for but I’m unaware of it. It seems if states and cities want to charge high rates for whatever excuse they can muster it shouldn’t be the fed’s problem. In either case I’m good. I live in a low tax state (relatively) and my deductions don’t amount to much anyway. So hooray again and soak the blue states!

The best part is the portion least likely to remain in place: the corporate tax rate will go to 20%. I say “best” because it practically guarantees companies will have the extra cash to invest in research and development, new construction and new hiring. Who doesn’t want more money and better paying job? The current rate is 35%, the highest in the world. In truth though hardly any company pays this rate. Most have exemptions and offsets built in to their current obligation. In order to get big business to back the plan the rate needs to be significantly lower since they are loathe to surrender their offsets. Some energy companies get to deduct ‘intangible drilling’ costs and ‘percentage depletion’ to account for fewer oil reserves. This is how they avoid paying the hefty top rate.

Part of the reason that going full overhaul on the tax code is so difficult is because someone always loses. They either lose a deduction they’ve counted on for years or they lose an incentive for business or personal reasons. Much easier to lobby an industry group, like labor unions or energy lobbies, to slip in a provision to the existing code. This is why the US has so many exemptions.

Think about why that probably is. If a blue state like California elects politicians who promise to ‘go green’ and cut carbon emission from the atmosphere, they are likely to tax coal. A coal state like West Virginia meanwhile elects representatives who promise to stop EPA overreach. They are likely to put an exemption in place for coal emitters. Both get what they want. Congress passes a bill limiting carbon in the atmosphere with a special exemption for coal. California politician can say he “Got tough on polluters” while West Virginia’s rep can say he saved the industry money. It is messy but the alternative is even messier, trying to write a new code. For any tax to work, it must reduce the overall tax burden below what companies would pay under any current law.

As with most giant re-writes this one will change significantly and resemble a small scale version of the existing one. The idea to change tax law is both to make it simpler and to cut down on the overall tax burden for corporations. If votes weren’t necessary the Republicans would only do the corporate part since this is the quickest way to grow the economy. Tax cuts for the middle class are pretty marginal at growing the economy but changing the law without including households is a nonstarter politically.

I imagine the reason that some get cuts while others lose their benefit is so the budget math balances. Congress has to account for a theoretical loss of income and offset that loss with increasing money from other areas. Federal tax experts always talk about ‘paying for cuts’ as if they shouldn’t nix some of the current runaway spending. The last budget was over 3 trillion dollars. Are there really no federal programs we can do away with? Even in a vibrant economy 3 trillion is ridiculous. I understand wars and health care are expensive but it shouldn’t be this expensive.

Anyway my tax knowledge is building about as fast as that giant cup of spare change on my dresser, but building still. Budgeting beats Geology anyway.

Marketing the Air Jordan

Everyone about my age remembers when Nike’s Air Jordan shoes first became a thing. It wasn’t just the ‘coolness’ of the shoe or the fact that Jordan endorsed them, although Jordan’s popularity was the bulk of it. His athletic dominance night after night turned him into the biggest star in the biggest sport. Nike’s control of basketball shoes began with a likeable star and a genius marketing campaign; it continues using the same formula today. 

Live sports on TV took a major financial leap in the late seventies and another in the eighties. Athlete salaries spiked in all three major sports (basketball, baseball, football) owing largely to television contracts for professional sports. Big contracts for TV rights ensured that clubs had larger payrolls. More people watching sports meant more people for advertisers to sell to.   

 What better way to sell products without creating events to market products. Instead of going to trade shows and marketing new kicks to dealers, well heeled (pun intended) shoe companies could sell direct. And sell they did.

The Air Jordan taught us that people bought products that had buzz and not quality. Not saying Michael’s shoe was crap just that its quality was beside the point. The aggressive marketing and Jordan’s easy charm sold the shoe more than anything. The sneaker aesthetics played a role, who didn’t love the black patent leather covering the bottom like a twenties era spat? Every single new pair looked different than the other models on the floor at the time. Most basketball shoes were pretty boring until Nike proved it was possible to sell a colorful trendy high top with some flash.

 The Air Jordan became the “it” product for kids desperate to stay hip.

The original shoes didn’t conform to the league's standard on colors that matched the jersey. So the NBA fined him. Nike picked up the tab for the fines and used the controversy to spotlight the banned shoes in commercials. A selling opportunity was born out of an unlikely event. 

Jordan the standout. Nike the rebel.  

After that Nike could use release dates to ramp up awareness of the shoe, a very expensive one for the time. The first model sold at $65. A sky high sum for the mid-eighties. After the first few models the company made just enough shoes to keep public interest high. By never making more than they could sell they ensured that interest stayed high and the prices even higher.

Gaming companies like Xbox and Playstation used to do this all the time. Create hype over the new system and produce less than you expect to sell. It does make sense to not overdo a good thing. Overproduction is the death knell for businesses hoping to keep selling similar models year after year. Too much of anything in the marketplace drives the cost down making the “it” product something everyone can buy. Better to make a few and sell them high. Keep demand soaring like the iconic Jumpman, always in the air.

 Nike knew it had a gold mine.

The increased money coming in from TV contracts added to increased visibility of stars able to sell, and sell some more. Jordan never made a lot of money in salary. Until his last couple years he was between 2 and 3 million a year. His money was through endorsements, none bigger or more important than Nike.

I read a quote recently from Kevin Durant about Nike’s popularity. “…Shoe companies have a real big influence on where these kids go. So, nobody wants to play in Under Armours, I’m sorry. Like the top kids because they all play Nike.” He was answering a question from Bill Simmons about why he didn’t want to go to Maryland (his home state school). Maryland is also ground zero for Under Armour apparel and shoes. I don’t know if Durant is right about kids not wanting to wear Under Armours, but knowing how Nike does marketing I wouldn’t be surprised if they set up the question and answer that way. Create doubt about the opponent.

Others have tried to crack the Nike code in basketball and get their own superstars like Jordan. Under Armour famously signed Steph Curry away from Nike. Adidas has a few stars, Damien Lillard and James Harden that show potential. But the battle is uphill for competitors hoping to cash in and create the next "it" shoe. Talented kids are spotted at the AAU(Amateur Athletic Union) level now and most just before that. The shoe companies sponsor many AAU teams with free sneakers and gear. Often kids want to remain loyal to a brand and sign with a college that also wears the same brand. At least that’s what Kevin Durant suggested. There is no bigger player in the shoe game than Nike and more teams wearing kicks with the swoosh on them the better it is for Nike Co. Now the Jordan brand is separate from the parent Nike but still a subsidiary. 

Long story short, Nike has been in this ad game for a while and they don’t take it for granted. Their sales techniques are still aggressive and they don’t hesitate to use bad press when it fits the situation. It will be fun to see them loose a little ground to Adidas or Under Armour and keep the shoe wars hot.

 Now if I could just afford a pair of the new Jordans.

Writing for Dummies

I’ve had a chance now to look back at several writings I’ve compiled over the last 5 years or so. The offerings are pretty slim there from 2011 to 2012, like searching for sea shells at the community pool. I graduated from college in 2012 and after that my writing began to improve a bit more. I determined to write more often but I held out on establishing a rigorous goal, a certain amount of words per week or so. I think I was genuinely worried about losing the passion for writing and missing that inspiration. I didn’t want writing to become homework, something to dread and avoid at all cost. That kind of thinking was nonsense. If we only worked when we felt like it how much would honestly get done?

 It’s the lazy man’s way out to talk about passion and inspiration. I figured that out the hard way.

I had a friend in college who majored in classical guitar. No one worked harder at practicing. He put in countless hours playing in his room and learning new techniques (is that a musical thing, not sure). I don’t think engineering or physics students put in as much time as him in the actual pursuit of excellence. Engineering is hardly an easy path but no one dedicated more time than the music majors. I don’t know if he stuck with it till graduation. I kind of lost touch with him after that year in the dorm. I know he had days when he didn’t want to practice for hours at a time but the discipline demanded he improve by putting in work. He wanted to be a great guitar player. He understood what it took.

If I broke down my previous writing into 3 segments it would probably look like this. First couple years I just needed to put something, anything into words whatever the format. I made a conscience decision to ignore all grammatical errors and focus on nothing but filling up a page with words. The essay needed to reflect a coherent thought but beyond that I wouldn’t get caught ‘churchin it up’. “For God’s sake man, just write it” was the idea. I knew if I focused on spelling or subject/verb agreement stuff I would never finish. Getting hung up on perfect grammar was a mental block for me. Now I can write much more carefree and go back later for edits.

Second, I knew that writing essays only once a month or so would lead to a pile of crappy essays. Here is where the ‘but what if I lose the passion’ instinct kicked in. People who are good have to work at it, whatever the discipline. I remembered my guitar strumming friend playing late into the night while staring at sheet music in his dorm. I wasn’t ready for hours of staring at a computer screen, but I could certainly do better than I was. I still hadn’t set specific goals but I managed to start writing every week, after that a couple times a week. I started doing the blog as a way to keep myself accountable and put out ideas that are edited and coherent-ish.

Third, I’ve started writing about things I didn't understand well by doing small amounts of research and putting together web blogs, some freelance work writing for companies that need copy. This phase is still in its infancy but making sense of topics I don’t fully understand is kind of fun. And I get to stretch myself a bit into other types of writing, and learning. It doesn’t pay well but the point is to get better and improve all around. I still mostly write practice logs for myself. I read the book On Writing: A memoir of the Craft by Stephen King and got the idea to write to a word count. King does at least 2000 words a day. I was thinking half of that to start out, not sure though.

So what have I learned so far about writing, and myself? Write when you don’t feel like it and make it as regular a habit as brushing your teeth. Sometimes it is dreary and my only concern is to get in the word count as quick as possible so I can go watch TV. The really dreary times are not as frequent though and I’ve found the more consistent the practice, the more I look forward to it.

Habitual activities designed to improve skill do pay off.

My classical guitar pal could have told me that years ago. If only I had asked. 

Why so Cynical?

Why cynicism?

Cynicism is learned trait the way anything is. Ever tried to throw a baseball? The first thing you learn is how to hit the strike zone. When you’re a kid this is the most important thing. Other kids will likely swing and miss at pitches right over the plate. Young kids don’t have the skill in their arms or the timing in their wrists to square up and drive one out to left field. Some advance quicker than others but baseball is a game of averages. Most kids swing and miss. Learn to throw strikes first. Worry about sliders and curve balls later. Negativity works the same way.

Cynicism creates early doubt in small personal matters but if not corrected becomes your default philosophy on life. 

Kids learn to be cynical right around the time they learn to play baseball. It isn’t intentional of course. No parent pops up off the chair on a beautiful Saturday and says “Listen, Toby (ruffles his son’s hair) these Senators and Congressman in Washington are out to screw us hard working folks. They line their pockets at the expense of decent people like me and your mom.” It’s generally more subtle. When effective, cynicism creates a feedback loop that parses every success and explains every failure.

How many times have you blamed a football player for dropping a pass because he wasn’t in a “contract year” or blasted the electric company for being “greedy” when the bill shot up in the summer? Ever blame the church clergy for having their “hands in the till” after a Christmas donation push?

Usually we learn to expect losing from our favorite team. The Chicago Bears fans have a saying, shorthand really: S.O.B for Same Ol Bears. Did the kicker miss a 30 yard field goal to lose the game in overtime? “SOB”. Did they just burn through another quarterback that throws picks and loses games? “SOB” In reality most franchises have up and down seasons and similarities between fan complaints can be heard across fandom. Most people dump on their team.

Cynicism plants a seed that says “Expect less”.

Cynical people are class conscience. I used to think it was an old world or even European thing to view people by breeding and money, Downton Abby style. Maybe it always existed in America but more in pockets of the country than something in the ether. I see resentment of success and wealth more than disdain for the poor. This is almost the reverse of the old model where titled land holders joined exclusive clubs and kept ‘undesirables’ out of certain industries.

 In America we have too many ‘victims’, victims of poverty, of discrimination, of sexism, of homophobia and of ‘reckless’ capitalism. If you’re a victim there’s a group. A person who imagines they are taken advantage of will most likely always feel that way. The negativity reminds the individual of the mistreatment, unfairness and the ‘stacked deck’. 

Cynicism is easy because you don't need to defend the failures of a system or belief. You needn't have awkward conversations about why a famous athlete (Lance Armstrong) turned out to be crooked and vindictive. We can cover ourselves up with cynicism like a shield and pretend we “ain’t surprised” when someone famous falls from the pedestal. 

Change is tough for jaded people but some common wisdom from the interwebs goes like this. First recognize the problem. If you always bring down the conversation in group with a dig about pop culture, religion and politics, you have a problem. Second, stop hanging around others who complain and assume ulterior motives about everything from sports to the manufacturing of foods-“they use horse meat you know!” If people have stopped being around you because of your dark cloud and social anomie consider yourself warned. Third, accentuate the positives (yes I know, but it fits).

If being a cynic means assuming conspiracy or wicked design behind every good deed, try instead to relate something positive with the individual. You don’t have to ignore that inner Sméagol that says “I knew they were up to something” but don’t encourage it either. Overwhelm negative with positive. Do it enough times and the new positive feedback replaces the old.

The same mind that learned how to throw a curve ball and picked up cynical thinking can undo it through replacement thinking and positive attitude. The mind is a wonderful tool. 

Sadness in Vegas

Sadly another shooting claimed the lives of almost 60 people late last night. This time a Vegas country music concert became a horrific scene of mayhem as fans ran for cover as a man from across the street rained down bullets on them. I got the alert early this morning on my phone. I need to turn that thing off for peace and quiet before I start the day. Some days are tough enough to just begin as it is. This is partly why I start off my days with teaching and a bible verse. I need to get my mind centered on positive things. Also I avoid the radio in the car on the way to work. I used to love the local talk radio station, anymore though I need to go to God.

There is still too much we don’t know about why the 64 year old single man decided to go sniper on a crowd of people. I won’t say conspiracy but some things don’t add up. He used a fully automatic weapon. Those are almost impossible to get even by illegal means and he wasn’t really a gun guy. He owned a handgun and a couple of rifles but nothing in his past suggests a fascination with firearms. The Islamic terrorist group I.S.I.S claimed responsibility but even this seemed fishy. So far investigators can’t locate any evidence of that. I am sure older white Americans occasionally sign up for jihad without anyone knowing how radical they are, but it isn’t likely. This guy owned a handful of properties and seemed to be well off if not wealthy. Nothing suggests he might fire indiscriminately into a crowd killing 60 and wounded over 500.

 This was monstrous--a real nightmare scenario for Vegas police. Over 40,000 fans crammed into an open air venue make a perfect target for a psychopath. Unfortunately even large scale mass murders like this recent act of terror are getting too common. This may carry a news cycle for a few more days; the ugliness of it washed over by the regularity of it. Not that the slaughter of so many people happens every few weeks but the lone killer taking a few with him before he offs himself is shockingly regular. The Orlando night club shooting happened just over a year ago. Most of these acts of terrorism, recently, are connected to Islam. This may be as well but he doesn’t seem like the convert to Islam type.

 I.S.I.S has been keen on a war with the West from the Paris concert killings to the Brussels airport bombing and truck attacks in London. They have professed jihad and set about recruiting Americans, Brits, French and other Europeans. This latest one is a real mystery, a total head scratcher. It could take a week or so to make sense of it. God be with the families of those poor souls gunned down for doing nothing more than enjoying live country music. I started off trying to read other stuff online, Facebook posts and job board listings. Everything seems hollow next to this. Tom Petty also died today but there doesn’t seem room in our minds for mention. Nothing against Tom but a whole lot of people just had their world turned upside down. Fixating on celeb deaths and sports feels so wrong.