Ever Wondered Why Prices of Steel Kept Increasing?

To those in the construction industry, they must have heard the story. On what was the reason behind the increase in steel such as angle bars, common wire nails, etc. for use in the construction industry.

Before it was China making most of the demands for these products. And now it is the middle east who are consuming most earning lots from exporting oils worldwide, now it is their turn to use those earnings to developed their country by constructing more buildings.

The construction boom in middle east thus created a gap between demand and production capacity thus finds a need to increase. Do not ever wonder if steel will keep increasing.

As quoted by the Jeddah Chamber of Commerce and Industry

It estimated that the Kingdom requires at least 1 million new homes in the next five years to address population growth needs. Similarly the Ministry of Education has outlined a $4 billion plan to build another 4,000 schools.

Presenteeism Hurts Twice than Absenteeism?

According to New York times article, presenteeism hurts more than absenteeism does. The research was based on Journal of Occupational and Environmental Medicine that was published stating it decreases employee productivity by 60%, worst case it might infect and affect others.

But employment researchers, and employers themselves, are increasingly acknowledging that having sick employees stumble in to work and slog through the day - a phenomenon they call "presenteeism'' - is not just painful for the employees, but can also hurt the company, because ailing workers are unlikely to perform at their normal level and they may also infect others.

May this be true or not, gone maybe the days were when you are sick you would still report to work just to show to your boss how hard you work. Entrepreneurs or at least bosses right now already knows that instead of spending a day fulls pay while giving only 40 or 60% of yours (because of ailment) may not be a good idea. Any alternatives, might work like working at home communicating through email or any messenger device.
The challenge question right now, absentteism or presenteeism? Please comment.

The Challenge in Production

I must admit that I am not a real economy geek! Topics pertaining to economy is my weakest point. But somehow let me share to you some thing about it - the challenges of production or at least in any other industry such as marketing among others.

What is it? The Law on Diminishing Returns. It has been a major problem and needed to be fixed soonest. I had just realized after a couple of months in the family corporation I had been closing projects, opening new accounts, as well as most importantly maintaining new accounts. But hey, revenues were not increasing. Previously there were two on the sales team which produces an output say for instance of 6 (having average output of 3 per person), but when they were three output was still 6 (making average output per person to 2). This is a major problem and had came to realize that the law on diminishing has come to apply.

This has been a major issue in almost any other industry where people tend to think that having more people means more output. But taking a closer look at, one incapable person joined by another incapable person makes it two incapable person!

How to Hand a Card

We had witnessed it how many Westerners each year loses business deal just for one reason - improperly handling business cards to supplier or maybe partners.

Here are some tips on how to hand out a business card to people you meet.

• Business cards must be handed out with both hands, this is not just a Chinese culture. But a practicality that sends partner a message that you are serious about him.
• Business cards must be handed out where recipient can read easily. It must face the recipient not of the one giving it. Remember you are letting your recipient know your name.
• This part is interesting, provided if you are handing out cards at once. Supplier card must be on the lower part while the customers should be on top. This sends a strong message that you are putting high regards to customers more than yourself.

More tips? Share it with us on the comment button.

Events Management

By the time I am writing this, it was just a few minutes past after a full packed event our company had organize. I've had have some woes in events management before, normally of the confirming attendees only 60 to 70 percent arrived, much more sometimes only 40% arrived. But this event I organized is different, 30% more arrived.

This led me to conclude several tips to a successful events management, a product of lessons learned from the time I was still employed for over two years. The key? do it right! How?

- Send invitation personally 2 weeks before (visit them personally)
- After a week visit them again for their confirmees
- Three days before the event, remind them through telephone call (or email for IT companies)
- One day before the event, remind them rain or shine
- Half day before the event, send them SMS

The ballroom was on the opposite side of the coffee shop, but has to be extended to coffee shop to accomodate all participants.

Also, I feel that some people are annoyed with me for the constant nag and follow ups before the event, but who cares if that is the key for a successful events management. Right?

What The Customer Really Wants

I found this article from the Solo SEO Blog. The article explains why listening is important and why we need to be open minded. No further explanations needed, the image speaks for it as where miscommunications come.

China, a Global Inflationary Influence?

According to Ben Simpfendorfer, China strategist for the Royal Bank of Scotland:

"Where China was a deflationary influence over the last 10 years, it will be an inflationary influence over the next 10 years."

In the next ten years economists studied that China will be a global influence in inflation. Where during a time when Chinese wages is just about 4% of that in the United States, it has started to increase dramatically. Noticeably, Chinese export prices continuously went up compared to that of other Asian countries such as Malaysia, Thailand and etc. While properties went up to as high as 10%.

Bloated Dragon - Time Reports

Three Nights in the Life of Eric

At October 16, waking up early morning was pretty much fine. At about 7:30 in the morning I drove by to the office planned with my sales staff for the whole weeks that I will be out. We set task that he needs to accomplish while I am away. Wednesday is for him to visit and contact the accounts I am handling. Thursday was usual, he needs to visit several key accounts both new and existing and so on. At about 9 in the morning we zoomed in to the Mactan International airport for a 12 noon flight off to Hong Kong.

Three hours after we arrived, and proceed to ride a coach at the Hong Kong International airport. Two stop overs and about three hours we arrived at Guangzhou at about 7 in the evening. Guangzhou is the home of the biggest trade fair in the world the Chinese Export and Import Show formerly known as Canton Fair. At almost 8 hours in the evening we arrived at the hotel but could not communicate with the receptionist as they do not speak English and we do not speak Mandarin. Rule #1 in this article states that do not forget your Mandarin. Good thing some good samaritan around together with us at the counter offered for some interpretations.

The following day is the day we visited the trade fair site. The goal? Is to look for products we could possibly import to our country. Our business has been importing from China, Malaysia and Taiwan for several years now. For the whole second day, as the event is too big spreading around some 700,000 square meters area of about 40,000 exhibitors it would be so hard for us to finish. So, Rule #2 states that as you arrived at the show, go directly to the product you are looking for and after you may now spend the rest of the day looking for some other opportunities. Take note, prioritize first the product that you are more enthusiastic about.

Third day was still on the trade fair while continuing to watch the exposition. On the fourth day, checking out at the hotel carrying our luggages and proceeded to the MTR station for a train ride to Hong Kong. We stayed their for two nights and the hotel was four times higher than usual. It's peak season due to the trade fair and so is the price peaking. Rule #3 states that if there is no need for you to stay on a 4 or 5 star hotel then checked in at hostels.

The third day in Hong Kong we had already packed things ready to go home. And if there is one thing I could change in the whole course of travel, it would be my rule #4 that states do not sleep with someone in the room as all through the course of travel I had never really had a good sleep due to the full and masterful snoring volume of theirs. Crossing fingers, hope they won't read this...

Photos of the exhibit coming soonest!

Establishing Credibility

As a person on the era of high technology, sometimes it frustrates us when dealing businesses. Sometime I used to do inquiries to my credit card in the bank hotline but always got an automated answer that goes like this "our customer service representative is still busy at the moment, your call is next line please wait a moment..."

If all companies use answering machine, then a good way to establish credibility as a business in this era is to advertise "real people answering... give us a try us" or something similar which is different from the usual. Do you agree? If I am not mistaken, DHL did this kind of advertisement worldwide and has been highly successful.

Francis Kong shares his anecdote about his experience with answering machines that goes this way:

"If you are the telephone company I already sent the money. If you are my parents please send me more money. If you are my friends you owe me money but if you are a female… don’t worry… I’ve got lots of money!!!”

Doing Business with Relatives

One of the lessons I learned through the years is that one shall not or at least only do limited business engagements with a relative. In my personal experience, it turned out people that is not of the same blood lineage as yours supports more far better than how a relative engages business with you. Take these for instance, most of the time dealing with relatives ends up longer payment terms, and this does not happen only to our company but others as well. For service company they demand more free services.

There are several type of customers you meet along one that lets you earn and earn while the other one lets you earn and lose. Essentially they belong to customers who lets you earn and lose. Meaning for a transaction of say 10 you get a profit of 4, 4 is being consumed by the time you had spent just to make them happy. In fact, unconsciously you had already spent 6 for time spent.

A New Company Policy

I am now starting to think of a new company policy I got from an email. That policy states that:

“There are no sick leaves allowed. If you are able to go to the doctor, then there is no reason for you not to be able to go to the office.”

Please comment.

The world's most advertised product

The world's most advertised product is Coca Cola spending nearly $100 million dollar annually followed by Marlboro at second spot. While Coca Cola is happily sustaining its eye popping advertisement, Marlboro on the other hand had were having a hard time catching eyes to the general public. During its first few years of operation Marlboro's image is just so feminine, far cry from its present masculine image.

Why does Coca Cola spend that much? Simple, Because they want consumers to buy their products, and not of the competitor's. Similarly, a better tasting food will sell. But first, the consumer must know two things: that the food is indeed better, and that the food is available. Consumers generally learn these two pieces of information through advertising.

Media has come a long way. It is through the help of media - televisions, billboards, radios, bulletin boards, exhibits and others on why advertising exist. Through these media, the word convince and persuade is the key. It requires a rational appeal to another person's intelligence. Do not try to fraud advertise or fool. A good practitioner of advertising can convince a logical prospect to try a product one time. No more, no less. The word "try" instead of "buy" is also important. Although it is true that, in most cases, a prospect will have to buy a product in order to try it, a trier is a tester while a "buyer" is usually a steady customer. The best that your advertising can hope for is to get a one-time trier. From then on, your products are on their own. Either the one-time trier will like your produce better than the produce from his current source (in which case, you've made a new customer); or he won't like it better and will revert to his old source of supply (perhaps the local grocer). In that case, you've lost him until such time as a new variety, a new experience, or a new set of reasons is developed together with advertising that convinces him to give it another try. But your advertising has done its job: it convinced someone to try. Advertising does not make customers. Only products make customers.

Customer always comes first

The success story of Jollibee started in 1975 as an ice cream parlor, then later on after incorporating in 1978 began to add a variety of sandwich menus. It is under the undisputed leadership of the great Mr. Tony Tan Caktiong that Jollibee excelled to greater heights.

As quoted, Jollibee is one of the most admired companies in Asia accoridng to a research done by the Far Eastern Economic Review. I remeber how I felt when I went to their Regional Office in Cebu passing through the door with signage that says "Through this door pass the employees of one of the most admired companies in Asia". Its just so overwhelming to be a part of an organization that I always believe and say the epitome of a system dependent company. Which practically was the reason why with the same number of people giving on-time food service for only 1 customer still they can able to cater and meet the on-time service with 1,000 customers.

One factor of their success can be attributed to their Values, of course apart of their Mission-Vision. Never was a time that they practice and believe the value of "Customer is always right". But instead "Always customer first". It means attending and responding to their needs and getting back to them immediately. And how we make them feel we care. I personally agree because if you believe otherwise it might be a good reason that for some time now your company will shut down. "Customer is always right" on the otherhand means spoiling your customers giving them all they want even if it means shutting your company.