Category Archives: Business

Need a Little Help?

I have a couple of acquaintances who recently became available on the job market and I thought I’d share their information here in case anyone is looking for a little help.  If after reviewing their CV basics you’d like to contact either of them just contact me and I’ll send you their full resumes:

Friend A has a background in sales, work force development, sales
training, community development and multi-cultural logistics.
He is bi-lingual (Spanish/English) and spent many years in South America.  Recently he was the COO for a Piedmont area granite and marble company and before that he was the regional sales manager and office manager for a latino publishing & communications company.

Friend B has a background in computer sales and IS management.  Here’s the description from his last position: Duties include hiring and supervision of staff members in sales, service and business office. Further duties include consulting with Information Services staff, administrators, and manufacturers to develop and maintain institutional computing standards.  Develop sales strategies. Research and maintain current knowledge of new technology.  Manage multi-million dollar budget. 

Sorry, You’re Too Old for Us to Take Your Business

According to this article in the Daily Mail, a British company called Carphone Warehouse is not accepting business from people over 70 unless they are accompanied by a younger family member.  From the article:

The 75-year-old would only be allowed to sign the forms for the
Carphone Warehouse’s TalkTalk phone and broadband package if she was
accompanied by a younger member of her family who could explain the
small print to her.

Mrs Greening-Jackson, who sits on the board of several charities, said:
"I was absolutely furious. The young man said, ‘Sorry, you’re over 70.
It’s company policy. We don’t sign anyone up who is over 70.’

And later:

When her case came to light on Radio 4’s You And Yours last week, Carphone Warehouse admitted it had adopted an over-70 rule.

But the firm insisted it was not a blanket policy and claimed the
guidance was to protect the elderly. A spokeswoman said: "It is not our
policy to refuse business from adult customers of any age group.
However, we do ask our agents to use their discretion when dealing with
older customers."

She added that the discretionary rule had been introduced in response to complaints that staff had mis-sold products last year.

Now if what she says is true, that they put a discretionary policy in place to try and prevent someone who’s clearly not right in the head from entering a contract, then I can kind of understand their motivation.  My question for them, though, is how did you figure 70 is the right age, and why in the world didn’t you just make it a blanket policy for all ages?  After all, I’m fairly certain they see their share of young people who aren’t right in the head and need to be protected from entering into binding contracts.  All you need to do is look in Parliament there, or Congress here.

Coopetition Defined

The Winston-Salem Journal lost power at their production facility the other night so the Greensboro News & Record stepped in to print about 17,000 copies for them.  The two papers have a standing agreement to help each other out in circumstances such as these, which is good business for all concerned and the true definition of "coopetition."

Update: The Journal’s editor writes about it here.

Glad I Didn’t Do It

Some times being a conservative investor really pays off (my investing conservatism is analogous to Jesse Helms in politics).  As I wrote last month I was invited, along with a few hundred thousan other customers, to invest in Vonage at a bargain $17/share when the company went public.  I decided not to invest and man am I glad.  The Vonage offering has been one of the biggest busts in recent memory and now the company’s pre-public investors are suing the company over the whole fiasco.  Now as long as my mattress doesn’t burn I’ll look pretty smart.

Executive Pay

Malcolm Gladwell has a short post about executive pay that is interesting in and of itself, but the comments on the post contain the most interesting information.  A PERFECT example of how the blog platform can be so effective for sharing information.

Here’s what Gladwell posted:

After
reading the article in the New York Times yesterday on the hundreds of
millions of dollars in compensation given over the past few years to
the CEO of Home Depot, I ran across this: in 1949, the highest paid CEO
in America was Charlie Wilson of General Motors, who earned $586,100 in
salary, bonus and stock. That’s roughly equivalent to what some of the
better-compensated CEO’s are making today.

But what did Wilson pay in taxes? $430,350.

Times have changed.

Some commenters were questioning whether the tax rate could really have been seventy-something percent and others pointed out in1949 the top tax rate was indeed 82.13% and it went up to 92% a couple of years later.  Yikes!

The commenters also debate whether or not CEOs should make so much more than the average worker, why the US was so economically well off in the post-WWII era, and a few other interesting tid-bits.

Good Business at Greensboro’s Bistro Sofia

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In April I wrote a blog called Bad Business at Greensboro’s Bistro Sofia, and it referenced a blog post by a woman named Sarah Jones in Greensboro who had a negative experience at Bistro Sofia which included some alleged anti-semitic comments by a waiter and a bunch of other stuff.  My main point in writing the post was that it was amazing how the woman’s story spread thanks to her blog and the fact that it was noticed by a prominent blogger named Ed Cone and then picked up by at least one other blogger in another town in the region (that would be me).  I also pointed out that since Google loves blogs my post might get a high ranking for the search term "Bistro Sofia." Sure enough a month later that post now comes up third with that keyword.  Which is why I eventually came to the attention of Kerrie Thomas, the restaurant’s general manager.  He left a comment on the post and that started a very good email correspondence between us.

Long story short I was not at the restaurant and I don’t know which version of the story is most accurate, but I wanted to say that Kerrie has made a very smart business move by addressing the issue (not wishing it away) and his correspondence with me has been very professional and, I think, forthright.  Kerrie wrote a letter to me explaining their stance on this issue and I am posting it below with his permission.  I think it offers a good lesson in modern PR for any small business.

I’d also like to say I’ve learned a valuable lesson myself.  Sometimes I feel that I’m writing this only for my own entertainment and for an audience of a few friends and family.  The truth is that I never know who’s reading and I have to be careful how I write.  After the correspondence with Kerrie I realized that I neglected to say that the events described were alleged to have happened.  Ed Cone, who is a professional journalist, didn’t make that mistake and I consider it a valuable lesson learned.

So without further ado here’s Kerrie’s letter.  I think it’s worth the read:

To Mr. Jon Lowder:

From Kerrie Thomas

As
briefly as possible I’d like too address the issues raised in the
blog you reference on your sight.  I feel it is critical to note
that the story we know is in stark contrast to the one we read.

First,
the remark made to the couple by their server (and it is our contention
that the exact words of the exchange were quite different than what
has been asserted) was, regardless, poorly chosen and unfortunate. Their
server, even as he recounted the details of their evening, was unaware
that he had in any way offended them and most certainly hadn’t intended
to come across in such a way as to do so.

It
is also important to note that when the remark was brought to my attention
by Mrs. Jones that evening (when she called in reference to the charge
amount) and I asked her what he said that might have been “off color”,
she said that it was a conversation for another day. I immediately apologized
for whatever it might have been and promised to speak to their server,
Joshua, about it at the end of the evening. I also asked if we had taken
care of her otherwise, to which she responded that the food was wonderful
and everyone was really great (or something to that effect).

When
Mrs. Jones emailed the owner, Beth Kizhnerman, the following morning
and we were apprised of what she thought Joshua had said, along with
several pages detailing her entire experience from the moment she walked
in, Beth responded with a written apology. She assured her it was a
misunderstanding, Joshua was truly sorry and that he felt awful about
it.

Second
is the issue regarding the charge amount. When processing the Jones’s
card, Joshua hastily and unwittingly added an extra digit to the amount.
When it was brought to his attention, he apologized, immediately adjusted
the transaction to the correct amount.  Then, he informed the Jones’s
that if they view their account online, the original “charge” will
show up as an authorization amount but will disappear after a couple
of days. Also, if the hold on the account might cause any problems (the
bank will treat that electronic contact from our processor as a hold
regardless of it being adjusted on our end) she should call them, the
bank will then call us and it will be eliminated. It was obviously an
honest mistake and he instructed them on how to properly take care of
it were it to become a problem.

When
Mrs. Jones called soon after their departure that same evening, I was
as yet unaware of anything going awry at her table and thought we had
a good rapport through the evening. She said that they enjoyed their
meal but didn’t think it was worth the $1200.00 that she was viewing
online in her account. Well, of course not. I assured her that we certainly
would not process her card for that amount and it would be taken care
of (not knowing it had already been adjusted). She said it was a debit
card and would cause all sorts of problems. Therefore, I said she would
have to call the bank to have it cleared from her account (because it
isn’t possible for me to discuss her account with the bank). I also
said, reassuring her, that if in fact she had any problems, incurred
any charges or fees whatsoever; we would completely take care of them.
(Conveniently absent from her story). I’m also sure that I apologized
for the error. A few minutes later the bank called to confirm the error
and the authorization amount was cleared.

I
did follow up with Joshua at the end of the shift and asked him to recount
exactly everything he said to the table. It was not in a threatening
way and he had no reason to not speak truthfully to me, especially since
he had no idea what “off color” remark he might have said. 
In the recounting, yes, I realized what she would have been taken aback
by regarding their exchange and I let him know then that it could easily
have been misconstrued. It was careless and he needed to apologize. 
I told him that when we invite them back in, he would be taking care
of them and buying them dinner. To which he said, of course, he would
be glad to.

I
made a note to call her back the next day to follow up on what she had
said about an “off-color” remark. That call, of course, was preempted
by the lengthy morning email Mrs. Jones sent to Beth.
   

The
incongruity of the story is so striking because her version is hyperbolic.
A wonderful experience/a horrible experience.  Characterizations
of our attitudes or about any pretension are just nonsense. Yes, errors
were made by us, they were apologized for multiple times and they were
fixed. Beth apologized to Mrs. Jones in response to her email because
Mrs. Jones sent the email to her personally. There is no higher authority
to apologize to her than the owner. Mrs. Jones at that time seemed satisfied
with the response from Beth and if she wasn’t, she most certainly
could have told us otherwise.

Beth
and I have both since emailed Mrs. Jones personally regarding her disseminating
the story. She has yet to respond, save to say on her blog that she
received a couple of “ugly emails” from Bistro Sofia.  That
is neither a fair nor accurate characterization of them but, once again,
good storytelling. We noted in the posts to Mrs. Jones’s blog many
hateful, inflammatory remarks about our restaurant by people who don’t
even know us and similarly disparaging remarks in subsequent broadcast
emails by folks referencing the blog. An alarming bit of brouhaha over
a single dining experience, especially considering the unadorned story
and the many apologies made to Mrs. Jones. We are nothing like the picture
she paints; it’s a shame that she doesn’t recognize it.

Since
you were referencing it in your blog we thought you should know this.

We’re
an independent, hard working, conscientious, honest, caring group of
people (and anyone familiar with the restaurant is well aware of it).
And, ironically, the restaurant is Jewish owned. We can’t speculate
on Mrs. Jones’s motivation but we hope she will reconsider keeping
that entry on her blog.

Please let me know if you have any
questions.

Thank you for allowing me to write
you.

Kind regards,

Kerrie Thomas

General Manager

Bistro Sofia

Postscript: 
It might be important to note that Mrs. Jones says that while checking
her account later she thought we didn’t charge her at all and then
a couple of days later we did. In fact, nothing else was done regarding
the charge after my conversation with her and the bank the night she
was in.  It was normal bank processing after that.

Old Is Relative Until You Are, Old That Is

A couple of recent events have made me realize how old I’m getting and how un-hip or un-cool I’ve become.

I’m trying to get back into tennis after a bid of a break over the last couple of years.  I entered a tennis ladder and I’ve now played four guys.  The oldest was 70 and I would have sworn he was 58, tops.  Then he told me that if we got to a third set I’d have to be responsible for the score because he’d be tired and hi memory would go kaploot.  When I realized he wasn’t joking it hit me that he really was 70 and I was feeling a litle whipper-snapperish.  It didn’t last long.

I played the youngest yesterday; his mom had to give him a ride to the court because he’s not old enough to drive.  It hit me that he’s only two years older than my son.  I told him that if we played a third set he might have to keep score and/or carry me off the court, but he didn’t get it.

He was a bit shy so during changeovers I’d try to get him to talk.  I finally succeeded when I asked him if he’d gone to a Green Day concert (he had on a concert T) and he said, "Uh, yeah."  I mentioned that I’d seen a tape of a live show they’d done in a bar and the bass player broke his nose (hit himself with the bass while he was jumping around) and kept on playing.  He asked when it had happened I said some time in their early days and he said, I quote: "Wow, that was like way back in the 80s wasn’t it?"  It occured to me that he wasn’t alive in the 80s.  Sheesh.  And he beat me.  Crap.

So that was one event.  Another was when I started thinking about my cool-quotient in terms of technology.  I always thought of myself as being slightly ahead of the curve…I mean hey, I blog.  But then I realized that I’ve never:

  • Edited video on my computer.
  • Put together a playlist for an MP3 player, much less carried an Ipod.
  • Played a video game online.
  • Played a video game on my kids’ Xbox.
  • Gone to a tech convention.
  • Sat in a navel-gazing seminar on "new" media.

So I’m decidedly un-cutting edge and I’m actually quite comfortable with it.  That must mean I’m getting older.  Other signs include:

  • Bathing suit models are beginning to make me uncomfortable because they aren’t a whole hell of a lot older than my daughter.  The term "dirty old man" permeates my brain.
  • Ear hair.
  • Nose hair.
  • Beginning to not care that when I take off my shirt the term "Austin Powers" pops into everyones head.  My cousin, Jeff, didn’t stop at thinking it.  He blurted out, "Damn, Jon, you’ve got the Austin Powers rug thing going on."  Used to care, now not so much.
  • Beginning not to care that my hairline looks like a satellite image of Brazil’s coastline.
  • I’m making fun of pop culture.  A lot.
  • I hate American Idol with a depth of passion that I used to reserve for sanctimonious a-holes.

You get the idea. The bad news is I’m not even 40 for another four months, which means I need to get a grip, or at least a little perspective.  Anyone know an octogenarian up for some tennis?

Raymond May Be a Greedy SOB, But High Gas Prices Aren’t His or Exxon’s Fault

There’s an interesting column over at Motley Fool about how we really can’t blame the oil companies for high gas prices.  The writer, Glen Kenney, works at an oil refinery and does think that ExxonMobil’s retirement package for its outgoing CEO is wrong.  Here’s what he said:

Exxon did increase its profits fourfold during Raymond’s tenure, and
he did make the right call in acquiring Mobil at depressed prices,
making the newly formed ExxonMobil the world’s richest company. Some of
this good was due to Lee Raymond’s guidance, for which he should be
recognized, and some of it was merely the luck of market conditions
that would have happened had Donald Duck been CEO.

The ExxonMobil board of directors gave Raymond a retirement package
worth at least $400,000,000. That’s a lot of zeroes. That’s probably
more than the combined retirement packages of all the employees where I
work. Do I personally think he, or anybody else, deserves that kind of
money? No! NO! A thousand times NO! Is he worth that much
money? Yes. The bottom line is this: Whether it’s a CEO’s pay or an
athlete’s, it’s a free market. The person is worth whatever somebody is
willing to pay for his or her services.

Did his huge paycheck increase the price I pay for gas? NO again! I
saw in Exxon’s annual report that they have a total refining capacity
of 6.2 million barrels per day. At that rate, Raymond’s retirement
package cost less than half a cent per gallon, if it were paid for in
just one year.

Now, even though I don’t believe it cost me anything, his retirement
package was a slap in the face and an insult to all us working stiffs
out here. I feel the same way about the athletes who sign the
$250,000,000 packages, or who get the $50,000,000 endorsement checks.
(But perhaps if I could hit a baseball 500 feet 70 times a year, I’d
change my mind.) I’d like to see the ExxonMobil stockholders send a
strong message to their board of directors, declaring they
won’t support any more insults like the Lee Raymond incident.

It is a slap in the face when an executive gets that kind of compensation.  I have no problem with people getting paid lots of money; that’s what the free market is all about.  The real problem I have is when people get outsize pay for what they’ve accomplished. Can we honestly think that one person made that large an impact on an organization?

But there’s a remedy for this situation in the free markets as well: shareholders.  If I were a shareholder in ExxonMobil I’d be gunning for every member of the Board right about now.  What they’ve allowed to happen is outrageous and in the long run it will most likely hurt the company.  There will come a rainy day when that $400 million would have been nice to have in reserve.

And as far as gas prices are concerned Mr. Kenney thinks we’d do a whole lot better spending our energy looking for ways to decrease the demand for oil rather than beat up on the providers.  I’ve read the same over at Boyd’s blog and I tend to agree with them both.

We Can Trust Them, They’re Working for National Security

Here’s an interesting tidbit from BusinessWeek:

President George W.
Bush has bestowed on his intelligence czar, John Negroponte, broad
authority, in the name of national security, to excuse publicly traded
companies from their usual accounting and securities-disclosure
obligations. Notice of the development came in a brief entry in the
Federal Register, dated May 5, 2006, that was opaque to the untrained
eye.

Unbeknownst to almost all of Washington and the financial world, Bush
and every other President since Jimmy Carter have had the authority to
exempt companies working on certain top-secret defense projects from
portions of the 1934 Securities Exchange Act. Administration officials
told BusinessWeek
that they believe this is the first time a President has ever delegated
the authority to someone outside the Oval Office. It couldn’t be
immediately determined whether any company has received a waiver under
this provision.

Honestly if I’d read this a week ago I probably wouldn’t have paid attention, but since I just finished reading “Conspiracy of Fools“, which is a detailed look at the Enron/Andersen debacle, I have to say I find this development disturbing.  You see I used to assume that for the most part if you were a c-level executive at a Fortune 50 company you’d at least be smart and pretty good with management and financial basics.  I also assumed that their auditors would catch on to any really serious malfeasance. This book cured me of those delusions.

I also always assumed that every company had its crooks, and that every company does whatever it can to jack up its financials, but I never imagined that the crooks, especially the stupid ones, could climb so high and not be caught. 

So we only have to look back five years to see a spectacular example of how bad companies can behave, and how lax the oversight can be in the higher reaches of corporate America, and yet now we have the administration potentially providing a cloak of secrecy  to these  guys?  Why give an exemption?  Why not just get some auditors with top-secret clearance?  And why delegate the authority to your chief spy?

Who am I kidding asking these questions?

Lewisville Businessman Selected to Participate in Vonage IPO

That headline sounds impressive right?  Until you consider that all Vonage customers who meet certain criteria are invited to participate in Vonage’s IPO.

This morning the "Lewisville Businessman" mentioned in the headline, that would be moi, had a voice mail from the Vonage folks re. the IPO.  The message pointed me to www.vonageipo.com to see if I qualified for inclusion in the IPO.  So I visited the page and clicked on the button to register and was directed to this page which listed the following criteria I need to meet to participate in the IPO:

  • You opened an account with Vonage on or prior to December 15, 2005.
  • You have maintained your Vonage account in good standing through February 1, 2006.
  • You are a U.S. citizen.
  • You will be a U.S. resident as of the date of the consummation of Vonages initial public offering.
  • You have a valid U.S. social security number.
  • You are a natural person. No entities, such as companies and trusts, are eligible to participate.

                Other conditions to participation also may apply.

The one about being a "natural person" worries me because, you know, sometimes I get that "not-so-natural" feeling…but I digress.  This is my first opportunity to participate in an IPO which means I’m a little worried about Vonage’s future.  I mean if they want me then there has to be something wrong, right?

***Update 5/31/06*** I’m very glad I didn’t go for this deal.  Here’s a NY Times article that describes the IPO as disastrous.   Here’s an excerpt:

Vonage,
tarred by a disastrous initial public offering last week, is scrambling
to reassure investors. The company, which provides Internet phone
service, said yesterday that it would reimburse the bankers who handled
the sale if any Vonage customers refused to pay for shares that were
allotted to them.

Vonage gave its customers a chance to
buy as much as 15 percent of the 31.25 million shares that were offered
last week. About 10,000 of the company’s 1.6 million customers
ultimately received shares, which were sold at $17 each, according to a
person briefed on the deal. Customers had until yesterday to open an
account with a specified broker and pay for their shares.

Some
customers who participated in the "directed share program" were
reluctant to pay for their shares after the stock fell. The shares have
lost more than 26 percent of their value since their debut last
Wednesday. They fell 52 cents, to $12.50 yesterday.