PASSIVE CREDIT CARD INCOME: I just noticed this on the Upromise site:
UPROMISE GAS REWARDS [Read more…]
Former blog
By pfdigest
PASSIVE CREDIT CARD INCOME: I just noticed this on the Upromise site:
UPROMISE GAS REWARDS [Read more…]
By pfdigest
A NEW WAY TO MANUFACTURE SPEND: A truly superb piece from Travel Summary about a new way to manufacture spend, and it’s tricky enough that it probably won’t die too quickly. Also, it involves sports and gambling. Go! Read!
$0.50 PER GALLON GAS DISCOUNT FROM THE FUEL REWARDS NETWORK: Here’s the link. All you need to do is spend $50 through their portal. I haven’t gotten around to trying out the FRN yet, does anybody have any experience with it? I’m wondering if it’s worth the time.
$20 OFF $100 FROM STAPLES: Here’s the coupon, my sommelier advises me that this would be an excellent pairing with the $25/$75 deal some Amex cardholders are getting.
HOW TO REINVENT YOURSELF: A nice read from James Altucher:
Here are the rules: I’ve been at zero a few times, come back a few times, and done it over and over. I’ve started entire new careers. People who knew me then, don’t me now. And so on.
I’ve had to change careers several times. Sometimes because my interests changed. Sometimes because all bridges have been burned beyond recognition, sometimes because I desperately needed money. And sometimes just because I hated everyone in my old career or they hated me.
There are other ways to reinvent yourself, so take what I say with a grain of salt. This is what worked for me.
How long does it take to reinvent yourself, you ask?
F) Time it takes to reinvent yourself: five years.
Here’s a description of the five years:
Year One: you’re flailing and reading everything and just starting to DO.
Year Two: you know who you need to talk to and network with. You’re Doing every day. You finally know what the monopoly board looks like in your new endeavors.
Year Three: you’re good enough to start making money. It might not be a living yet.
Year Four: you’re making a good living
Year Five: you’re making wealth
As somebody who’s been blogging for a just under a year, I’d like to sincerely thank my readers for indulging my flailing!
AMAZON CHANGES FOR THE WORSE: Amazon is changing things up, reports My Money Blog:
First, the minimum order size for “free shipping” has increased to $35 from $25. Second, it is officially getting slower:
With free shipping, your order will be delivered 5-8 business days after all of your items are available to ship, including pre-order items.
So not only will it take up to 2 weeks to get your stuff, that is only after every single thing is ready to ship.
And why is Amazon doing this?
Various media outlets have their theories on why this happened – higher shipping costs? Amazon about to record huge losses? Shareholder revolt? My interpretation: The loss-leader party is starting to wind down.
Up until now, Amazon has taken a “loss leader” approach to building up their business. Their margins are razor-thin… In 2012, they sold over $60 billion dollars of stuff yet still lost money. Why?
- To crush the competition. Is there any direct competitor to Amazon? Buy.com? Ha. There are some tech places like Monoprice and Newegg that have a loyal following. eBay is cheap but inconsistent. So we’re left with the brick and mortars – Walmart, Target, and Costco.
- To change your shopping habits. They also need to promote a huge behavioral change where when you need something you don’t think Walmart or Costco, you think let’s go on Amazon and just click and buy. It takes lots of repetition to gain that kind of trust and habit formation. Low prices and fast, free shipping will do that.
During this time, consumers like myself have been happily buying things cheaper from Amazon than anywhere else, from laundry detergent to diapers to hard drives. Why waste the time and gas going anywhere else? I’m afraid they are almost done giving out the free drugs. Are we addicted enough to finally allow them to make big profits?
It seems like they are switching to the Costco model. They want your $79 Prime membership fee, and then they hope to break even on everything else by giving you a nice solid low price along with free 2-day shipping.
Makes sense to me. Amazon is famous for not being particularly profitable, and the party’s gotta stop sometime.
I DON’T CARE WHAT THE OTHER BLOGGERS THINK: I still love you, 50,000 mile Lufthansa offer! Speaking of which, Barclay’s credit card marketing department seems to be active right now, so check your email in case you luck into a good offer. I received solicitations for the Wyndham and USAir cards today, though the offers were pretty lame.
AN EPIC BLOGGER SLUGFEST: In case you missed the epic slugfest between George from TravelBloggerBuzz and Rick from Frugal Travel Guy, they had quite a discussion in the comments in this post. (Rick’s alias is ‘ingy’.)
Speaking of TBB, in response to the free movie screenings discussed in yesterday’s post, he also recommended gofobo as another way to see films for free.
By pfdigest
As the saying goes, there are three big decisions to make in life: what to do, where to do it, and who to do it with. The “what to do” part, for most people, is equivalent to your career, and obviously your career has a big influence on your finances for a variety of reasons.
Which brings us to Amazon. There’s a fascinating cover story in the current Businessweek on Jeff Bezos. Check out this passage about his style:
His drive and boldness trumps other leadership ideals, such as consensus building and promoting civility. While he can be charming and capable of great humor in public, in private he explodes into what some of his underlings call nutters. A colleague failing to meet Bezos’s exacting standards will set off a nutter. If an employee does not have the right answers or tries to bluff, or takes credit for someone else’s work, or exhibits a whiff of internal politics, uncertainty, or frailty in the heat of battle—a blood vessel in Bezos’s forehead bulges and his filter falls away. He’s capable of hyperbole and harshness in these moments and over the years has delivered some devastating rebukes. Among his greatest hits, collected and relayed by Amazon veterans:
“Are you lazy or just incompetent?”
“I’m sorry, did I take my stupid pills today?”
“Do I need to go down and get the certificate that says I’m CEO of the company to get you to stop challenging me on this?”
“Are you trying to take credit for something you had nothing to do with?”
“If I hear that idea again, I’m gonna have to kill myself.”
“We need to apply some human intelligence to this problem.”
[After reviewing the annual plan from the supply chain team] “I guess supply chain isn’t doing anything interesting next year.”
[After reading a start-of-meeting memo] “This document was clearly written by the B team. Can someone get me the A team document? I don’t want to waste my time with the B team document.”
[After an engineer’s presentation] “Why are you wasting my life?”
You may wonder: what prompts him to behave like this?
Some Amazon employees advance the theory that Bezos, like Jobs, Gates, and Oracle(ORCL) co-founder Larry Ellison, lacks empathy. As a result, he treats workers as expendable resources without taking into account their contributions. That in turn allows him to coldly allocate capital and manpower and make hyperrational business decisions, where another executive might let emotion and personal relationships figure into the equation. They also acknowledge that Bezos is primarily consumed with improving the company’s performance and customer service and that personnel issues are secondary.
Not surprisingly, Amazon doesn’t do so great on employee retention:
Obviously it’s not entirely fair to compare Amazon to a company like IBM or HP that’s been around for a while and will therefore have a higher median tenure, but… one year? I suppose that’s better than the median employee tenure at Burger King, but that level of employee turnover would indicate that either HR is doing a terrible job of bringing in the right people, or that Amazon is doing a terrible job of retaining people once they’re hired.
Cartoonist Hugh McLeod created the following cartoon to explain how corporate hierarchies work:
In a wonderful post, blogger Venkatesh Rao elaborates on McLeod’s idea. Tying it back to William Whyte’s classic book The Organization Man, he writes:
Back then, Whyte was extremely pessimistic. He saw signs that in the struggle for dominance between the Sociopaths (whom he admired as the ones actually making the organization effective despite itself) and the middle-management Organization Man, the latter was winning. He was wrong, but not in the way you’d think. The Sociopaths defeated the Organization Men and turned them into The Clueless not by reforming the organization, but by creating a meta-culture of Darwinism in the economy: one based on job-hopping, mergers, acquisitions, layoffs, cataclysmic reorganizations, outsourcing, unforgiving start-up ecosystems, and brutal corporate raiding. In this terrifying meta-world of the Titans, the Organization Man became the Clueless Man. Today, any time an organization grows too brittle, bureaucratic and disconnected from reality, it is simply killed, torn apart and cannibalized, rather than reformed. The result is the modern creative-destructive life cycle of the firm, which I’ll call the MacLeod Life Cycle.
A Sociopath with an idea recruits just enough Losers to kick off the cycle. As it grows it requires a Clueless layer to turn it into a controlled reaction rather than a runaway explosion. Eventually, as value hits diminishing returns, both the Sociopaths and Losers make their exits, and the Clueless start to dominate. Finally, the hollow brittle shell collapses on itself and anything of value is recycled by the sociopaths according to meta-firm logic.
There’s much more to the post–I highly recommend it. It illuminates how modern companies function and goes a long way toward explaining the success of and adulation for the likes of Bezos.
By pfdigest
40% OFF ANYTHING AT LOWE’S: There are a couple of stackable Lowe’s deals you may be interested in:
FREE $5 FROM AMEX: Get a $5 credit from Amazon when you buy $45 of Amazon gift cards.
HOW TO GET FREE HOTEL ROOMS: Travel Is Free has a very helpful amalgamation of hotel Best Rate Guarantee resources.
OBAMACARE NUMBER-CRUNCHING: In John Mauldin’s weekly bulletin, he’s got a lot of interesting macro-type stuff on healthcare economics. For example:
A hospital system like the Cleveland Clinic currently bills about $18 billion for medical services and collect around $6 billion. (We do not know the exact numbers for the Clinic.) It costs such a system around $5.5 billion to provide all the services, and thus they are able to invest $500 million in plant, equipment maintenance, and new equipment at the Clinic. An institution like the Clinic gets this revenue by collecting from Medicare about $0.23 on the dollar billed, from Medicaid about $0.18 on the dollar billed, and about $0.38 on the dollar billed for the aggregate of commercially insured patients. We are sure this seems bizarre to someone from outside the US, and actually it does to us, too, but it is the way the system has evolved.
Very bizarre! I can’t think of any other industry outside of debt collection where you can only expect a third of what you’re owed.
Here’s a cost-cutting measure currently being put into place:
An article in Health Affairs indicates that in California the CALPERS system, the largest state-run health insurance provider, has gone to reference pricing in some areas – CALPERS gives employees $30,000 for a total hip or total knee replacement and lists the hospitals that charge less than that. Virtually all academic medical centers (those that provide care for the sickest, and those that train our future doctors, nurses, pharmacists, dieticians, etc.) fall into the high-cost group, and their share of the CALPERS patient population that has hip or knee replacements has gone from 54% to 35%, while the share for low-cost hospitals has climbed from 46% to 65%. (Only one high-priced group hospital in California converted to a low-cost group hospital in the past three years.)
The bottom line:
The prediction is these hospitals will be paid approximately 5% fewer total dollars next year and 25–35% fewer dollars in 2018, while treating a growing number of patients. Since more than 60% of their costs (in many institutes the figure is more than 80%) are for personnel, we either have to find ways to do things more efficiently, that is with fewer personnel to do the same amount of work (for example, as the Center for Integrative Medicine has done with the shared medical appointments for acupuncture or with the shared TrimLife Program); or to do things in new ways (to re-engineer care), as in the Lifestyle Medicine Program; or to do things with less-expensive personnel, for example, by substituting a medical assistant for a physician or nurse in some processes where a physician assistant is equally capable of doing those things.
There’s much, much more–please take a look if you’re at all interested in the current healthcare debate.
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