- RT @ramseyshow: RT @E_C_S_T_E_R_I_: "Stupid has a gravitational pull." -D Ramsey as heard n NPR. I know many who have not escaped its orbit. #
- @BudgetsAreSexy KISS is playing the MINUTE state fair in August. in reply to BudgetsAreSexy #
- 3 year old is "reading" to her sister: Goldilocks, complete with the voices I use. #
- RT @marcandangel: 40 Useful Sites To Learn New Skills http://bit.ly/b1tseW #
- Babies bounce! https://liverealnow.net/hKmc #
- While trying to pay for dinner recently, I was asked if other businesses accepted my $2 bills. #
- Lol RT @zappos: Art. on front page of USA Today is titled "Twitter Power". I diligently read the first 140 characters. http://bit.ly/9csCIG #
- Sweet! I am the number 1 hit on Ask.com for "I hate birthday parties" #
- RT @FinEngr: Money Hackers Carnival #117 Wedding & Marriage Edition http://bit.ly/cTO4FU #
- Nobody, but nobody walks sexy wearing flipflops. #
- @MonroeOnABudget Sandals are ok. Flipflops ruin a good sway. 🙂 in reply to MonroeOnABudget #
- RT @untemplater: RT @zappos: "Do one thing every day that scares you." -Eleanor Roosevelt #
Reputation Isn’t Everything
- Image by Getty Images via @daylife
I’m a code monkey by trade. Software development pays my mortgage.
I’m also–and separately–a small business owner and have been for years. I’ve actually got several side-hustles going, but only one of them is formal, organized, and incorporated as an LLC. A few years ago, a friend and I decided to go into business together, got certified by the state and start making some extra money.
I have recently discovered that two of the government agencies related to our business have been referring students to us. When our customers call the certifying organization, they are–at least some of the time–recommending us over nearly 200 of our competitors. You can’t buy that kind of marketing. At least, I hope you can’t.
How did that happen? How did two faceless bureaucracies decide that we were the company to recommend?
People talk. Over the last few years, we have worked to make sure people want to say nice things about us. What did we do?
1. We never lie. Our business is training. If one of our students asks a question I can’t answer, I admit it and promise to find the answer. Then, after class, I find the answer and email it to everyone.
2. We are reliable. If we schedule a class and just one person shows up, we hold the class. We have had classes with two instructors and one student. Our hourly rate sucked those days, but the students loved the attention and sent us business afterward. I’d never cancel if even one person is planning to be there.
3. We give it away. We give a lot away. If our customers have questions before or after class, we answer them. I spend time on related forums answering questions. Veterans take our class at cost. I try to give away at least as much value as I get paid for.
Now, this sounds like a sales page, but it’s not. I’m not mentioning the name of my company or even the industry, just so nobody thinks I’m trying to drum up business.
We have dropped a crazy amount of time and effort into building our reputation. With a firm foundation of knowledge and the 3 items I mentioned above, a good reputation is easy to build. A bad reputation is even easier. It’s been said that a happy customer will tell 1 person about his experience, while an unhappy customer will tell 100. Repairing the damage from the unhappy customer is much more expensive than just doing it right the first time.
Building a good reputation is absolutely critical for a successful business. Be ethical, honest, and helpful. Always be there when you say you will be, and try to give away as much as possible without actually hurting yourself. People will talk, so don’t give them a chance to say bad things without being liars themselves.
Reputation isn’t everything. You also need knowledge, marketing, and a product. Without a good reputation, however, the rest doesn’t matter.
Consumer Action Handbook
- Image by ivers via Flickr
The Consumer Action Handbook is a book published by the federal government for the express purpose of giving you “the most current information on all your consumer needs.” In short, the Consumer Action Handbook wants to help you with everything that takes your money.
The best part? It’s free.
The book covers topics ranging from banking to health care to cell phones to estate planning. It covers both covering your butt in a transaction and filing a complaint if things go poorly. It explains the options and pitfalls involved in buying, renting, leasing, or fixing a car. You can learn about financial aid for college and maneuvering through an employment agency. And more. So much more.
I’m not sure if you’ve noticed, but I spend quite a bit of time explaining scams and how to avoid them. This book has provided some of the source material for that theme.
It’s 170 pages on not getting screwed, either through fraud or ignorance. Every house should have one. Really, the list of consumer and regulatory agencies alone is worth the price of admission, which–if I wasn’t clear earlier–is $0.
To get yours, go to http://www.consumeraction.gov/caw_orderhandbook.shtml and fill out the form. You can order up to 10 at a time, so pick a few up for your friends and family. They won’t complain, I promise.
Anchor Price Your Salary
- Image by Dalboz17 via Flickr
Conventional wisdom says that, when negotiating your salary or a raise, you should make whatever crazy ninja maneuvers it takes to get the other person to name a number first.
Horse pellets.
Have you ever watched an infomercial? Those masters of of impulse marketing geared towards insomniacs, invalids, and inebriates?
“How much would you pay for this fabulous meat tenderizer/eyelash waxer? $399? $299? No! If you call within the next 73 seconds, we will let you take this home for the low, low price of just $99.99!”
That’s the magic of anchor pricing.
The first number you hear is the number you will base all further numbers on. If you hear a high number, other lower numbers will feel much lower by comparison. The number doesn’t even have to be about money.
There was a study done that had the subjects compare a price to the last two digits of their social security numbers. Those with higher digits found higher prices to be acceptable, while those with lower prices only accepted cheaper prices.
What does an infomercial marketing ploy have to do with your salary?
If you are negotiating your salary and your potential employer gives a lowball offer, every higher counteroffer after that will much, much higher than than it would otherwise. On the other hand, if you start with your “perfect” salary, they amount you will be happy to settle for won’t seem to be nearly as high to the employer. At the same time, you will be less likely to accept a lowball offer if you set your anchor price high.
For example, if you are looking to make $50,000:
The employer offers you $40,000. $60,000 seems too high by comparison, so you counter with $50,000, then compromise and settler for $45,000. Or, you could start at $60,000, making the employer feel that $40,000 is too low, so he counters with $45,000, leaving a compromise at $52,000. That’s a hypothetical $7,000 boost, just for bucking conventional wisdom and taking a cue from the marketing industry.
How have you negotiated your salary?
The Luxury of Vacation
This was a guest post I wrote last year to answer the question posed by the Yakezie blog swap, “Name a time you splurged and were glad you did.”
There are so many things that I’ve wanted to spend my money on, and quite a few that I have. Just this week, we went a little nuts when we found out that the owner of the game store near us was retiring and had his entire stock 40% off. Another time, we splurged long-term and bought smartphones, more than doubling our monthly cell phone bill.
This isn’t about those extravagances. This is about a time I splurged and was glad I did. Sure, I enjoy using my cell phone and I will definitely get a lot of use out of our new games, but they aren’t enough to make me really happy.
The splurge that makes me happiest is the vacation we took last year.
Vacations are clearly a luxury. Nonessential. Unnecessary. A splurge.
When we were just a year into our debt repayment, we realized that, not only is debt burnout a problem, but our kids’ childhoods weren’t conveniently pausing themselves while we cut every possible extra expense to get out of debt. No matter how we begged, they insisted on continuing to grow.
Nothing we will do will ever bring back their childhoods once they grow up or—more importantly—their childhood memories. They’ll only be children for eighteen years. That sounds like a long time, but that time flies by so quickly.
We decided it was necessary to reduce our debt repayment and start saving for family vacations.
Last summer, we spent a week in a city a few hours away. This was a week with no internet access, no playdates, no work, and no chores. We hit a number of museums, which went surprisingly well for our small children. Our kids got to climb high over a waterfall and hike miles through the forest. We spent time every day teaching them to swim and play games. Six months later, my two year old still talks about the scenic train ride and my eleven year old still plays poker with us.
We spent a week together, with no distractions and nothing to do but enjoy each other’s company. And we did. The week cost us several extra months of remaining in debt, but it was worth every cent. Memories like we made can’t be bought or faked and can, in fact, be treasured forever.
You’re not alone: Help with Bankruptcy & Debt
Frequently regarded as an indication of personal failure, bankruptcy is still today widely considered a highly sensitive topic. Many will even feel uneasy speaking about their debt problems with close relatives and friends. If you, too, are facing serious debt issues and are in need of help, rest assured you are not the only one afraid of sliding into bankruptcy. In fact, thousands of households in the UK are threateningly close to insolvency and most are experiencing the exact same feelings of shame and despair. This perfectly understandable reaction has, meanwhile, unfortunately overshadowed the fact that there are hands-on practical steps especially designed to help you resolve your debt situation.
There is a good reason why addressing the issue of bankruptcy has an urgent ring to it. Recent statistics indicate a steady rise of individual company insolvencies in the UK, particularly since the 1990s. According to the British Insolvency Service, the rate of bankruptcy on an individual level has risen from a total of 24,441 in 1997 to staggering 106,645 in 2007 in England and Wales. Alarmingly, the peak doesn’t seem to have been reached yet. As respected online-service ‘This is Money’ reports, ‘record numbers of people were declared insolvent in England and Wales’ in 2010, further noting that ‘an all-time high of 135,089 people were declared insolvent in 2010—0.7% up on the total for 2009.’ As you can gather from these numbers, you are certainly not alone with your debt problems: Around 140,000 adults are facing bankruptcy as a direct consequence of mishandling their debt issues, which translates to 385 new cases per day. It has already been pointed out that ‘the number of victims will be enough to fill both the London 2012 Olympic stadium and the Emirates Stadium.’
So, if you’re facing bankruptcy, there’s no need to feel ashamed. By taking an active stance and addressing your debt issues, you may even be able to avert insolvency altogether. With years of experience and several distinctions to our credit, the Debt Advisory Line have established themselves as leading experts in the field of debt management. We’ve already helped thousands of individuals and households who thought bankruptcy was their only option. Settling debt issues is our forte – and you shouldn’t settle with anything less.
This post brought to you by Debt Advisory Line.
