Can deals sink a business?

Giving credit where credit is due for this post, I have to admit that I've grown rather despondent about dining out. Sure, it's easy as shit because there are plenty of days where the last thing I want to do after having my nose to the grindstone for a solid eight hours and spending 90 minutes commuting is to cook. The logical choice - because, let's face it, the 16 month-old ain't gonna cook - is to get back in the car and go out somewhere to grab a bite.

In my world full of harsh realities, though, that isn't really logical. The baby lacks my oh-so sophisticated palate (really, I scheduled a work meeting at Pizza Hut this week) so that means either planning ahead and feeding her before we run out the door or buying something that she'll eat a third of and throw the rest on the floor. Hey, at least it's not my floor but it's a huge waste. It's not like I grew up during the Great Depression but I don't balk at wasting food.

That's where coupons and the like enter the fold. My old lady and I do like to exit our dungeon for special occasions and because we're basically elderly shut-ins that means dinner and a movie (could we get any more cliched?). Our favorite choice for a top-notch suburban dining excursion as of late is Santorini in Eden Prairie, MN. To this day I've never paid full price for a meal there. It began with a few gift cards but being I'm totally cheap I bought a half-price deal-type gift certificate around Valentine's Day. Call me cheap and unromantic but it's a great way to spring for a damn good meal without emptying the wallet.

I have to wonder, though, if restaurants who participate in these half-price deals which seem to be offered by every damn radio station in the Twin Cities ever gain any repeat customers beyond that initial visit. There is a bit of a moral dilemma for me on a personal level - a certain number of coupons - not just for restaurants - pay at least a portion of my salary. I feel somewhat obligated to patronize these business if at all possible but it has to be for a service or product which I'm truly interested in or cannot find elsewhere for less.

The dilemma reared its head just the other day as I knew that my car desperately needed brakes (I had slammed on them when some jackass came to a sudden stop in front of me and that was their final hurrah). I called some of the places which are kind enough to pay my salary via their advertising dollars. Then I called my brother-in-law who is a mechanic. In the end he got the job done for half price - and yes he charged me $40 labor for an hour's work.

So do you feel it's good practice to patronize local businesses or do you the cheapest route possible without ever having to pay full price regardless of what it does to the owner's finances?

If you'd rather steer clear of my rambling topics, check out some truly amazing photos of Minnesota at MinnPics!

Why cooperatives and networks work

As I read this transcript about the evolution of news gathering and how the future involves cooperation, I was reminded of a conversation I had with my dad on Thanksgiving day. As we sat eating some late afternoon dessert, he casually mentioned how farms around theirs were quickly swapping hands. Be it auctions with others purchasing the land or simply a change in renters of the farms it got my mind running. I quickly did the math (as my dad has done numerous times) and realized the potential yearly income they were sitting on. Then, as we talked more, I realized what is happening around them.

It all clicked for me today after I read that link above. My dad had explained that the ever-escalating rent prices - as high as $310/acre - were possibly because a group of farmers spanning a distance of well over 20 miles had teamed up. The moderately-sized operators partnered with a grain elevator, a chemical/fertilizer supplier, an equipment dealer and a seed company and, with the backing of what I assume are wholesale prices for their supplies and a bank eager to toss out truckloads of cash, had quickly amassed over 20,000 acres of land with a goal of acquiring 30,000 acres.

To put this in perspective, the average size of a "family" farm in my parent's area ranges from 1,000-2,000 acres. Some is owned, some is rented. They typically own their machinery and operate on somewhat slim margins. My parents were paying $120/acre rent which, after 23 years of renting one farm, had finally put them in the black financially.

That kind of business (at that size it's far, far beyond the scope of a farm) would be impossible to run with just one family and a few employees. Even if the partnership were just the farmer pooling their collective resources it would still be impossible. Without an epic amount of planning it's a logistical nightmare full of potential problems. But when you factor in the logistical resources and technological knowhow of those ag-related businesses it becomes manageable. Every aspect of the operation, when the businesses are factored in, is instantly manageable because those businesses already have people on staff or know of people who have the skills necessary to keep the wheels of such a mammoth operation moving with nary a hiccup.

While a mega-farm like the one we discussed over pumpkin pie is most certainly the end for small farmers like my parents, it actually makes sense when looked at from a business perspective. It's typical of what's happening in every facet of business. Lean times mean slim margins. But those slim margins are margins of scale and if you can multiply them enough times - barring any sort of natural disaster - you have some rather impressive profits. That's exactly what these farmers - farmers who have fought the same yearly battles my parents have - have realized. With wise decisions and smart partnerships - those who don't take huge chunks of the profits - every business can survive.

But don't expect my parents to take up an offer for that sky-high rent when they retire. They would b surrounded by furious neighbors who would likely run them out of town. Sure, business is business but those friendships with those neighbors run generations deep. Eventually someone's feelings will get hurt but in any case it's just business.

If you want something less mundane, check out the photos at MinnPics. They are there to captivate you.

Divorcing a generation

If you're up for some reading today...

Dear Old People Who Run the World,

My generation would like to break up with you.

Read the rest of it here and see if any part of the "Generation M Manifesto" matches up with your way of thinking. I spotted one contradiction of sorts but, for the most part, it does seem to describe the way my generation (late Gen X - early Gen Y) views the world. Plenty of us have accepted the fact that we will be the first generation to not "do better" than our parents. We don't feel stuck but we are pessimistic at best because of this vast generational divide.

Our parents were the "big business is good" folks and we are the technology generation who are fast, nimble and flexible in our ways of working. Looking back ten years, I never could have imagined that my job would be where it is now. A world of interactivity and instant feedback seemed only a dream in 1999 but here it is and if you don't grasp it and become familiar with it, you'll be left behind in a cloud of dust.

I'm curious about you thought on the manifesto. Do you agree with it or totally disagree? Are there gaping faults with it?

And if you're so done with the written word, I suggest checking out the final day of the First Birthday Celebration at MinnPics. Dozens of photos made the cut and you should check them out because these are truly the cream of the crop in the days predating the existence of MinnPics..

The man is slowing your internet connection

This story opened my eyes. How many of you are reading this blog via a cable internet connection? Wow, that's alot of hands, you can put them down now.

The few big players who control cable television access (Comcast, Time Warner, Charter & Mediacom) sort of have the market cornered on internet access.

Now how many of you have read the fine print on your cable internet access contract? Yeah, not very many hands.

Did you know about the bandwidth caps Comcast and Time Warner have imposed? No? Well Comcast says they can essentially shut off your access if you go above the 250GB data cap. While that sounds like alot, it really isn't if you upload tons of photos and videos and stream TV shows from Hulu or purchase from iTunes. There are probably months when I get close to that magical cap myself because I stream or download TV shows I've missed and sometimes uploads gobs of photos to be printed or share those same photos on Facebook or Flickr.

How about people with a home office? My field handles especially large files. At my work office I routinely find myself downloading a hundred megabytes of files in a single day and if I ever took my freelance work seriously I'd likely dabble in somewhere close to that same amount of data per day with uploading and downloading files from FTP sites and so on.

The problem is that a handful of companies are trying to strangle the amount of data which a single household can upload/download all in the name of protecting the ass-rapingly large fees they charge for cable television. A few years ago their argument would have seemed ludicrous but with the advent of Hulu and the Apple TV box you no longer have to sit in front of your computer to watch that streaming television. It's now magically on your TV for those who care to invest a few hours and a couple hundred bucks. I've considered going that route myself.

The problem with the cable TV giants' argument is that relatively few people (currently) are crafty (or patient) enough to go the 100% streaming route and by capping data quantities the cable giants are stifling communication and business. They need to realize that they provide a lifeline and raping those who pay for it isn't good business. Telephone companies don't dictate how long I can talk on my landline with local calls so why should cable companies say how much use I can get out of my internet connection?

Don't worry about this tech-heavy post, the low-brow crap returns tomorrow and check out MinnPics because photos love to be looked at.

It's Inventory Reduction Clearance time!!!

Like anyone else, the economy is taking its toll on me. We've seen stores going out of business across the country. I took advantage of the Steve & Barry's in Burnsville, Minnesota shutting its doors to get my hands on 80 or so wooden hangers for 20 cents each. Earlier in the month of December I scoped out the bankrupt Linens 'n Things but found only odds and ends that they were unable to bargain on. Everyone's doing it. The jewelry store in Burnsville Center where my wedding band came from recently went out of business after about 6 months of inventory reduction/store closing sales. So much for them standing behind that lifetime warranty.

Even blogs aren't safe. I have a glut of inventory and no takers (or time) to move it out the doors. So I'm announcing today my very own inventory reduction sale. Every topic must GO!!! I've got old topics, new topics, odd topics, stupid topics. Express your interest in the topic(s) of your choice and I'll hand it over - no questions asked!!!

Is this the end? Will A Day in the Life be shutting its doors? Will this sale save my business model and pull me out of the dire financial situation I find myself in?

Whatever the case, MinnPics is actually adding inventory each day. Quality, American-made photos that you can believe in because they are hand-picked and captured by the best of the best. Visit today!

Is the Star Tribune going for broke?

Plenty was written earlier today about the story breaking via New York City that our local Star Tribune newspaper is teetering on the brink of full-fledged bankruptcy. Even more shocking is that Avista Capital Partners who bought the Strib just over a year ago for an already firesale price can't turn a profit after running the paper like a Nazi death camp where nobody is safe from the pink slip bandits.

So after reading this, you are probably asking "Sornie, what the hell does this mean for me? I mean, how the crap does this effect me?"

Well, if you are reading this, you obviously read blogs and if not plural you obviously read at least one blog. Your certificate of appreciation is forthcoming. Well, without the unholy behemoth of the Star Tribune, you would be missing news from one large portion of of the country and while I rarely read even the online Strib (anymore, I did up until a few months ago), it still (even in its currently-on-life-support status) covers the news. Sure, it does so with a far slimmer (and arguably far less experienced) staff, it provides plenty of news to the Associated Press (and thanks, guys, for that award back in 2000) who then funnels it to other large news organizations. Without that constant flow of breaking news, citizen-based journalism would devolve into blogs showcasing the antics of the writers' cats and children.

Let's face it, citizen-based journalism is a cool idea but in the long run you get what you pay for.

"Sornie, you didn't really answer much or even offer up a prediction, what gives?"

Alright, the Star Tribune (believe it or not) will actually be a model for newspapers of the future. Yes, a model for how to fucking ruin a profitable business by gutting the living hell out of it! The dolts behind Avista could write an Amazon.com best seller on the topic because they took something which they bought for half price and still screwed it up. Badly. It doesn't mean, though, that a Joint Operating Agreement is in the future nor is a world where across-the-river competitor Pioneer Press comes out on top.

The future for the often-hated Strib is anyone's guess but I'll venture out on a limb here and say that Avista will somehow manage to yank the paper out of potential bankruptcy trouble but what emerges will be sold but what is sold will be only the intellectual property because there is plenty of available office space to lease in some nearby suburbs and that downtown land is very valuable to the right person(s) and printing can be easily contracted elsewhere (Pioneer Press?). The Strib will survive but it will be a feable and weak (as opposed to lean and flexible) paper compared to where it is today. Again, a model of how not to run a business.