Hi Penny

I am just responding to the comments about the whole defense thing. I live in Ireland and we've had terrorists/freedom fighters here for a long time. Although thank God peace is growing steadily. Terrorism does represent evil and their actions are wrong. Who can justify indiscriminate bombing, murder and mayhem? But I believe terrorism comes from people who feel that they have no other way to make their voices heard. Perhaps they have tried (as they see it) the democratic route and they were simply shot down. Also if we respond to terrorism with injustice and torture how are we any better? Evil can only ultimately be defeated by good. Of course we must defend ourselves but ultimately the war on terrorism will be won by eliminating the root causes..poverty, inequality, racism, injustice. Not by creating faster better killing devices.

Anne

Erik, what a fantastic idea! That's the type of brainstorming I love to see - getting inspiration from your surroundings! Yes, that would definitely be a money-maker. Plus, you would be making the environment better, so you (and a lot of other people) could sleep better at night (and maybe live a little longer? <smile>)

The question is what type of problems plague these buildings? Chemical? Foundational? The thing I love most about brainstorming is that sometimes you find a large problem that may have a very, very simple solution. Maybe you can find or research a chemical that can remove toxicity from older chemicals used in construction. Maybe there is a type of ultra-violet light that can make something safe again. Maybe planting certain plants within the buildings could re-process the air that the chemicals are polluting. Of course, I have no idea what these things could be, but your idea is fantastic. Now, we just need to see if another brainstormer out there has a solution!

And yes, Erik, there IS an mp3 player for you - the fifth and last one for this month. I'll call and get your address for shipping!

Penny

P.S. I'm thinking about offering one MP3 player every month. The winner will be drawn from anyone who leaves a brainstorm or response to the contents of Brain Storm that month. What do you think about that?

Dear Penny,

I just listened to your show, great show. I wanted to send you an idea or "brain storm" concerning environmental services. I work in Seattle, Washington and like many large city you have buildings that are 35+ years old that were build on the "fast track" and are not in the best shape. If a company could come up with away to turn all these buildings into green building. I know in washington they could make a lot of money. Feel free to use this for your next show. And if you have an extra mp3 player I would greatly appreciate it. I look forward to your next show, I have subscribed to you show.

Best regards,

Erik Davenny

Anne, no you're not the only one, I'm sure. I think that people are just split between hating the death and destruction of war and fearing terrorism's death and destruction on their own soil. I may be wrong, but it always seems to be the lesser of the two evils. Fight them there, or fight them here.

Economists have always showed that war does boost economy, and businesses take advantage of that fact. Whether for aggressive or defensive purposes, military will always be a necessity in our world, as it has been throughout history. Those entrepreneurs whose beliefs lead them to believe that they are benefitting a good cause by providing better intelligence tools and physical protection from enemies can, from a healthy conscious, pursue those interests and benefit economically.

On the other hand, I believe that entrepreneurs who believe that non-military action is the answer would benefit by researching and developing technological and alternative solutions that would render military force obsolete. I'm not actually sure what this would be, or how this would look, since I believe that war starts in the hearts of men, and that those predispositioned to ignore or violate the rights of others will continue to feel and act that way unless they have a complete change of heart/mind/spirit. I don't know if technology can do that - unless we find a way to brainwash everyone to respect other people's rights and boundaries, and to treat everyone else as they would be treated themselves.

Anne, do you have any ideas about possible solutions? Sometimes I daydream about taking people who violate other people's rights and placing them all in one location, where they can do whatever they like to other people who are just like them (sort of like the movie Escape from New York...) Only people who respect other people's rights could live out in society. That's kind of like jail, only we don't pay for their lodging and meals and health. I mean have an entire colony or state or planet for these people where they have to work and support themselves, and live in their own society and have their own government and can do whatever they want, as long as they stay there. Put an impenetrable bubble over it or something...(smile)

But you and I both know that will never work, because those types of people only want what they can't have, and they would all work to get back out of the bubble so they can take advantage of other people, or just plain take them over. Just my two cents.

Penny

BTW...You are the winner of the 4th MP3 Player, Anne. Please forward me your address via the QMTP message center on the top right of the page, or via email.

Am I the only person who finds it really depressing that Defence contractors are really big winners...that we are becoming a world driven by fear, that we are applying our amazing human ingenuity to more creative ways to kill and maim each other.

Hi Penny
I am just responding to the comments about the whole defense thing. I live in Ireland and we've had terrorists/freedom fighters here for a long time. Although thank God peace is growing steadily. Terrorism does represent evil and their actions are wrong. Who can justify indiscriminate bombing, murder and mayhem? But I believe terrorism comes from people who feel that they have no other way to make their voices heard. Perhaps they have tried (as they see it) the democratic route and they were simply shot down. Also if we respond to terrorism with injustice and torture how are we any better? Evil can only ultimately be defeated by good. Of course we must defend ourselves but ultimately the war on terrorism will be won by eliminating the root causes..poverty, inequality, racism, injustice. Not by creating faster better killing devices.
Anne

Bill, great insights! And yes, the retail world would be in sad shape if it was depending on me for revenue. However, the domain name people, fruit and herb tea suppliers, and Circuit City seem to be making up for it by successfully taking the bulk of my money! <smile> I am shameless in how I purchase without much concern for cost when it comes to technology and things for my business, and yet, if you go grocery shopping with me, I'm checking the price per ounce of EVERYTHING at the supermarket!

Anyway, in regard to my interviewing some of these companies, I have seriously considered that...I just get sidetracked by focusing on the businesses at hand. But there are a few that I think really deserve attention. I'll work on that, Bill!

Lastly, your comments made great sense. I loved the analogy about the coffee machine - describes the concept so well. You can therefore afford to lose some monies up front (as the cellular phone people SUPPOSEDLY do) in return for long-term contracts and consumable sales. Very nice.

Thanks again for taking the time to comment, Bill. You are officially the winner of the 3rd MP3 player. Who will win the last 2????

Penny Haynes, 1st Podcast Publishing

Thanks for a most informative edition of your podcast magazine “Brainstorm”. What a wealth of ideas can be contained in a half-hour programme. This really is the sort of material I’d love to listen to on an in-flight audio channel.

The piece on the construction industry was interesting because it emphasised the importance of specialising and knowing your market. This has a double or triple value, in that not only are you an expert in what you do, but you become an expert in what your customers do as well, even sometimes to the point of knowing more about their business than they do themselves. After all, you, as a company specialising in that area, will see and will know in depth a greater number of businesses within the sector than your customers will. Of course, you treat all such information gained from their competitors confidentially, but nevertheless, you build up an expertise in how a particular sector works so that you can be more valuable to your customers. The effect of trust and word of mouth recommendation can be astonishing. This ties in completely with Pacific Paving Stone’s strategy of cycling customers through a series of services, products whether provided by yourself or by affiliate companies. The point is, as was said, to be a one-stop-shop. Again, trust is a key element in building up this kind of rapport with your clients.

Consumables are interesting. One thing which wasn’t mentioned is how the consumable item can be used as a mechanism to finance the capital purchase of equipment. On a small scale we see the common example of the office coffee-making machine which is given free by the coffee supplier, and is in fact of course paid for by the long-term contract to supply the coffee. It is also, of course, a means of tying your customer into using your coffee. On larger scale, we can imagine all kinds of industrial capital equipment whose purchase can be at least partly financed through the supply of the consumables materials that this equipment will use over a life of perhaps ten years.

The sliding scale of fees has been often seen in the sports world. A European soccer club recently signed a new 16-year-old player for several million dollars, which was, frankly, a bargain price for this very promising talent. But still, he was untried, and so something of a gamble. Therefore, in the contract, there was a clause which meant that the selling club would go on for several years after the transfer of the player receiving income based on his number of appearances for his new club. Sliding scale: great idea ! In the business world, it also shows a commitment to your new, and growing, smaller customers. It’s as if you’re showing faith and confidence in their ability to succeed. They’ll like that.

Finally, it’s a good thing for the business world that not everybody in the consumer world is like Penny, with no camera and only one purse ! Penny: why not try and do some interviews as a part of your podcasts with some of the key personalities from the successful companies you mention ?

Bill, UK

(Mary McDonald's response to the question: Do your sliding scale clients make up the difference later on, or do you just give them a discount early on, period? )

They qualify for a reduced fee in the beginning with the understanding that they will go to full rate. No, I don't make up the 'lost revenue' -- but these clients are the most loyal I have since I was willing to work with them when they didn't have a lot; one of those clients has turned into a rather sizeable account! I consider it my 'pay forward' as well as my 'marketing costs'.

Mary McDonald, CEO McDonald Consulting

Rolando, that's a great point - a consultant who is confident that he can help a client succeed inspires confidence in the business owner. This is because the consultant will work at somewhat of a loss unless the customer prospers, and will not recoup the additional fees if the conditions of the agreement are not met (if he doesn't help the customer as promised).

And you are the winner of the 2nd mp3 player!

Penny Haynes

If I hire a consultant who uses the sliding scale scheme with me, I will always take it that he knows what he is doing, that he is quite confident that my business will be around at least until the time he gets back the rest of his fee. I am contemplating on going the consultancy biz too and I just might use a sliding scale. Insightful pocasts by the way.

Rolando M. Asis, Jr.

Thanks for the input, Mary! You, of all people, would be a great person to ask about this, with your specialty as a Process Improvement consultant. I do want to stress, though, that I mentioned a 25% (not 75%) discount at the beginning (75% is like kamikaze suicide! (smile)). Do your sliding scale clients make up the difference later on, or do you just give them a discount early on, period? AND by the way...You are the winner of MP3 #1! Congratulations!

Penny Haynes

Sliding scales - yes, I use them already with my clients. I don't use as radical a sliding scale as you are suggesting (75% discount at the beginning) since I think that the client needs to have a bit more 'skin' in the game. I give a 30% discount for struggling companies at the beginning - and since I do process improvement consulting, they can quickly recoup their investment through less scrap, waste, and more efficient processes!

Don, what a GREAT insight on your part! I guess I was too much INSIDE my thoughts to see the disparity in my thinking! (smile) You are very right! I should not discount the Staffing Company that staffs the new Walmarts, nor the Consulting company who snagged Microsoft. If VGT can make such a huge killing with one venue, surely it would be hypocritical to downgrade another company for doing the same thing! Great observation, and thanks so much for taking the time to listen, and even more so, to respond.

Penny Haynes, http://www.eMediaTouch.com

Penny, I really enjoy your podcasts and I listen to them faithfully. I subscribe through My Yahoo. However, I have this one small bone to pick with you. You had commended that video game maker for selling his service to one big client and dissed another company for doing the same thing! I think it was some call center for WalMart or some such thing. Personally, I can see the point of not putting all one's eggs in one basket, but we don't know that they are not pursuing other big clients as part of their business model. But you thought it was a good idea for the video gamer! Keep up the good work! Don Marsh, Gainesville, FL