Posts filed under ‘Profits’
Wow. No journalists in the media currently reporting on the Home Builder industry / Housing market seem to be explaining exactly what is going on. They keep blaming it all on the same culprits, from Credit woes to energy prices. While they are correct, there is much more to the story.
As an efficiency expert, I will try and give you some deeper insight into some root causes of the housing implosion. Let’s first start out with the see-saw reporting in the media:
Here is a report from October 26th:
‘Acknowledging that there is definitely downward momentum in the market at this time, with starts, sales, prices and permits off, and problems in the subprime and Alt-A mortgage markets, NAHB Chief Economist David Seiders said that housing should nevertheless begin a modest recovery next year.’
Reality, however, keeps on rearing it’s ugly head more and more every day. This new Housing report just came off the presses:
NEW YORK – U.S. home prices fell nationwide in August for the eighth consecutive month, offering little hope of a turnaround anytime soon, according to the S&P/Case-Shiller index released Tuesday. Things could get worse, said Yale economist Robert Shiller, who helped create the index.
“There is really no positive news in today’s report,” said Shiller, chief economist for MacroMarkets LLC, which collaborates with S&P on the indicator. “At both the national and metro area levels, the fall in home prices is showing no real signs of a slowdown or turnaround.”
Hrmmmmmmmmmmmm. Anyone know when the housing market will recover, if ever? Bueller? Bueller?
There are so many variables that are being left out of these stories, journalists obviously don’t know the whole story. Sure, they know simple facts like how America’s homes gobble up 25 percent of the world’s energy and are to thank for 19 percent of global greenhouse gas emissions.
Home Builders are following the same logic they have in the past to try and fix their present problems. Right now, one of their solutions is to fire the present line of market managers in the hopes that reorganizing the company will fix things. You know, give those eager up-and-coming managers a chance at the reigns. Perhaps the advertising campaigns will be switched up, and more special pricing packages will be created.
These fixes will only work for so long.
This slump is not just about home sales and management shuffles! It’s about operational efficiencies, or rather inefficiencies of the home builder market that need to be examined. I’m not just talking about higher efficiency Energy Star certifications on fridges, microwaves, air conditioning units, heating systems and dishwashers here. You have to dig deeper.
So, all you Home Builder management types, listen up!
I know you are losing millions of dollars to theft of new appliances in freshly built homes. I know that in all likelihood, it’s an inside swindle being pulled on you by contractors, not ordinary thieves kicking in doors or breaking windows.
I know you are paying increased security costs to try and stem the losses from having to buy the same new appliances twice.
I know you are losing sales to people foregoing their deposit to re-purchase the house at a lower price as the market value of homes drops.
I know you spend a lot of money on advertising that goes to waste.
There are, of course, many more points I can nitpick at. But if you want to stop the bleeding and start making sales again, you are going to have to start paying attention and listening to experts like me that can help you return to better profitability.
There are solutions ready to go. Here’s just one idea for you, free of charge:
When one alarm goes off in the neighborhood, or a crime occurs and a neighbor wants to report it – have an opt-in neighborhood alert system set up. Every person in your branded DR Horton, Arbor , or (insert your company name here) community can become eyes and ears.
My company is called Bright Neighbor, and we have created the all-in-one tool to help secure your profits, communities, and sanity. Our solution is affordable, and will help you save millions of dollars right away.
You can get all the info you need here.
Ok folks… here it is, the ultimate truth. There are people coming out right now saying that biofuels can’t offset the dangers of Peak Oil and I call BS. Lies Lies Lies to keep oil going as long as possible, and we don’t have time to mess around anymore – there is a real danger to America without smart solutions getting implemented right now. Take a look at this video of David Blume educating local news man Wayne Garcia.
Quite the brave newscaster to allow the truth to come out in the mainstream media! Expect the nay-sayers to try and convince you that we can’t overcome our challenges. See for yourself how we can do it and get Alcohol Can Be A Gas!
If you want to stop whining about rising gas prices, pick up your copy of “Alcohol Can Be A Gas” by clicking here.
Newsflash: The new money is in weapons systems and saving the planet. So, how do we get everyone to become a Volvo-humper with such a dichotomy of profit making methods?
Aside from all the Greenwashing that takes place with companies jockeying to be a darker shade of green, there are true ways for organizations to become sustainable if they have the desire.
Through the help of organizations such as Natural Step, Green Mind, and Good Company, any business or organization can learn the skills needed to do sustainable business on a dying planet. And there are tons upon tons of “Eco” websites and magazines on the web with all sorts of cool tips on how to live a greener lifestyle.
Here’s the biggest problem: People with purchasing power still don’t WANT to change, or haven’t felt the pain enough to be FORCED to change their living or business habits.
We can still breathe air, and cancer doesn’t make itself known right away.
We can throw stuff in the trash, and it still gets taken to a magic trash land.
We can still fill our vehicles with fuel – whether it’s gas, ethanol, or biodiesel.
But, while all the modern conveniences are still within reach, there are millions of eco-heads screaming that unless we change, the end is nigh. Yawn. That kind of messaging is too depressing for the majority of people. It’s too complex for people to go from A to B as consumers, unless they have an easy-to-use tool to help facilitate behavior change.
I guess this is where, on October 2, 2007, I announce that I have designed the ultimate save-the-planet application. Now hear me out. It has an amazing set of features, employs a fun way to change behavior, and helps everyone make money while helping save themselves and future generations of humans. Beyond such a bold and vague statement of what it does, I can’t get too detailed because the secret is in the sauce, know what I mean?
I shit you not. Facebook and Google will be kicking down the door to copy (Name of secret application) or buy it from me outright. It truly is the coolest web application in the world. Upon launch will make any investor a mega-millionaire – perhaps bazillionaire! There are already municipalities on standby ready to pilot it.
So, here’s the catch: I need about two million dollars to take it beyond the prototype currently developed. The hard architecture work is completed, but I need a team of programming, legal, and other specific homies to really get it rolling the way it needs to be. There is a non-disclosure agreement ready at the helm for any serious investors or companies that want to explore the opportunity.
And if any of you send in a ringer to steal the idea, technology, or methods – I will have to introduce you to the cool cat-like moves I’ve been learning from Guru Kurtis.
So, there it is. Calling all rich investors looking for the next social platform that takes us from Web 2.0 to Web 5.0. If anyone has Bill Gates’ number, you can reach me via invest (at) lawnstogardens.com
Our intelligent money spenders in Congress are out to spend another $150 Billion dollars of our collective hard-earned money to keep paying contractors to shoot people in the Middle East.
My question is… instead of spending that money on continued warfare, how would you spend $150 Billion?
Things to consider:
- We have the technology to free ourselves from the needs of oil.
- We could create great paying jobs used to implement the technology used to free ourselves from oil
I’m open to suggestions.
Hear Ye, Hear Ye, there are ways thou shalt be able to maketh ends meet while the economy takes a crappeth on itself!
Know a Baby Boomer with a bank account?
Seriously. You might be able to siphon off of them for a bit longer while they can still muster the cash to fill their RVs and motor coaches with affordable fuel. After all, it’s the older crowd that has most of the money (resorts are full of them), while the younger crowd is starting to feel the burn of debt. No doubt hordes of twenty-somethings will be moving back in with mom and dad soon (if mom and dad still have a house). I don’t want to brow beat people anymore though. It’s too late for that… the crash is already happening, and the stage is set for some big event to fully usher in a completely totalitarian state. People didn’t have the backbone, temerity, or organizational skills to stop that from happening. That’s the power of TV entertainment for ya.
For those that tried, kudos to ya. It’s hard to spark change when even peaceful protesters are being shot and killed these days. But if people REALLY wanted to change the system, it could be done.
The problem is there is no leader able to break through to the world able to convince enough people that the world is everyone’s oyster to share. Everyone is clinging to what little pieces they think are theirs, which just goes to prove that there are lots and lots of people on the planet who think highly of themselves, controlled by a tiny percentage at the top. But now as the reality of Peak Oil really gets under way, we each have to think critically about ways to keep putting food on the table, making a living, and not getting desperate and turning to crime.
Here We Are
First comes economic pain – as we are seeing right now. Mortgage defaults, layoffs, and rising costs of living. Sales declines of all kinds are contributing to the recession, while some niche companies like survival goods are seeing spikes in sales. An ominous sign of things to come for sure.
It really is going to come down to coming to terms with reality, and making lemonade from the fact that your future may not be going according to plan. Life gets pretty scary when your monthly bills multiply like rabbits on E. Pressures will rise at work, and you might be coming home and taking it out on (Insert person or pet here). It might have been that new car you bought, or that massive mortgage. It could be the fact that you bought whatever advertisers made you and your friends think was cool, so everyone got the latest ‘thingamajig’ in different colors, with awesome add-on accessories to boot.
That’s what we’ll call “The Former Economy“. It’s all our collective fault, not any single person’s – so why not start making yourself more valuable? Now is as good a time as any to turn those useful skills you have into the ability to be happy while learning to live with less.
Can you farm?
Can you build or create useful things that help people?
Can you sell those useful things?
Now is the perfect time to learn new skills
You’ll need them. I sure see a lot of “For Sale” signs these days, and it’s only going to multiply (HINT: maybe you should wait to buy whatever you are planning on buying and get a killer deal later on.)
No matter what, remember that scarcity is a frame of mind. You still have much more than many other people, even if you have to downsize or you lose possessions. If you lose your job or your house, you are still alive and kicking enough to go earn an honest living, even if it means a temporary setback in your living standards. I’m just as vulnerable as you.
The best part about suffering is when you realize how awesome it is to redeem yourself and become a do-gooder.
I’m always curious how people find “Lawns to Gardens”. Here are just a few search terms that have routed people to this Blog.
working jobs we hate so we can buy shit
safest place to be in nuclear war
Peak Oil survival
Oil Shocks and economic collapse
2007 economic crash survival blog
war with Iran
end of the world
Paris Hilton sex
Paris Hilton blowjob
Here we go, folks. What all of us freakozoids have been warning about all along. You are bearing witness as the first turds pierce the blades of the fan as the proverbial shit hits it. The news reports keep spinning it that all is fine, and that the problems can be contained. I have been e-mailing back and forth with John Schoen of MSNBC about this for a while now, and he dismissed our conversation as speculative, writing:
It’s true that there are plenty of reasons for concern, and a number of things that could go very wrong. But, having done this for nearly 30 years, I’ve also seen a number of very plausible warnings of impending catastrophe come and go. That’s not to say they’re wrong. But when you talk about tearing the social fabric, you’re getting into Hollywood disaster scenario territory.
Well John, I’m standing by the claim that drastic emergency measures need to be taken to change course from a massive crash, especially if/when the US and Iran head into their Title Bout. I have a feeling we will swing first, even if we try to tell the judges they did.
But that is beyond the control of any single news journalist or Peak Oil / Advertising blogger. What I can tell you are the things happening in the world of Advertising.
Buyers are aware of price declines in big ticket items, so they are waiting to purchase
People who bought a house are willing to lose their deposit in order to save big money as home builders drop their prices. In other words, if the house hasn’t closed yet, people are dumping their contracts to “re-buy” the house at a new, lower adjusted price. After all, would you want to pay $400,000 for a house that is now worth $350,000? Or a car at $35,000 when you could wait and get it at $25,000? I didn’t think so.
This means businesses are going to take massive hits on profits
Some businesses are even willing to go into the red to make sales, just so they can hit their sales numbers. Eventually, heads are gonna roll in all categories: Managers, suppliers, worker bees, etc.
This means that recently laid off people will tighten their spending
And when people tighten their spending, those sales just keep on drying up like the Amazon. And when sales dry up, advertisers try all sorts of neat things like piling on incentives, blow out sales, and other gimmicks. What really matters is if the product/service you are selling is essential.
Pretty soon, top management dogs and middle managers are going to have to deal with the stinky reality of Peak Oil. It is appearing in many forms… a multi-headed hydra of a beast. Of course, the capitalists running the US can’t deal with reality like adults, so they want to go shoot people. I can understand the anger, but there are lots of understanding people out there to help deal with anger and self destruction, and maybe our politicians and business leaders should sign up for some classes.
I’m offering one, since I just quit my job working for Clear Channel. I’m flattered the company is proud of my work, and I have fully enjoyed my tenure there. Working in Corporate America certainly hardens your skin for the real world of cut throat business, and many people are genuinely nice and don’t mean any direct harm to the planet. But we all suck-suck-suck away at the earth every time we buy something, and advertising is engineered to help convince you to buy something. (Hypocrite alert: Yes, I buy things).
What we are facing is entropy, the 4th Law of Thermodynamics, and the world’s most historical case of “What goes up must come down”. No amount of “Sex in Advertising” is going to fix this one, kids. (Unless what you are advertising IS sex, which I anticipate will happen as people grow desperate for food). The only thing I’m not sure about is how long it will be before a person can get a handjob for a carrot.
Now enjoy this video.
If your job requires an opening line that goes something like this, you are in trouble:
“Hi, may I speak with whoever handles your marketing or advertising?”
I’ve written on this subject before, but since the economy is melting before our eyes, I wanted to take the time to repost what I wrote about advertising during times of Peak Oil. I can tell you as of August 14th, 2007 – the heads are about to start rolling in media (Hey all you AD AGE editors… I’m open for interviews!)
But here’s the gist: It’s all about ROI, measured results for clients, and what people are buying. Specialty dog sweater shops are going bye-bye, as are a lot of businesses that didn’t have the foresight to adapt in time. It’s not that your advertising isn’t working… it’s just that the whole system isn’t working, and if you aren’t bringing in big money for the corporation, you too will soon find out what the term ‘unemployed’ means.
All of you new hires at TV, radio, newspapers and even Internet companies had better be bringing along a network of business associates that you can count on, because cold calling won’t work anymore.
I’ve tried to get my company to take evasive action, but they didn’t listen, along with the many other marketing managers who looked at me crazy when I told them what to do. For the record:
– I told car dealers to stop ordering so many cars, and to open up small-scale alcohol fuel distilleries while they still had money. They looked at me like I was crazy.
– I told home builders to not build houses on all the land they purchased, rather leave some of the land to build a small-scale fuel facility for their residents, who could cooperatively own it and work with local farmers for the feedstocks. They should also leave some land for hydroponic food generation stations and small community garden parcels. They said “Good idea, we’ll wait to see if other home builders start doing it”.
- I told book sellers to stock up on gardening books
- I told restaurants to start composting systems
I told a lot of businesses to do a lot of things to prepare.
So I guess I’m telling you again, while you still have money in the bank – SPEND IT NOW, AND SPEND IT ON THE RIGHT STUFF!!!
And don’t forget, the right stuff includes me… your friendly Peak Oil Advertising and Marketing Expert! I can help you make the right business decisions while you still have time.
And as always… start growing food at home
Well America, there you have it.
Even with the Democrats’ “Too Little, Too Late” efforts to pour money into renewable energy, Republicans have chosen to slice Lady Liberty’s throat. Note: Republicans said this energy bill ’tilted too far in favor of renewables and conservation at the expense of the oil companies’.
“When you put a tax on a business it gets passed on to consumers,” argued Sen. Jon Kyl, R-Arizona. “Instead of reducing gasoline prices, this bill is going to add to the cost of gasoline.”
You are on record with that one, buddy. I can only wonder what the collective gas mileage will be for Americans who eventually end up surrounding Washington with pitchforks and torches.