COST OF GOODS SOLD

April 19th, 2012

When you’re starting your business, one of the things you MUST KNOW is the COST OF YOUR PRODUCT.  Only by knowing the cost of your product can you know how to price it and whether or not you have a viable company.

Cost of Goods Sold – COGS – can include just about anything you want but normally it includes raw ingredients; packaging; labels; case boxes, labor (including both wages and benefits); transportation into your facility, etc.  You can also include transportation from the manufacturing plant to your warehouse, if that is an additional cost.  Whatever you decide is a hard cost related to the production of your product.  COGS generally does NOT include administrative, sales and marketing costs – those are expensed.  If you are uncertain as to how to figure out your COGS – ask you accountant.

Creativity Linked to Wasting Time

April 18th, 2012

O.K. I’ve discovered “Bejeweled” a computer game.  WHY?  Well, I recently saw a young woman interviewed on T.V. (no, I do not know her name and, no, I do not know the title of her book – shame on me.)  She is a game programmer who reported that playing computer games can actually help those afflicted with depression.  Well, we all feel blue once in a while and, unfortunately, I’ve had personal experience with the disorder – off medication now and coping but always on the lookout to avoid its nasty return.  Anyway, off subject, I decided to give her theory a try and downloaded one of the games she suggested.

OMG – I can’t get away from my laptop.  I mean, this program plays exciting music and when you’re desperately searching for a match and taking a little too long the music changes and I feel like I’m in a movie theatre and start feeling anxious – I know – weird.  But I keep playing, and playing, and did I say playing?  I can’t stop even if I feel exhausted but I love it – I want to go back again and again – like gambling but the only reward I get is when the voice on the game says “EXCELLENT, INCREDIBLE.”  I mean, how often do I hear that?  So I’m hooked.

But I’ve learned this is not necessarily a bad thing.  I’ve also listened to a few interviews lately that discuss creativity and it seems that there is some sort of magical thing that happens spontaneously that makes that little bulb light up.  Scientists aren’t sure why but it seems the best thing you can do is relax and get away from whatever it is you’re trying so hard to solve.  Einstein said, “Creativity is the residue of wasted time.”  Ah Hah!  Computer games.  In fact, I’ve had a very difficult time lately coming up with a subject to blog about – da-ta – played a little Bejeweled and voila.

So, go have some FUN!!!!!

IT’S SPRING AND LOVE IS IN THE AIR

March 26th, 2012

 I love my pets.

My dog Moby

My cat, Janie

 

 

But it breaks my heart to learn how many pets are abused, neglected, and abandoned.  This is especially true now with the recession, more and more people are needing to give up their pets because they cannot afford to keep them.  Yet, people continue to breed their pets – “I wanted one of her kittens,” or, they neglect to have them spayed or neutered.  As stated in the article linked below, this often results in more unwanted animals.

Luckily, for those who cannot afford the cost, there are many clinics offering free spay and neuter.  Five veterinarians in my community, Lake County, California are providing free services twice a week.  If you live in our area call Erica Bergstrom 707-272-5222 to arrange an appointment.  If you do not live here, contact your local SPCA or shelter.  They will be able to help you and/or perhaps you will become an advocate for spay/neuter clinics and help to organize them in your community.

 

The following article was published in the Sonoma County Gazette – www.SonomaCountyGazette.com.

http://www.sonomacountygazette.com/cms/pages/sonoma-county-news-article-181.html

Thinking About RETIRING

March 20th, 2012
I have a friend who decided to retire last November but has a job offer in a rural area that she’s considering.  She asked what I thought?
Following is what I suggest she consider:
1) she is in transition from work to retirement.  She planned to take a full year from work to decide if that is what she wants to do.
2) she is still very early in the transition – only 4 months
3) I believe it takes a few or several months, if not a year to fully make the transition
4) while transitioning new opportunities and friends will appear
5) I would recommend waiting to make a commitment to return to work, like originally planned
6) Her old boss knows she is a skilled and valuable employee and, of course, would like to work with her
7) Being asked to come to work is very flattering.  It is the kind of encouragement we everyone needs – but especially as we age
8) The hardest thing about retirement is not feeling “needed”
9) Everyone wants to make a contribution and use their skills
10) There may be volunteer opportunities S.C.O.R.E., museums, garden clubs, schools, etc. that would be sooooo grateful for help
11) Consulting helps the transition
12) My friend is lucky she planned well and does not need the income
13) Because she is financially settled that gives her more choices
14) However, more choices may also make it more difficult to decide
15) The nice thing about her situation is she can afford a pied-a-terre in a larger city.
16) On-the-other-hand, she never lived in a rural setting – so why not give it a try?  She might find that it is absolutely the most wonderful thing you ever did.  She had a cabin in a small coastal community for a few years.  I asked her if she would have enjoyed living there fulltime.4 years ago, my husband and I moved to a rural area in the wine country of Northern California.  The landscape breathtaking.
WHAT I’VE LEARNED ABOUT LIVING IN A RURAL AREA
1) shopping – we have Walmart and a pretty good grocery store however I miss the larger “good” stores - like Whole Foods and Trader Joes. I need to go to the big city for clothes, gifts, etc.  It’s fun but if you need something quickly – bummer
2) movies – UGH!  Need to drive 35 miles to see a movie
3) restaurants – fewer choices and again – need to drive several miles and plan ahead
4) airport - I can fly out of a small airport that is 45 miles away - otherwise need to drive over 100 miles each way to get better rates.  I occasionally daydream about living in a more urban environment - closer to an airport
5) transportation – the ONLY way for me to get anywhere without my car is to take several buses - if there even is one that goes where I want - and it takes hours.
6) Doctors/dentists/hospital/RX/ER – what is available if you have a, let’s say, a bladder infection on Friday night.  Is there an “urgent” care facility nearby?  Otherwise it’s to the ER – long wait and more expensive and what happens when you do not feel well enough to drive several miles?
8) Oh, and car repairs – is there a well-qualified mechanic available nearby?  What if your car breaks down?
Those are the main issues I see as we age – and make the transition from work.

Lost My Temper – An Understatement

February 22nd, 2012

Like most Americans, I take an antidepressant.  Been on the drug for a little more than 4 years. Nearly 2 years ago I decided I had recovered from my “situational depression” and wanted to discontinue the drug. My doctor said I must do it very, very slowly to avoid “terrible” side effects.  OK, so I started by eliminating just one 10mg tablet a week.  Now down to three 10mg tablets per week which means I only need 45 more tablets and I won’t need them anymore.

 

So, I called my pharmacist and asked for a refill of 45 tablets.  I was told my insurance would only cover 30.  That’s fine I told him.  I’ll get 30 now and 15 next month.  When I went to pay for the prescription the charge was $94!  “$94,” I said.  The last time I refilled the prescription the cost was $45.  That’s a 109% increase! What happened?  Well, said the pharmacist, the drug company is charging more for this drug.  I guess so. I told him I couldn’t afford it.

 

I went home and called the mail-order company, Prescription Solutions, where I have been able to get a 90-day supply for $120 co-pay.  I asked the clerk for 45 pills.  She said the cost was $177!!!   Oh, my god.  I couldn’t believe it.  That again was double the price I paid last fall a 195% increase.  I asked her why and she said that the doctors who advise the insurance company, had reviewed this particular drug and moved it to a higher level, from tier 4 to tier 5 – but more than double the price? BTW my insurance premium for prescriptions also increased by 20% the beginning of this year. I was beside myself but felt I had no choice.  I said ok and approved the order AND the charge – BIG mistake.

 

Buyer’s remorse:  the next morning I thought I just cannot afford this drug so I called Prescription Solutions and told them to cancel the order. The clerk told me the drug had already been shipped.  I groaned and asked what I could do.  She said, “Refuse the package.”  She then told me to call them back when I mailed the package to let them know the order was being returned.  I thanked her and hung up.  Big relief.

 

A few days later the package from Prescription Solutions arrived.  I wrote “REFUSED” on the front with an indelible Sharpie pen and my husband took it to the post office.  A day later I phoned Prescription Solutions to tell them the package was in the mail, just like the first clerk had directed.  The second clerk seemed confused.  She wasn’t sure what to do.  She put my call on hold while she discussed the situation with a supervisor. When she came back to the phone, she told me I should have called for a “return tag.”  She said the package would be received at the fulfillment center and they would automatically return it to me because it didn’t have a return tag. So, she told me to wait until the package came back and then phone Prescription Solutions again and they would issue me a return tag.  Once I received the return tag I could return the package.  I said, since getting through to a live customer representative took so long, couldn’t she just send out the return tag now?  She said she would have to ask a supervisor.

 

I had now been on the phone for 20 minutes.  When she returned to the line, she said she was transferring my call to a supervisor.
The supervisor came on the line and said, “When you ordered the medication did they tell you the cost?” I said, “Yes.”  She then said, “And didn’t you approve the charge?”  Her tone was very condescending and I don’t know if it was her tone or the fact that I had now been on the phone with them for 25 minutes but, I’m afraid I lost it.  I said in a rather aggressive tone, “Are you blaming me? Are you finding my actions at fault?”  I continued to tell her that I had done everything the reps told me to do.  I called and asked if I could cancel the order and was told to refuse it and call when it was in the mail.  When I called to say the package had been refused and returned, the representative told me I needed a call tag – so what was happening now? The supervisor said once the medication was shipped they could not accept it back. Period – NO RETURNS – NO EXCUSES – THE END!  I got ANGRY – seeing red.  In so many words – I can’t remember them now – I told her if they could not accept the unopened package back then why did two of their representatives tell me I could and how to do it.  She kept insisting that I was mistaken – I really wanted to yell at her and call her names but I didn’t – my mother raised me better – no cussing!!! So I said, “If their policy was to absolutely NOT accept any returns, then why didn’t the first representative tell me?  Why did the second one say I needed a return tag? As a supervisor it was her job to make sure the people she supervised were better trained.”  I mean, really, what was going on?  Was this some kind of a power play?  I finished by telling her I planned to write to as many people I could to inform them of how she treated me. – Yeah – that showed her.

 

I also asked her to cancel the order for another prescription that I just placed.  She kept saying, “You want me to cancel your prescription?”  She said this at least twice.  I said, “No, I want you to cancel the prescription and then I want you to tell me it’s been cancelled.”  She put me on hold – for what seemed like another 5 minutes.  When she finally returned to the call she still refused to say the words, your prescription has been cancelled.  I was livid.

 

After the conversation with the supervisor, I stayed on line to take the company’s survey.  Needless to say I gave the service very poor ratings. I only wish there would have been some way to let them know that the clerk who talked to me initially was very pleasant and tried her best and it was the supervisor who I felt was rude.

 

After hanging up I called back.  Progressed through several minutes of computer generated questions and finally spoke to another representative.  I told her I wanted to cancel the same prescription that I’d asked the supervisor to cancel.  She said the order had already been emailed to the fulfillment center so she would have to email them and try to stop it from being shipped.  From this
conversation I inferred that the supervisor had put me on hold, just to annoy me and had NOT cancelled the prescription as I’d asked.  I thought she was being vindictive.  I don’t know if that is true but I will never order another prescription from Prescription Solutions.

 

In retrospect, it has now been five days since this episode. I truly regret the way I talked.  Throughout my whole life I’ve been working hard to learn to control my temper – to learn to deal with difficult situations without going berserk.  I feel I failed
miserably. I should have answered her questions without getting emotional.  I wonder now if in asking the questions she was simply trying to make sure that I understood their procedures.  After all, they couldn’t be shipping out drugs and handling returns all the time – they’re not Nordstrom’s.  If I remember correctly, I think she told me there is a law preventing the return of prescriptions – but if that is true then why did two customer service representatives tell me it was all right and how to do it?

 

LESSON:  if you have a business, make sure your employees are trained to handle every situation.  Last spring, I helped a client write the procedural manual for their company.  We looked at every issue, every task and in so doing the company was awarded
certification from a national certifying organization whose logo they can add to their packaging and use to give them credibility in their marketing campaigns.  Hopefully, in going through this process, their employees will fully understand how to handle situations like the one I endured above.

A request to you:  If you like my writing, please order my book, Million Dollar Cup of Tea, from either my publisher, WBUSINESS BOOKS, or Amazon.com.  Have a good day.

 

SOCIAL MEDIA – FACEBOOK

February 16th, 2012

I really do love facebook.  It took me a long time – like my husband says, “why not just email your friends.”  He just doesn’t get it, right?  Took me a long time to get it too.  I’ve tried to explain it to him, but I guess he’s not ready.  Anyway, I love it and not only am I enjoying my facebook page but I’ve been hired by Majesty’s Animal Nutrition to write something on their wall everyday (there’s probably a word for that – anyone know? Oh, “posting” is that it?)

Since many of you may have a dog, I thought you might like today’s entry:

Have a dog with POSSESSIVE BEHAVIOR?  Dog Trainer, Lindsey Yaffee says, “It is important to stop possesive behavior (growling or snapping with toys) immediately…Stand over your “puppy” (adults may need professional help) and say “leave it” or “give” in a firm voice.  Then wait…be patient.  Stand up straight with authority.  YOU ARE THE PACK LEADER.  Don’t say anything else; just remain in the same position looking at the toy.  It may take as long as 5 to 10 minutes but eventually the puppy will figure out that you want the toy and will just walk away.  Each time your puppy becomes posessive over anything you can do the same thing.  Eventually, your puppy will learn that everything is yours.  You are his pack leader; he must willingly give those items to you when asked.  This doesn’t mean the puppy can’t play with toys, but if you ask, he MUST willingly give them up.”
My dog, Moby, always brings me a toy when I return home.  If I take it, he growls but I always thought he wanted to play – we play tug-of-war – I then throw the toy – he fetches – brings it back to me and this little game continues 4-5 times – less as he’s gotten older.  He’s now 15 3/4.  He may not play as much now but he ALWAYS BRINGS ME A PRESENT when I come home.  Wouldn’t that be nice if everyone did this – just imagine – my husband goes to the store and brings me flowers – AHHHH!

Oh, and check out Majesty’s facebook page:  http://www.facebook.com/Majestys

Have a good day, Tedde

WHAT A DAY!!!

February 8th, 2012

Okay, so I’m feeling very, very frustrated.  A couple of days ago I refilled a prescription.  Previously the cost for a 30-day supply was $45.  This time $94!!! Yes, NINETY-FOUR DOLLARS – more that twice the cost.  So, I called my insurance – AARP United Health.  I was told that “doctors raised the tier level” for my prescription – so their insurance doesn’t pay as much.  WHAT?  OKAY!  But more than double?  Oh yes, but not only that, the drug company raised the price. This seems criminal - how many small businesses can raise their prices like this and get away with it? I’m sick of drug companies and medial insurance companies sticking it to the public.  My comment - bring on ObamaCare or better than that socialized medicine – yes – socialized medicine - where do I sign up?

Next, my phone bill this month was about $20 higher than normal.  I couldn’t figure out why so I called AT&T.  The reason?  I was charged $16 for  “national long-distance directory assistance.”  $16 for a number?  You’ve got to be kidding. Oh, and btw – an additional $5 for local directory assistance.  How can they justify these charges?  Well, they don’t have to justify because they are in control.  We have no choice.  I’ll be using online white pages more frequently – for sure.  When will that start to cost part of some employee’s hourly pay?

The final straw:  watched Charlie Rose (who I love) interview Saudi Prince Alwaleed Bin Talal.  The Prince is heavily invested in CITIGROUP.  Remember Citigroup?  They were one of the companies the Bush adminstration bailed out the end of 2008.  Excuse me, but that’s my hard-earned money.  I can’t believe what is happening to our country (GO OCCUPY) we can bail out billionaires but we can’t support our schools.

That’s enough for today – hope you’re having a better one.  T

SPORTSMANSHIP AND THE COURAGE TO FAIL

January 24th, 2012

Watched the NFC championship game between the NY Giants and the SF 49ers last Sunday.  I’m not much of a sports fan but watched the playoff game between the the 49ers and the Saints the week before and was hooked – what a game – and the final few moments were the most exciting I’ve seen in a game in a long time.  But last Sunday?  These 2 teams were well matched but they couldn’t do much, I mean 1,2,3 downs and a punt.  I would like know how many punts were played in that game, it must have been a record – better GOOGLE and find out – no luck.  Per the SF Chronicle Sporting Green looks like there were 14:  6 by the 49ers and 8 by the Giants – seemed like more.  It got ridiculous but the overtime was when the real game began.

The reason I’m writing today is about that overtime and the flurry of emotions it caused.  I’m writing about Kyle Williams fumble.  Can you imagine how he felt?  I can.  Whoa – what a blow.  I’m sure he did his best, those things happen and we should not fault him.  But the response was horrific with fans (?) making threats – even threatening to kill him and his wife and kids.  OMG, it’s a game!

As a consequence there have been articles and letters to the editor on the subject.  My favorite was printed in today’s SF Chronicle.  It was submitted by a person from Sacramento.  He quoted part of a President Theodore Roosevelt’s “Citizenship in a Republic” speech.  The section he quoted puts in perspective what goes into making a great man, including his mistakes:

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, and comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows the great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the
end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who know neither victory nor defeat.

You can read the entire speech at:  http://www.leadershipnow.com/tr-citizenship.html

Kyle Williams – just 24 years old -WHOA – he may have fumbled but look at what he has accomplished: http://sports.yahoo.com/nfl/players/24182

 

FRUGAL LIVING

January 3rd, 2012

When I was a kid, my Dad told me to only use 2 squares of toilet paper.  Yes, only 2 squares.  I thought he was nuts!!!  He never told me why just said, “Only use 2 squares, damnit!”  As a young adult I would think about this nearly every time I used the toilet.  I decided he was on one of his penny-pinching sprees.  My parents’ income was modest and it never occurred to me, as a child, that we didn’t have everything we wanted.

Anyway, when me granddaughter was about 4 I accompanied her to the bathroom.  She went potty and then took hold of the toilet paper and pulled out a very long piece – probably at least a yard.  “Wait.”  I said.  “You don’t need that much,” and found myself telling her 2 squares was enough.  Humph, I’ve turned into my father.

Then a few months ago, while out with my dog at the local doggy run, I began visiting with another resident out with her dog.  Somehow the conversation got around to recycling trash and garbage disposals.  She told me her husband wouldn’t let her put anything down their garbage disposal.  He is afraid that their septic tank will fill up and overflow.  Upon relfection of this conversation I thought, another reason for 2 squares – well at least for some functions.

Per an online search, people tend to use 57 squares of toilet paper a day, a little over 20,000/year, and some use as much as 30-40,000 squares.  Perhaps by reducing just a few squares each day we could squeeze out a little cash  from our budgef for say, a latte or a chai?  Happy New Year – Happy FRUGAL LIVING!

CUSTOMER SERVICE ORDEAL

December 19th, 2011

Hope you or your business is sailing smoothly through this holiday season.  I must tell you about my crazy experience with National Geographic – bless their souls.

Early in December I ordered, online, three items.  Two of the items were delivered without incident and one was backordered from Dec. 4 to Dec. 9.  Okay, I thought, no problem, still plenty of time.  We have plans to fly to our daughter’s home Dec. 21.

Well, by Dec. 14, I hadn’t received an update on the backordered item.  So I phoned to see what was happening.  The line was busy, I waited for several minutes until the operator (recorded message) suggested I leave a message and they would call me back.  Fine, I left the message with my order and phone numbers.  No return call so later in the day I emailed the company.  Let me tell you right now, THANK GOD FOR EMAIL!!!  Still no respnose.

On Dec. 17, I checked my email and a shipping notice had been sent the night before at 11:30p.m.  I immediately called NG.  The clerk who answered said that since the article had already shipped there was absolutely NOTHING that could be done.  I explained that on the shipping notice I received there was a link to UPS to “change delivery” address.  I clicked the link whereupon I was asked for my account number.  Since closing Tedde’s Tea several years ago, I no longer have an account.  So I asked the clerk if he or his shipping department could change the ship to address.  He said that was impossible and I should have called prior to the product being shipped.  I said, “I did call but you didn’t call me back.”  At this point the poor fellow – must be getting a lot of calls – seemed to take offence and said it wasn’t his mistake.  I explained that I was sorry, I didn’t mean to imply that he personally made a mistake but that no one from NG returned either my phone call  or responded to my email dated Dec. 14.  Luckily, he was able to check, and yes, they received the email PRIOR to the package being shipped.  Because it was their error I said I thought it was their responsibility to correct it.

I explained that the backordered article was a gift for my grandchildren.  He finally asked me to hold while he talked to his supervisor.  When he returned to the line he told me they would reship the backordered article to my daughter’s address and send me a return label for the ones shipped to my home.  Great, problem solved, right?  Not so fast.

Today, Dec. 19, I receive a notice that not only had the one small package but the whole entire order was being shipped to my daughter’s house.  AND, they were shipping it 2-day delivery – luckily at their expense.  WHAT?  I immediately called NG again.  Spoke to another clerk.  She was very pleasant, as was the first clerk, and said they would send return tags to my daughter’s house.  Since it was a return tag, UPS would pick up the extra packages at her house which would save me the trouble of taking them to their distribution outlet.  NOW, if only it all works out.  The fun of holiday shipping.

Hope your preparations for the holiday are going well.

Best Wishes for the Holidays, Tedde