Saturday, June 28, 2008

"Observations" Epilog

My sister, Joanie, wrote me retelling a story about WalMart in particular. I've included it, and my response, below. I think this provides a fitting explanation point to the subject.

John

I ran into a friend of mine today at my local market. He is one of the five remaining survivors of The Arizona attack at Pearl Harbor.He sets up a table at our local Grocer, Haggens, every month or so and sells his books about The War and displays his medals. The money he raises from his book sales goes to Fred Hutchison Cancer Research in Seattle. He told me a story today that I thought was "on Topic".Before the closing of the local Lumber Mill, he had rallied to get a Wal Mart built in a nearby town. He was thinking of how many jobs were being lost and how many people WalMart could hire. He spent many boring nights at the town council hall and at the age of 85 spent time going door to door to ask for support. Of course, the WalMart was built, BUT today he isn't happy about it. You see, after Walmart opened, he asked them if he could set up his table out front to raise money for his charity. Walmart told him they don't do that sort of thing.So, he stopped shopping there. "WalMart has NO HEART", he declared today. And I think he is right!


Hi Joanie

Don't get me started on WalMart (oops..you already did!!!). Their practices can only be described as predatory.The Corporation controls all the products and pricing, then they tell the Department Manager that he/she must increase profits by 5% over the next year or they're fired. This is a thinly disguised way of saying "cut you employees hours, don't pay overtime" as personnel is the only expense the manager can control. They make profit in the most disgusting way possible...by short changing their own employees. The mangers are forced to cheat his workers out of pay for hours worked, degrade the employees during reviews to disqualify them from raises, or fire them out right to avoid pay increases. Always remember this....6 of the 10 richest people in America have the last name WALTON.

And what they do to their suppliers, and by extension the American public, is even worse. Once a manufacture has placed products in a WalMart they immediately start negotiating a price reduction. Most suppliers will go along with this once or twice but they rapidly reach the point where they'll lose money on the product. WalMarts response is "so what! Either drop the price or lose all your shelf space for all your products in every WalMart worldwide" This is what happen to Rubbermaid. They went along and lost money doing business with WalMart. Eventually the company lost so much they filed for bankruptcy, they were bought out by a conglomerate that closed all the U.S. plants and transferred all production to China. How's that for being a good citizen. Did you know that long Beach CA is the largest port on the west coast and that their largest importing nation is China. But Long Beach's largest single customer is...(drum roll) ...WalMart ...(cymbal crash)!!! You think they care at all about this country?

Johnny

Thursday, June 26, 2008

Part 2 of "Observation"

Welcome back!

First a clarification. "The Brand" can be any of the following; Lowes, Walmart, Home Depot, Office Max, Target. But its not limited to just these.

So, how did we get here? How does this damage the culture?

Well, we got here because we allow it. We're the only ones who make it possible by shunning the local business in favor of the "Brand" for what is only a perceived savings. The Corporate marketers know that if they offer an item at a low price the whole store will be seen as a place to save. I'll give you an example.

The newspaper Ad shows a coffee pot for $9.99 (it could be an electric screw driver, underwear, a can of paint, the item doesn't matter, it just has to be popular). You go to the store and you find the $9.99 coffee pot, but its a 6 cup with no timer or automatic shut off. So you start down the aisle. The next one is 10 cups, but that's all and its $11.99, the next one is 6 cups with everything for $13.49. The fourth one, and by far the most popular, is a 10 cup with everything for $14.99. Which you can buy anywhere else in town for $13.50. They have brought you in on the perception that they sell for less when in fact they don't. You probably even had the fleeting thought of "this must a cheap price, everything else is" as you made the purchase decision.

What we do by falling into this trap is slowly send the local wealth to the Corporate coffers. We forsake our friends and neighbors who own the local businesses and, thereby, remove for the community the shared wealth that funds things like charities, museums and recreational activities. But it also robs us of the benefit of community. The shared feeling of appreciation that doing business with local always has and that Corporate America never has. The merchant appreciates your business and shows it by caring about the transaction and you appreciates the personal contact and assistance. Compare that to the newest trend in Corporate America... Self Checkout. Cloaked in the guise of improved technology Corporate America now wants you to, locate the products you want, act as your own sales rep by comparing the products feature, and then become your own cashier. The message is clear, come in, find what you want, and leave your money, we don't even want to talk to you.

What this leaves us with is a community which has lost the cornerstone of culture, pride of place. We're left with dying downtown's and low paying/part time jobs at "The Brand" which provide little or no benefits. The local Governments are left to deal with ever increasing demands for services from uninsured citizen while collecting ever declining taxes from personal income. And so, slowly, the fabric of the town unravels as the infrastructure decays.

John

Tuesday, June 24, 2008

Part 1 of observations from a road trip

Char and I recently returned from a road trip through the western two thirds of the United States. On this journey a thought I had during a prior road trip coalesced into a deeper understanding of what is happening in our country. Corporate America has swallowed up our culture.

On our previous trip it became apparent to me how Route 66 had really "died" in the 1960's. It wasn't the fact that the Interstate Highway System had by-passed the small towns leaving them to wither. It was that Corporate America had snapped up all property at the interchanges. This allowed them to install their "branded" commercial operations (Denny's, 711, Holiday Inn) right next to the highway. Travellers could stop could and have their needs satisfied right there and never venture the 1/4 mile into town.

On our most recent trip I became aware of how Corporate America had build on their success. They had expanded into the businesses within the communities and starved out the locals. We'll call it "the Brand Effect". They set up the "Brand" in a community sparing no expense for the best location and build the best facility possible. Once open they offer their wares at a loss knowing they will lose money until they destroy the local competition. They can afford to do this. They know once the local competition is gone their "Brand" will command the market and they can impose their profit margins, thereby funding the next conquest.

What brought me to this conclusion was the near total abandonment of the businesses in the old "downtown" areas. It wasn't a matter of a particular merchants being out competed, it was complete collapse. Every town where this has happened has buildings sitting as if freeze-dried. They sit there with the original names, phone numbers and logos, faded but readable. No one has found a reason to reuse the properties. And somewhere nearby is a "Brand".

More on this in Part 2.

Sunday, June 22, 2008

Getting started

First off, I want to state that even starting a blog for a fifty-something boomer is a jump. But I try to stay current and I find sharing ideas and observations on life and the world we live in fascinating. Hearing what you have to say is my goal. I'll touch on various subjects (politics, current events, sports, Americana etc.) but mostly I want to stimulate a response.

A quick explanation of my blog title. I've learned 2 good lessons in my life that seem to cover most situations and keep me centered. First, you can't have a better past. What's happened has happened, good or bad, worrying or bragging about it just keep you stuck at that point. Learn from it, fix what went wrong or build on what went right. Second, you are in charge of your own happiness, take the steps to make yourself happy. These rules have served me well from raising children through divorce and in business. I honor them in titling this blog.