Finance and Insurance – The Profit Center

I would like to make myself clear on a few items of interest before I get too deep into the sales processes at any dealership, including: automobile, recreational vehicles, boats, motorcycle, and even furniture or other big ticket items. A business has to turn a fair profit in order to stay in business. I believe that they should make this profit and use it to pay better quality employees a premium wage in order to serve you better. The financial strengths or weaknesses of any business can definitely have a dramatic effect on your customer service and satisfaction. I do not, in any shape or form, wish to hurt a dealerships profitability, as it is essential for his survival. I merely want to advise people how to negotiate a little better in order to make the profit center more balanced.

Let’s get right down to this! Every dealership has a finance and insurance department. This department is a huge profit center in any dealership. In some cases, it earns more money than the sale of the automobile itself. Profits are made from many things that most buyers do not understand.

You as a consumer should understand the “flow” of the sales process to understand the profit centers that are ahead of you. Most negotiating from the consumer seems to stop after the original price is negotiated and agreed upon. Let’s examine just a small portion of what leads up to that point.

The first thing that every consumer should understand is that when you go to a dealership several things come into play. One of the most important things that I could point out to you is that you are dealing with a business that has been trained to get the most amount of money from you as they can. They are trained and they practice these tactics everyday, day after day, week after week, month after month, and year after year. Let me point out a couple of important facts that I have said in this paragraph. First, you’ll notice that I said a dealership and not a salesman and secondly, I emphasized times of day after day, week after week, etc. etc. This was done to let you know that the salesman is working very closely with the sales managers in order to make as much money as he can. Your interests are really not their objective in most cases.

One tactic that is used heavily in the business is that the salesman says he is new to the business. This may be true or not, however; keep in mind that he does not work alone. He is working with store management, who gives him advice on what to say and when to say it. These guys or gals are very well trained on how to overcome every objection that you may have to buying from them. They have been trained in the psychology of the buyer and how to tell what your “hot buttons” are. They listen to things in your conversation that you may say to one another as well as to the salesman. They are trained to tell their desk managers everything that you say and then the desk manager is trained to tell the salesman exactly what and how to answer you. A seasoned salesman does not need as much advice from his desk and may negotiate a little more with you directly without going back and forth.

The process of negotiation begins the moment that you walk into the front door or step foot out of your car and begin to look at vehicles. Different stores display inventory in different ways. This is done for crowd control or more commonly known as “up control”. Control is the first step in negotiating with a customer. Ever who asks the questions controls the situation. Let me give you an example: A salesman walks up to you and says “Welcome to ABC motors, my name is Joe, and what is yours?” The salesman has just asked the first question- you answer “My name is George.” He then asks you what you are looking for today, or; the famous “Can I help You?” As you can see, step after step, question after question, he leads you down a path that he is trained to do.

Many times a well trained salesperson will not answer your questions directly. In some cases, they only respond to questions with other questions in order to avert the loss of control. An example of this could be something like you asking the salesman if he has this same car with an automatic rather than a stick shift. Two responses could come back to you. One would be yes or no, the other could very well be something along the lines of: ‘don’t you know how to drive a stick shift?” In the second response the salesman gained more information from you in order to close you. Closing means to overcome every objection and give your customer no way out other than where do I sign. The art of selling truly is a science of well scripted roll playing and rehearsal.

We have established that the negotiating process begins with a series of questions. These questions serve as two main elements of the sales process. First and foremost is to establish rapport and control. The more information that you are willing to share with you salesman in the first few minutes gives him a greater control of the sales process. He has gathered mental notes on our ability to purchase such as whether you have a trade in or not, if you have a down payment, how much can you afford, are you the only decision maker (is there a spouse?), how is your credit, or do you have a payoff on your trade in? These are one of many pieces of information that they collect immediately. Secondly, this information is used to begin a conversation with store management about who the salesman is with, what are they looking for, and what is their ability to purchase. Generally, a sales manager then directs the sales process from his seat in the “tower”. A seat that generally overlooks the sales floor or the sales lot. He is kind of like a conductor of an orchestra, seeing all, and hearing all.

I cannot describe the entire sales process with you as this varies from dealer to dealer, however; the basic principals of the sale do not vary too much. Most dealerships get started after a demo or test drive. Usually a salesman gets a sheet of paper out that is called a four square. The four square is normally used to find the customer’s “hot points”. The four corners of the sheet have the following items addressed, not necessarily in this order. Number one is sales price, number two is trade value, number three is down payment, and number four is monthly payments. The idea here is to reduce three out of the four items and focus on YOUR hot button. Every person settles in on something different. The idea for the salesman is to get you to focus and commit to one or two of the hot buttons without even addressing the other two or three items. When you do settle in on one of the items on the four square, the process of closing you becomes much easier.

One thing to keep in mind is that all four items are usually negotiable and are usually submitted to you the first time in a manner as to maximize the profit that the dealer earns on the deal. Usually the MSRP is listed unless there is a sales price that is advertised (in may cases the vehicle is advertised, but; you are not aware). The trade value is usually first submitted to you as wholesale value. Most dealers request 25-33% down payment. Most monthly payments are inflated using maximum rate. What this all boils down to is that the price is usually always negotiable, the trade in is definitely negotiable, the down payment may be what you choose, and the monthly payment and interest rates are most certainly negotiable. If you do your homework prior to a dealership visit you can go into the negotiation process better armed. You still need to keep two things in mind through this process. The first item is that you are dealing with a sales TEAM that is usually highly skilled and money motivated. The more you pay the more they earn. The second item to remember is that you may have done your homework and think that you are getting a great deal and the dealer is still making a lot of money. The latter part of this statement goes back to the fact that it is essential for a dealer to make a “fair” profit in order to serve you better.

Once your negotiations are somewhat settled, you are then taken to the business or finance department to finalize your paperwork. Keep in mind that this too is another negotiating process. In fact, the finance manager is usually one of the top trained sales associates that definitely knows all the ins and outs of maximizing the dealerships profit. It is in the finance department that many dealers actually earn more than they earned by selling the car, boat, RV, or other large ticket item to you. We will break these profit centers down for you and enlighten you as to how the process usually works. Remember that finance people are more often than not a superior skilled negotiator that is still representing the dealership. It may seem that he or she has your best interests at heart, but; they are still profit centered.

The real problem with finance departments are that the average consumer has just put his or her guard down. They have just negotiated hard for what is assumed to be a good deal. They have taken this deal at full faced value and assume that all negotiations are done. The average consumer doesn’t even have an understanding of finances or how the finance department functions. The average consumer nearly “lays down” for anything that the finance manager says. The interest rate is one of the largest profit centers in the finance department. For example, the dealership buys the interest rate from the bank the same way that he buys the car from the manufacturer. He may only have to pay 6% to the bank for a $25,000 loan. He can then charge you 8% for that same $25,000. The dealer is paid on the difference. If this is a five year loan that amount could very well be $2,000. So the dealer makes an additional $2,000 profit on the sale when the bank funds the loan. This is called a rate spread or “reserves”. In mortgages, this is disclosed at time of closing on the HUD-1 statement as Yield Spread Premium. This may also be disclosed on the Good Faith Estimate or GFE. You can see why it becomes important to understand bank rates and financing.

Many finance managers use a menu to sell aftermarket products to you. This process is very similar to the four square process that I discussed in the beginning. There are usually items like gap insurance, extended service contracts, paint and fabric guard, as well as many other after market products available from this dealer. The menu again is usually stacked up to be presented to the consumer in a way that the dealer maximizes his profitability if you take the best plan available. The presentation is usually given in a manner in which the dealer wins no matter what options are chosen. With the additional items being pitched to you at closing, your mind becomes less entrenched on the rates and terms and your focus then turns to the after market products. Each aftermarket item can very well make the dealer up to 300-400% over what he pays for these items. Gap coverage for example may cost the dealer $195.00 and is sold to the consumer for $895.00. The $700.00 is pure profit to the dealer and is very rarely negotiated down during this process. The service contract may only cost a dealer $650.00 and is being sold for $2000.00. The difference in these items are pure profit to the dealer. You see, if you only paid $995.00 for the same contract, the dealer still earns $345.00 profit from you and you still have the same coverage that you would have had if you had paid the $2000.00. The same is true for the gap coverage. You are covered the same if you paid $395.00 or $895.00 if the dealers costs are only $195.00. The only difference is the amount of profit that you paid to the dealer. Another huge profit center is paint and fabric protector. In most cases the costs to apply the product are minimal (around $125.00 on average). In many cases the dealer charges you $1200-$1800 for this paint and fabric guard.

As you can see, these products sold in the finance department are huge profit centers and are negotiable. I also have to recommend the value of most all products sold in a finance department. It is in your best interest to get the best coverage possible at the best price possible. Always remember this: The dealer has to make a fair profit to stay in business. It just doesn’t have to be all out of your pocket.

The Benefits of Integrating Finance With Six Sigma

With the involvement of the finance department in such initiatives right from the beginning, a large amount of assistance and benefits can be achieved.

The Finance Department as a Business Partner

Often people feel that the finance team is all about bookkeeping and accountancy, and making audits and financial reports. However, if the finance team is involved in selection of the Six Sigma projects, then they can prioritize a range of improvement projects to be undertaken by different departments.

The process owner finds the opportunities for improvement, forwards it to the finance team for feasibility study, who in turn will put them into the project pipeline for allocating them to the Black Belts. This saves time of Black Belts allowing starting off with the projects that need immediate attention.

Throughout the DMAIC process, the finance team can review with improvement teams the benefits of the project and agree on the calculation of the benefits. On transferring the project to the process owner, a review can be undertaken to assess the expected benefits of the project on the basis of the data collected in the entire process.

Black Belts need not put in time to calculate the benefits accrued. Once the project is executed, a review can be done after about six months to verify if the expected benefits are achieved. This helps identify any deviations. The Black Belts and the process owners can then make modifications that can bring in the expected improvements.

After about a year on implementation, a review can be done and a new baseline set using the improved KPIs. From there, it is just about the incremental benefits.

The finance department can be involved even before the involvement of the Black Belts and so can support the project even after the Belts move on to the next project.

Benefits of Involving the Finance Department

Integrity: A project team calculates the benefits that can be accrued from the project. However, there is every possibility that they will calculate the potential ones rather than the real ones.

The finance team provides integrity to the calculation of such benefits. They are realistic and allow the teams to focus on improving the KPIs without having to worry about the financial results.

Once the KPIs improve, the bottom line results are bound to improve.

Standardized calculation: The finance team can ensure that all project and areas of improvements have a standard calculation method for the benefits accruable from the project, and compare the results without any inconsistencies.

Avoiding recording incorrect benefits: The finance team will consider the factors beyond the project boundaries while calculating the benefits, which may be missed by the process owners.

Budget mechanism: A new project has to be included into the budget to ensure that the improvements in KPIs are sustained.

Audits: The project benefits are available for audits. Internal teams may also be allowed to undertake audits to review and calculate the benefits.

Accountability: The finance department is responsible and accountable for the proper reporting and to calculate the project results and the benefits achieved.

Proactive Finance team: Having been involved throughout the project, the finance department will find it beneficial in understanding the business even better with all its related factors.

By involving the finance department from the beginning of the Six Sigma project, the knowledge of the financial viability of the project is manifested. Then, the finance team may feel assured of achieving better results than in previous years.

The Truth About Shipping Technology and Supply Chain Visibility

In the shipping business, it was once an extra to have shipping technology which supplied supply chain visibility, but it’s become a must in a now competitive and shipping software run industry. Not everyone knows exactly what it means to have complete supply chain visibility, however, so what is supply chain visibility and just how does shipping software help it? You may have learned this stuff about supply chain visibility, so let’s figure out the truth:

Supply chain visibility in a glance

It’s pretty much exactly what it looks like. Utilizing quality shipping software or auditing systems, you’re given awareness over all your shipments through openness of shipping data, organizing, and auditing, and all involved parties gain access to this information: you can plainly view the entirety of your shipments from end to end.

For comprehensive visibility you have to be in a position to trade data around different systems, like shipping data and freight deals to implement the best logistics management strategies you can. How your business and systems connect to your shipping partners along with their system is the number one factor in achieving real visibility so that you can discover how you can save money shipping.

Can a business continue to be competitive without having supply chain visibility?

The quick and candid response would be no. Well, it isn’t really impossible for a shipping business to function without supply chain visibility, but they are more prone to be eliminated or surpassed in the freight or parcel shipping industry by more efficient companies. Merely staying in business differs from being competitive, and supply chain visibility is essential as of late to be able to keep a competitive edge.

Shouldn’t shipping software and visibility be a much more popular strategy?

Unfortunately, a lot of companies aren’t loaded with the proper shipping software and auditing services. Though proper supply chain management and supply chain visibility has been an acknowledged issue for decades, EDIs, manual spreadsheets, etc. aren’t good enough for visibility reliable enough to continue to be competitive. The best supply chain management and visibility option is to use a transportation management system (TMS) and auditing solution.

What does not having visibility mean for a business?

One of the things that can take place is serious damage to a company’s name. About 33% of consumers in the United States put the blame for stock-outs on the store. This gives an adverse influence on long-term consumer retention and brand loyalty. In addition, it will directly injure a company’s bottom line, creating both urgent and extended issues which are hard to remedy.

Where does responsibility for those effects fall?

The real issue ought to be about solving the problem by updating your shipping technology and auditing methods, not setting blame. You can’t position the blame on retailers when 75% of shippers report that their visibility tool doesn’t integrate with their shipping technology, and only 39% of shippers gather data with visibility systems in the first place. There’s just no way to prevent stock-outs without the ability to make radical decisions according to real-time data exchanges.

Approaches to fix the problem

Businesses must find solutions that would provide them with end-to-end supply chain visibility. While legacy systems remain, businesses must invest into transportation management systems and auditing solutions that can operate on both old tech like EDI, and newer technology like API.

API is a wonderful technology for shipping software as a way to join suppliers, shippers, carriers, etc. with real-time transportation data so that they can make better decisions for their logistics management.

You can save money shipping with thorough visibility and improved logistics management, just by embracing more progressive shipping software like a TMS capable of working with both EDI and API.

Shipping TMS delivers transportation software and logistics management services. Transportation industry leading parcel and freight shipping management software helps save money shipping and get cheap shipping rates to improve supply chains.

Major Importing Countries Of Basmati Rice

In the period of worldwide markets and the subsequent improvement of universal licensed innovation rights, clashes emerge between industrialized countries looking to grow new items from plants, and creating countries trying to profit by their indigenous vegetation. One case is the contention over basmati rice. Since quite a while ago recognized as beginning in the Indian sub-landmass, basmati rice is prized for its unmistakable fragrance, season, and long, slim, fleecy grains.

A standout amongst the most essential measures of numerous Asian nations’ financial execution is the cost and nature of its rice. It’s no big surprise, at that point, that policymakers have taken huge walks in endeavoring to control the flow of their national rice exchange request to balance out their particular residential markets. The five best shippers of rice are in charge of around 30% of the aggregate worldwide exchange, and the main ten are dependable around half of aggregate rice imports around the world. A large portion of the real players, including the latest best merchant, China, are situated in Asia, which is the landmass most in charge of movements on the planet’s rice showcase. Other huge rice-bringing in nations incorporate Nigeria, the Philippines, Iran, and Indonesia.

A considerable lot of the real players, including the latest best shipper, China, are situated in Asia, which is the landmass most in charge of movements on the planet’s rice showcase. Other noteworthy rice-bringing in nations incorporate Nigeria, the Philippines, Iran, and Indonesia. A lot of the rice mill plants have been established seeing the necessity of rice as a food supplement. The increasing demand in the current scenario is the basis of increase and expansion of the business of the basmati rice exporters.

The future of rice trade:

In spite of massive increases in the course of recent years, the worldwide rice advertise has been experiencing a few times of compression over the recent years. Notwithstanding this, the world’s rice exchange is required to experience real development in years to come, as key nations keep on initiating projects to build their rice generation and radically chopped down their reliance on imported rice.

As the world’s best buyers of rice modernize their ways of life and enhance their separate eating regimens, interest for new assortments of rice is additionally anticipated that would increment, taking into account different nations to assume progressively essential parts in the worldwide rice advertise. China’s uncommon development in 2015 came as amazement and, to this date, regardless of whether it will keep on dominating the market remains an intense inquiry to reply. Specialists guarantee that by the year 2040 an extra rice supply of no under 112 million tons will be required to take care of the developing worldwide demand, particularly if nations like Africa neglect to address their own developing populaces and in this manner more noteworthy sustenance asset necessities.

Expand Business With Portugal

Globalization and easily accessible channels of communication have stimulated international business. With increased trade and investments between countries, the need for translation services is escalating. Proper translation helps companies reach their full potential. An effective translation service results in pointed communication towards the target audience and helps stakeholders to work together efficiently on a project.

India and Portugal Ties: Today, India and Portugal share a warm and close relationship. The visit of the Portuguese President, Anibal Cavaco Silva to India in 2007 gave a huge boost to the bilateral relationship. The two countries are now looking to enhance trade and investments with each other. New partnerships between the two countries are being established for mutual benefits. In such a scenario, there is an increased need for a Portuguese translator.

Portuguese Language: The Portuguese language is currently spoken in several countries. After English and Spanish, it is one of the most common languages. With the build-up of international trade agreements, the demand for Portuguese translators is growing.

A good Portuguese translation service will help customers convey their thoughts and ideas and will encourage successful business understanding. As several European countries look at reaching their full marketing potential, Portuguese translators are using their bilingual skills to setup trade agreements.

Growing Bilateral Trade: The market mood between India and Portugal is now upbeat. Several Indian companies have made strong acquisitions in the Portuguese market. The presence of Portuguese business in several sectors across India is also a reality. Major industries are looking to diversify their export markets and are investing heavily in India.

This is time for not only major investments, but also time for small start-ups which are looking to internationalize their market. Portuguese groups are investing in several fields in India like medicine, integrated telecommunications, renewable energy, infrastructure, agro processing etc. Such a scenario requires efficient and quick translation services.

What is Efficient translation: The requirement for Portuguese translators is increasing steadily. A good translation service will present an accurate communication of the customer’s ideas and documents. An efficient translation will result in a boost to the business.

Here are a few pointers:
- Translation should be accurate.
- Translators should be bilingual subject experts.
- Translators should be well versed in business speak.
- Technical knowledge is a must.
- Trade terminology should be translated correctly.
- Cultural understanding of the two countries is essential.

Translation of specialized documents in various fields is done by technically competent experts. These dependable and experienced translators will help your business expand globally.

If you have a business proposal with Portugal, then, Many Translation Services will take care of all your Portuguese Translation requirements, giving you quality translations.

I am an Expert in the medium of translation and language services. I have working knowledge in documents translation, Translate from English to German, Portuguese Translator and provide Multilingual E-mail Support.I am passionate in Localizing global brands to reach the target audience in the most efficient way.

Global Trends in the Cosmetic Industry

Cosmetic dyes and colours: Explained

Cosmetic colours are also known as cosmetic lakes. These colours are produced by taking the help of absorption of dyes that are water-soluble onto a substrate. It makes the colour insoluble in water. Cosmetic lake colours are made by making use of unique technology. The technology helps in attaining extremely fine particles. These particles help in achieving shade consistency. In comparison water soluble colours, cosmetic lakes are much more stable & safe. They also generate vivacious and brighter colours. It has been seen that cosmetic pigments and lakes are more suitable for food products that contain fats and oils. They are also suitable for those products that do not contain enough moisture for dissolving colours.

Cosmetic dyes, on the other hand are used for making cosmetic colours & products. These dyes are widely used by the cosmetic manufacturing industries and businesses all over the world. They are primarily used for manufacturing hair dyes, lipsticks, nail polishes, shampoo as well as other personal care products. It has been seen that generally water soluble & food dyes are very easy and safe to use. These dyes are mostly used for a wide variety of applications. They include cleaning chemicals, soaps, medicine, cosmetic products etc.

Know which ones are safe for use

Be it the use of any type of cosmetic dyes or cosmetic colorants safety of use is a primary consideration. Cosmetic colours and cosmetic dyes often make use of a wide range of synthetic colours. These are often referred to as FD&C colours. They are mainly extracted through coal tar and are basically a by-product of petroleum. Research shows that some particular coal tar based dyes lead to different types of cancer. This is why the FDA regulates them. They also determine the arsenic or lead amount they contain. Thus there are many restrictions in the use of such colours.

Some global trends in Cosmetic dyes and cosmetic colours

Worldwide it is seen that North America, followed by Europe, has the largest market for colour cosmetics. This is due to innovations in colour cosmetics. Other factors also include high consumer disposable income and frequent new product launches in colour cosmetic market in the region. However Asia too is expected to show high growth rate in the colour cosmetics market in next few years. This is on account of the increasing consumer incomes and rising in awareness about personal care products in the region.

Economic Turmoil and the Future of Brazil

For many years, Brazil has been an emerging economic hub, attracting investors from all over the world. The Brazilian economy saw an 368% increase in Gross Domestic Product growth from 2003 to 2011. In addition, Brazil took in almost half of Foreign Direct Investment flowing into South America during 2015. This doesn’t come as a surprise since it reigns as one of the major emerging national economies. However, Brazil has seen a recent economic downturn with increasing unemployment and a contracting GDP. In fact, the Brazilian government cut 2017 GDP expectations from 1.6% to 1% growth. Having been one the most lucrative foreign investments for governments to individual investors, what happened to the so-called “Country of the Future” and can Brazil regain its momentum?

Back in 2015, recession hit Brazil hard and the country is still struggling to get back on track. According to the CIA World Factbook, the economy contracted 32% from its peak in 2011 and unemployment reached a new high at 12.6% in 2016. Being based mostly on services, agriculture and oil, Brazil’s economy has a direct correlation with global demand. With global recession looming, Brazil is feeling the effects of a slow world economy.

Brazil is a top tourist destination offering beautiful beaches, a diverse culture and exciting festivals. However, with the world economy slowing down, people are less likely to travel abroad. Since the majority of the country’s GDP derives from the service industry, Brazil will not be able to rebound any time soon unless there is a major boost in consumer confidence.

The demand for Brazilian exports was slashed when its largest trading partner, China, entered into an economic slowdown of their own. The decrease in exports caused massive layoffs throughout the nation. The notorious economic downward spiral began by wary consumer spending as unemployment rose. Companies that tried to gain capital by borrowing in U.S. dollars found it difficult to pay back those loans as the Brazilian Real crashed 25% in the span of a year in 2015.

One of the major hits came from low oil prices and the corruption of Petrobras, a large oil company and Brazil’s largest source of investment. Brazil is major producer of oil, exporting $11.8 billion worth in 2015, according to the Observatory for Economic Complexity. OPEC delivered a major blow when the cartel decided not to cut oil production, causing oil futures prices to plunge. In order to cope with heavy losses, Petrobras was forced to sell off assets and halt future research and expansion plans.

As if things weren’t going poorly, Petrobras was also caught in a scandal with former Brazilian president Dilma Rousseff and other high office executives. From 2004 to 2012, the company had spent over $2 billion on bribes to politicians whom would allow the company to charge inflated prices for construction contracts. Now that the scandal has unfolded, Petrobras executives face jail time and the company as a whole is forced to pay billions in fines.

So what does the future hold for Brazil?

Although at the moment the future looks dim, there are still signs of hope Brazil can turn itself around. The Real has seemed to stabilize in 2016 and heads into 2017 with an upward trend. Moreover, experts’ GDP projections for 2018 through 2020 show promising figures that Brazil can restore pre-recession level growth.

Even more promising, U.S. companies are still showing faith in Brazil’s future. American Airlines plans to invest $100 million in an aircraft maintenance center in Sao Paulo. Brazilian Investment Partnership Minister Wellington Moreira Franco and many countries like the United States, United Kingdom, France and Japan agree there are still reasons to invest in Brazil. This should be seen as a sign of confidence that the Brazilian market will grow soundly with the support of both national and international investment.

The Unintended Consequences of Globalism

Globalism might be good for the world economy as a whole, but does not necessarily mean it has been good for the American worker. Whether intentional or unintended, the American worker has suffered through the philosophy of free trade. Do not miss quote me, Globalism has a lot of positives. Now more than ever the people of earth are connected through the internet and can communicate information faster than any other time in history. People are exposed to different cultures and ideas, and the free flow of information is exponentially evolving our society. “Free trade” plays a big part in globalism, which is why there has been a “backlash” from non-college educated workers in wealthy countries in direct response to the effects of free trade policies. When wealthy counties openly trade with developing countries it can overvalue the wealthy countries currency, which in turn makes imports cheaper while exports become more expensive. However, according to the Economic Policy Institute, the real culprit is not the valuation of the dollar and the increasing trade deficit. (Bivens, Economic Policy Institute)

The USA has increasingly shifted its economy from manufacturing to services like banking and investing. It is cheaper to import products of manufacturing from a country that has extremely cheap labor than it is to employ American workers in the United States. This in turn means there now is a premium on college educated Americans who are filling job openings within the service industry. On the other side of the coin, manufacturing jobs are leaving the country and lowering wages of workers without a college degree. This fact coupled with increasing technology that replaces workers and a trade policy that out prices “expensive” American workers is leading to decreased wages. As the US trades more with developing countries as a percentage of GDP, the wages of unskilled workers continue to decrease. (Slaughter and Swagle, International Monetary Fund)

Though Globalism has a net increase in GDP and employment for countries involved, most of the gains from free trade is disproportionately received by the top 1% of Americans. Policies that protect corporations and their interest at the expense of the American worker exacerbate the problem. Trade policies like NAFTA and others have little protections for workers and heavily favor the multinational corporations that seek to benefit from free trade. This only adds fuel to income inequality, which for poor countries can increase economic growth while having a negative effect on rich countries. Rich countries are also at higher risk of financial crisis when they have high levels of income inequality. (Malinen, Huffington Post)

Globalism and free trade are linked very close together, which is why there is a stigma attributed to the word. There has been growing resentment within the US and other wealthy nations of globalism as a whole. They do not just condemn free trade, but openly blame minorities and marginalized groups for their decrease in wages and “eroding” their cultural dominance that they claim dominion over. This is a deadly cycle, as income inequality only feeds this type of behavior. In a country that is not adequately educating its people, more of the workers within its country will become more ignorant. With free trade putting a premium on college educated workers and decreasing wages of unskilled labor, we are now almost at a tipping point, socially and economically.

Globalism has many unintended consequences that inadvertently caused huge social and economic problems within the US. The problems that globalism is causing is not a hard fix. Reducing the income inequality will eradicate more of the negative effects of globalism. Universal Education, Universal healthcare, and a rewrite of our tax code are just a few ways to reduce income inequality. All of these possibilities are well within our means. We have to take care of these problems swiftly, before globalism becomes an integral part of our own decline. (Mason, Post-Gazette)

Bivens, Josh. “Using Standard Models to Benchmark the Costs of Globalization for American Workers without a College Degree.” Economic Policy Institute. N.p., 22 Mar. 2016. Web. 25 Apr. 2017.

Malinen, Tuomas. “The Economic Consequences of Income Inequality.” The Huffington Post. TheHuffingtonPost.com, 17 Dec. 2015. Web. 25 Apr. 2017.

Mason, Bob. “Single-payer Health Care Would Help to Treat Three Separate Threats.” Pittsburgh Post-Gazette. N.p., 26 Oct. 2014. Web. 25 Apr. 2017.

Slaughter, Matthew, and Phillip Swagel. “Economic Issues 11–Does Globalization Lower Wages and Export Jobs?” International Monetary Fund. Imf.org, Sept. 1997. Web. 25 Apr. 2017.

Aligning Sales, Services and Finance

Take any company – in any sector – and it is quite likely that important departments function independent of timely input from each other, though closely interrelated functionally. To streamline work processes and improve productivity, the Finance and Sales departments should be coordinated. If each has well-established processes in place and sticks to these, the required alignment and achievement of common goals will not happen. This drift is accelerated when these departments use standalone solutions for CRM and accounting. To get these disconnected systems into sync is a time-consuming task and the organization itself may be willing to let the drift continue rather than making a one-time effort towards alignment. In a professional services organization, the services team gets caught in the crossfire. Sales department sets over-optimistic targets and Finance strictly monitors and controls each dollar earned and spent.

Customers are also affected by the divide. The finance department may not know the status of a sale or outcome of a customer meeting and may chase debts/issue invoices inappropriately. The service department may not be aware of issues raised by customers to other departments. Customers reporting issues may not receive good service if the departments are uncoordinated. In such situations, the company is damaging its customer relationships, operating inefficiently, impacting cash flow and jeopardizing future bookings.

One Solution for All

The solution to this issue is ensuring that all the departments in the organization work together towards a common goal. The customer’s needs, issues and most importantly cash flow cannot take a backseat because of a lack of internal coordination.

All the affected departments must work together towards resolving this problem. They must ensure that all the major processes are aligned and that personnel are aware of the overall scheme of things. Organizations can get the much-needed sync by switching to a common cloud platform for the sales, services and finance departments. By working from connected CRM that shares the same data as the financial application and professional services automation tool, errors and discrepancies that inevitably occur when separate systems are used can be eliminated. Manual efforts are dramatically minimized, hence reducing the work of the sales team and the risk of making mistakes. A common platform is also ideal for monitoring whether a customer is credit worthy. The sales team can consult the credit background before selecting prospects or deciding what discounts or deals to agree with customers. They can view the status of the credits and also help with collections. In this way, all the three departments, sales, services and finance, complement each other.

Collaborative Tools

Organizations can also benefit from the collaborative tools available with cloud platforms like Force.com from Salesforce.com. Built in business collaboration tools like Chatter provide a stream of business alerts and conversation, which dramatically helps to improve intra-organizational communication. This real-time collaboration is very important for all the departments of the organization to have visibility about every aspect of the business relevant to them in real-time.

4 Benefits of Importing Goods From Overseas 4 Benefits of Importing Goods From Overseas

Any business involved in supplying goods or materials needs to constantly look at ways to increase the efficiency of the supply chain, while also managing costs. A practical solution to improve profit margins is to look to the overseas market for the raw materials. Importing goods can offer a variety of worthwhile benefits, such as high-quality goods, lower prices and a wider range of suppliers. While the opportunity to import goods is great for a lot of businesses, it is still essential to conduct the necessary research to avoid making a costly mistake.

Here are a few benefits related to importing from overseas:

Comparative advantage

A major reason to import relates to comparative advantage and the potential to benefit from the more attractively priced goods. Comparative advantage relates to finding the overseas market with the more favorable production costs, such as lower tax schemes, low labor costs, cheaper raw materials, etc. By cutting the initial investment in materials or products, it makes it that much easier to increase future profits once the items are shipped back and sold in your own country. This makes importing one of the easiest and quickest ways to boost your profit margins and cut costs.

High quality products

Importing goods from countries across the world still mean it is possible to source high-quality products. There are plenty of countries that have their own specialties and strengths. For the business that is looking to buy raw materials or goods from a country that specializes in a particular item, it often pays to buy direct from the source. This means it is possible to get access to the finest materials right at the start of the supply chain which should help to improve all-round quality and hopefully make the end product that much more marketable.

Trade relations

There are plenty of countries that attempt to promote trade relations to make it that much easier to import the desired goods or products necessary for your business. Government agencies may even be set up to help make the entire importing process as straightforward as possible. With the guidance of an official agency in place, the risks of trading with an overseas company are likely to be significantly reduced.

Regional resources

A further benefit is the ability to expand the potential market pool with the choice to buy resources that may only be found in specific regions of the world. This may relate to special technologies or raw materials.