Inflation Inshmation

What do you mean the price has gone up?

Last year we paid $5000 for raw materials and this year you want us to pay $7000? This is highway robbery buddy.

I expect prices to drop, at least 10% buddy.

You raise prices every year, 50 or 60 percent.

I need prices to drop, I need to sell things at lower cost, not higher cost.

Hey buddy, don't hang up on me. We want to purchase, we are going to give you our business, you should give some discount. Give me my last price, even if your cost is now higher.

Don't give me your nonsense that material prices change, and cost goes up, we purchased last year for $5000, give me that price.

I am your customer, I am going to resell your product, I am going to promote you, give me the same price, give me some discount buddy.

Interviewer vs. Interviewee

The Interview. This is a process most, if not all of us know well. Many people relish the challenge, while others fear the potential rejection.

Interviews are, without a doubt, very important. They can very well determine the course of your life for many years to come. It is very important to take it seriously and put yourself out there in the best possible way. Think of your strengths. Think of your weaknesses. Think of ways to overcome those weaknesses. Be prepared. Organize your thoughts. Be clear. Be concise. Be the best that you can be. Remember, they aren't giving you a job, you have to earn it.

I want you to consider the trait of selfishness, or the opposite of selflessness. It probably not something that comes into mind too often during the whole interview process, whether it is during preparation or the actual interview itself.

You Are Selfish.

Have you ever stopped to think about the person on the other end of the interview? No, didn't think so, you only think about yourself and the job YOU want to get.

Why the bitterness you may ask? Let me tell you.

I was put into a position by Bob today to give an interview I was not prepared for. He had scheduled the interview at the same time he had an important conference to attend. 15 minutes before the interviewee arrived, Bob phoned to let me know he wouldn't be there, and that I should take over, and get a feel for this new potential hire. Most importantly, I should look for that certain "twinkle" in his eye. You know, the one that shows he is genuinely interested.

I have always believed that the best way to introduce yourself to new people is with humor, so I started the interview off with a few jokes.

"We don't get any benefits, we are payed below minimum wage, there is no business plan, and the cafeteria food is terrible!" I said. Our new interviewee's eyes widened and I could see the terror creeping in. "Don't worry, I'm just messing with you! The cafeteria food is actually mediocre." I quickly said to lighten to the mood. He cracked a smile and chuckled and we continued with the interview.

Calling on experience from past interviews of my own (not including my GenTechs interview, lets just say that Bob has interesting methods) I began to show him around and explain just what we do here at GenTechs (as a side note, many of you may be wondering just what exactly we do here and I wish I could tell you, but we have signed a NDA with ourselves). After that I sat him down and asked him a few questions about his work experience, and a few about how he thought he could best fit in here. We spent the next 10 or 15 minutes discussing various work related issues until I thought I had done the best I could and said that we would be in touch.

Bob rang about 30 minutes after the interview had ended, wanting to know how it went. I proceeded to tell him the questions I asked, and the answers that I received. I told Bob that even though he did not have any prior experience, I thought he could do fairly well. Bob said "Let me tell you a secret." I listened in closely. "None of that stuff matters," he said, "did you see the twinkle?" "The what?" I asked. "The twinkle in his eye, you know, the one you can see when he is really interested." Bob continued on, explaining how in addition, you need to sell the company to the interviewee. He explained to me that just like any other business negotiation, you need to sell your company, tell them how great it would be to work here, let them know that its about the opportunity to learn to grow, and most of all that its just a great opportunity, its not about the money after all.

So in the end, I guess I am not actually bitter. At least not bitter towards Bob. More bitter at myself for not taking better advantage of the opportunity he gave me to learn how to interview and hone my interviewing skills.

Until we face off again, interviewee, I will be waiting, and I will be prepared.

You should give some discount buddy!

Oh Robert Robert Robert... you are man who knows how to conduct business like no other. You king of the office you. It is truly an honor to be in your presence.

I have two short, but related stories for you today.

Let me begin by saying that Mr. David has put me in charge of building another new machine (recall the last one that just shipped). Even though I am in charge, Bob, will be intimately involved, popping in at critical moments after a lot of work has been to redo, change or otherwise modify my work. I know I am not really good enough, but all I can do is try. Instead of giving me the project fully to screw up, Bob will be there every step of the way holding my hand and utilizing our time well.

I had planned to begin construction by giving young Erwin a chance to get his hands dirty. I created a plan and was ready to give instruction to Erwin. Bob came to me and told me the same plan. Then he told me again. I called young Erwin into the room and proceeded to explain the plan to him. Bob must have realized that I was incapable of explaining it correctly, or that Erwin was incapable of understanding me. So Bob proceeded to tell him the plan. Then he told him again.

Thanks Bob. Its better to "use" that time to explain the same thing 5 or 6 times, rather than begin working and potentially work incorrectly. Thanks.

Later in the day, Bob and I had a meeting to discuss purchasing for the new machine. I had printed out price quotes from companies and was prepared to order. "No!" Bob exclaimed, "those prices are only the suggested retail prices, we should use our time to call them and get discounts instead of actually ordering."

Reluctantly I agreed and we began to call. **For those from the States, you may not be familiar with the concept of haggling, but read on and learn** The first place we called already had us in their system for a discount. Cha-Ching! The second place was more stubborn, saying they only offer discounts on large quantity purchases and for OEM customers than purchase more than a certain amount per year.

Bob stood his ground and proclaimed to this lowly sales engineer that we have purchased in the past and we should be entitled to a discount. Again this sales engineer protested "claiming" that we are not meeting the minimum order or the minimum purchase amount to be considered an OEM client. "You should give some discount buddy!" Bob proceeded to say, at which point the sales engineer said he would ask his superiors and see what he could do. I could tell though that he was just trying to get us off the phone. Jerk.

Look, don't be a jerk, and don't be stubborn, in the end Bob will get his discount one way or another.

I will keep you all updated on the progress of this new machine.

Introducing Coffee

When I woke up this morning, I had an email in my inbox from one of the new guys here at GenTechs. He had viewed this blog and decided that he wanted to contribute his thoughts. So I thought I would let him use this as an outlet for his thoughts.

Fresh out of college with a degree in Engineering, I felt that the world was my oyster. I, Erwin Llewellyn had a good degree from a reputable university, and the job-market in my field was in my favor. With a smile on my face and a kick in my step, I crossed the threshold of the GenTechs entrance looking forward to the interview I was about to have with a man called Robert David. I had three more interviews that day, but I was looking forward to this one the most. My other interviews were with larger companies, Intel, Black and Decker, the Navy, but I was more interested in joining a start-up. I knew the salary would be a lot lower, but the invaluable experience and the opportunity to get in on the ground level far surpassed any 60K job those other guys could offer me.

Robert David, an on first impression friendly man, welcomed me with a hearty smile and a strong handshake. He showed me around the labs of the company and introduced me to his (somewhat less enthusiastic) employees. One person in particular, I believe he was the finance guy or the marketing guy or something, was busy watching a movie on his iPod. I also noticed a lot of equipment covered in aluminum foil. I have no idea why a power supply needs to be covered in aluminum foil, but I assumed they had a good reason and decided not to think of it any further.

After showing me the labs we went down to the cafeteria for the actual interview. An HR representative, who later explained he was also a researcher, joined us at that point. It was nearly lunch time, but we ended up just buying a cup of coffee (Mr David gracefully paid for mine). The HR rep. was not as enthusiastic as Mr David, but did have actual questions to ask during the interview. For example, he talked about what I hoped to accomplish in the next five years, how I valued my college experience, and also the usual questions such as describing myself, etc. Mr David, on the other hand, kept asking me irrelevant questions, such as 'How would you break up a fight at the company' and 'On a scale from one to ten, where would you place the way you wear your hat?'. I think they were impressed, because the conversation shifted to compensation. The HR rep. kept repeating the values one attains from working at GenTechs, without going into any specifics on payroll and benefits. I realised why when Mr David made me an offer ($18/hour without benefits). This was in sharp contrast with the other companies where I had been offered more than double the pay, with benefits.

Amusingly, my undergraduate degree was in something quite different to what GenTechs does, but they still wanted me there. I saw a future in the company that I felt could give me some great experience, and perhaps I could even help them make the company larger. Combined, I felt my business and engineering knowledge could be put to good use at the company, and so I gave it a try (continuing the job search just in case). A few days later I walked through the door as a GenTechs employee.

Shipment Day!

Remember that machine I told you about, you know, the one with the aluminum foil? Well it is finished and we are actually in the final stages of preparing the shipment. I don't have much time, but I felt I needed to relay this short story first.

Shipping packages is something we all do, easy right? Put the thing in a box, make sure there is padding, close box, tape box, ship box. Simple. Have you ever tried to ship a machine that weighs half a ton? Me neither.

Bob approached us last week, and came up with the brilliant idea that we, who have no experience, were going to pack AND ship the machine ourselves! Brilliant!

After a few days of straight debating the subject (while doing nothing else, productive) Bob finally, against his better judgement decided that maybe we should just hire a logistics company to pack and ship the machine for us.

The shippers arrived and Bob welcomed them to the manufacturing floor and they began to wrap the machine and prepare it for shipment. Bob, being Bob, stood watch while they packed it, giving them instructions on how to pack the machine. Remember, these guys are professionals, but Bob knows best. I'm sure they were impressed not only by Bob's enthusiasm, but also his supposed knowledge in shipping and packing matters. So just remember, hover over people who know better than you, and tell them how to do their job, they will be impressed.

After 2 hours of driving wonderfully in front of, behind, and next to the moving truck, and almost 4 accidents later (almost surely because of other drivers) we finally arrived, and delivered the machine. After spending almost 8 uneventful hours, we finished and finally headed home.

It's all about Appearances!

I was very pleased to bring you the abbreviated version of Bob's life story. The full story would just take up too much time to tell. During the writing of said biography, Bob inspired me, and I couldn't just leave today without passing that inspiration on to you.

The title of this story basically summarizes the story, It's all about Appearances! There are two important concepts to consider when designing products, functionality and aesthetics. Most business owners are fully aware of these two concepts.

Functionality: This is the why to making products. Without a purpose, or a function, there is no point to making anything. A product needs to be able to function adequately to perform a needed task or function. Traditional Business modeling would state that in fact the product should go above basic functionality and offer more.

Aesthetics: The look. What good is a functional product if it is not pleasing to the eye. Nobody is going to want to buy a car that looks like crap, even if it runs extremely well.

Traditionally, functionality should be considered first, going above and beyond normal functionality is what is thought to make a product attractive to consumer. Aesthetics should be applied to some degree, but only enough for a consumer not to be turned off. Bob reverses this theory, asserting that aesthetics is indeed as important, if not more so than functionality.

Over the course of the last 4 years GenTechs has been building a machine for a client. Unfortunately this machine is under a strict NDA and I can not go into any more details here. Suffice to say, this machine is fairly large and has cost a large sum of money. Production has been slow, and often delayed, resulting in the costs overtaking the agreed upon price. Most of you may be thinking that we should cut our losses and run, dump the system the way it is and move forward. While that may be a good idea... Bob has other plans.

During the course of building this machine, Bob has repeatedly followed his rules of business administration and is certain this machine will turn a profit, if not now, then in the long run. The machine was actually sold before the design was even finalized, remember young business minds, fly by the seat of your pants! In fact, during the entire production Bob has tried to let his employees handle most of the production tasks so that he could focus on his other business ventures. Being the great man he is though, he knew he could not stay away, and in fact would pop his head in every few weeks and make changes (for the better) that made all the prior weeks work for nothing. This process of changes continued throughout the entire production run of the machine.

Finally last week, after having gone way over budget but finally delivering a working machine, Bob turns to me and says, "I like it, but we need to make it look better."

I didn't think much of his comment until two days ago, Bob showed up with 50 rolls of aluminum foil. "We are going to cover the machine with aluminum foil!" Bob proclaimed excitedly. "Not only will it help cool our machine, but it will also make it look spacey, like a satellite!"

I inquired to Bob about why we were going to do this, and he told me that customers like things that look Science Fictioney. I thought it looked terrible, but Bob assured me that it would work, and even though we were at a loss of money now, the look would bring him back for more and the money would flow! Besides, not only does the machine look good, but it also looks good for the company to bring in sales, even if they are at a loss.

... It's all about Appearances!

Behind the Music: Bob D.

Robert David was born Rüdiger Erwin Hans Liechtenstein David III on July 13th 1961 to parents Dieter and Gertrude David high in the Liechtensteinian Alps. His childhood was usual for a boy of his age. He enjoyed the usual alpine activities such as yodeling, playing the alpenhorn and spending time with his best friends, cows. At age 12 he became interested in the world of business, writing business plans regarding how to run and manage his free time. He eventually went on to study business under Liechtenstein's greatest business mind. It was during his studies where he learned to disregard all traditional business teachings and eventually form his current model of business administration.

Bob's first real business venture came at age 19, when he developed a line of winter apparel for swiss alpine cows. His bovine clothing line was perfectly targeted to those swiss cow farmers. Using innovative advertising slogans such as "Das warm cow ist ein happy cow!" and "Best milk comes from best warm cow!" as well innovative marketing techniques such as personalized visits to farmers high in the Alps on bicycle. The farmers really felt like they were buddies and as such decided to buy Bob's patented cow warmers even though business was working just fine and was very profitable without them. Bob, not one to let an opportunity pass him by, insisted that he was just a small alpine boy from a small alpine family running a small alpine business. This tactic allowed Bob to gain sympathy from the farmers and buy milk for cheap.

Bob founded and ran a record of 19 successful business ventures over the course of the next 20 years or so. Bob had conquered the business world and decided it was time he turned his attention to politics. Since Liechtenstein is ruled by a prince, Bob saw that opportunity awaited him in the United States. At age 39, in 2000, Bob packed his bags and moved directly to the heart of US politics, Washington DC. Over the course of the next few years he mingled with Beltway insiders and slowly but surely edged his way into politics. After Bill Clinton's term ended Bob learned a valuable lesson from the presidency of George Bush. Bob learned that in order to truly be successful you do not always want to put yourself out in front. Instead, it can be very beneficial to be the second or third in charge and call the shots silently using a scapegoat. Bob carefully studied Dick Cheney and Karl Rove, hoping to learn all he could from these two masterminds.

During his time studying politics, Bob started up his latest venture, Generic Technologies. GenTechs is his latest and greatest achievement. Most recently, Bob has stealthily positioned himself into the campaigns of all the major US presidential candidates, including, Barack Obama, Hillary Clinton, and John McCain. He plans to use his position with the next president to allow for tax breaks and other government benefits towards GenTechs.

The future is bright for Rüdiger, and the opportunities are endless!