Archive for the ‘Other Spend’ Category

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Collaborative Consumption

Tuesday, July 26th, 2011

collaborative-home.png
(image credit: Collaborative Consumption)

But isn’t that like, communism, man?

Not exactly – people still own things and are making a profit from them, and that’s sort of the point.

Technology (i.e. the internet) is allowing regular people like you and me to share their skills, stuff or space with the world – for profit. New websites and services like TaskRabbit, SkillShare and Airbnb (and even old stuff like eBay and Craigslist) allow people to take advantage of stuff they own or stuff they can do by lowering barriers-to-entry.

But, wait, if, like, everyone can easily buy and sell stuff, isn’t that at least, like, socialism, man?

Not exactly.

Tax-deferred is…

Thursday, July 21st, 2011

Tax-deferred is when you don’t have to pay taxes on a particular account as long as your money remains in it. You wait to pay the tax until you take the money. Once you withdraw your money, it’s up for grabs and the IRS can begin to tax it.

Retirement plans are a great example. Money stashed away in annuities, 401(k)s, and IRAs is tax-deferred to varying degrees and can grow for decades until you reach your retirement age.

Making it Work: Internet Shopping Entrepreneurs Talk Shop

Monday, June 27th, 2011

Carla Holtze and Kimberly Skelton used business school as an excuse to do what they already wanted to do: create a social website that roughly imitates the experience of having your best friend give you the thumbs-up or thumbs-down in the dressing room. Thus was born WingTipIt.com.

But starting a company isn’t easy – especially when it involves learning new technology in a relatively new industry. Watch them talk about what’s worked and what hasn’t:

>> TILE brings you exclusive opinions, explanations, and interviews from experts in every industry. Have a burning question or an expert you’d like to see interviewed? Just Ask TILE!

A Social Security Number is…

Friday, June 3rd, 2011

A social security number (SSN) is a nine-digit number issued by the Social Security Administration to every United States citizen, plus permanent residents and temporary working residents. Its main purpose is to track individuals for taxes, but it’s also used as an official national identification number.

Accounts Receivable is…

Wednesday, May 18th, 2011

Accounts receivable (A/R) is an accounting term that refers to money someone owes to a store or business. If you buy something from a store, but don’t pay them right away – the amount that you owe goes into the store’s accounts receivable record.

Most large companies have an entire accounts receivable department that is solely focused on keeping track of money owed to the company.

Online Shopping Gets Smarter [Than You]

Wednesday, May 4th, 2011


(credit: Unhindered by Talent)

Guess what? Retailers are getting smarter and smarter when it comes to separating you and your cash (or credit card info, to be more precise).

First there was members-only designer discount site Gilt Groupe, with time limits for checking out with your items. Then we saw the daily deals companies like Groupon and LivingSocial. There’s Rent the Runway, where you can rent a hot little piece of couture for an event for under $200.

And now, for a mere $30 monthly subscription fee, online shops like JewelMint will get to know your tastes and offer up pieces it’s sure you’ll like. All based on an algorithm. This is in some ways even cooler than the computer from Star Trek: The Next Generation that made Captain Picard all those cups of tea with a simple voice command.

The online shopping world will surely continue to evolve, getting cooler, more convenient, and quite a bit more manipulative in the process. So don’t forget to bring your brain when you go on your next online shopping spree.

Think you’re a conscious consumer? Take our Where Does the Money Go? challenge!

You were there for one of the “biggest box office bombs of all time!”

Friday, March 25th, 2011


(AP Photo/Walt Disney Studios)

Congratulations – you’re witnessing history in the making! “Mars Needs Moms” – the 3-D animated Disney disaster that came out last weekend – has had one of the worst opening weekends… ever.

The film earned $6.8 million in its opening weekend… but it cost about $150 million to make. Most movies break even within a few weeks of release and then – ideally – start to turn a profit. Not so for this tribute to the power of moms. Though it brought in some revenue, it wasn’t enough to cover the cost of producing the flick.

Disney distribution president Chuck Viane says the problem is simple: “Not enough people came to see the movie.” (Um, duh.) One possible reason is that there were a lot of other animated movies in theaters this weekend, and Earth moms weren’t about to shell out $20 for 3D tickets to all of them.

So were the dismal box office numbers a product of poor timing or a cruel twist of fate?

Perhaps the movie’s budget directors should have taken Budgeting 101?

What’s up with 3-D movies anyway? Are you paying to see them? Tell us.

Random Young Writer Making a Killing in the Kindle Store

Wednesday, March 9th, 2011


Amanda Hocking (photo courtesy Business Insider)

Technology changes everything, again.

Amanda Hocking is living the dream: she’s in her mid-twenties, writing what she wants to write, and making a serious profit without any of the usual middlemen. No publishers, no editors, no marketers, no book-signing tours.

The Kindle store allows her to connect directly with readers, who sometimes pay only a dollar to download her work. But multiply one dollar by 100,000 downloads, and then imagine taking home 70% of that. (Amazon keeps the rest.)

This is good news for young writers looking to make a name (and a profit) for themselves, but what about all those people who make their living as publishers, editors, and marketers?

This Fall, Look Forward To High, High Prices!

Friday, February 18th, 2011


(photo credit: Thing Three)

“Most” consumer goods are about to get a lot pricier - food, clothing, appliances, you name it. Why? Commodities, demand, and labor! Here’s what that actually means for you…

  • The cost of raw materials, like cotton, wheat, and metal, has increased wildly in recent years. These raw materials are traded on exchanges kind of like stocks, but they’re called commodities. Just like stocks, the prices of commodities changes frequently.
  • When commodity prices shoot up, it’s more expensive for companies to make their products, and that cost gets passed on to you, the consumer.
  • Besides the price of materials, there’s the cost of people. Workers overseas now demand higher wages than they used to, and with more money to spend, there’s an increased demand for certain goods (like cars and meat). That all adds up to more expensive products.
  • Retailers have been holding off on raising prices to keep customers during the recession, but they say they can’t hold out anymore.
  • Will rising prices lead to inflation? Stay tuned.

Facts & Figures

  • Unemployment in the U.S. is still at 9%, and wages have risen less than 2% in the past year
  • Some brands planning to raise prices include: Nine West, Anne Klein, Victoria’s Secret, Polo Ralph Lauren, Whirlpool, Kraft, Starbucks, Sara Lee, Brooks Brothers, and Hanes
  • Inflation has been low – about 1.4%, but economists expect the rate to rise to 2.5% 2011

Best Quotes

“Consumers are not exactly in the frame of mind or economic circumstances to say ‘Oh, pay whatever they ask.’ There’s going to be pushback.” – Joshua Shapiro, Chief U.S. Economist at MFR Inc.

“These companies are constantly walking a tightrope on how far do I go. Do I offset with price or other cost cuts, or do I just take it and have it eat into my profit margins?” – Jack Russo, Consumer Goods Analyst at Edward Jones

What do you think?

Do you know what goes into the price of the products you buy? Did you ever imagine that the price of popcorn at the movie theater could be connected to weather in the Midwest and a commodites trading floor in Chicago?

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