Archive for the ‘Spend Page’ Category

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Hawaii Pushes the “Emergency Marketing” Button

Wednesday, April 6th, 2011

We all know by now how much the earthquake and ensuing tsunami in Japan have affected its economy and the foreign companies that depend on Japanese-made components for their products.

But something we hadn’t really thought enough about is how the disaster affects where Japanese people choose to spend their money. It seems obvious now, but Japanese tourism to Hawaii has dropped by a full 25% since March 11th. That’s a big deal for the Hawaiian tourism industry, which is now spending $3 million on “emergency marketing” to woo travelers from other nations.

See what happens when you put all your eggs in one basket? Diversity really is more than just a corporate buzzword. (Full disclosure: we hate the word “buzzword.”) In work, school, government, AND your investment portfolio, diversification can protect you from unpredictable events and their domino effects.

Fortunately, Hawaii still has plenty of appeal to pasty New Yorkers like ourselves, who are happy to contribute to the state’s critical tourism revenue stream.

Barring an unforeseen volcanic eruption, that is.

How one manufacturer in Japan tripped up the Apple machine

Friday, April 1st, 2011

Do you know what makes your iPod go?

Here’s a hint: It rhymes with phithium pholymer.

No?

It’s made in Japan.

Still not getting it?

The shutdown of the Japanese factory that makes it is disrupting Apple’s production line.

…

If you guessed “a very specific and rare polymer used to hold together the lithium ion batteries used in iPods and a variety of other gadgets,” you’re right!! Ding!

This story is crazy. Who knew that one chemical made by one small company halfway across the world could affect iPod buyers in the U.S.? This is a good example of outsourcing in action.

For now, the company (Kureha) is scrambling to get back into action, but in the meantime, will the price of an iPod go up? Should we start stockpiling them in our panic rooms? Can we order iPods with the soothing voice of Justin Beiber pre-installed on them??

Seriously, though. Do you know where your favorite products are made?

The Dutch Sandwich & The Double Irish: How Google Saved $3 Billion in Taxes

Thursday, March 31st, 2011

We’d never heard of a Dutch Sandwich (mmm… sandwich) or a Double Irish before reading this article about how multinational corporations avoid paying U.S. taxes.

But then, we don’t have hundreds of highly-paid tax experts and lawyers working day in and day out to help us find and exploit loopholes in the tax code.

But guess who does? That’s right. The Googles, the Facebooks, the Pfizers, and the Microsofts of the world. General Electric alone currently has 975 people on staff to ensure it pays the least amount of tax possible while still not technically breaking the law.

They must be doing a pretty good job, because last year, G.E.’s U.S. tax bill was $0.00.

It pays to have smart people helping you make decisions.


(photo courtesy of Google)

How are you when it comes to saving money? Time to revisit that budget?

Click here to learn more about the wild and wonderful world of taxes!

The Fashion Economy

Tuesday, March 29th, 2011

freddy-dico.png Freddy Dico is the co-founder of Sir New York, a modern menswear label that launched in Spring 2010. He’s from Macau, but grew up in San Francisco. And before getting into the world of design, he was actually a star student in the biochemistry program at U.C. Davis. Since switching gears and graduating from FIT in New York, Freddy has worked with companies like Polo Ralph Lauren, J. Crew, and Brooklyn Industries, and designed an entire line for mass-market men’s label Scappino in Mexico. You can check out his latest work here.


TILE: Being a designer involves much more than a creative vision and talent with scissors and thread. What are some of the costs of starting your own fashion label?
Freddy: Since we are a really small start-up with practically no capital, time is the #1 cost.

To start, you need a product, which means sourcing fabrics, making patterns, sewing/fitting, creating labels, etc. Once the product is perfected, you need to document and promote it through a website, lookbooks, business cards, fashion presentations, models, invites, etc.  The lists really goes on and on and on…  Luckily, I have a partner (Auston Bjorkman) who is equally well-rounded in many areas, so we try to personally execute most tasks to lower our costs.

Of course there are only 24 hours in a day, which means you can’t do it all. We’re fortunate enough to have many people who believe in us and who are willing to volunteer their time and effort.

Oh, and let’s not forget about getting a business license and all that legal stuff…

TILE: How does a piece get from the designer’s head to the runway?
Freddy: At the start of the season, Auston and I will brainstorm and finalize the themes/concepts we want to use. Then we create sketches, source fabrics, make patterns, and sew the samples. After that we set up a photoshoot, cast models, send invites, create a website, scout locations for the show, and stress ourselves out making sure the event goes off without a hitch.

TILE: And how does that piece get from the runway to the retail store?
Freddy: There’s a lot of following up on our part. Before your runway show, you need to figure out pricing and where will you produce the garments. Once you have all the business details – the linesheets – figured out, you’re ready to potentially attract buyers to place your product in their stores. Once orders are confirmed, you actually need to produce and ship the pieces to them.

TILE: How can you be a “smart shopper” when it comes to designer clothing?
Freddy: Well, the answer to that question depends on what kind of person I’m talking to. But in general, I always believe that the value of a garment is based on the number of times worn.  So make sure you love it!

TILE: What advice would you give to your teenage self?
Freddy: Enjoy the ride!

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.

Guess what? You’re probably committing tax fraud on a regular basis! Yes, you!

Wednesday, March 23rd, 2011


(photo credit: swanksalot)

Did you know that New York State requires residents to pay sales tax on items they order from Amazon.com?

Not at the time of purchase, because Amazon doesn’t calculate state taxes. But when you file your state tax return every year, you’re supposed to tell the state exactly how much unpaid sales tax you owe on everything you’ve purchased from out-of-state retailers (i.e., almost everything you buy online). And at the end of the year, you’re supposed to write a check for that amount.

Which, of course, nobody does. So states have been trying to pass laws requiring online retailers like Amazon, FatWallet, and Overstock to collect sales tax at the time of purchase.

Why all the sudden fuss? Well, most states are facing multi-billion-dollar budget deficits these days, and unpaid sales tax on online purchases could add up to more than $10 billion this year. Aside from selling the local park to a private company, taxes and traffic tickets are really the only ways a state can hope to raise the money it needs.

When you’re low on cash, don’t you suddenly start thinking about all the money that’s owed to you?

Click here to learn about hidden taxes, tax evasion in Switzerland, and tax breaks for do-gooders.

Why are gas prices so wildly different around the world?

Tuesday, March 22nd, 2011


(photo credit: Drew__)

If you’ve been in Europe recently, you’ve probably noticed all those extra digits in the price of “petrol.” In the U.S., we’re horrified at the idea of paying $4 a gallon for gas, but in Norway they’ve already blown past the equivalent of $9.

But… why? Is it harder to pump oil in to Norwegian gas stations? Is greater demand among the Norse driving prices up? Not even.

There are a few reasons, but according to Aaron Smith at CNN, it’s pretty much all about the government. Governments can either charge their citizens extra to buy gas (by taxing it) or the pay them to buy gas (by handing out subsidies, which lower the price per gallon).

Taxing gas is useful because the money pays for government programs. And handing out subsidies is useful if you want to keep your population happy. (You see this a lot in oil-producing nations like Saudi Arabia. It’s hard to be angry at the super-wealthy ruling elite when they’re basically paying for your gasoline.)

The moral of the story: Stuff is only worth what someone says it’s worth. $3 or $10, you still need it to make your Hummer go.

How much do you think you should pay to fill up your gas tank?

Gen Y Gets a Job: Pretty Young Professional Talks with TILE

Monday, March 14th, 2011

What do you do when your fancy degree gets you a job answering the phone and filing papers for someone else?

Amanda Pouchot and Kathryn Minshew from prettyyoungprofessional.com have some helpful advice.

Advertising to the Unconscious Mind

Sunday, March 13th, 2011


(photo credit: e³°°°)

Humans are easy… right? Well, no.

  • It turns out that discovering whether a consumer actually likes a product has more to do with the unconscious mind than the one that tells market researchers what they want to hear.
  • Effective researchers have always tried to look “behind the scenes” for subtle changes in facial expression and tiny eye movements that reveal a subject’s true feelings about the product they’re viewing.
  • But today’s best market researchers are computers. Even something as simple as an Internet or iPhone app with a camera function can track and analyze your facial expressions – meaning the jig is up for product testers just trying to be nice.

Best Quote

“The trouble with market research is that people don’t think how they feel, they don’t say what they think and they don’t do what they say.” – David Ogilvy, late British advertising pioneer

>> What do you think?

Have you ever convinced yourself you liked a product even though you actually didn’t?


Airlines Busy Inventing New Perks for Spendy Travelers

Sunday, March 13th, 2011


(photo credit: Richard Moross)

Don’t worry; you don’t have to pay to use the lavatory. Yet.

  • It seems like the airline industry has been struggling financially forever. But it’s never been as obvious as it is today, when most carriers are charging $30 for an extra carry-on bag and eliminating complimentary meals.
  • The main source of these fees is the steady increase in fuel prices airlines have seen in recent years. But with every new charge comes with a new disgruntled customer.
  • Now, instead of taking away amenities that used to be included in the price of a ticket, airlines are coming up with new services to sell to travelers. More of an “added value” approach than a cost-cutting spree.
  • Flyers willing to shell out can board the plane early, get a seat with extra legroom, or splurge on a champagne brunch – yes, even in coach.

Facts & Figures

  • Airlines increased their prices six times in the first two months of 2011
  • Fees for things like extra carry-on bags and snacks accounted for 5% of all industry revenue in 2010 – that’s $22 billion

>> What do you think?

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