VACATION tip for SAHMs and others

Going on vacation this week. If I were good about posting regularly I know you would miss me.

Before departing I thought I would pass on two tips about vacation time, one for everyone, one for SAHMS especially.

1. USE YOUR VACATION TIME. Two weeks or six, companies include this as part of your total employment package. They pay you less if they give you more vacation time. Lets say you are paid $200/day. Every vacation day you take, you are PAID this amount to play. Vacation time is an attractive benefit. Technically you're paid for doing nothing but they would have to pay you more if it wasn't available. SO USE IT.

*It is also your social duty. Employers track vacation time usage. If employees are under-utilizing this benefit, an employer will decrease vacation time. This has happened time and again.

2. MOM NOTE: USE YOUR SPOUSE'S VACATION TIME. So for Christmas, mother's day, etc., cards and flowers are nice. Gift cards are OK. But what if daddy didn't have to pay anything and could give you the most amazing gift: time to yourself that is not the weekend. What if daddy gave you one of his vacation days, saying, "OK, honey, this is my slow season. Here is a coupon for a vacation day for YOU. Give me a week's notice and its yours." How cool would that be?

Why am I posting this for moms instead of dads? Because sometimes daddy needs a hint from mommy:)

Try not to miss me too much while I'm out and have a great week!

Case Study: Netflix

Netflix is raising its prices; it will now cost $15.98 for unlimited online streaming of a limited selection AND 1 DVD at a time mail rental. This is a 60% increase over their current price of $9.99.

The increase was inevitable. When they started streaming movies in 2008, nobody realized how big the practice would become. Now its huge and studios realize that they are losing money by charging so little. Contracts with Netflix expire in 2008 and the studios now want their cut. It is estimated that this expense will go from millions to billions.

Netflix has always been a low cost, high profit business. Their convenience rapidly built their customer base. Even my backwoods neighbors get the red envelope at least once a week. My wealthier friends have "that box" that lets you rent them right from home.

Is a $6 price increase really going to affect them? That is the question stock watchers are pondering.

On the one hand, since the announcement, their stock price has increased several dollars. They have loyalty. The majority of consumers will grumble but not take the effort to make a change for a mere $6. That is human behavior.

On the other hand, competitors like Google and Amazon - who have much more money because of their diversified companies - may be eyeballing Netflix. There is room for a giant company to move in on competition in the same business, paying studios more and charging less for a year before bringing prices back up? Walmart does this all the time. Or, Netflix could be purchased by one of them. Their established client base is a valuable asset. And an acquired company's stock increases once the deal is done.

Then again, if they are just priced out of the market, Netflix could die a quick death and stocks could plummet.

Which way will it go? Any ideas from commenters?

RElaunch REview: Change

Change is a big deal to a lot of people. Keep this in mind and be sensitive to the fact that when implementing change you will come across much resistance. If not done right, implementing change will not "take." Here are two steps to making your change stick.

#1 The Low Hanging Fruit. Implement a tiny change within your large change, one so small that anyone can do it. Fear of failure is why many resist. If your employees suddenly need to learn Spanish to stay on as operators, start with a fun children's song. If the office suddenly is required to recycle, have a meeting where you offer free soda and have one of the new bins there to collect cans. Little steps can make a huge difference to greater acceptance when the big changes come.

#2 The Change Agent. Get someone who is popular yet competent to be your cheerleader for the change. Whether at the watercooler or in meetings, you need this person to take your side. Others listen to them; if this sounds like high school, it is. See post for more details on this one.

RElaunch REview: Stock tips

#1: KNOW YOUR COMMODITIES

Everything is made of parts/ingredients. The price of these ingredients, therefore, affects the price of things... affects the price of their stocks.

Example: Latte ingredients are espresso beans, milk and electricity used to produce the lovely froth. This is important if you invest in Starbucks. This year, not only has electricity been higher to buy, but natural disasters have severely affected the coffee bean crop. Prices for 2 of the 3 commodities have been higher; this forces coffee retailers to increase their already high prices and consumers have begun decreasing consumption, substituting Starbucks for a McDonald's latte or a Keuring machine that makes delicious drinks at home. Starbuck's stock will see a decrease if they do not control prices but if they cannot make a profit, they will also lose money and face a stock fall. Be aware of their actions and adjust your portfolio accordingly.

#2 PENNY STOCKS

Stocks you can buy for pocket change. Literally. They are so cheap because they are pretty useless but on occasion they do "hit." If it sounds like Vegas, it is. Only buy if you have money that you will not miss at all.

Example: Pier 1 Imports was failing in 2007, with its stock down to 7 cents a share. The company should have failed but they hired a new CEO who made some good changes. Today the stock is worth $11/share. Doesn't seem like much compared to Apple but had you invested $7 instead of throwing it away on useless crap (what useless stuff did you purchase in 07?) you would have $1054 today. That makes some pretty nice pocket change.