FREEMAN-SPICER FINANCIAL SERVICES

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Vol. 24, No. 4 • April, 2006

You can find this newsletter and some past newsletters on the web @ Freeman-Spicer.com

If Uncle Sam

If Uncle Sam used accounting methods most private firms use . . . . The federal deficit would be more than double its present size. The government uses a cash-accounting method that doesn’t require it to include future liabilities, such as coming Medicare Rx drug costs and repaying Social Security IOUs. These expenses, along with others, such as public-sector retirement benefits, would have to be listed under the more common accrual-based standard. As a result . . . The fiscal 2005 deficit would have hit a whopping $760 billion. Instead, it was logged in by government bean counters at $319 billion. And Clinton couldn’t have boasted about achieving a surplus. Some of the negatives would have been offset, however. Most companies depreciate capital expenses over many years. But the government takes the hits from multimillion-dollar purchases of jets, tanks, new buildings and other big-ticket items all at once. (Kiplinger)

Marketing

“Repetition Builds Reputation.” You need to talk to your customers on a constant basis. Be their teddy bear. Their security blanket. Hold their hand. Show them you care. Part of finding new business is talking to current customers. Because they are probably your best source for additional business. Keep your audience informed at all times about what you’re up to. Most of us don’t talk to our customers nearly as often as we should. We’re afraid we may bother them. I suggest that you bother them a little bit more! You’ll probably get more business. How often is too often? I don’t know. But I know one firm that mailed their customers 81 times in a year. Too much? Not for those people. (Power Direct Marketing)

Important Information

•          In the 1400's a law was set forth in England that a man was allowed to beat his wife with a stick no thicker than his thumb. Hence we have “the rule of thumb.”

•          Many years ago in Scotland, a new game was invented. It was ruled “Gentlemen Only . . . Ladies Forbidden” . . . . and thus the word GOLF entered into the English language.

•          Every day more money is printed for Monopoly than the U.S. Treasury.

•          The average number of people airborne over the U.S. in any given hour: 61,000.

•          Intelligent people have more zinc and copper in their hair.

•          Only two people signed the Declaration of Independence on July 4^th, John Hancock and Charles Thomson. Most of the rest signed on August 2, but the last signature wasn’t added until 5 years later. George Mason (final 4 University) helped compose the document, but refused to sign it because it didn’t abolish slavery.

•          Which day are there more collect calls than any other day of the year? Fathers Day.

•          It is impossible to lick your elbow. (Please tell me you didn’t try it?) (LaFree)

62 Cents A Mile, On Average ...............................In its’ study called “Your Driving Costs,” the AAA calculates the cost to own and operate a vehicle for 10,000 miles of annual driving and five years of ownership before trading it in. The findings:

■          The national average for all vehicles is 62 cents a mile, or $6,200 a year, down from 68.2 cents a mile, or $6,820 a year for 2005.

■          Small-car costs fell to 50.5 cents a mile, or $5,050 a year, from 59.9 cents, or $5,990 in a year.

■          Midsize car costs dropped to 62.4 cents a mile, or $6,240 a year, from 69.1 cents a mile, or $6,910 a year earlier.

■          Full-size sedan costs were down to 72.9 cents a mile, or $7,290 a year, from 75.7 cents a mile, or $7,570 a year.

■          Midsize SUVs rose to 79 cents a mile or $7,900 a year, from 77.7 cents a mile, or $7,770 a year. Chalk that up to the switch to 4WD.

■          Mini-van costs also rose, to 71.3 cents a mile, or $7,130 a year, from 66.1 cents a mile, or $6,610 a year. “Vans take a big hit in depreciation since the market is saturated with used ones,” said Mike Calkins, manager of auto repair for AAA. (Chicago Tribune)

The Top Grossing Music ........................................ The top grossing music tours of 2005 (along with average ticket price):

1. Rolling Stones, $162 million, $133 per ticket                8. Dave Matthews, $57 million, $47

2. U2, $139 million, $96                                                  9. Neil Diamond, $47 million, $63

3. Celine Dion, $81 million, $136                                   10. Jimmy Buffett, $41 million, $76

4. Paul McCartney, $77 million, $135                            11. Motley Crue, $40 million, $46

5. Eagles, $77 million, $104                                           12. Green Day, $35 million, $38

6. Elton John, $66 million, $102                                     13. Toby Keith, $32 million, $46

7. Kenny Chesney, $62 million, $54                               14. Rascal Flatts, $28 million, $34

 (Business Digest)

Covering A Yawn................................... People once thought that their souls - or perhaps even their life forces - could escape during a yawn. They covered their mouths to prevent this and, since yawns can be contagious, to try to keep people around them from “catching” the yawn. The apology after a yawn originated as an expression of regret for having exposed people to mortal danger. (The Original Source)

Advertising................................ Advertising great David Ogilvy said, “On average, five times as many people read your ad’s headline as read the body copy. Unless your headline sells your product, you’ve wasted 80% of your money.” Here are a few headline hints:

□          Avoid reversed type. It’s harder for people to read and it often looks cheap.

□          Don’t use all capital letters. A mix of upper and lower case is easier to read.

□          Keep a headline short, under 15 words.

□          Make sure the headline is just that, a shortened version of the body copy, a teaser.

□          Put quotation marks around the headline. You’ll get 25% better results.

□          Headlines can be very effective when posed as a question people want an answer to.

            (The 33 Ruthless Rules of Local Advertising)

Find the best price on gasoline at: http://autos.msn.com/everyday/gasstations.aspx?zip=&src=Netx

SiteAdvisor...................................... If you use search engines like Google or Yahoo, or your kids do . . . . you often will collect cookies or spyware from the locations that are pointed out at these search engines. Now there is help at SiteAdvisory.com. Download their free (for now) software and it rates the individual sites that come up on each of your searches. It will tell you quickly if it’s somewhere you don’t want to go - or to use caution when clicking on the link. Try it and see for yourselves - it’s a safe piece of software that really helps. (Case)

Look Around ................................ Does the building you are sitting in have a fire extinguisher? Does you home have one (or better yet - two)? If you don’t have one, if your children’s apartments or homes don’t have one - Buy one! They are the very best insurance you can have. They only cost from $25, and they can save lives! (If you have an old one - get it checked or buy a fresh one.)

As Military Reservists..................................... As military reservists return to work, remember their rights: They’re entitled to the same job they had and to the seniority and pay they would have if they’d never left. So someone on the day shift before, can’t be put on nights. Regular step-ups in grade or pay must be honored. Rehiring must occur within two weeks of receiving a re-employment request. And health benefits must be restored immediately, with no waiting period. Beyond legal obligations, employers should also be understanding of a returning soldier’s need to readjust to the civilian workforce. Stress from physical or emotional wounds may not be obvious at first, but it could lead to on-the-job injuries later, raising insurance costs. Remember, it’s illegal not to hire returning vets with wartime injuries. (Kiplinger)

Really Important For All Businesses .................................. Selling isn’t just the province of salespeople. It should be a mandatory lesson in every organization, that every interface with a customer is a selling opportunity, directly or indirectly. Staff who are enthusiastic indirectly sell their organization and its products and services. Every employee must identify with the organization’s end product. They must be proud to be associated with it. The great bosses ensure that this happens and put a lot of effort into maximizing their people’s exposure to the product, so they have first-hand experience of it, value it, and believe in it. Product awareness and product training for all employees results in sales. As the boss, you need to initiate this awareness and enthusiasm. (Things You Must do To Be a Great Boss)

Questions To Ask Someone......................... Does killing time damage eternity? Why doesn’t Tarzan have a beard? Why is it that when you’re driving and looking for an address, you turn down the volume on the radio? Why is lemon juice made with artificial flavor, and dishwashing liquid made with real lemons? Are part-time bandleaders semi-conductors? Can you buy an entire chess set in a pawn shop? Do pilots take crash-courses? Do stars clean themselves with Meteor showers? How do you get off a non-stop flight? How do you write zero in Roman numerals? How many weeks are there in a light year? If a jogger runs at the speed of sound, can he still hear his Walkman? If athletes get athlete’s foot, do astronauts get mistletoe? If cats and dogs didn’t have fur would we still pet them? If white wine goes with fish, do white grapes go with sushi? If you jog backwards, will you gain weight? Why do the signs that say “Slow Children” have a picture of a running child? Why do they call it “Chili” if it’s hot? Why do we sing “Take me out to the ball game,” when we are already there? And finally, Why is the time of day with the slowest traffic called rush hour? (LaFree)                                                                                                                  

Sincerely,

Edward C. Levy

President