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Vol. 26, No. 4 ●April, 2008

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


The Sweet Smell of – Deposits . . . . .  Feeling refreshed after that trip to the bank? Perhaps it was the peppermint, with hints of grapefruit and green tea. Those are the scents wafting through three pilot “sensory branches” operated by Credit Suisse. Taking a cue from hoteliers and retailers, the Swiss bank hired an aroma therapist to concoct a subtle blend of aromas that are supposed to put customers at ease. The bank also hired a sound engineer to compile a soundtrack syncing branch traffic flows with beats per minute. “You can’t play house music at the busy lunch hour,” says David McQuillen, head of customer experience at Credit Suisse. “You don’t want music that’s going to get people worked up.” Surveys show an uptick in customer satisfaction at the sensory branches, which will expand to 35 this year. No word yet on how peppermint and Euro-pop affect bank balances or bounced checks. (Jena McGregor in BusinessWeek)

 

White House Moving Day Tab: $8.9 Million . . . . . . When the U-Haul pulls up to the North Portico of the White House on Inauguration Day, Jan. 20, 2009, that ringing sound from the neighboring Treasury Department will be the national cash register keying up the whopping tab for swapping our Presidents. Some $8.9 million to be exact, not to mention the additional costs of the soon-to-be former President Bush, like U.S. Secret Service protection. “Democracy ain’t cheap,” says a federal budget official. The Feds have set aside $8.52 million for the transition, and it breaks down this way: $1 million to brief and orient the incoming president’s top team members; $5.3 million for the new president to spend on his transition; and $2.22 million to move Bush’s team out. Plus, as a new retiree, Bush will get $366,000 in pay and benefits, including a $191,300 pension. While Bush will be the newest member of the former presidents club, he won’t be the most expensive when he arrives in Texas. Bill Clinton should keep that title, even if he goes through with a rumored move of his offices from Harlem to Georgetown. Bubba gets $1.19 million annually, including $201,000 in retirement pay and health bennies, $544,000 for office rent, and $79,000 for his phone bill. Bush’s dad, headquartered in Houston, gets $786,000. (U.S. News & World Report)

 

Date To Remember . . . . . . . . 1st of April, 1998 – The day Burger King took out a full-page advertisement in USA Today announcing a “Left-Handed Whopper” designed for southpaws. According to the ad, the new Whopper included the same ingredients as the original but with all the condiments rotated 180 degrees, for the benefit of left-handed customers. Thousands requested the sandwich, which, yes, was an April Fools’ hoax. (Real Simple)

 

Credit Card Ownership Around the World . . . . . .  U.S = 5 cards per person. Brazil = 2.5 people per card. Russia = 5.9 people per card. China = 33 people per card and finally India = 64.5 people per card. (Foreign Policy #165)

 

“If you don’t read the newspaper you are uninformed, if you do read the newspaper you are misinformed.” – Mark Twain

A Doctor Was Addressing . . . . .  a large audience in Tampa. “The material we put into our stomachs is enough to have killed most of us sitting here years ago. Red meat is awful. Soft drinks corrode your stomach lining. Chinese food is loaded with MSG. High fat diets can be disastrous, and none of you realizes the long-term harm caused by the germs in our drinking water. But there is one thing that is the most dangerous of all, and we all have eaten, or will eat. Would anyone care to guess what food causes the most grief and suffering for years after eating it?” After several seconds of quiet, a small 75-year-old man in the front row, raised his hand and said, “Wedding Cake?” (Lafree)

 

Science? What’s Science? . . . . .  A new Harris Interactive poll may explain why U.S. high schoolers rank 16th out of 30 countries on standardized science exams: Their parents don’t know much about science, either. Harris asked 1,304 U.S. adults to name the most influential role models for today’s youth; 31% picked entertainers (3% named Britney Spears), and 19% named an athlete. Not one chose a scientist. Only 11% could even name a living scientist. Stephen Hawking earned the most mentions. (The fact that a Hawking character appeared on an episode of The Simpsons may have helped.) Three out of four adults also admitted they do not have a good understanding of science. But they’d like their kids to do better. Eight in ten said science is not receiving the attention it deserves in schools. (BusinessWeek)

 

Independent Contractors . . . . . . . . . .  Use a lot of independent contractors? IRS is on the warpath with new weapons for tracking down companies that violate rules used to determine whether workers are employees or independent contractors for tax purposes. The result: More employment tax audits in a few months after IRS generates more leads. Take a look at what’s in IRS’ arsenal: More help from the states. The Service so far has signed up 33 states to share data from payroll tax exams, which will likely mean thousands of new audit leads using state records. There’s another twist: Federal and state agents will train together and even conduct joint exams in some cases. IRS claims it wants classification to be more uniform because many states have a much broader definition of who is an employee. Revved-up matching programs to better pinpoint audit leads and lessen chances for no-change exams. An electronic matching system, for example, lets IRS spot businesses issuing 1099 forms with payments of $25,000 or more to at least five workers with no other income sources. And audit leads from workers. IRS will soon get the first wave of Forms 8919, which taxpayers can file with their 2007 tax returns, to tell IRS that they believe their employers incorrectly classified them as contractors. A flood of these forms is likely because filing the 8919 allows an individual to avoid paying self-employment tax to the Service. (Kiplinger Tax Letter)

 

Purina Diet . . . . . . .  I have a large dog, and was buying a large bag of Purina at Wal-Mart and was in line to check out. The woman behind me asked if I had a dog. Dah! On impulse, I told her no, I was starting The Purina Diet again, although I probably shouldn’t because I’d ended up in the hospital the last time. But I’d lost 50 pounds before I awakened in an intensive care ward with tubes everywhere and IVs in both arms. I told her that it was essentially a perfect diet and the way it works is to load your pockets with Purina nuggets and simply eat one or two every time you feel hungry. The food is nutritionally complete so I was going to try it again. I have to mention here that practically everyone in line was now enthralled with my story, particularly a tall guy who was standing behind her. Horrified, she asked if I ended up in intensive care because the dog food poisoned me. I told her no, I’d been sitting in the street licking my butt and a car hit me. I thought the guy standing behind her was going to need help as he staggered to the door laughing. REMEMBER: Life is short. Break the rules, forgive quickly, laugh uncontrollably and never regret anything that made you smile. (J. Case)

Marketing  . . . . . . .  According to the Direct Marketing Association, email marketing delivers one of the highest returns on your marketing investment. Here are a few tips:

·         Put your most important info in a text line at the top; some readers block images or use a small preview pane.

·         Make your call to action prominent.

·         List all the ways readers can contact you in addition to your email channel.

·         Email has a long shelf life. Keep links up long after the offer is over. Be sure the landing page matches the offer . . . . never make a prospect search around.

·         Targeted emails do better than a single message to a broad audience.

·         Always test your message to be sure it reads correctly, the links work and your formatting is correct. (Web Digest for Marketers)

 

Madison Avenue: At a Crossroads with the I-Way . . . . . . . . Advertising has become a smaller part of the U.S. economy since its 2000 peak. Internet advertising is rapidly growing, but the ad agencies are still heavily reliant on 30–second broadcast spots.

Internet, Ho! After years of dabbling on the Web, major U.S. advertisers are now pulling sizable chunks of money out of traditional advertising and putting it online.

 

                                    Advertising Dollars

Media                          Spent in 2007*                        Percent Change from 2006

Internet                       21 billion                                 25.6% increase

Outdoor                        7 billion                                   6.3% increase

Cable TV                     26 billion                                   5.3% increase

Magazines                   14 billion                                   4.5% increase

Direct Mail                  61 billion                                   3.6% increase

Miscellaneous              39 billion                                   3.2% increase

Overall                      295 billion                                   2.0% increase

Trade Journals               4 billion                                   0.3% increase

Yellow Pages              14 billion                                   0.1% increase

Broadcast TV              46 billion                                 -1.5% decrease

Radio                          19 billion                                 -2.4% decrease

Newspapers                 44 billion                                 -6.3% decrease

*Other sources may define categories differently, leading to different results – (Data: Global Insight)

 

A Very Short Love Story . . . . . .  A man and women who had never met before, and were both married to other people, found themselves assigned to the same sleeping room on a Trans-continental train. Though initially embarrassed and uneasy over sharing a room, they were both very tired and fell asleep quickly; he in the upper bunk and she in the lower. At 1:00 AM, the man leaned down and gently woke the woman saying, “Ma’am, I’m sorry to bother you, but would you be willing to reach into the closet to get me a second blanket? I’m awfully cold.” “I have a better idea,” she replied. “Just for tonight, let’s pretend that we’re married.” “Wow! That’s a great idea!” he exclaimed. “Good,” she replied. “Get your own damn blanket!” After a moment of silence, he farted. (Turnham)

                                                                                                Sincerely,

                                                                                               

Great spirits have always encountered violent opposition

from mediocre minds. – Albert Einstein                                     Edward C. Levy

                                                                                                President