The muscle-bound band with shaved heads known as Right Said Fred didn't know it at the time that they would become a 1990's one-hit wonder with the song, "I'm Too Sexy…"
They probably didn't realize that they would start the often-repeated pop culture phrase "I'm too sexy for... (insert this or that here)" that lasted for what seemed to be years afterward either. The royalties on all of the T-shirts, bumper stickers, and various advertisement plugs that followed must have been phenomenal. (I hope they invested it wisely.)
What I'm sure they didn't foresee was that the CEO of Limited Brands, which owns the lingerie chain known as Victoria's Secret, would be using their catchy phase to explain why profits were down recently for the company… They were -- well -- too sexy!
Being too sexy is one excuse I've never heard from a CEO to explain a downslide in profits. After all, the most common excuses in annual reports, company press releases, and shareholder meetings are a down economy or recession. Major storms that have hit the nation, such as Hurricane Katrina, have been used. Perhaps an Asian economic crisis or a perceived nuclear threat by a developing county could be the reason. Oil going over $100 a barrel seems like a significant issue for certain industries. A few years ago, Krispy Kreme donuts even used the popular Dr. Atkins' low-carb diet phenomenon to explain why their sugary confections weren't selling. Being too sexy is a new one, but it may actually have more substance than the 1990's pop tune did.
With so much buzz about their company and products, though, what could be amiss? Simply put, being too sexy translated in another way could be: we didn't offer the products, assortment, and prices that our core customers wanted to purchase from us.
The company has become completely infatuated with size zero models (or do they make negative sizes?) strutting down the cat walk each year in an event with a date that is circled in red on the calendars of many men, as not to miss the late night television extravaganza. Their annual fashion shows have become productions on the magnitude of the Super Bowl, commanding personal performances by the hottest singers of the year, such as Justin Timberlake who was there just "Bringing Sexy Back." If you do miss a show, there have been thousands of YouTube videos uploaded to play at your leisure. In fact, play all of the years back-to-back if you have time, as they're available with a few clicks of the mouse.
Missing customer expectations about product offering, assortments, and pricing can be a downfall of many companies, not just Victoria's Secret though. Branding can become a liability instead of an asset. Advertising dollars can be just as well lit on fire.
For example, in advertising, how many times have you watched TV commercials and thought, "What was that advertising?" Or, have you ever laughed at a commercial so hard and even told your friends about seeing this really entertaining ad, but get asked, "What was it for?" And you respond: I really don't remember; I'm not sure it even said.
One of the most far-out, off-the-mark commercials I've seen lately looks like a Star Wars scene, but in place of a spaceship it shows a pregnancy test. You've probably seen this TV ad recently, right? It talks about all the specifications like it's a fine-tuned machine or race car. It even makes the comment at the end, which is something to the effect of, "It's the most sophisticated piece of plastic you'll ever pee on." If that wasn't enough, there's even a stream of liquid that falls on the test, which is suspended in the middle of the screen while this is being said by the announcer.
Certainly, the problem with this one is not being too sexy.
The list of these types of commercials could go on forever, but let's go back to "being too sexy" with some final thoughts though. It's not every day that there's a new excuse in the CEO playbook, especially one on the scale of being too sexy.
Perhaps, it could be used by common folks too. Next time when you make a costly mistake at work and you get "call onto the carpet" for it, just say that you think the reason for it was that you're too sexy. You may just get a laugh -- and your pink slip too.
So, on second thought, maybe you shouldn't. After all, you probably don't have the multi-million dollar "golden parachute" payout that most of the CEO's have when they get canned these days … but that's a whole new topic for another post.
Thursday, February 28, 2008
Cleveland Sues the Mortgage Industry
The City of Cleveland recently filed a lawsuit against twenty-one large investment banks and mortgage companies for creating what it calls a public nuisance, alleging they were responsible for the thousands and thousands of mortgage foreclosures filed within their city last year. Cleveland says the suit is to reclaim lost tax monies due to boarded up, run down, and abandoned homes, which has also increased crime in the area, they say, too.
They are blaming these large investment banks and mortgage companies for the high rate of foreclosures, saying the combination of relaxed lending standards, high interest rates, and aggressive lending practices led to the demise of many Cleveland homeowners.
The City says the mortgage lenders made money by making the loans. The investment bankers made money by buying these "bad" loans, pooling them together, and selling these pools to investors as securitized investment vehicles. Ultimately, the investors, the homeowners, and Cleveland were the only ones "holding the bag" per se.
The lawsuit is one of the first of its kind, but the overall concept appears to be always the same: when things go wrong, who should take the blame? Typically, those with the deepest pockets or those who made money from the situation (or both) are the first targets of lawsuits.
The issue of blame, however, may be bigger and wider spread than those who made a few bucks.
For example, could our school systems share some of the blame for not teaching the credit savvy that it takes to survive in today's society? There are so many more ways to get yourself into trouble financially these days, as compared to years past, and are the schools keeping up with these changes?
Is it the auto dealers, the electronics retailers, and home improvements stores fault for allowing these individuals credit to buy things now and pay later? After all, it wasn't just a mortgage payment that sunk these people, but a myriad of other outgoing payments and obligations.
Could it be the homeowners, who signed the mortgages and received the money? Many would put the blame there for making poor decisions or not paying attention to the details of these transactions.
These are all interesting questions, and the "blame game" could no doubt be extended into eternity, naming anyone and everyone that was even remotely involved. The case, however, has the potential to set new precedents, so stay tuned for the ultimate outcome.
They are blaming these large investment banks and mortgage companies for the high rate of foreclosures, saying the combination of relaxed lending standards, high interest rates, and aggressive lending practices led to the demise of many Cleveland homeowners.
The City says the mortgage lenders made money by making the loans. The investment bankers made money by buying these "bad" loans, pooling them together, and selling these pools to investors as securitized investment vehicles. Ultimately, the investors, the homeowners, and Cleveland were the only ones "holding the bag" per se.
The lawsuit is one of the first of its kind, but the overall concept appears to be always the same: when things go wrong, who should take the blame? Typically, those with the deepest pockets or those who made money from the situation (or both) are the first targets of lawsuits.
The issue of blame, however, may be bigger and wider spread than those who made a few bucks.
For example, could our school systems share some of the blame for not teaching the credit savvy that it takes to survive in today's society? There are so many more ways to get yourself into trouble financially these days, as compared to years past, and are the schools keeping up with these changes?
Is it the auto dealers, the electronics retailers, and home improvements stores fault for allowing these individuals credit to buy things now and pay later? After all, it wasn't just a mortgage payment that sunk these people, but a myriad of other outgoing payments and obligations.
Could it be the homeowners, who signed the mortgages and received the money? Many would put the blame there for making poor decisions or not paying attention to the details of these transactions.
These are all interesting questions, and the "blame game" could no doubt be extended into eternity, naming anyone and everyone that was even remotely involved. The case, however, has the potential to set new precedents, so stay tuned for the ultimate outcome.
Wednesday, February 27, 2008
What's Up at Eli Lilly?
High-ranking executives at Eli Lilly and Company (LLY) sold off nearly $6.5 million of the company's stock in the first part of February of this year. Their actions are more peculiar when you consider that quarterly dividends would have been paid on the shares for those owners of record on February 13, 2008, but they had already sold by then, according to shareholder disclosures.
It also seems odd that Lilly execs would unload such a sizeable amount of shares near the company's 52-week low of $49.09, which occurred 11/21/07, as all of their shares were sold in the mid-$51 range. (The 52-week high was $61.00 on 04/20/07.)
Do they know something that the general public doesn't, or are there valid explanations for the sales? Could the shares be headed even lower?
Couple that with the fact that these sales come on the coattails of a large sell-off by The Lilly Endowment of $20.8 million of LLY shares in September 2007, and you have to scratch your head a little. While the Endowment explained the sale as their way of better diversifying their portfolio, only time will tell if there may have been other reasons for everyone "in the know" to be selling off shares of the company.
Stay tuned.
It also seems odd that Lilly execs would unload such a sizeable amount of shares near the company's 52-week low of $49.09, which occurred 11/21/07, as all of their shares were sold in the mid-$51 range. (The 52-week high was $61.00 on 04/20/07.)
Do they know something that the general public doesn't, or are there valid explanations for the sales? Could the shares be headed even lower?
Couple that with the fact that these sales come on the coattails of a large sell-off by The Lilly Endowment of $20.8 million of LLY shares in September 2007, and you have to scratch your head a little. While the Endowment explained the sale as their way of better diversifying their portfolio, only time will tell if there may have been other reasons for everyone "in the know" to be selling off shares of the company.
Stay tuned.
Wednesday, February 13, 2008
Upcoming Small Business Workshops
For all of the entrepreneurs in Greene County, whether just contemplating starting a business or having already started, there are a couple of workshops that you may want to attend at the Community Learning Center of Greene County, located at the WRV school in Switz City:
The first evening class is called the "Start Your Own Business" workshop. It will take place on February 27, 2008 from 6PM to 8:30PM. Those who should attend are rural individuals and family members, who are interested in starting a business or are in the early stages of a business. (I attended this course when it was offered a few months ago, and I found it to be a solid primer with a lot of good business ideas that would work in a rural community like ours.)
The second class is called the "Small Business Marketing Tools Workshop: BIG BANG for Small Bucks." It will take place the following evening on February 28, 2008 from 6PM to 8:30PM. Those who should attend are small business owners and non-profit organizations that need help in marketing and customer development. (Who doesn't?)
Both are led by James Roudebush, who holds an MBA degree in marketing and has over 25 years of experience in small business.
Registration(s) can be made by contacting Cam Trampke at the Community Learning Center of Greene County at (812) 659-3862.
Cost for each is only $10 in advance or $15 at the door (and $ 5.00 for any additional from the same family or organization) because of the generous donations from several sponsors, including: the Indiana Office of Community and Rural Affairs, Hoosier Energy, Indiana State Department of Agriculture, USDA Natural Resources Conservation Service, Community Learning Center of Greene County, Greene County Community Foundation, Greene County Economic Development, South Central SBDC, Indiana Cooperative Development Center, Indiana Rural Development Council, USDA Rural Development, Purdue Extension, Purdue New Ventures, Indiana Small Business Development Centers, County Commissioners, Soil & Water Conservation Districts, the Hoosier Heartland RC&D Council, Inc., and others.
PS - A course on Supervisory Management will also be available, although not until March 11th. Contact Cam Trampke for details.
The first evening class is called the "Start Your Own Business" workshop. It will take place on February 27, 2008 from 6PM to 8:30PM. Those who should attend are rural individuals and family members, who are interested in starting a business or are in the early stages of a business. (I attended this course when it was offered a few months ago, and I found it to be a solid primer with a lot of good business ideas that would work in a rural community like ours.)
The second class is called the "Small Business Marketing Tools Workshop: BIG BANG for Small Bucks." It will take place the following evening on February 28, 2008 from 6PM to 8:30PM. Those who should attend are small business owners and non-profit organizations that need help in marketing and customer development. (Who doesn't?)
Both are led by James Roudebush, who holds an MBA degree in marketing and has over 25 years of experience in small business.
Registration(s) can be made by contacting Cam Trampke at the Community Learning Center of Greene County at (812) 659-3862.
Cost for each is only $10 in advance or $15 at the door (and $ 5.00 for any additional from the same family or organization) because of the generous donations from several sponsors, including: the Indiana Office of Community and Rural Affairs, Hoosier Energy, Indiana State Department of Agriculture, USDA Natural Resources Conservation Service, Community Learning Center of Greene County, Greene County Community Foundation, Greene County Economic Development, South Central SBDC, Indiana Cooperative Development Center, Indiana Rural Development Council, USDA Rural Development, Purdue Extension, Purdue New Ventures, Indiana Small Business Development Centers, County Commissioners, Soil & Water Conservation Districts, the Hoosier Heartland RC&D Council, Inc., and others.
PS - A course on Supervisory Management will also be available, although not until March 11th. Contact Cam Trampke for details.
Wednesday, February 6, 2008
The Check WAS in the Mail!
Property owners in Greene County should get their highly-anticipated property tax refund checks today or tomorrow, if they haven't already. Mine was in the mail yesterday.
The checks were produced by SRI, Incorporated. This firm managed the process of determining the rebates, searching to see if back taxes were owed, and mailing them to property owners. So, if you are not current with your property tax bill, the absence of a check in your mailbox is likely due to it being applied to those monies owed.
The checks were produced by SRI, Incorporated. This firm managed the process of determining the rebates, searching to see if back taxes were owed, and mailing them to property owners. So, if you are not current with your property tax bill, the absence of a check in your mailbox is likely due to it being applied to those monies owed.
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