The Case of the Two-Cent Candy
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A couple of decades ago, consultant, writer, and “uberguru” of all things business, Tom Peters, told his story of the two-cent candy. There was a retail store in Palo Alto that had a box of candy available at checkout. For Peters, that candy was a last symbolic goodbye from store to customer — a gesture that says thank you and come again in simple sweet fashion for the price of two cents.
Peters revisits the story in his new book, The Little Big Things: 163 Ways to Pursue Excellence, a 400 page volume of 163 strategies and tips for successfully managing life and business. “Make ‘two-centing it’ part and parcel of ‘the way we do business around here.’ Don’t go light on the so-called substance—but do remember that … perception is reality … and perception is shaped by two-cent candies as much as by that so-called hard substance.”
A couple of decades ago, consultant, writer, and “uberguru” of all things business, Tom Peters, told his story of the two-cent candy. There was a retail store in Palo Alto that had a box of candy available at checkout. For Peters, that candy was a last symbolic goodbye from store to customer — a gesture that says thank you and come again in simple sweet fashion for the price of two cents.
Peters revisits the story in his new book, The Little Big Things: 163 Ways to Pursue Excellence, a 400 page volume of 163 strategies and tips for successfully managing life and business. “Make ‘two-centing it’ part and parcel of ‘the way we do business around here.’ Don’t go light on the so-called substance—but do remember that … perception is reality … and perception is shaped by two-cent candies as much as by that so-called hard substance.”
Take a byte out of agriculture
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Land continues to hold value for people in the business of farming crops and housing data for cloud computing. Yahoo, Microsoft, Google, and Ask.com already have data centers, not in urban sprawls but in rural areas in the Northwest, and now Facebook wants to claim its territory too.
Facebook, Inc. plans to build a 145,000 square foot data farm in Prineville, Oregon, a town that has had its share of economic heartache. High unemployment and the loss of five sawmills have burdened the town of about 10,000. Facebook’s expenditure of $175 million over the next three years will create much needed jobs and cash flow for residents.
So why Prineville? City Manager Steve Forrester says it’s a combination of “low cost land…and high voltage power lines nearby.” And of course, the weather. “The critical thing was our climate: low humidity and cool nights.”
Check out more details on the story, “Where Clouds Displace Forests: Oregon Town Is Latest in Northwest to Leverage Cheap Electric Power to Lure Data Farm,” in The Wall Street Journal.
Land continues to hold value for people in the business of farming crops and housing data for cloud computing. Yahoo, Microsoft, Google, and Ask.com already have data centers, not in urban sprawls but in rural areas in the Northwest, and now Facebook wants to claim its territory too.
Facebook, Inc. plans to build a 145,000 square foot data farm in Prineville, Oregon, a town that has had its share of economic heartache. High unemployment and the loss of five sawmills have burdened the town of about 10,000. Facebook’s expenditure of $175 million over the next three years will create much needed jobs and cash flow for residents.
So why Prineville? City Manager Steve Forrester says it’s a combination of “low cost land…and high voltage power lines nearby.” And of course, the weather. “The critical thing was our climate: low humidity and cool nights.”
Check out more details on the story, “Where Clouds Displace Forests: Oregon Town Is Latest in Northwest to Leverage Cheap Electric Power to Lure Data Farm,” in The Wall Street Journal.
Kitchen Remodel: Contractor-HGTV
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Librarian — Going extinct or new info superhero?
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Libraries are depositories of information, and librarians are the navigators. A degree in information science certifies these professionals in the study of the classification, storage, and retrieval of huge amounts of data. These days, that data comes by way of books and bytes.
If you haven’t visited your local library in a while, you might be surprised to see DVD’s displayed front and center of the building. In fact, DVD’s are one of the most frequently borrowed library resource. If the local video store is going out of business, the library is a fine alternative; the selection may be slimmer, but borrowing is free.
In this age of information explosion on the internet, some have questioned the necessity of libraries. In her new book, “This Book Is Overdue! How Librarians and Cybrarians Can Save Us All,” Marilyn Johnson offers her view of the superhero librarian who “create(s) order out of the confusion of the past, even as she enables us to blast into the future.” The librarian is the new Google Master, helping all citizens make meaning of the information we read and experience. “In tough times, a librarian is a terrible thing to waste,” writes Johnson.
The New Hub of the Home
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2010’s new technological trend in housing is the 3-D television set, which is likely to become the new hub of the home (WSJ’s Market Watch). Imagine a t.v. that not only brings entertainment but is the central command station for communications, social media, and the home’s security and energy systems.
We will soon have the ability to talk with friends and family around the globe. (Skype-enabled TVs should come out this spring.) And the zero net energy house already exists; it’s only a matter of time that its price tag diminishes. Technology will continue to expand its control on energy consumption, making homeowners “greener” in the process.
The demand for technology is moving at an exponential rate. T.V. reached 50 million homes in a 38 year period; radio reached 50 million listeners in 13 years; and the internet hit 50 million servers in 4 years. Can TV better connect us with the people we care about and reduce our carbon footprint on the environment? The sheer possibility is fascinating.
RISMEDIA, March 2, 2010—Home sales decreased 10.6% in January 2010 in California compared with the same period a year ago, while the median price of an existing home rose 15%, the California Association of Realtors® (C.A.R.) recently reported.
“Many sales that closed escrow in January were on homes with offers accepted during the holiday season- a time when many house hunters are first-time buyers,” said C.A.R. President Steve Goddard. “First-time buyers typically purchase homes priced below an area’s median home price. Reflecting this, the percentage of homes priced under $500,000 increased to 77% of all sales in January, compared with 75% in December. “Despite the year-to-year decline, sales remained above the 500,000 unit threshold for the 17th consecutive month, holding steady at pre-peak levels from early in the last decade,” said Goddard.
Closed escrow sales of existing, single-family detached homes in California totaled 539,040 in January at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local Realtor associations statewide. Statewide home resale activity decreased 10.6% from the revised 602,660 sales pace recorded in January 2009. Sales in January 2010 decreased 3% compared with the previous month.
The statewide sales figure represents what the total number of homes sold during 2010 would be if sales maintained the January pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. The median price of an existing, single-family detached home in California during January 2010 was $287,440, a 15% increase from the revised $249,960 median for January 2009, C.A.R. reported. The January 2010 median price decreased 6.3% compared with December’s $306,820 median price.
“The story for the median price in January was mixed. In year-over-year terms, California’s median home price saw the greatest percentage increase since December 2005,” said Leslie Appleton-Young, C.A.R. vice president and chief economist. “However, the median fell by 6.3% from the December 2009 median price. Although the monthly decline was large, it was less than the declines for the same time period in both 2008 and 2009 when the median price fell by more than 11%.
“The median price still is 17.2% ahead of the trough in this cycle,” added Appleton-Young. “However, the expiration of the federal tax credit for home buyers and the impact of the Federal Reserve’s withdrawal from the mortgage market continue to be the wild cards as we move through the year.”
Highlights of C.A.R.’s resale housing figures for January 2010:
-C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in January 2010 was 5.8 months, compared with 7.3 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
-Thirty-year fixed-mortgage interest rates averaged 5.03% during January 2010, compared with 5.05% in January 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 4.33% in January 2010, compared with 4.92% in January 2009.
-The median number of days it took to sell a single-family home was 33.8 days in January 2010, compared with 50 days (revised) for the same period a year ago.
For more information, visit www.car.org.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
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“What about…?”
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In the blog section of Harvard Business Review is Scott Anthony’s post, “How to Kill Innovation: Keep Asking Questions.” Anthony proposes that two seemingly beneficial words become one double-edged sword.
“What about…?” Anyone seeking to grow a business or career ought to ask this question many times over. However, the pursuit of answers can be endless and exhausting, leading to inaction. So how much questioning is appropriate? Anthony suggests that we keep in mind that the future is not perfectly created in the present. We need to ask important questions but also be able and willing to make quick decisions in favor of cost-efficient methods.
“The future can’t be analytically derived. Of course it’s almost always valuable to think comprehensively about a new idea. But maintain a healthy balance between analysis and action. If you get stuck in ‘What about…’ loops, you’ll never get the results you seek.”
Ideas are organic, and though innovation may not be the final result every time, it’s what we pursue.
RISMEDIA, March 1, 2010—President Obama recently announced an additional $1.5 billion in homeowner aid for the areas of the country hardest-hit by declining home values. Florida, Michigan, Arizona, California and Nevada are the five states that will receive funds.
Speaking from Henderson, Nev., Obama spoke about the nation’s fiscal difficulties, and the many homeowners who have been hit by unemployment and foreclosure. According to the White House, the $1.5 billion will be doled out to state housing finance agencies who will in turn take the lead in developing programs that will be most helpful to homeowners in their states. Possible programs will assist homeowners currently in negative equity, help unemployed homeowners or address issues with second mortgages.
There aren’t a lot of details about the additional aid yet. The Department of the Treasury will announce the rules of the program and how much each state will receive in the next two weeks.
What’s certain is that homeowners in cities like Henderson certainly face challenges. Henderson is the second-largest city in Nevada and is part of the Las Vegas metropolitan statistical area. According to Zillow’s Real Estate Market Reports, home values in Henderson have fallen 52.5% since the market peaked in May 2006. The median home value then was $353,000. At the end of 2009, it was $167,800. This graph of Henderson’s Zillow Home Value Index gives you an idea of how home values within the area have changed over time.
As is typical in cities and towns where home values decline rapidly, many of the homeowners in and around Henderson also owe more on their mortgage than their home is worth. In the greater Las Vegas metropolitan statistical area, Zillow data shows 81.3% of all owners of single-family homes with mortgages were underwater at the end of 2009.
The people of Henderson and Las Vegas are hardly alone in this. Here is a chart of the 20 metropolitan statistical areas tracked by Zillow where the Zillow Home Value Index has fallen the most since the individual markets peaked.
More details on these programs are sure to emerge in the coming weeks, and we’ll be sure to stay on top of them. To see how cities and towns near you have fared, check out local home values in Zillow’s Real Estate Market Reports.
For more information, visit www.Zillow.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
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