Sunday, November 15, 2009
Famous Honey Sea Coconut Drink
Sunday, November 8, 2009
Think and Grow Rich by Napoleon Hill (Part 4)
“Tell the world what you intend to do, but first show it”
- Have a definite purpose backed by a burning desire to achieve that goal
- Have a definite plan to achieve that goal, expressed I continuous action
- Do not be influenced by negative and discouraging influences and opinions of your surroundings
- Surround yourself with people who will encourage you to follow through with your plan and purpose
Thursday, November 5, 2009
Thienjing Reflexology
Thursday, October 15, 2009
Famous Kuching Vinegar Noodles
Vinegar mee is not to be confused with Kuching's signature kolomee because it has its distinct sour taste compared to the salty/sweet taste of kolomee, even though the noodles have a similar texture. The "spare parts" soup is a mixture of pig internal organs, fishball and pork meat. The noodles can come with meat but customers usually order plain noodles to go with the meat in the soup. The fragrant sour taste of the noodles is what makes people coming in droves to this establishment. Taking 1 hour to find a car park, wait for a table, and having your noodles served is a common occurrence during the weekends.
If having good customer service is key to a great business, this coffee shop definitely breaks all the rules because not only is the food famous, so is the notoriously rude order-taker. Impatient customers are usually given a good scolding from him but that doesn't stop customers from coming. Customers just need to abide by an unwritten protocol:
- Order your drink when you are asked
- sit and wait for the order-taker to come
- place your order, but do not second guess whether or not he got your order right (BECAUSE HE HEARD YOU THE FIRST TIME),
- wait some more for the chopsticks and spoon to arrive, an indication that your order is being processed, but do not ask if they have forgotten your order (BECAUSE THEY DO NOT FORGET)
- your noodles will arrive shortly.
Next Coffee Shop open in the morning and closes after lunch. Do not expect to have a quick meal whenever you come because of the waiting time involved. For location map, click here
Sunday, October 11, 2009
Think and Grow Rich by Napoleon Hill (Part 3)
Hill was able to personally meet the most powerful and successful people of the 20th century for over 25 years. Through his work, he was able to formulate a philosophy of achievement based on real stories of real people who had used those techniques to create their successes. In a nutshell, his book teaches how we can put ourselves into the same state of mind as those who have created great wealth.
Practice 5: Unleash your Imagination
Imagination is like a muscle; it grows stronger with regular exercise and weakens through inaction. It is a creative workshop that is limited by Man himself. There are 2 types of imagination; synthetic and creative imagination. Synthetic imagination is the rearrangement of old concepts, ideas or plans into new combinations, which I would summarise as evolutionary ideas. Creative imagination is the creation of new concepts, ideas and plans, which I would summarise as revolutionary ideas. Both types of imagination can create wealth, but great leaders of business and arts are people who have developed their faculty of creative imagination. Revolutionary ideas are the products of creative imagination which only functions when the conscious mind is stimulated, or vibrating at an exceedingly rapid rate. The commentary section of the book then goes on to give practical examples of imagination with the likes of Coca-Cola, KFC, McDonalds, Starbucks, 3M, Wal-Mart, and many more.
Practice 6: Practise Organised Planning
Planning is the transition between ideas from the imagination into tangible products or services. Align yourself with people who can review and contribute to various aspects to your plans and if your first plan fails, try another till you succeed. Being one of the longest chapters in the book, I feel that this chapter in a way sways from it's main topic into discussing topics such as:
- The 11 Major Attributes of Leadership
- The 10 Major Causes of Failure in Leadership
- How to Write a Resume
- The QQS rating of Service
- The 31 Major Causes of Failure
Continued from Part 2
To be continued... Part 4
Business Concept 7: The Culture of Excellence
- Creating a culture / environment of high performance / excellence is about teamwork. It begins with 1, but also keep in mind that each and every 1 has a part to play no matter how insignificant 1 might think
- A corporate motto can drive the message throughout the company, but each and everyone has to believe in the message and driven from top-down. Dwelling on this, I came up with the motto "Helping People"
- We all have untapped potential we choose not to maximise. Look at handicapped people: The blind have a heightened senses of smell, touch and hearing. Those who cannot make use of their legs make up for them in their arms to the point that they are stronger than able-bodied people. Complacency and taking things for granted are roadblocks to most people
- The kung fu masters of the old days would teach their disciples 9 out of the 10 steps they knew for fear that their disciples will outperform them in the future. They needed the 1 step to maintain the advantage, but what happens when their disciples take on new disciples? They teach 8 of the 9 steps they know for the same reason and this creates a culture of dwindling ability. Creating a culture of excellence is teaching the disciples all 10 steps so it forces you to learn and create the 11th step
- Continuous improvement is an action, whereby when repeated, can turn into a habit that becomes second nature.
Saturday, October 10, 2009
Best ABC in Kuching
Monday, September 21, 2009
Think and Grow Rich by Napoleon Hill (Part 2)
Hill was able to personally meet the most powerful and successful people of the 20th century for over 25 years. Through his work, he was able to formulate a philosophy of achievement based on real stories of real people who had used those techniques to create their successes. In a nutshell, his book teaches how we can put ourselves into the same state of mind as those who have created great wealth.
Practice 3: Hypnotise Yourself with Auto-suggestion
The basic principle underlying auto-suggestion is closely related to hypnosis. Auto-suggestion is "tricking" your subconscious mind into believing something because you genuinely believe it. Once achieved, your subconscious mind will unleash powers your conscious mind (what you know), do not realise. To do this, you have to have a goal i.e. how much you intend to make, followed by how you plan to achieve this. Repeat this in your mind, including what you are willing to give in return for your goals. You can also surround yourself with books, pictures, mottoes and other suggestive devices that symbolise and reinforce achievement and self-reliance. Remember that you are the master of your own fate, and not a victim of your surroundings and background.
Practice 4: Acquire Specialised Knowledge
Knowledge is power, but is of little financial value unless it is organised and intelligently directed through practical plans of action, to the purpose of accumulation of money. If you plan to be an employee, it means acquiring the knowledge to carry out the tasks required of the employer. In business, it it means acquiring the knowledge to expand and improve your business. General knowledge is limitless and easily accessible through libraries and the internet, but most people lack the ambition to acquire the knowledge they can commercialise. You do not have to be the most knowledgeable person on the planet to make money, just specialised knowledge you can commercialise and opportunity with, with notable examples such as Bill Gates and Henry Ford.
Yes, rich men are lucky because:
LUCK = Labour Using Correct Knowledge
Continued from Part 1
To be Continued... Part 3
Thursday, August 27, 2009
Business Concept 6: Target Market
You can see that the coffee shop on the left has at least 5 tour vans parked outside and the coffee shop on the right is empty. Why is this so? Here's my interpretation of their business plans:
Lee Chong Cafe (left)
Target Customers: high volume, high revenue customers = tourists
Where to find them: Tour agencies, so need to visit their offices in town to make arrangement for them to send their tourists to dine here.
Decision maker's concerns: Quality of food, cleanliness, tour guides taking tourists elsewhere and making money on the sidelines
How to address their concerns: Create a set lunch comprising of local dishes complete with dessert (which equals to more sales revenue), use table cloth so tables can be cleaned quickly, create cashless payment vouchers and signed by coffee shop owner.
Jia Shing Cafe (Right)
Target Customers: nearby residents, anybody who stops by
Where to find them: Don't need to, just wait for them
Decision maker's concerns: cheap food
How to address their concerns: Create a cheap menu using the cheapest ingredients
Lee Chong Cafe is operating at a higher profit margin and higher volume compared to Jia Shing Cafe even though they are in the same type of business located next to each other. Thinking and planning that little bit extra can make such a big difference to your business.
Wednesday, August 26, 2009
Best Kueh Chap in Kuching
Sunday, August 23, 2009
Think and Grow Rich by Napoleon Hill (Part 1)
Hill was able to personally meet the most powerful and successful people of the 20th century for over 25 years. Through his work, he was able to formulate a philosophy of achievement based on real stories of real people who had used those techniques to create their successes. In a nutshell, his book teaches how we can put ourselves into the same state of mind as those who have created great wealth.
Practice 1: Create a Burning Desire
Every person who wins in any undertaking must be willing to burn his ships and cut all sources of retreat. The example given was a great warrior burning his ships after landing in enemy territory where they were outnumbered, so failure was not an option for their men. Desiring riches with the correct state of mind that becomes an obsession , then planning definite ways and means to acquire riches, and backing those plans with persistence that doesn't recognise failure, will bring riches.
Wanting to be rich and having a burning desire to be rich are 2 different things. To bring yourself into the correct state of mind, you have to be able to see, feel and believe that you have already achieved that goal. This is the same psychological exercise that forms the basis of hypnosis and auto-suggestion
Practice 2: Maintain Unshakable Faith
Faith is a state of mind which can be created by conscious repeated instructions to the subconscious mind. Faith, or belief, is a thought that you can control i.e. you are able to control what thoughts to put in your mind. This is a very important concept because what you put in your own mind, will affect your subconscious mind, which will affect the decisions you make, which will affect the actions that you take, which will affect the results that you get. Having a strong self belief and clearly defining what you plan to achieve will plant the seeds of faith that will influence your conscious attitudes and actions.
This concept was also discussed in my earlier article, The Mindset.
To be Continued... Part 2
Sunday, August 16, 2009
What I Learnt from a Self-Made Multi-Millionaire
1) Find the right customers
There are some hotels that charge $100 a night and others that charge $1,000 a night. There is no point arguing which rate is reasonable because the value is determined by the guest. Guests that stay at the $100 hotel value a no-frills hotel, whereas guests at the $1,000 hotel value comfort, service, security, class, hygiene, etc. Instead of spending time, money and energy into converting one type of guest into another (sales skills involved), it is more efficient to use those resources into finding more guests of that same type (marketing skills involved).
Commentary: I wrote an article earlier explaining sales vs. marketing. As an analogy to the paragraph above, sales is like trying to convert a person from one religion to another, whereas marketing is finding a location where the people are free-thinkers and trying to convert them. Directing your resources into marketing, followed up by sales, will make your business more efficient.
2) Have a strategy - and maintain it
You have to acknowledge that you cannot satisfy everyone. If 80% of your current customers share the same characteristics, you must be aware that your current business strategy is catering to their needs. There will be criticisms coming from the remaining 20% and you will be tempted to change your strategy for them but bear in mind how it will affect the 80% majority. If you will lose customers from your majority to cater for the minority, then it is not worth doing. Keep doing what you are doing right.
3) Capturing the city
When asked why he picked Chile in South America as the first country when expanding overseas, he replied,
"The biggest market is the USA, but as in the art of war, you do not attack a main city head on because it is the most heavily fortified. To capture the main city, you first take on the weaker surrounding villages. After you have captured the surrounding villages, it is easier to take on the main city."
4) Show concern to your customers
Showing that you care for your customers will add value to your product, especially important for a product that is competing in the premium range. This is why his company's motto is "Care about your products, and show concern to your customers". The company encourages their distributors to find a low cost way to show customers you care even though there is no transaction, using the example of an optometrist cleaning your glasses for no charge even though you do not buy from them.
5) Have a strong competitive advantage
Being the only brand from Asia of his category in one of America's largest distributor is not an easy feat to achieve. These are his competitive advantages to stay ahead of the game:
- One stop shop - His brand has the biggest range of products so his customers do not need to look for other brands to find what they are looking for (example of doing thing better)
- Ahead of the game and continuous improvement - His products are always the trendsetter and continuously improved in quality because the company invests heavily into research and development (example of doing things faster and better)
- Great quality products at a reasonable price - Because of continuous improvement and strategically located, his products are cheaper (not cheapest) than comparative products in the same quality (example of doing things cheaper)
- Unrivalled marketing knowledge - With 30 years of experience and a wide global distribution channel, the company can provide advice and recommendations to new distributors on how to increase their sales volume (example of doing things better and faster)
6) Get a "lost leader"
This is a marketing concept which supermarkets use a lot. They advertise one product at 30% off to draw you to their shop with the idea that a shopper will end up buying more than just that 1 product on sale. When trying to widen his distribution network, the businessman made it a point to sell at least ONE product when the distributor has no interest in any of his products. Even having only 1 product on his shelf has a chance, however small it may be, for a re-order. If you leave empty handed, you get ZERO chance for future business. That 1 product on his shelf may open doors that might otherwise be impossible.
Monday, August 3, 2009
Best Tomato Mee in Kuching
Check it out and leave a comment after you've tried it.
Thursday, July 16, 2009
Sunflower Foot Reflexology
The 4 Levels of Wealth
Level 1: Financial Stability
- without having to work, you have enough money that can sustain your most basic lifestyle for at least 6 months
Level 2: Financial Security
- without having to work, you have "money making machines" that can sustain your most basic lifestyle indefinitely
Level 3: Financial Freedom
- without having to work, you have "money making machines" that can sustain your current lifestyle indefinitely
Level 4: Financial Abundance
- without having to work, you have "money making machines" that can sustain your desired lifestyle indefinitely
Friday, July 3, 2009
Famous Kuching Sio Bee
This sio bee establishment, Sin Kwang Heng, is of legendary status amongst the locals. It is located in the centre of town, referred to as "open-air market". It's a recommended place to go for a light afternoon tea or supper. As with the har gau place recommended in an earlier article, the selection of tim sum is pretty limited here as well. That's not really a problem because almost everyone who patronises this place is there for the sio bee.
Open-Air market location map (click here)
Monday, June 29, 2009
Things to to in Kuching during RWMF (Part 4)
Sematan Beach (pictured below) is approximately 30 mins drive from Pandan Beach. You'll find a pier which locals use to fish. Ideal to have a sunset dinner by the few coffee shop style restaurants there.
I would recommend to head to Pandan Beach first arriving at around 3pm, then head to Sematan Beach at around 5pm for a sunset dinner.
Sematan Beach location map (click here)
Pandan Beach location map (click here)
Business Review 3: Massage Centres
My friend told me that massage centre bosses usually get their employees from referrals from their current employees. He would help to arrange the travel documentation and provide them accommodation. I used to think that accommodation and food would be included in their employment agreement, but according to my friend, it isn't. Accommodation rental is charged to the masseurs, together with other services like food catering and transportation. This is where I think is the brilliant aspect of this business.
The massage centre bosses have 2 income streams:
- paying customers who come for a massage
- their own staff who pay - royalty for each massage transaction, rental for accommodation, charges for transportation, food, travel documents, etc
So even when a massage centre has zero customers, income derived from his own staff can offset some of the fixed charges he has to pay. The massage centre boss is basically creating an environment for the employees to work and make money, while charging "rental" as an income stream. Once again, the concept of helping others make money applies here.
If you put this in the context of a typical foodcourt, the masseurs are renting the place like renting a stall which requires them to pay a rental to the foodcourt owner. The foodcourt owner sells drinks and the volume of drinks he can sell is dependent on the quantity of customers who patronise the foodcourt. The quantity of customers is dependent on the pulling power of the stalls collectively. This foodcourt drinks business is like the royalty the boss earns from every massage service carried out by the masseurs. The boss has to ensure the quality of massage remains at a high standard to pull in crowds because this will not only increase the amount of money he receives from the royalties ("drinks" business), but also the chargable services ("rental" business) he earns from the masseurs. When masseurs can make money, they will recommend friends or family members to come work for the boss, which increases the income derived from his "rental" business. 1 action can grow 2 streams of income. You can consider it unethical or inhumane the way some of the bosses run their businesses, but as an income-generating business model, it is simply brilliant...
Tuesday, June 23, 2009
Italian Buffet at Ristorante Beccari, Merdeka Palace
There is a good range of tasty Italian appetisers which I won't even bother trying to spell...
Open-concept kitchen with fire-oven baked pizzas which adds to the authenticity...
Pick your pasta, then pick your sauce, and have it cooked on the spot by the restaurant chef. I thought all bolognaise sauces were the same until I tried theirs which was surprisingly different...
Desserts galore...Overall, a great dining experience. Not the type of buffet where you go and see how much food you can stuff in your stomach cos you'll be pretty full from the pasta and creamy sauces. The buffet is only available on Sunday evenings starting from 6.30 pm till 10 pm. It costs rm 59++ per person which is rm 67.85 after the stupid service and government tax.Merdeka Palace Hotel can be reached at: 082-258000
(location map)
Monday, June 22, 2009
Things to to in Kuching during RWMF (Part 3)
Go Kayaking in the Rivers of the Rainforest
Other than visiting the caves in Bau, going kayaking along the rainforest rivers is a very good way to soak up the Sarawak experience. The waters are calm so it soothes the mind when you want to get away from your hectic work lifestyle.
You get magnificent views along the river journey such as rock formations, untouched greenery and scenic landscapes. This activity takes almost a full day and it's well worth doing if you have a day to spare in Kuching. It is a safe activity for all because it is supervised by experienced guides and the waters are not rough and wild. You need to have the tour pre-planned with the company that runs it. For more information and contact details, visit the owner's blog at:
Friday, June 5, 2009
Business Concept 5: Humans Vs. Systems
- limited-time price promotions
- free gift with purchase
- quantity discounts
If you asked the accounts department to bill a customer based on his previous invoice, how can you make sure it is not billed based on a promotional price? When a mistake is made who do you blame - The person or the system? There is a difference and it is important for a business owner to understand the difference. The lazy, easy and common way is to give the accounts clerk a good scolding and hope that the mistake doesn't repeat itself. But what happens if the clerk is on leave and another person has to take over the job and makes that mistake?
The alternative to a good scolding, provide intensive training, multi-level checking, etc is to try to improve the system so that we close the loophole to prevent another repeat incident. How about creating a special code for all non standard items? This can be a form of a promotion invoice tag or promotion product code, so when the account clerk is about to price an item, promotional items are clearly marked. This will lead to less confusion, therefore less mistakes in the future.
Do you improve man to compensate for a weak system, or do you improve the system to compensate for the unpredictable man? I believe that humans are too variable and unpredictable to be depended on. Humans are emotional beings and performance can be affected by many outside influences. I also believe than systems should be set up to be run by people rather than people running the system. In order for a business owner to go on a long holiday and not worry about things going wrong while he is away, he will need to set up a foolproof business system. Remember: a self running business is the difference between a self-employed and a business owner as defined in the earlier article, "How to Make Money". If the business system is not foolproof to be run by employees, the owner can never take himself out of the business and his income will be proportionate to the time he puts in the business.
Thursday, May 28, 2009
Best Kolomee in Kuching
Location Maps:
Thursday, May 21, 2009
Things to to in Kuching during RWMF (Part 2)
Visit Wind and Fairy Caves
Easily reachable by car, this is a convenient and fast way of getting the Sarawak cave experience. The Wind Cave is tourist-friendly and safe because there are proper wooden platforms to walk along. There's a tourist information centre where you can rent a torchlight which is included in the rm 3 entrance fee you pay.
Fairy Cave is just 10 minutes' drive away from Wind Cave. I didn't explore Fairy Cave because I was put down by the many flights of stairs one needs to climb to the entrance. Pictured below is the entrance which is already breath-taking:
Wednesday, May 13, 2009
Business Concept 4: Sales Vs. Marketing
Sales is about creating supply, and
Marketing is about creating demand.
In the context of war, the sales team is like army soldiers. They fight in the battlefield and their success depends on their fighting skills. The more skillful they are at their combat ability, the more opponents they can kill. The marketing team is like the army general. He plans the battles, chooses the battlefield, looks at weather conditions, research new weapons, and finds the most effective way to counter the opponent. His skill sets are different from the army soldiers, but his decisions will affect the soldiers. Even when the soldiers are outnumbered or less skilled than their opponents, strategic decisions made by the army general such as fighting in a downwind or downslope direction can make or break the battle.
A great example to illustrate sales and marketing is the (hypothetical) story of the shoe salesman of Africa: There was this shoe company who sent a salesman to an African village to sell their shoes. After spending one month at the village, he came back to the office and told his boss, " I've tried my best, sir. These tribal people are used to being bare-footed. They don't even need shoes to walk on the hot sun baked ground. There just isn't a market for these shoes". Unable to accept this excuse, the boss fired this salesman and sent another one on the same assignment. The second salesman came back one month later with the same excuse. The boss fired the 2nd salesman and sent a 3rd. Half a month later, the 3rd salesman came back to the office and told the boss, " there are 200 people in this village so I'll need 400 pairs of shoes to sell this month. Oh ya, and also pack me 3 boxes of broken glass"
The difference between the 3rd salesman and the 2 before him is his ability to create demand. Some might not agree that sprinkling broken glass just to make a sale is ethical (and I'm not saying it is), but that is not the point of the story. The story above shows that creating supply by sales skills alone is not enough is some cases. Even if there is no demand for the product initially, demand can be created; and this job of creating demand belongs to the marketing team. Sadly, marketing is not widely practiced for a few reasons:
- lack of knowledge and expertise in the marketing field
- lack of budget for marketing programmes
I do not need to elaborate on sales skills because it's quite self explanatory. Most companies only spend money to hire the best salesman that can push their products but think of the marketing team as an expense with no clear return on investment. Business works well when there are push and pull strategies akin to yin and yang. Sales is a push strategy and Marketing is a pull strategy. Understanding the difference will give you an edge in your business because once you start asking yourself "how do I create demand for my products / services" you will have a different viewpoint on the way business is conducted similar to the shoe salesman in the story above.
Let's make up a scenario for an example: You have a new brand of fishing rod to sell to the market. Most businesses would get a salesman to drive around town for all shops that sell fishing equipment and try to convince the boss of that business to try out your new product. This is a straightforward sales strategy (without marketing), and needless to say, you can imagine the results of this plan - Unpredictable, and basically praying for good results
How about this as a different approach: Before I even approach a fishing equipment retailer, I approach the local fishing association and ask if I can take up an advertisement in their monthly flyer / newsletter. I would prepare an advertisement complete with testimonials from satisfied users from overseas. Before they publish the advertisement, I would send out my salesmen to all fishing equipment retailers (where most would happen to be members of the fishing association) and tell them that I would insert their business in the advertisement as so interested buyers who see the advertisement could contact them to buy my product. Wouldn't you agree that this would make it easier for the salesman to push the product because you have in a way created demand on behalf of the retailer? This is an example of how an army general (marketing team) can create an advantage for the soldiers (salesmen) on the battlefield (market) just by applying marketing intelligence (push and pull strategies working together). This example also illustrates how thinking of helping others make money first, will help you make money down the line as discussed in my earlier article, Helping Others Make Money First.
Tuesday, May 12, 2009
Best Butter Prawns in Kuching
There are many styles of cooking Butter Prawns, but this is my favourite style because the creamy sauce is so fragrant and the prawns are ready peeled so you can eat them whole. Goes well with rice because the cream is rich and sweet. There are many prawn dishes at Li Garden (such as Butter Milk Prawn and Baked Prawn with Corn) so it might be confusing to pick the one recommended here. This is Baked Prawn with Butter Sauce. It comes with diced chilli sprinkled on the prawns, but not shown in the one pictured below because I requested it be cooked without the sprinkled chilli.
Another gem I accidentally found at this restaurant is the Wrapped Ham with Mayonnaise Sauce. I came across it when eating the 4-dish appetiser during a function at this restaurant. It's not on the menu, so you will have to request it from the waitress captain.
Just as tasty as the Butter Prawns, and just as fattening, but sinfully good. This air-conditioned restaurant is a good place to have lunch and dinner
Wednesday, April 22, 2009
Things to to in Kuching during RWMF (Part 1)
Monday, April 13, 2009
What I Learnt from a Multi-Million Dollar Sales Manager
The 20/80 rule: Business schools teach this, applies in real life – The 20% of your top sellers contribute to 80% of your business revenue. This is the bread and butter of your business. Track your 20% top sellers on a monthly basis in terms of:
- sales revenue – ensure they do not drop and if they do, find out why quickly
- competitors' price and sales volume for the equivalent product / service – find out if you can do anything to increase your market share.
- Your market share compared to your competitors' – this can be a simple estimate by looking at the proportion of your products relative to your competitors' on the shelves.
Your 20% top sellers are your ricebowl and do whatever you can to defend your territory. Ensure they maintain a competitive advantage (see earlier article here). The 20/80 rules also applies in business effieciency i.e. you should be spending 80% of your time and money in the top 20% to ensure the biggest return. Delegate the other 80% to others for maximum effectiveness.
If your competitor launches an attack on your ricebowl a.k.a your 20% top sellers, take urgent action, but be rational about it. For example if they offer a competing product at a discount for a limited period and the market has already been saturated, don't jump in and st on the same item asart a price war when not many left will be buying. Think rationally and take alternative steps such as launching a discount on a diffferent product that happen's to be the competitors' ricebowl.
Inventory Forecast– This is a very simple concept I never eveb thought of until the sales manager showed me. To decide on which products to push for inventory clearance, do the following:
- Do a monthly average sales of each product by unit
- Find out how much each product you have in stock
- Divide the stock level of each product by the average sales figure – this will give u the number of months it will require you to clear the inventory based on historical performance
- Sort the list by the highest number of months to clear to the lowest.
Now you have a list of items you need to find ways to clear ranked by urgency. An example of this would be a product that has sold 3 units in the past 6 months.
3 units / 6 months = 0.5 units per month
If we have 5 units left in stock, it would take us:
5 units / 0.5 = 10 months to clear
Simple math, simple concept, almost common sense, but seeing 5 units left in your store room does not give you the same urgency as knowing it will sit there for 10 months before it's sold out. It's just a different, but very useful way of looking at things. This method of inventory management also helps you plan sales and financials as you know that you would not need to place an order for this item for, say, another 8 months.
Thursday, April 2, 2009
Best Chicken Pau in Kuching
Sunday, March 29, 2009
My Money is Rotting in the Bank!
- New Zealand has the highest interest rates among all developed countries (I was getting 7.99% p.a. for my savings account before the credit crunch hit)
- The Governor of the Reserve Bank of New Zealand practically has the target of keeping inflation between 0% to 3% written in his job description - so he will not give-in to pressure from businesses to lower interest rate for the sake of economic activity
- New Zealand is politically stable and very much less corrupted
- Bank savings are now guaranteed by the Government
Monday, March 9, 2009
Business Review 2: Burger Times
- No direct competition - By selling at foodcourts, there are no other burger stalls that operate there for a simple reason; rent. Many are not willing to sacrifice profitability for this expense which makes Burger Times the only operator selling burgers. In business terminology, this is called "competition barriers to entry"
- Captured audience - Once customers sit down at the foodcourt, they usually do not change venue to dine. If a customer feels like eating a burger, they do not have an alternative. And most people do not dine alone; they have friends or family members with them. This is unlike the customer base from regular burger stalls that can drive on by.
- Social networking - By employing youths that fall into the target market of this product, the boss is indirectly taking advantage of his employees' social circle and turning them into customers.
- Economies of scale - By purchasing and preparing ingredients from the main station for the other branch stalls, they are more efficient in terms of man power and cost.
- Time leverage - By having standardised menus and ingredients, the boss doesn't need to spend his time cooking for each of his customers. He multiplied his productive time by the amount of stalls he has out there i.e. time is now not a limitation to his income. Where others slave to make say 40 burgers a night, he can make 6 times that amount (taking 6 stalls as an example) and is only limited to how many more stalls he can open.