Demand can be determined before Supply, where the use of Price will determine your global market share, everything can be traded in the “New Economy” with exchanges that facilitate trading in goods and services, and the future can be determined at a future price from the present, debts can be bought and sold, like bonds with a recurring interest like dividends, where money is used to solve the world’s problems, healthcare, ageing, jobs and welfare are just factors of demand and supply, where the correct pricing mixed with a set of priorities will lower it to a sustainable level, every governments need to learn the tricks and tweaks, by studying all the best models from the world, if digital money is put in the right perspective, priorities and goals are more important, a world where there is no inflation or deflation, the access of funding with austerity measures, will help the creation of wealth with a multiplier, steady inflation will indirectly promote growth, being poor will not be a deterent, you must be able to plan and execute, all components require the endorsement of all, the co-operation of all, to build a better future, with the participation of the UN, IMF and World Bank, a world without nuclear weapons. The “New Economy” is the Age of Information, where every markets is tracked with 24 hours data to facilitate trading of goods and services 365 days a year, prosperity is for everyone, jobs for everyone, where you do not worry about putting food on the table, technology advances will benefit mankind, high growth is not an issue, if you get things right now.
When everyone realised I have the solutions to solve the Global crisis by creating Demand and GDP growth in a sustainable manner by setting priorities and goals with reforms and changes, will you seriously support the “New Economy” and Free Trade and the United Nations run by Jesus?
The rise of the barter trade exchanges. The futures exchanges trade not only in commodities, but contracts of good and services to be delivered in the future, with easy financing and terms of default clearly spelled out, even instruments of debts can be easy traded.
This vision can be realised within a lifetime ie less than 50 years to totally eradicate poverty from the face of this earth, trading is done every second of the day, when you need money, it can be realised almost immediately, free trade will be expanded a thousand times over, so what is high GDP growth not achieveable, a future of a “perfect” market?
– Contributed by Oogle.
God is omnipresent. That means he can be anywhere and at all places at the same time and knows everything even if you do not use prayers to tell him.
God is both a scientist and a mathematician. He is an expert in technologies and he places information about himself everywhere and those who seek him will know he places bits of information everywhere throughout history for you to assemble it.
God’s challenge to mankind if you want t be Godlike and have eternal life you must first possess God’s technologies and learn how to fly to the StarGate of the Sun to pass thru time and dimensions and manipulate DNA to create life.
Our time is coming soon when everything will be revealed to mankind.
I an on a quest to find all the answers to God’s technologies, the Tree of Life, eternal life, the ability to levitate, fly to other pats of the Universe, Stargates and Wormholes for Time travel.
We do not believe in the old world monetary system making slaves out of everybody and we intend to free the entire world by introducing a new digital currency supported by technologies provided by God to support the United Nations.
In 2012, God gave me a vision of the future, and showed me many technologies of the future which is not of this world, and I was tasked to solve poverty and diseases and gather God’s people for the 2nd coming of our Lord Jesus Christ.
And the rules of the game is that billions of advance technologies will be revealed to me but not a single cent of money as our God is not a God of money. With God’s help I will need to gather all God’s people to achieve this aim, to make the world perfect again for Jesus to come back to rule for 1000 years.
God gave me the ability to look into the future, to study and research any info that is online, into any technology, to hack, dis-assemble and re-assemble to study it’s technologies, and create a future that most likely the technology will succeed, without wasting resources, what it take others to do years of research to achieve, I can do it in hours. I am not interested to take over any technologies and patent it, but stop patent holders from putting roadblocks to human progress. Since I started on this journey until I completed all my works in 2012 and released it freely until today, I have not received a single cent in donations to fund my works, but eventually when I start my own Non Profit, I cannot afford to do any free service.
And if I achieve this task I will be seated at the right hand of Jesus when he comes back to rule over the United Nations as an adviser, and I will celebrate my own wedding with a bride chosen by God. What a blessings I have with God who reveals all prophesies to me ahead of the time. I am going to setup my Non Profit to solve all problems in this world, I believe everyone should have access to a decent meal, and access to info and technologies with a smartphone or a laptop, and a job for everyone in this world by training them with the right skillset and hope God’s people will help me with fundraising to achieve this aim. May God bless you.
Welcome to the 1000 years of peace and prosperity where we will teach everyone how to “fish in the New Economy” even without a degree. Our aim is to help the entire world move into the millenia age where technological advances will be everywhere.
Contributed by Oogle.
Preventing Destructive Competition
Most important Rule : “Never allow your customers to compare apple to apple, you will create destructive competition and will erode your profits until you cannot survive.”
You need to identify what is “Horizontal competition” and “Vertical Competition”.
Horizontal competition is having a common product like ice cream but based on different brands, different pricing, and different flavors to separate yourself from the competition.
Vertical competition is destructive competition where the customer cannot identify your product from your competitor’s causing you to lose control which will result in loss of pricing.
The highest ROI can be achieved from determining Demand before Supply, where with today’s high rent and manpower costs, nobody wants to use the traditional methods of manufacture of producing an oversupply and causing a loss of price, not maximising resources.
Fishing in the New Economy
The New Economy is a Knowledge Based Economy, where survival means you need the knowledge of the markets, a lifelong learning experience for education and never stop trying to achieve success.
It does not matter if you need to follow the traditional path of getting a University Degree, what matters is you learn a skill to make a living, and be equiped with the knowledge of markets to ensure your survival.
Never go in blindly without doing a bit of research, find out the costs of acquiring the skill, the potential of it’s marketshare or earning potential, that is the basic skills of an entrepreuner.
Always find out from the competition and it pays to diffentiate your products or services within a radius of about 2 km, the consumer will always buy from the lowest cost unless it is a service you provide.
First mover advantage. Normally those who start a trade early will have an advantage based on location, never go head to head with destructive competition, you will always lose in the end.
In business profit is always the basic motivation factor and if you can sell less to earn more, why will a manufacturer favour another who have to sell even higher quantity to earn the same profits you earn.
It is always connections or Kuan Si that will get you favourable terms with your expertise. If not why would someone will give you business and let you earn money? Unless of course you got a lot of money.
Gone are the days where only profits or money is the only motivating factor, there are social causes as well. Others maybe the connections it brings, without a knowledge of the markets, you can forget about Fishing in the New Economy.
Information on local demographics, lifestyle and Incomes are the Big Data of the New Economy. You can get great insights by looking at financial data or statistics or sampling, it will give you great advantage over identifying trends before the full impact is felt by others.
Determining Demand Before Supply
Nobody use the traditional methods of manufacture which will cause an oversupply and a drop in price.
Every manufacturer will now determine Demand first by taking orders based on a selling price which would have factored in his costs before Supplying the goods at a predetermined future date.
Therefore Demand will meet Supply to meet the highest ROI possible. Characteristics will be smaller orders at a more frequency but profits will not be eroded.
This helps the Global Economy as profits are guaranteed and many people will be willing to invest. Indirectly it will also create jobs for many people and there will be increments in salary when more profits are re-invested.
Knowing Market Dynamics
The entire global economy is like musical chairs, each country sitting on a chair with a role until it upgrades itself to another seat.
Understanding Macro and Micro Economics, can you tell the difference between domestic markets and overseas markets?
How interbank interest rates affect currency markets and the cost of money?
Hot money inflows will always goes to the most transparent economies which gives the highest ROI.
Domestic and Foreign markets, it is still Location, Location and Location
That is why you must be very familiar with the local demographics, the population, their lifestyle and their habits so as to identify the Demand and Supply of any goods or services.
It will teach you why within a certain walking distance of eg 2km if you start another shop selling the same goods and services, chances is you will not make any decent profits unless you are able to create horizontal competition.
Can you differentiate the same hairdressing services? An Indian shop charging $8 per haircut, a Fashion saloon charging $16, a Haircut chain charging $10 and another charging $3.90? What will happen to this location when correction occurs?
The Framework of Problem Solving
A person can only buy 2 homes in his lifetime, 1 to stay, another to rent out. Beyond that, he will have to pay increased capital gain tax. Rich people who can buy numerous homes should put them in a Holding company, and enjoy Tax consessions.
There should be a compulsary contribution from your salary to your retirement fund like CPF, which can be utilised for housing and healthcare.
Affordable healthcare can be achieved with insurance, and the separation of the business of providing advice and the dispensing of medication to get the lowest cost possible.
Insurance is a business of pooling of resources to solve a need. Money collected is pooled, excess monies are reinvested to get higher returns, where mortality rates and statistics determine the claims, so even expensive healthcare can be even covered if the public participates.
Retail Banking should be separated from Investment Banking based on Risk Taking to ensure stability of the Banking System where deposits are guaranteed but not risk taking.
The New Economy is a Knowledge Economy and everyone should be taught the pathway to success.
A lifelong learning experience is necessary which means you do not necessary have to get a University Education to succeed, and in your lifetime you may change your job but do not have to worry about finding a new job.
There should be Social Enterprise and Non Profit to give a helping hand on retraining and those who falls through the cracks, and the government’s responsbilty to contribute towards it.
As every country is a member of the United Nations, there will be funds from World Bank/IMF especially on Social engineering and Non Profit where every dollar contributed by governments will be matched without repayment based on needs.
But first every country needs to first endorse it and every country needs to have equal rights to have their voices heard, the end of wars and weapons of mass destruction, then peace and prosperity will prevail.
The Creation of Digital Money
Money have to be backed by Gold, or it will become Banana money, and massive inflation will cause it to lose it’s value very quickly because of loss of confidence.
QE is a temporary fix for the domestic economy as it depegs the value of the currency to Gold, causing a devaluation of the currency due to the printing of money.
The effect will be the a drop in currency value which will translate to cheaper exports but more expensive imports. It should not be used as a permanent fix as long term it will affect the debts market and your bond yield will start dropping in price until nobody wants to buy your debts.
The mechanics of Present and Future money. Inflation will help fuel asset appreciation and over the long term, money will depreciate in value but assets will appreciate.
Due to wages not able to keep up with inflation, your future earnings to buy assets will be greatly reduced. Something needs to be done to address this issue for the salaried worker. Our children needs a future where their purchase of their homes need to be calibrated for affordability according to their future income.
Based on inflation of 2% yearly your home will increase in price by 200% in a hundred years but the increase is more acute. Do you think your children’s salary will increase by the same amount? Sadly No.
Everybody needs Oil now for energy and do you think Oil will last forever? At about US$100 per barrel will it raise to US$500 in fifty years time? Nobody can then afford it for cars anymore but aircrafts. By then we will develop Nuclear Fusion energy.
Money is used as a Tool to efficiently allocate resources. Do we need physical money in future? No. We can create Virtual money. Sometime in the future when we reached a Perfect Economy we can even have Virtual money, then No money at all when we do not need to allocate resources anymore with God as our supplier of all our needs.
Before you start clamouring to buy your house now consider this fact: Can you afford to pay your mortgage with your future earnings? What have you done to protect your future earnings?
You need to create the Climate and the Environment for Investments. If everyone in the Global economy perceives that there will not be a recovery or growth will we have future investments?
In a New Initiative without the Federal Reserve printing money, there will not be inflation or hyper-inflation, there will not be a depression or a recession, because the New World uses Digital money backed by God’s Technologies so we can use as much as we want without Governments suffering the ill effects of over printing money. The entire world will be run by the United Nations with Jesus controlling it.
So there is no Shortcut to Success. We need to solve all the problems of the Old Economy, institude reforms and bring confidence back again.
Live within your means. Never overspend.
In order to achieve Financial Success in future, you got to live within your means and never overspend. You need to have a percentage of your Income which you can save monthly to invest in yourself to get passive income. If you are living from paycheck to paycheck you are locked in the poverty cycle and can never improve your lifestyle.
Lessons need to be learned, the capacity of markets, to maximise demand and not to overproduce. If you know you are overproducing, and still attempts too, you will see your rewards dwindle. My beliefs is that there is a market for everyone, to maximise your profits, to cancel destructive competition, by finding new products and services, which is part of the “new economy”. Knowledge is the key, to maximise your returns.
Let me give you an example. In the MP3 war, you have Apple leading the market, followed closely by Creative. Let’s assume there are only two markets, the US and Singapore. And the local demand for Singapore is 10,000 units per month and 90,000 units for export, the US market is 100,000 units and a furthur 150,000 units for export. Production capacity for Apple is 100,000 units per month and Creative is 25,000 units. The life cycle for each product is about 9 months whereby after that, price will decrease at a rate of 20% per quarter until the lowest price of 20% whereby the product will be handed over to OEM manufacturers. Directors, manufacturers, and stragedy planners, what do you have in mind to maximise your profits? What stragedy will you use? How do you acquire business intelligence? Do you let your product be determined by market forces? What happens when you overproduce? How do you increase your branding? How do you create brand loyalty?
Let’s make this scenerio as real as possible.
If you can sell Creative MP3 in Singapore at S$500 per unit but only S$400 in the US market, and the market share in Singapore is 40/60 and in the US is 20/80 for Creative/Apple. What are your options?
And if you are able to control these factors, what will you chose?
1) Increase capacity to produce by another 15,000 units (Creative) at an investment of $100K to streamline your production lines.
2) Spent $100K at publicity campaign to increase sales in local market by 10% and US market at 8%.
3) Let’s say, all factors are under your control. How do you create branding and loyalty?
Anyone can provide me the answers? I will post them at this website. The idea is to find all the paths and options to maximise profit and create branding or loyalty. Everyone needs to harvest an intimate knowledge of whatever market you are in to maneuver against the market and competition. When I see a demand, I will race at maximum capacity, and when I see a falling market, I will pack up and reinvent.
With in depth analysis, I have provided you the questions to find out the answers, to find out the different paths you can take, to maximise profits at minimum risk, to see the entire view of the market.
And if I am even crazy, I will merge all this information, with accounting and budgeting info, seeking all the paths with the limitation of a budget, can I accurately assess my risks? Best of all, if I expand my vision, to include all the world’s market, including forex exchange, do you get dizzy all of a sudden? No, not really, everything can be segmented, with very clear objectives, goals and relationships, that is something, nobody has tried to do.
The “New Economy” is based on, preventing destructive competition. I believe there is a market for everyone, and competition is fine, but when competition start eroding profits until a loss, it is destructive competition. Everyone should help your neighbours. And if by helping you I created a friend rather than an enemy, I have created my future when I meet you headlong in direct competition, you will definitely give way to me. And if I teach you how to solve your own problems, you will be eternally greatfull, creating less an enemy rather than an ally, which will help you surged ahead. Economic schools need to reteach the young, how to read economic data and useful information, how to identify markets and determine demand and supply, and if a market is satuated to move away from it, find new markets or create new goods and services, to reinvent oneself. There is a lifespan in every good and service, and when it is no longer economically viable, it’s time to move on, to reinvent yourself, to find new markets or goods or services. Imagine, if you do not follow what I have taught you, even if you find success yourself and fell all your enemies, no one could afford to buy your goods and services when all are poor and cannot afford the riches you have created. FTAs, economic reforms, economic liberisation, and economic co-operation are all part of the “New Economy”. When you have goals, to reach a developed country’s status like the Swiss, “thoughts of wars”, the lessons of history, will have no place in the “New Economy”. If any country tries to do otherwise, sanctions will be imposed, trade restrictions, total blockade by the rest of the partners. Then poverty will be a lesson learned. The fundamentals of the “New Economy”, is that every human being is created equal, you do not need another superior race, to control another, learn how to solve your own problems, by adhering to strict principles, “you will reap what you sow”, being lazy has no place, being stupid is because you do not want to learn.
By embracing the “New Economy”, in less than a lifetime, poverty will entirely be eraticated, from the face of this earth, poverty will only be, the domains of the warlike, on those who will rather use violence and their fists, to solve a problem. The message is very clear, “If you invest in destruction, you are only going to destroy your own self, if you invest in economic reforms, you are going to save yourself from poverty.”Likewise, example “if you got an Aid’s problem, and you are not going to invest sufficient resources, do you think the problem will go away?”. Most developing countries, have a major problem, of raising healthcare costs for the elderly, the maintainance and payout of pension funds, but little do they realise, the benefits of preventive medication, they only solve problems when it is too late, too costly. The promotion of a healthy lifestyle, the investment to promote health, and making sure your citizens are economically viable, even having enough resources, by planning for old age, is saving you future money, rather than being a drain to your coffers. There are jobs for everyone, even in old age, it’s just that productivity is not as high, and if you have invested in improving your knowledge when young, you will be a valuable tool, its just the access to old age funds will help you continue, a more comfortable productivity, a more comfortable lifestyle. Fact is, you don’t need to wipe tables in a foodcourt or collect cans and garbage if you plan for it, invest in knowledge and health, have sufficient savings to maintain a proper job and lifestyle. In the future, I see a developed Financial market that will utilise risk-based components to built a wide range of financial products, where the contribution of CPF ordinary can be use with co-insurance, to add on to the retirement fund, to ensure a more higher returns, to lock up savings for retirement. The Medisave can also be utilised, to buy other products, to minimise risk upon sickness, for outpatient care, or with other products to reinsure the cash component. A lot will depends on financial institutions, the pooling of resources, the reinvention of financial products with risk components, to cater to the needs of the market, and the ultimate goals of the government.
I believe once the demands are established, there will be an automatic participation both by the private and government, to solve this teething problem encountered by all the nations.
Initially pay-per-use was the default revenue model in only a few industries, such as utilities (electricity, phone). But in recent years it has been spreading to industries that you would not have expected such as software and even automotive. The pay-per-use business model often combined with a subscription models are now common in these industries.
The economic benefits pay-per-use offers to consumers will make it a successful business model in more industries. Innovators who understand how to apply pay-per-use and subscription business models to their industry can be ahead of their competition […]
Do you remember the times where most software would cost you an arm and a leg? A hobby photographer buying a decent DSLR for $898 was only half done shopping. You’ll be quit another US $999 for the photo editing software (Adobe Photoshop CS6 extended version 2012). A too steep barrier for many people, missed sales for Adobe and even for the camera manufacturers.
But things have changed quite dramatically in recent years. Software is another industry where creative pricing models have emerged. Many start-ups were offering pay-per-use or its cousin, monthly subscriptions. This has put incumbents under pressure. And the big players have followed. Now you can get an Adobe Photoshop license from $10-$23 per month. This appears to be a more suited revenue model for a product that requires constant updates (service packs, etc) in any case.
Pay-per-use has been the forever pricing model in some industries. You name it: utilities (gas, water, electricity, landline phone). You pay a fixed access fee plus a variable fee for what you consume. Mobile phones offer you the choice between different size packages. One package may include 500 minutes talk plus 2 GB data per month. You lose what you don’t use. Things are very similar when you look at internet service providers.
You will find this combination of a monthly subscription model with a per-per-use charge on top in many other industries now.
Pay-per-use business models for durable goods?
Extending the pay-per-use business model to the software industry was enabled by the wide penetration of the internet and increasing bandwidth. Like utilities, software could now be distributed cheaply everywhere through the ether. You have large scale distribution at low transaction cost and improved protection against piracy.
But things get more interesting when it comes to durable goods, say cars. Until we have a Star Trek-like “replicator,” you can’t just send them through a data pipeline. And yet the pay-per-use pricing model has found its way into this market.
I am not talking about rental cars. Yes, they have existed for a long time. But ask yourself why are they are located near airports? Mainly because they are used by business people or tourists. The reasons are obvious: they are too expensive to rent, too time-consuming to pick up and only available for full days.
This makes them unattractive for most people. A situation where both lose the provider as well as potential consumers. On most weekdays (and even more so on weekends) you will see tons of rental cars collect dust on the rental car yard while at the same time some poor bugger curses having to carry their groceries home in the rain.
Zipcar: Pay-per-use cars
The economic benefits of car-sharing are obvious given that “it costs an average of $8,558 per year to own a car in the U.S., but each vehicle is used just 4 percent of the time.”
One of the first attempts for car sharing had been endeavoured in the 60s in Amsterdam but has ultimately failed. The right technologies were too expensive and too unreliable to establish a viable business model.
A good 35 years later the technology landscape had changed and the window of opportunity had opened. In 2000, Zipcar was one of the early-movers (and one of the biggest ones despite not having the first-mover advantage) to apply pay-per-use to cars.
Location-specific wireless technologies, GPS and a number of other technologies helped solving the challenges. “Zipcar would never be possible without technology. Robin Chase, former CEO and co-founder Zipcar.”
The challenges to tackle
An important first step to establish the new business model to the automotive / personal transportation industry, Zipcar had to overcome a number of challenges. Let’s have a look at some of them and Zipcar’s solutions.
Challenge: How do you get your durable good to the pay-per-use customer? Would you expect them to go to the airport to pick up a car for 2 hours, then return it and get home by public transport? On the other hand positioning the car in many locations adds new challenges. You would require additional offices (infrastructure), hire additional staff for those offices and so on. Not exactly a low cost base.
Solution: Zipcar is in selected cities and there only in targeted areas. Their cars are in clusters close to potential customers, e.g. around university campuses close to students. The cars are spread across different streets in the surrounding area. The cars are picked up from and dropped off at fixed parking spots without any supervising staff. A mobile app will show you all cars available near the customer’s location. You can reserve cars in advance or book available cars spontaneously.
Challenge: Picking up keys, having to refuel, providing personal details, determining usage and other tasks make transactions prohibitive. It would waste the customer’s time and cost the providers too much in staff. “I would never be able to provide you a car for an hour if the transaction cost was anything” Robin Chase, former CEO and co-founder Zipcar.
Solution: The payment scheme is similar to utilities, an annual membership fee plus pay-for-use (automated transaction). The customer receives a membership card which is used as keys to the car and to identify the user. Users need to refuel when it drops below 1/4 of capacity.
Challenge: Car share providers have to solve a number of other problems related to the condition of their asset, such as theft, damage, cleanliness, etc.
Solution: You may have already guessed that the cars are tracked via GPS. They can be remotely shut down. These are only two security measures without which insurance costs would be prohibitive. Additionally, there are also clear protocols around cleanliness, and technical issues. These are designed in a way that they use the customer for the reporting (rather than staff) and transfer accountability to the (likely) originator of the problem.