Tag: Revenue

Chart of Personal Saving Rate from January 1959 to May 2021

Personal saving is a percentage of disposable personal income (DPI) and is calculated as the ratio of personal saving to DPI. Personal saving is equal to personal income less the personal outlays and personal taxes; it may be viewed as the portion of personal income that is used either to provide funds to capital markets,…
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Being Cheap Can Cost Money

Everyone has experienced the cost versus value decision.  Should I buy the best or the cheapest product that I am looking for?   Sure, there are times that buying a lesser quality or last year’s model will have little to no effect on the product you are looking to purchase.  If you are buying a…
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Graph of CPI and PPI from December 1950 to March 2021

As of March 2021, both the CPI (Consumer Price Index) and PPI (Producer Price Index) have shown increases.  The CPIs are based on prices for food, clothing, shelter, and fuels; transportation fares; service fees, such as water and sewer service, and sales taxes. The producer price index (PPI) measures the price that industrial producers get…
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The Upside and Downside of Economic Transition Risk

There are businesses that do well and prosper during difficult economic time (recession, pandemic, legislative changes, inflation) while other businesses struggle or go out of business.   Businesses that experienced an economic upside during the pandemic were real estate, home furnishings, home improvement and technology companies.  People moved to the suburbs, set up home offices,…
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Map of the Hourly Wage by State

As of January 1, 2020, the Federal minimum wage is $7.25 per hour.  There are numerous states that have set their minimum wages higher than the Federal minimum wage.  See the map below for your state’s minimum wage. An employer of tipped employees is only required to pay that employee $2.13 per hour in direct…
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Chart of Miles Traveled by Passengers in Car, Airplane and Train

At the onset of the pandemic, many consumers cancelled personal and business travel plans.   Teleconferencing replaced business travel and social gatherings.  Between February and May 2020, train and airplane travel declined 96 percent and 91 percent, respectively, while travel by car declined 27 percent. The increase in traveling by car since April 2020 reflects the…
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Willful Blindness

“Willful Blindness” in a business is the conscious act of avoiding the truth, which gives credence to the knowledge of an issue in question, but never resolving the issue. Willful blindness can be at any level of management or on any type of business issue that needs to be addressed and resolved. A business’s willful…
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Business Drift

“Business Drift” is a perpetual problem with any business, big or small, in any industry.  In the food and distillery industry it is called “Flavor Drift”.  In business, “Drift” is the act of slowly drifting away from the core business.  This can either be intentional or unintentional.   Businesses that avoid “Drift” are emphatic about…
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The Difference Between a Business Recovery and Business Growth

There are numerous businesses starting to reopen and recover from the past months of slow or no business.  Sales are starting to rise as customers are starting a buy again, both of which are great signs for a business recovery and business growth.  Now let us talk about the difference between a business’s recovery and…
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Chart of the Price Change Between Years for Hotels and Casino Hotels During August 2015 to August 2020

The chart shows producer price index (PPI) data that measure price changes. Percent changes in prices from a year ago are shown for both stand-alone hotels (the gold bar) and hotels attached to casinos (the red bar). Prices began dropping for hotels in February 2020 and the price reductions continue to persist, but hotels attached…
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