Coyote Blog

Most of the facilities we run are concessions on government lands. To get these concessions usually requires a bidding process, where the government authority evaluates qualifications to run a quality operation as well as the amount of rent (usually as a percentage of sales) "bid" by the concessionaire. Like most government contracting processes, proposals are usually due by a hard deadline (say, 2:00 Tuesday on X date). No proposals are accepted at 2:01 (unlike some arbitrary government regulations, this is actually for a good reason - there is plenty of history of late proposals coming in based on some insider knowledge of the contents of other proposals that have already been opened).

Anyway, we had such a deadline in Florida on Tuesday of this week. Normally, to make a Tuesday deadline, we will ship overnight on Friday, which gives us a buffer day in case of problems. This time, because we only got the RFP last week, we had to work through the weekend and ship Monday.

So we shipped FedEx for 10:AM delivery on Tuesday (paying $155 for 38 pounds, ugghh). And, of course, since this is the one time we had no margin for error, the box ends up sitting in Memphis for a full day, due apparently to excess demand for Florida that day, and arrived a day late and after the deadline. So all the work we did, all went to waste. Bummer (I have cooled down, I was using much worse words than bummer with FedEx this morning).

I learned this lesson once before about 8 years ago. FedEx is NOT for things that absolutely positively have to be there overnight. They are for things that would be best if it were there tomorrow but the world won't end if it is not. In a case like this, where we miss out on a big contract and we could waste hundreds of man-hours of work, I should have gotten on an airplane myself, checked the box as baggage, and taken it to the door. Yes, it would have cost me a few hundred dollars more, but we already had thousands of dollars in time and effort invested in it.

To this day, CBS and Dan Rather have still not admitted that the documents they used in the Bush National Guard story were forged. Pathetic.

Today we get this, via Drudge.

News of missing explosives in Iraq -- first reported in April 2003 -- was being resurrected for a 60 MINUTES election eve broadcast designed to knock the Bush administration into a crisis mode.

Two obvious questions. What is the public justification (vs. the real one, which is obviously to influence the election) for re-running an 18 month old story and calling it new news? And, how can people keep flogging this story when NBC, who had an embedded reporter on site the day after liberation, continues to report that the stuff was not there when the US arrived?

This is not to let the NY Times off the hook, for beating CBS to the punch on this weak story, but I have built up a particular ire over the years against CBS News. Besides, this is a lame issue - kind of like the museum looting urban legend revisited again. Is this the best October surprise the left has? Maybe Karl Rove has a better one for his side coming up.

It would be interesting to know if Kerry is happy or sad about this. Probably both. So far, the original story is getting more play than NBC's debunking of it, so that must help. However, I saw him on TV Monday and most of the soundbites, at least on CNN, were of him slamming Bush over this story. He can't be happy having the rug pulled out from under him yet again, as happened after the Bush ANG story. Maybe he needs to wait 24 hours after NY Times or CBS stories come out to see if they still hold up before putting his reputation behind them.

Previously, I explained why I like Football Outsiders here. Their week 7 statistical rankings of teams is here.

A couple of observations. For the first time in recent memory, our hapless Arizona Cardinals crack the top half of the rankings. Woohoo. Arizona is ranked 5th in total defense, and first in rush defense. Good thing, since we can't score to save our lives. Also of note, Miami pulls out of last place, ceding the spot to cap-hangover suffering San Francisco. I can't believe the Cards lost to those guys in the fourth quarter. Yeah, I know what you are thinking - you can't believe anyone really cares about the Cards.

Also, this weeks Tuesday Morning Quarterback is up. Always entertaining.

This series explained, and other past featured products, here. We get many of our featured products here.

Today's feature is just in time for Halloween, the ACME Super Hero suit. The great thing about this product was that the suit not only looked, uh, sortof cool, kindof, but it conferred super powers on the wearer. Unless, of course, the wearer was a coyote.

Most all of our managers in the company are promoted from within - this means that they started as a "camp host" with us, collecting fees and keeping the park and especially the bathrooms clean. One of the great joys I have found in business is finding someone with the talent and energy that deserves promotion. Many of the people we hire are retired, and a stunning percentage of my employees are over 70 -- I even have a few in their nineties! In several cases we have found folks over 65 who have never had a management job in their working career, or maybe never have worked out of the home before, who have made fabulous managers for us.

However, once in a while, something strange happens. We take a dedicated, customer-focused, friendly and sensitive employee, give them a manager title, and they become a monster. Something about the title, or rather their perception of the title, turns them into der fuhrer, barking orders at everyone, treating customers with disdain, etc. One of the classic lines I have heard quoted back to me intwo or three of these instances is "this is my campground, and I make the rules here". This line is usually stated at about the same time a customer or employee is being treated shabbily.

Of course, it is not their campground. In fact, since we operate facilities on public lands, it is not even the company's campground. In the end, in these two or three cases, the employees have left or were eventually terminated.

In response, we've beefed up our training and tried to better set expectation for managers, but we still have this problem once in a while. I wonder if it is a generational thing, as older employees whose business experience began in the 50's and 60's are channeling an outdated view of leadership. Anyway, it sure is frustrating.

I originally posted this as an update to this post, but I wanted to move it up top.

I am sympathetic to a number of other libertarian writers out there -- I too am disgusted with the fiscal irresponsibility and trade protectionism of the combination of Bush and a Republican Congress, but have little hope that the Kerry alternative would be any better. There is probably a pretty good argument for divided government here, voting for Kerry and hoping that a Republican Congress will oppose everything he asks for, but its a risky strategy.

Many elections in the past, I have voted for the libertarian candidate as a protest vote, and, in some cases, because I even liked the candidate. This year, I think the guy is a total loony. To some extent, I consider my refusal to vote for the libertarian candidate this year as a protest vote to my usual protest vote. Never has there been a better time for libertarians to get their message out and find traction in the electorate, given a choice between a big government Republican and a big government Democrat, and they nominate this guy?

Libertarians' greatest strength - that they like real diversity, not just of skin color, but of outlook and interests and decision-making - is their greatest weakness as a political party. Political parties are brands, and the power of brands is that they bring predictability, they tell people what to expect. The libertarian brand can mean anything and is entirely unpredictable, from small government South Park Republicans to marijuana-legalization-obsessed sixties holdovers to adult film makers to unrepentant moonbat anarchists. If you ever doubt it, go to a Cato Institute donors reception some time. Its fantastic, the range of personalities you get, but it makes consistent political messaging difficult.

What we need in this country is a new "liberal" party, by which I mean a return to the of free markets and small government (also here)

I posted here a while back about folks that seemed to be living in a very different universe, whose assumptions about the world were nearly unfathomable to me. This article by John Leo seems to get at this issue pretty well. It helps explain why, though I tend to be skeptical about the war in Iraq, I could so easily get turned off by the anti-war left.

Just added George's Employment Blawg to my blogroll. As a small business, the biggest shock has been dealing with employment related issues (working for large corporations, this stuff was all invisible to the average general manager - huge departments of HR people just sortof took care of it).

I like what I have seen of this site, and its got some other useful links in the blog roll. It is written from the perspective of the employer (which is actually unusual for labor law sites - most are run by lawyers who represent workers and are mostly instruction manuals on extracting more money from businesses).

Why am I not surprised to hear this from a Florida attorney.

"Litigation is the No. 1 growth area. It's always recession-proof," said Peter Prieto, executive partner of the Miami office of Holland & Knight, in an interview.

If only our economy was litigation-proof. We operate in Florida because there are a lot of great recreation opportunities there - you can't transport them out of state. I am not sure why anyone else who could move their business out of Florida actually stays there.

Jeb gets a lot of press for being smarter than his brother George W., but George made a lot more progress on tort reform than Jeb has in his state.

courtesy of overlawyered.com

UPDATE#1

The world's whales, porpoises and dolphins have no standing to sue President Bush . Umm, I guess this is good news, though on the other hand what does it say that this even came up before a Circuit court of appeals (the ninth, of course).

UPDATE#2

Fixed link

Socialized medicine supporters in the US often talk about Canada's really, really good and affordable care. Except no one can have any, but if they could get any care, I am sure they would love it. Check out this company, Timely Medical Alternatives. Specializes in getting you to the US so you can actually have your operation. Sure must be a mess if there is a niche for this.

And by the way, please don't tell me about lower drug prices in Canada. International markets pay marginal cost for drugs (ie just production cost) and we in the US pay full cost (ie including the development costs of the drug plus all the failures). Expanded programs to import marginal cost drugs from Canada will only mean that Canadian drug prices will go up - ours are not going down to those levels. And, if you pass a law saying somehow that they can't raise their prices in Canada and we can import at those prices, then drug R&D is over. Even if you told the drug companies that they were working for the good of man rather than profits, and dropped all their profits into lower pricing, you wouldn't get more than a 10-20% (depending on the company) price decrease for drugs. Are you really ready to kill all future drug innovations for a 15% discount on the current ones?

UPDATE

The Canadians have now made clear that they will not accept the Kerry plan for mass drug re-importation from Canada. Why? One would think that the socialized medicine supporting politicians in Canada would support Kerry and other socialized medicine supporters in the US. Fellow travelers stick together.

The reason, is, of course, that the Canadians have long ago recognized the truth in what I said above. US massive drug re-importation will just cause drug companies to raise prices in the target countries. Canada likes the below-full-cost pricing they get on drugs, and are opting to let the US keep paying for its drug development.

Find the Carnival of the Vanities at the Peoples Republic of Seabrook.

By the way, I think their web site has one of the nicest looking header graphics I have seen on a blog.

For some reason, a portion of our country has adopted France as the standard bearer of "anti-imperialism" (or at least anti-US imperialism). France publicly positions itself similarly, trying to make itself the leader and counterweight to US "Imperialism". I will leave aside for now the argument as to whether the US's recent actions constitute "imperialism". I will instead focus on the French as a role model.

The first thing that struck me was how long the French tried desperately to hold on to their colonial empire. Both the US and Great Britain either liberated or came to an acceptable living arrangement with their major colonies within a few years of the end of WWII. Both seemed to come to terms with the fact that the colonial era was over. The French, in contrast, were still involved in bloody conflicts in Indochina and Algeria to retain their empire through the late 50's and even into the early 60's.

So, I decided to do a little research to understand the relative success of French and Anglo-American colonies. Of course, when judging the success of a former colony, a lot of things come into play, and certainly the freed colony must take a substantial amount of responsibility for its own success and political freedom. However, after a bit of research, it is instructive to see how well prepared for independence Britain, France, and the US left their colonies. Did they leave the country with democratic systems in place and a capable local ruling class, or did they just suck the country dry and try to prevent any locals from gaining any capability.

To make this analysis, I have selected a number of each country's key colonies. Some of the smaller African and island nations have been left out. I also realize that I left off some of the ex-British middle eastern colonies, but I am too tired now to add them back in.

I have used two pieces of data to judge an ex-colony's success. First is GDP per capita, corrected for purchasing power parity, found in the 2003 CIA fact book via World Facts and Figures. The second is the Freedom index prepared by Freedom House.

Continue reading ‘French vs. Anglo-American "Imperialism"’ »

Here is a quick scorecard of the Convenience Store convention today.

Scope: B decent mix of vendors but repetitious in some odd categories

Relevance to me: C- unfortunately, not many vendors of the type I was looking for

Venue: C Las Vegas convention hall, been there, done that. Positive of new Star Trek show next door offset by the fact the monorail was broken and traffic, as usual, sucked.

Food and Bev: A+ Awesome. This is basically 60% a snack food show and everyone had samples. Plus, all the beer manufacturers there in the middle pouring cold ones

Booth Babes: B- Kind of disappointing -- couldn't hold a candle to the consumer electronics or even better, the auto shows. Would have been a C+ but presence of vendor booths for Playboy, Penthouse, and Hustler staffed, uh, how you might think they would be staffed, brought up the score.

Other: B+ Got two good autographs, one from Raleigh Fingers (sp?) and one from Ed McCaffery. Skipped on the centerfold and Dallas Cowboys Cheerleader autograph lines (which, interestingly enough, were filled with women waiting for autgraphs).

Feet are killing me.

Two of my blogging interests in one - ACME and litigation. This is a reprint of an article by Ian Frazier years ago in the New Yorker, but it is still funny. The complaint in the case of Wile E. Coyote v. ACME. ACME's response is here.

I am blogging today from Las Vegas, here for the convenience store convention. We run a number of small stores in our campgrounds and marinas, and I am trying to figure out how to make these operations more sophisticated.

I don't know if anyone else feels this way, but I am always a bit self-conscious at a convention. The whole thing is so stereotypical from TV and movies and so predictable from past experience, it somehow becomes kind of a caricature of itself. I always feels like a bit of a schmuck walking around with my little badge and doing that predictable little dance with vendors.

Thank God, though, that I am not working the convention tables as an exhibitor any more. "Have you seen the new model T-1000?" Uggh. And the stodgy companies I worked for never even had booth babes.

The results are in, and they were entirely predictable. McCain-Feingold has been a disaster. Its restrictions have in no way decreased the amount of money being spent in this election. Rather, it has funneled huge amounts of money into negative advertising attacking a person or position (legal) and away from supporting and illuminating the positives of candidates (illegal). It has shifted money from groups with high disclosure requirements (the political parties and candidates) and dumped it into groups with no reporting requirements.

Most troubling, it has created a Federal Bureaucracy around deciding what political speech is legal and what is illegal. Is advertising Fahrenheit 9/11 legal? Is a 60 minutes anti-Bush documentary using forged documents illegal? Is an anti-Kerry documentary by Sinclair illegal? As Jonathon Rauch puts it in Reason:

Now it is official: The United States of America has a federal bureaucracy in charge of deciding who can say what about politicians during campaign season. We can argue, and people do, about whether this state of affairs is good or bad, better or worse than some alternative. What is inarguable is that America now has what amounts to a federal speech code, enforced with jail terms of up to five years.

This is perhaps the worst assault on the first amendment since campus speech codes. Where is the ACLU? Oh yeah, they supported McCain-Feingold.

UPDATE

Another interesting article about the Sinclair situation here.

As background, state unemployment offices generally give employers a chance to dispute new unemployment claims from ex-employees. In most states, if the employee voluntarily quit or was fired for cause, they are either not eligible or at least the employers experience account is not hit (for each employer, the state keeps a running tally of claims paid to their employees - if the sum is high enough in a given year, the employers rates go up for the next year).

This is all in theory. I don't know what other employer's experiences are, but I almost NEVER win one of these disputes. Most unemployment offices are stacked with people who's bias is always toward the employee. For example, in a recent case, I had documented evidence that an employee was fired for physically attacking a customer! The state unemployment office denied my protest as not sufficient, and to this day I am paying that person's unemployment. Today, I got notice that California had denied my most recent protest. I had sent evidence that an employee was repeatedly warned and eventually fired for constantly being late - day after day an hour or more late for weeks. Nope, not good enough says California. So, instead of paying this person for showing up late, I am paying them, via the unemployment system, for not showing up at all.

Does anyone know if there are any tricks or techniques to be more successful at this?

This weeks Carnival of the Capitalists is up. Check it out.

Back some years (decades, eek!) ago when I was in college, I used to really burn hot in political arguments. I could not let any statement go from anyone without an argument. And, being a libertarian, I could always find something to disagree with someone about. Since then I have mellowed a lot, and can let a lot of things pass.

Today, its hard to resist arguing about the war in Iraq, but I often find myself in the odd position of opposing the war in Iraq but disagreeing with most of the premises and assumptions of other people I meet who are opposed to the war. Though I oppose the war, I find myself sharing assumptions about the world that are more prevalent among proponents of the war. This might have made me uncomfortable at one point of my life, but as a small-government individual-rights libertarian you get used to this kind of thing, after seeing everyone argue if the government should be in the boardroom (Democrats and increasingly Republicans) or the bedroom (Republicans and some Democrats) or both (Pat Buchanan).

Over time, I have devised a couple of tests to get at these conflicting assumptions. These tests have evolved over time but they seem to retain their power to sort out people who are operating in an alternate reality.

Here are the two tests, in their current form (though longer for this print edition). In each case, choose either A or B, based on which seems more correct to you. Elements of both A and B will have been true from time to time and in isolated incidents. Try to choose which represents the fundamental truth to you.

Continue reading ‘Before We Argue - Lets See If We Are Living In The Same Universe’ »

When I first started this blog, I promised myself I would take the time to post featurettes on small business topics for which business school really did not prepare me.   The first such feature was on buying a business.

This week, I turn to the topic of workers comp. insurance.  Never in 2 years at one of the more storied business schools in the nation, nor in nearly 20 years at the largest corporations in the world, did I once encounter the topic of workers comp.  Now, since I bought my own business, I spend inordinate amounts of time dealing with it.

This article will focus on workers comp. from the employers point of view (most state web sites are useless to employers - they have reams of detail for workers on how to file claims or complaints, but nothing to help employers learn how it all works).

Continue reading ‘A Primer on Workers Comp.’ »

Previously, I explained why I like Football Outsiders here. Their new weekly statistical rankings are up.

Unsurprisingly, Philadelphia is number 1 (by a huge margin) and New England is number 2. The real surprise is that Miami is NOT last - storied Green Bay is.

Also, this week's Tuesday Morning Quarterback is up.

Good News via Robert Samuelson and Marginal Revolution.

While the number of people living under the poverty line have crept up, there is actually good news under the surface that has gone unreported (good news - unreported - your kidding me!)

Compared with 1990, there were actually 700,000 fewer non-Hispanic whites in poverty last year. Among blacks, the drop since 1990 is between 700,000 and 1 million, and the poverty rate -- though still appallingly high -- has declined from 32 percent to 24 percent. (The poverty rate measures the percentage of a group that is in poverty.) Meanwhile, the number of poor Hispanics is up by 3 million since 1990. The health insurance story is similar. Last year 13 million Hispanics lacked insurance. They're 60 percent of the rise since 1990.

To state the obvious: Not all Hispanics are immigrants, and not all immigrants are Hispanic. Still, there's no mystery here. If more poor and unskilled people enter the country -- and have children -- there will be more poverty. (The Census figures cover both legal and illegal immigrants; estimates of illegal immigrants range upward from 7 million.) About 33 percent of all immigrants (not just Hispanics) lack a high school education. The rate among native-born Americans is about 13 percent.

So, much of the increase in the people under the poverty line can be traced to immigration of low-skilled Hispanics trying to make a better life for themselves in this country. Of course, when these people first arrive, with no English, often lacking a high school education, and initially, no permanent job, they are going to be below the poverty line. Over time, many will find the American dream and move up (easy proof: if that were not so, why are so many trying so hard to immigrate here?) If we had been collecting the statistics carefully in the early 20th century, we would have seen a similar effect with the immigration of low-skilled Irish, Italian, German, etc. workers to this country. Surely, during this burst of immigration, it would have appeared that the poverty rates were going up, but not one would in retrospect argue anything but that everyone was getting steadily wealthier through this period.

Courtesy of Business Pundit, this article on customer loyalty programs and whether they actually increase profits.

To me, you can make a good case for them in commodity undifferentiated products like commercial airline service, but now it seems like every store, from Best Buy to Barnes and Noble have them. It strikes me that stores like these should have plenty to differentiate them without a loyalty program.

I'm no psychic, but I can probably guess what's in your wallet. Chances are it's stuffed with loyalty cards from this airline and that hotel, not to mention a handful of point-accruing credit cards. And your key chain probably has a few hanging versions of the same"”video store tag, gas station "quick pass," grocery store card. You probably belong to more loyalty groups than you can count.

Do you really think your customers are any different? It's hard to expect your affinity program to inspire loyalty when all of its members carry your competitors' cards as well.

Face it: Loyalty programs have reached the saturation stage. The first-mover advantage gained by the pioneers in this field is long past. Now as common as kudzu, affinity programs have lost their distinction and, as a result, much of their value.

I am actually sick of these programs. It increasingly irritates me to have to carry 354 pieces of plastic in my wallet to get the best prices every where I shop. I am old enough to remember when you had to have every stores proprietary charge card to shop there - so you had to have a bunch of department store cards and gas cards, etc etc. I am thrilled nowadays to shed all that crap in my wallet and just use my Visa card everywhere. Now, though, we are rolling back the clock to plastic proliferation. I find myself actually growling at the poor Borders Books checkout person when they ask me if I have (or want) a Borders loyalty card.

Coming soon, I hope, is the backlash, with stores competing with a saying like "you don't have to have a special card to get our best price".

Our company operates in 10 states, so that means, each month, 16 sales tax reports (including counties and cities with separate reports), 10 withholding reports, 10 SUI reports, several workers comp reports not to mention annual health inspection reports, occupancy permit renewals, federal and state income tax forms, foreign corporation annual reports, etc, etc.

So, as happened today, when I get an optional monthly or quarterly survey to help support the commerce department data (or maybe it was labor department) it goes straight to the trash. I am sure this makes me a bad American, but does any small business owner really have time to fill out this junk, especially since the data will probably be used by some Congressman as an excuse to regulate me in some new and intrusive way?

The Commerce and Labor department data are often criticized for under-weighting small businesses and self-employment. I certainly believe it, and am proudly part of the problem.

The workers compensation program in Florida is broken. In a previous post, I discussed why, almost no matter how broken it is, workers comp is still better than an alternate world without it. Sometimes, though, Florida tests me on this.

If you don't know, Florida is one of a couple of states (California and New York are others) that national carriers of workers comp insurance avoid because it is such a mess. Fraud is high, costs are high, benefits are low.

I found a new reason to dislike Florida workers comp today. Apparently, there are lawyers out there in Florida advertising that a worker will never get their fair shake out of the insurer unless they hire a lawyer. We have an ex-employee who was injured in a vehicle accident while at work. A claim was filed, and the workers comp system is processing the claim (though a bit delayed due to 4, count them 4 hurricanes to hit Florida in one month). So, for some reason, the employee has hired a lawyer. I do not know what he will get with the lawyer, but this is an awful trend, because the only redeeming feature of the workers comp system is that it keeps lawyers and their costs out of it. I have no idea how the lawyer gets compensated, but I am sure at some point, I will be paying his fees one way or the other. If the employee is paying for him directly, I really feel bad for the employee, because I don't know what value he is getting for his money.

So, the lawyer, putting in a good 15 seconds of work (which he probably bills an hour or two for) pulls a xeroxed set of discovery questions and sends them to me. There are thirty four questions, all with things I have to look up or xerox and send to him. None of them are tailored to this case, so most will end up being irrelevent and all my info gathering a waste of time. So, not only is there the cost of the attorney's fees adding to the process, but the externalities of the cost of my and my employees' time to feed him with data. All to probably get the same recovery for the patient the system would have given him without intervention.

This is what I really dislike about the law profession nowadays. They are the only people except for the government who can arbitrarily demand a ton of my time calling up data that no one will ever look at. Other people try this - for example, some vendors have sent me huge credit applications that would take weeks to complete - but in their case I can say "no" and tell them if they insist, they don't get my business. Lawyers and the government, though, can demand arbitrarily intrusive and time-consuming document collection and there is not a thing I can do about it.