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How to profitably help Tsunami victim
webmaster
1/18/2005 6:17:00 AM
Many people think that helping Tsunami's victim is a win lose
situation. When we donate money, we lost the money and the other got
helped. So many people don't help. In many case, there is much truth in
it.
However, just like business, there are always better ways. There are
many ways to help that's also profitable.
To keep to the point, here are a few ways we can help Tsunami's victim
in a way that's also profitable or at the least cost very little
sacrifice for our business. While making profit for ourselves, or
sacrificing very little, we can make a difference to those victims.
Providing service or selling product at cheaper or zero cost
For most products, under contemporary capitalism, the market price is
significantly higher than the marginal cost, including marginal
opportunity cost. Those apply to all products where prices are
controlled to further maximized profit.
Those are the case on products and service with greatly diminishing
marginal costs, such as software, books, chemicals, and virtually all
high tech products.
More profit can be made by a business if the business is willing to
sell the product at cheaper cost to some parties. However, doing so
will lower the price for all parties reducing profit.
Disaster is then a great "excuse" to execute a price discrimination
strategy. By providing goods or services near the production cost for
Tsunami's victim, donations' efficiency can be greatly improved to
200%-300%. This while assuming the 100% efficiency to correspond to
buying goods at "market selling price"
Businesses also take into account the benefit of good image and brand
awareness. Hence, it makes sense to even sell your product or service
below, at, or just slightly higher than the cost price. Even giving
away products can still be profitable if the product marginal cost is
so low. Donating products will improve brand awareness and the
business' public image, possibly more cost efficiently than
advertising.
This strategy is useful for brand dependent products, such as instant
noodles, drugs, and music. Celebrities often give performance for
victims. Those celebrities probably won't get any order otherwise
anyway, might as well work for free to build brand.
Other products or services, such as internet promotions, books, etc.
can also be provided at free or extremely cheap costs.
Drug manufacturers and water treatment chemicals can also use this
strategy.
This strategy is the kind we're aiming for to help victims. If your
business want to participate, please email us.
Giving away unused goods
I remember that 14 years ago, I had a box called PC XT. Now that box is
ridiculously obsolete. I bet the foundation we gave that box away must
have thrown that box away.
Don't worry. This website is created by Pentium 3.2 GHz on top of Asus
P4800 Motherboard. Yap, PC XT is a very obsolete box.
The truth is I wish that box is still here besides me. Fifteen years
ago, that box is the greatest thing in my life. That thing is a great
source of recreation, programming experience, and learning experience.
I was so amazed to see how a box can do many jobs many humans need to
do with a skill called programming. I felt like a god. That's the kind
of feeling and confidence we can instill to those poor victims.
That box introduced and improved my interest in computer. That, by now
obsolete box, is what makes me a businessman now.
So, look at your storage room. Got a Pentium II or III you want to get
rid of to free some spaces? Too tired to bother asking for a selling
price? Individual consumers are risk avert they don't like to buy used
stuff out of fear that the box will malfunction.
Only 10% perceived risk of malfunctioning will lower the price of a PC
by 50% more. Also customers tend to over estimate the probability of
PC's malfunctioning. You won't get a good price if you sell obsolete
used PC.
However, for the Tsunami's victims, that box can totally change their
life. When kids in Nias, Aceh, India, or other regions got a lot and
lot of PCs we thought are obsoletes it'll cheer them up.
For many of them, getting to use a PC could be one of the greatest
thing in their life. In fact, some channels that we promote are so poor
that the sisters don't even have a PC or fax machine.
This is an opportunity to turn their life so big that we can make
actually make them better off economically after the Tsunami than
before. They're already poor. Let's give them a chance to be rich.
Hopefully it'll help them to forget their lost families.
Donating Unused Product
Also the benefits of donating PC to many people do not get penalized by
risk avertness. If the risk of malfunctioning is 10%, well, the victims
will have 10% less PC.
So again, consider giving away or selling it at the low price you would
have gotten for your used PC. This would work for many other products.
Used type writers, obsolete PDAs, obsolete printers.
If you do this, after the smoke clear, may be we can find ways to
organize those obsolete items for profit.
If your business want to participate, please email us.
Spreading information
Many donations channel are highly inefficient. Many people want to
donate. However, they don't know how. Often they donate to people in
the street that are often just con artist.
Often they donate to inefficient channels that have little intensives
to efficiently allocate the donation.
When we find good channels, the efficiency and effectiveness of those
channels are effectively "value" which we can leverage by spreading the
news.
We put channels we think is good in this page. If you know any good
efficient channels, please contact us at
webmaster@businessconnection.com. We can also spread the news to as
many people as possible.
Linking product sales to aid
If you pledge that a certain percentage of this month sales will go to
Tsunami's victim, while the hype is on, more people will want to buy
your product.
So why not do that? The right amount will be what's beneficial. Consult
your MBA for that right amount.
Donating and taking advantage of it
Within the right amount, donation can be beneficial too. Donation
signals financial capability and niceness. This will attract business
partners in business networks. Donation can maintain the good image of
a business in ways that's probably more cost efficient than other form
of advertising.
Voluntary donation also shows the world that capitalism work. If this
can convince enough people, we'll make our country a much better place
to live.
Properly done, taking advantage of donation you make will help both the
victims and you. For example, say you, out of conscience, is willing to
sacrifice $5,000 for the victim. Many religions, like Christians,
Muslims, and Buddhists encourage sacrificing a small percentage of
one's profit to induce Gods to bless your business.
Say, by donating, you can improve your brand quality bringing profit of
$4,000 for every $5,000 you spend. Then for the same amount of
willingness to sacrifice, you can donate $25,000 instead. Your
sacrifice is still $5,000 because you get $20,000 in improved brand
quality.
What about if by donating you bring profit that exceed your donation
cost? Say when donating $5,000 you improve your brand quality in a way
that bring $6,000 profit to the company? Then you can donate as much as
possible without feeling heavy about it.
What about rather than donating money, you donate your business'
service, that costs half and improve brand quality twice as much?
You're actually making $12,000 - $2,500=$9,500 for every $5,000 worth
of product you donate.
To improve the benefit of donating to companies, if you have donated to
the Tsunami's victim, why not fill up the form in here so we can
connect you to our network.
Capitalism
Good old fits for all cure we know and love.
Normal regular capitalism it self, as usual, is a great help that can
be. If we want a country to grow prospers, foreign aid is not the
answer. Let the market take care of the stuffs and we'll see prosperity
unprecedented in history.
Capitalistic merchants can help streamlining food and products
distribution to lower goods prices in affected area.
However, in case of humanitarian disasters, there are even greater
opportunities to help.
Boosting Ego and Political Causes
A species of bird will risk their life warning their friends when
predators arrive. When another bird want to take offer the volunteer
job, the reigning champion will prevent the other bird from giving
warning.
Birds that loudly perform altruistic act signals superior fitness. Such
birds then attract more female birds and produce more offspring.
Preference that leads to gene pool survival in the past is the type of
preference that are common now. Hence, the origin of "ego" in most
species.
Moreover, Art of War in 13 chapters, says that politically correctness
(Tao) is the main factor that makes a country win war. Giving donation
will boost political correctness of those who are giving it. The act
may be more cost efficient than buying tanks and guns.
Hence, those who understand the benefit of altruism will go the extra
length of helping others to the point of preventing others from doing
the same thing. Indonesian government reject Israelites aid. US
government block many Arabic channels from donating under the pretext
of fighting terrorism. Christians and Hindus in India fight over a help
camp. Thailand government rejected all foreign aids.
We truly regrets Indonesian's government's decision to reject
Israelites donation. Not that we support the Israelites cause. We
suspect the true reason behind all those curfews the Palestinians are
complaining about are to protect Israelites' jobs from the cheaper
Palestinians. That unfairly hurt both Israelites' capitalists and
Palestinian's workers. Not to mention the war money that could have
been used to build a better world for the rest of us.
However, we believe the right to reject a donation should be left for
the victim. The same opinion goes to all other parties that prevent
donation from coming in. Also, with so many people fighting for their
cause with nukes and guns, so what if someone want to fight with
donation?
It's simply a sad fact that even on this unfortunate circumstances,
governments end up being the one preventing aids that the victims need.
This shows that we could have lived in a much more abundance world if
all those blockage are removed. Imagine a world where people would
fight for their cause by donating rather than by guns and nukes? If
humane, productive, and consensual ways to fight for political causes,
status, and prestige are blocked, those in power will have to resort to
other ways.
Removing all restrictions of all mutually consensual and mutually
beneficial ways to make and use resources will then make our world a
very abundance one.
Now that I say it.
Promote Capitalism
A most common pretext for government involvement in punishing
productivity is to help the "less fortunate." However, as all
entrepreneurs know, wealth are more a function of effort, smartness,
and common sense, rather than fortune. The devastating effect of
welfare program is that it encourages lack of productivity and poverty
it supposedly prevent.
Not to mention that government tend to hurt more than help when they're
in charge of solving any problem.
However, victims of Tsunami's did nothing wrong that cause their
misfortune save for not making stronger house. Well, there are things
they could have done like following where the cat go. However, if I
figured that I would have failed to under the same circumstances,
that'll raise my sympathy.
It's a natural disaster. In this case, we have a really misfortunate
case. Unlike welfare, helping Tsunami's victim will not encourage
unproductivity and poverty. It's not the victim's fault. They're just
out of luck.
Hence, Tsunami is our rare chance to show that even under the most
unfortunate circumstances; capitalism is still the way to go. We know
that capitalism works not only in maximizing productivity but also in
rationing resources to those productively deserver it. By private
donations, we'll show that capitalism also help those who truly are
less fortunate.
written by the Gene Pool Survival Coach
http://reallyhelptsunami.com/profitableways...
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