JonLowder.com

My Guess? Hummers Will Be All They Can Be

So GM agreed to sell its Hummer unit to someone, but not telling anyone who it is.  My guess?  The Army is buying it.  Why not?  That will keep the unit "in the family" since the US Government is the majority shareholder of GM.  I also figure the Army can save a ton of money by closing their recruiting centers and moving the recruiters into dealerships (or vice versa) and they can cross train recruiters to be car salesman since the jobs are virtually identical.  And of course they can sell to themselves at cost so you have to figure they'll save some change there as well.  Yep, I'm liking the idea more and more as I think about it.

How's That Recession Treating You?

Truliant Federal Credit Union surveyed its members to see how the recession has affected their behavior and over 3,000 shared their thoughts. Some of the results are highlighted in this press release.  Anyone who's seen all the restaurants shuttered recently won't be surprised by this one:

Q: If you have cut back on spending, what areas are most affected? 

73% - Dining Out 
70% - Entertainment 
64% - Travel, vacations 
59% - Clothing 
55% - Home Electronics 
45% - Auto (buying/leasing a new vehicle, repairs) 
35% - Home Appliances 
22% - Cell Phones and/or calling plans 
5% - Other 

From the “other” category, popular items that were mentioned include groceries, medications, food and club memberships. Another trend that the “other” category highlighted is that more of Truliant’s member-owners are starting to purchase generic products to help them save money.

New Krispy Kreme Opens a Week from Tomorrow

A new Krispy Kreme location is opening next Tuesday, March 31 at 5912 University Parkway in Winston-Salem.  There will be a kick-off event at 10 a.m. featuring KK execs and Pattie Petty of Victory Junction when they'll announce a charity promotion for the children's charity. 

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Dell Shrinkage

Dell lays off 300 from the Forsyth plant.  Dell has to repay certain incentives it received from various government entities if it doesn't employ 1,700 people by then end of 2010.  If I read the article right the layoffs bring Dell's employment numbers down from 1,400 to 1,100.  I wonder how many receipts and barcodes the city, county and state will have to send in to Dell to get their full rebate on January 1, 2011?

New Gig

If you're a regular reader of this blog (I think there's about four of you) you might have noticed a drop in volume of posts this week.  There's a good reason. Actually, from my perspective there's a great reason.  After spending the last eight-ish years as a consultant I've re-entered the world of the gainfully employed.  On Monday I was offered, and accepted, the position of Executive Director of the Triad Apartment Association.  Since then I've been scrambling to get my ducks in a row before I start on Monday.  I'm very excited about the opportunity, although it means some fundamental changes in lifestyle.  To wit:

• No more working in pajamas or sweats from the home office. 
• Commuting to Greensboro. 
• Shaving every day. 

Seriously, this is a very good thing for me.  I've long thought about taking on an Executive Director position and this is a great opportunity.  Wish me luck!

Health Insurance Relief for Laid Off Workers Thanks to Stimulus Package

My wife Celeste is a bookkeeper by trade and as a result receives a lot of publications that, quite frankly, make my eyes gloss over.  However, today she forwarded me a newsletter from the American Institute of Professional Bookkeepers that contained an article about "hidden traps" in the new stimulus law that definitely had my eyes wide open.  Here's part of what the article said:

The new law includes a 65% federally funded COBRA continuation subsidy that lasts up to 9 months for workers (and their families) involuntarily terminated from Sept. 1, 2008-Dec. 31, 2009. The subsidy terminates when the former employeeis offered employer-sponsored health care coverage by a new employer; orbecomes eligible for Medicare; or has COBRA coverage that has expired.  
Notify within 60 days of Feb. 17 former employees involuntarily separated between Sept. 1, 2008-Feb. 17, 2009. Notify those who elected COBRA that they are entitled to a lower premium starting in the first coverage period after Feb. 17. Notify those who rejected COBRA that they have 60 days to elect COBRA and receive the subsidy. You can let former employees choose a less expensive plan. No subsidy is available to former employees whose income is over $125,000 a year or a family income over $250,000 a year, but employers are not required to monitor for the income phaseout.

Later on the article mentions that the employers are responsible for paying 65% of the health benefits up front and then getting reimbursed by the federal government by reducing their federal income tax contributions.  If the amount of healthcare subsidies exceed what the company owes in taxes then the company will have to apply for a reimbursement from the US Treasure, and there's no telling how long that will take.  Can we say cash flow problems?  Also, the first subsidies can come due as soon as March 1, 2009 so companies literally need to move on this now.

If you've been laid off and are paying COBRA or paying for insurance as an individual this could save you some serious money.  For instance if you're using your employer's health plan via COBRA to cover your family, which means you're paying 100% of the cost, then you could easily be spending over $1,000 per month for your premiums.  With the government picking up 65% of the tab that payment drops to $350 which is some serious savings.

Keep an eye out for a notice from your former employer and if you don't get one within about 45 days then contact the human resources department or whoever at the company is responsible for administering benefits and ask them to send you more information.

 

Is Duke Energy Taking Lewisville Trailer Denizens for a Ride?

WXII is reporting that some residents at Lazy Acres Mobile Home Park here in Lewisville may have been overcharged for years by Duke Energy.  Apparently Duke charges a higher rate to homes that aren't 100% electric, and some of the mobile home residents say they were charged that rate despite being entirely electric.  The difference is less than a penny a kilowatt hour, but for people on a fixed income that can make a big difference.  One resident said she'd lived at Lazy Acres for 25 years and had been paying the higher amount the entire time.  If that's true then Duke could be ponying up a hefty refund for her.

According to the story Duke has set up a special phone number for Lazy Acres residents to call.  I wonder if the state regulators will have anything to say? 

Now pardon me while I go check my bill.

Apples and Oranges

We had to know this was coming; now that the President and some in Congress are seeking to limit executive pay at companies that received bailout funds, and since many of these same executives are being criticized for perks like flying on corporate jets, there are some who are comparing those perks to what POTUS gets.  They point out that he gets to use a bigger jet than they do, that he has a fleet of cars at his disposal, that he gets free lodging, that he has an entourage, etc.  Hmm, what could be different about their situations?

BTW, did you know that the President and his family have to pay for their own groceries?  The White House chef will prepare the meals for them (nice perk for sure), but they have to pay for the food themselves.  Learn something new every day.

I Really Hope They Ignore Me

Earlier today I looked at the traffic reports for this little ol blog and noticed quite a few people visiting my post that offered tongue-in-cheek strategic advice to Starbucks.  Basically I said they should play up the recent study that showed that coffee consumed in large quantities helps prevent dementia, and then also claim that their coffee is a male enhancement treatment just like Enzyte does.  It appears that Google loves my post because if you search on the term "starbucks strategy" I appear on the first page of results.  It probably won't last long (I fell from the #9 result to #10 as I typed this) but I truly hope that for their own sake the folks at Starbucks totally ignore me.  Either that or put me on some sort of mega-dollar strategic consulting retainer.  (Picture is the screen shot of the search results).

True Cost of Credit

Most of us know how much our credit card is costing us, although as I posted before many of us don't know how the credit card companies can "trap" us into paying higher fees and interest rates.  What a lot of us don't know is how much the seller of what we're buying is paying to the credit card company.  Now there's a website called truecostofcredit.com where you can plug in the first six numbers of your card (the first six numbers don't identify you in any way, but do identify the issuer of the card) and it will spit out what the credit card company charges the seller.  I think you'll be surprised at how much they charge.

I should note that what the credit card companies charge is perfectly legal and the sellers enter into the arrangement with eyes wide open.  I also think that credit card companies should make money for the service they provide.  My problem with many of the card issuers are some of their practices, like changing your interest rate for no good reason and charging some interest rates that can fairly be described as usury, and the fact that they are not transparent in their business practices.  That's why I'm glad to see some sunlight being shined on their business practices.