Selasa, 09 April 2013

What a price difference makes

Bank commissions shall regularly financial performance, breathing a sigh of relief when increased costs less revenues and revenue growth is more or less on target. If this is not the case, questions about performance and management is to maintain a chastened constant control on costs or not aggressive enough sales guide. Pricing questions rarely seem to arise, though, although prices inevitably has a significant impact on revenues. In corporate governance briefing this month, Richard Ketley explores how better prices can contribute to the bottom line.

Although banks compete in what are usually highly regulated markets, there is always room for manoeuvre as far as is concerned, especially when it comes to credit or bundled product offerings. And even a small improvement in average price can have a dramatic impact on the business.

The math is simple.

If prices can be increased without causing a significant reduction in the turnover and costs can be kept constant, accumulate the benefits directly to the bottom line. Although slightly decreased volumes in response to higher prices, some variable costs are also likely to decline, then the overall impact is still likely to remain positive. The alternative strategy, to reduce prices, not only results in a reduction in revenue, but also in rising costs, such as increase in volumes.

Competitive banking markets in the Middle East, pressure to reduce, rather than increase prices is often intense. New traders with deep pockets capital are willing to offer huge discounts in order to win market share and regulators are increasingly defining or limiting transaction fees.

But before being pulled into a price war, bankers should be able to answer some basic questions about their markets, as well as the behavior of their customers.

For example:

• What role does actually play price chosen by the customer of the Bank, and how these differ between segments?

• We actively defend our customers against predatory pricing without dropping the general price level?

• We know from data on we accepted and rejected offers of credit customers who are more sensitive to prices?

• Are the right policies and procedures in place to manage discounts over the network?

• We know the real costs of providing our services as these are influenced by the growth in our customer base?

• How to optimize our business when we operate in markets that are more complicated as the payments environment?

• We’ve exploited advances in systems and technologies to effectively channel in order to customize pricing for each customer?

Some banks in the Middle East have formal processes of pricing or internal structures, the task of providing credible answers to these questions. It is much easier to accept a version of what is believed to be the market price, offer this to all customers and clamp down on discounted relationship managers.

This is, after all, advise the course of operational efficiency consultants more action.

But there is ample evidence to suggest that banks that invest in fixed price strategies and skills can improve their earnings.

For example, research has shown that family ties and life cycle events play a more important role in the choice of the Bank that the prices of the specials. Even customers who “defect” because of a special offer you can recapture through proactive direct marketing.

Research has also demonstrated that, in almost all customer segments, less than 20% of customers are able to select the most convenient option, choosing between a lump sum and a percentage discount. Equally important, many customers will not change a set of “default” options presented on a form, and then by selecting the appropriate default settings can play a key role in optimizing revenue.

In a culture in which individuals expect to be able to negotiate, enabling front line staff offer you a discount can strengthen the emotional bonds between the customer and the Bank, providing the process is properly handled. And to manage the risk involved, banks may use their credit application data and reviews, analytical methods to determine which customers are more likely to be price sensitive or even a higher risk.

Tips for transferring money abroad

Sending of transfers is a really easy process if you have all the information you need to send it. However, if you are trying to make deadlines or make some things more complicated with the transfer, there are small details that you should be aware of.

One is that there is usually a cut-off time at any bank that is to receive the transfer. This is usually due to the operating hours of the Bank. If you send a international level, keep in mind that their timetable is likely to be different from the time zone you are in. Requests that are submitted late will be processed the following business day.

Determine if you need to be able to track these transfers or not. If you do, you have to ask specifically to ensure that the transfer is able to go back. Especially if the transfer is to go abroad, it is very likely that the money will have to pass through multiple institutions before reaching the final Bank. If you need to recover the money transferred, following this path may take a little longer than usual.

How fast the other party needs money? Transfers can take up to 21 days, which can be a bit long, depending on what needs to be done. 3 weeks to send money for an emergency cannot cut. However, sometimes, this is the only choice. Usually it doesn’t take the whole 21 days to reach its destination though.

There are companies out there that try to sell you a service for sending this money faster.

International transfer snapshot is often the term used to sell transfer services. You pay a premium to do this though. You can charge a lot more than standard transfer because they can charge what you are trying to send. This should be reserved for true emergencies only.

Pedigree Dog Food Review

Pedigrees came under intense criticism lately for using corn as filler in most them dried food for dogs. Because this is an issue that you ask? Corn is also extremely difficult for your dog’s digestive system break down and process. Because of this most dogs fed this diet of high corn won’t get no nutritional value out of the corn is consumed. Pedigree has taken steps since this concern was raised, addressed some of the products on the shelves. They came out with a healthy Pedigree chicken and rice and healthy Lamb and rice Pedigree. Which have much less corn and the vitality of the Pedigree. Where the corn is the main ingredient.

The reason for people to choose a cheaper brand of food is to save money. Everyone is on a budget and that I can understand. If you have a choice not to feed your dog Pedigree vitality. Instead of going for a little more expensive Pedigree healthy chicken and rice. Won’t cost you that much more and your dog will thank you for it.

A good way to save money when buying food for your dog is to choose the cheapest bag, use a coupon. Many people don’t realize that there are free online printable coupons for most dog foods.It’s actually really easy. Just go to Google and search for a brand of food. An example would look good Pedigree or maybe dog Pedigree food coupons one should bring a bunch of websites with free printable coupons. There is also a lot of promo codes that are useful if you plan to purchase your dog food. Look for a company that offers free shipping. S so nice when the dog food is delivered to your door step usually for cheaper then you can buy at the store.

Minggu, 07 April 2013

How to Check Your Credit Report

Your credit score is determined based on information on your credit report. We are constantly reminded that we need to check our credit report, but we assume it is a low priority to-do item. Errors on your credit report can affect your ability to get a loan or even a job. According to a 2007 CBS article, 80% of consumers have an error on their report. The first time I pulled my report, it had several of my grandfather’s (who I was named after) accounts and payment history on my report. Do you know what your credit report says about you?

There are 3 credit bureaus that collect information, and report a numerical credit score: Equifax, TransUnion and Experian. Each credit bureau will report a different score based on the information they chose to collect, so it is important to pay attention to all 3. According to the Fair Credit Reporting Act, you are entitled to receive a free copy of your report annually from each of the credit bureaus. Although you may see catchy TV advertisements for companies that will pull your report for a fee, these are scams and should be avoided.

To obtain your credit reports, go to Go through the process to request each of your 3 credit reports. It is important to note that you will not receive your credit score, only a copy of your actual report. During the process of getting your credit report, you can request your credit score, but you will have to pay for it. I don’t believe it is necessary to pay for your credit score, because knowing the number is not important. It is much more important to focus on the information in your credit report which is going to be used to determine your credit score.

Once you obtain your reports, go through them with a fine tooth comb. Check all of the information in your report to insure that it is completely accurate. Every error is important, so don’t brush over any of them. If you find errors (chances are you will) you will need to report it to the credit bureau and request that they fix it. They will verify that it is indeed an error, and are legally obligated to fix it within 30 days. Don’t expect the process to be easy as the credit bureaus tend to move slowly.

Once you have gone through your 3 reports and fixed all of the past errors, the last step is to put an alert on your calendar 1 year from now to check your reports again. Ideally you would check one of the 3 reports every 4 months, however it is fine to pull them all once per year.

Everything you wanted to know about credit cards

Today, credit cards are the most popular things owned by an individual. A credit/debit card basically would allow the holder to buy goods and services without cash payment.

Not everyone can buy everything they need or desire. This is where the cards come to our rescue. As the name suggests, the purchase is a credit title. This is basically an agreement between the Bank and the card company and the user. This agreement provides access to immediate cash that you can use right away. The terms of repayment as the interest and the set up costs differ from one bank to the other. Therefore, you should check these before accepting a credit card from any of the lending organizations.

There are a number of benefits associated with these cards. One of the main advantages is that credit card offers convenience and flexibility. You don’t have to carry cash every time you shop. You can simply swipe the card and the payment will be made immediately.

There are a couple of points that you must keep in mind before you get a credit card. First, these cards can be used to purchase any merchandise-be it clothes, furniture or even an expensive as jewelry. Secondly, you should always check your monthly statements provided by your lender. This offers a great overview of your spending. Once you understand this, you can actually save money the next time you go shopping.

You should also remember not to do any extra expensive purchases using your card. This is because your interest rates will start to rise unless we pay them time and very soon things will go out of control. Depending on your needs and your financial status, you can apply any paper like MasterCard or Visa verified card Amex, Diners Club Card or cards. There are a few things that you need to understand about these.

Each bank will have some interest rates and these rates differ from one bank to the other. Interest rate means the extra fee that you pay each time you use the card to make purchases. These rates also affect the annual percentage rate you pay on an outstanding balance. Above all, interest is applied as a percentage of the remaining balance.

There are a couple of programs to reward banks and lenders offer their customers. You will get some points every time you make any purchases on your card. Once these points have accumulated, you can redeem them and get some incentives. An annual rate would get charged from card issuer to maintain your account.

Every time you get a credit card, must make sure that a card is accepted in all countries. Master Card and Visa cards are recognized worldwide. These would be perfect, especially when you want to travel abroad and do not want to see banks for currency exchanges.

Small Business Debt: How Can It Affect Your Credit Score?

Many years back, small business debt was not considered a part of the proprietor’s credit report. However, time has changed and a great number of financial institutions are adding business debt in determining an individual’s credit score. Increasing challenge is the reality that it has become even more difficult to obtain business credit cards and loans today.

If you wish to borrow money, your business should be at least two years old or have an annual profit of $1 million. Those that do not meet the criteria will have to personally guarantee their loan. If you do not pay your bills and loans on time, you just might accumulate small business debt. What’s even scarier is that this can potentially damage your own credit score.

Pros of Signing as Guarantor for Your Debt

It is not a mystery that businesses need money in order to survive. Startup businesses can go to lending agencies where they can get cash to finance their new company. However, not all organizations are willing to take the risk. You may have to sign as guarantor so you can obtain the money that you require. Doing so allows you to successfully support your business’ needs. The money you borrowed can be used to offer new products or services and even to expand your company. Clearly, guaranteeing personally your debt will strongly benefit your business.

How Small Business Debt Affects Credit Score

When you personally guarantee your business debt, you may be facing a few problematic situations especially if you don’t repay your loan. These are:

Bankruptcy – When you declare that your company has gone bankrupt, this will appear on your own credit report even if the money you borrowed is for your business. You can avoid this through paying your debts in full as quickly as you can.

Personal Obligation – Since you have personally guaranteed your business loan, this denotes that the loan is under your name. This can get worse if you already have debts on your business credit cards, and you are planning to buy a car or perhaps a property. Having business debt will make it tougher for you to obtain credit and financing your personal needs.

It’s Still Business Revenue – If you wish to qualify for a gold or platinum credit card for yourself, you cannot use your business’ income as your own.

It’s Still Debt – When you have accumulated debt, regardless of the fact that it is for your company, it will extremely hurt your credit score. This is true even if you pay all your bills in full each month.

Your Credit Report

As a business owner, you may be obliged to personally guarantee your business loan. If you think that you can pay off the loan by the agreed period of time, small business debt may not be a huge matter. However, if you are unable to repay the amount you borrowed, this misbehavior will be reflected on your credit statement. Evidently, your business’ credit history is now a part of your personal credit report.

Sabtu, 06 April 2013

A economic superstructure built on a foundation of gold

In my last article I talked about ‘ golden triangle ‘; How to base the economy on three-legged stable foundation of a pure Gold Standard leads to economic nirvana.

The primary ‘ leg ‘ of this Foundation is money; money from what turns off all the debt. Historically and for many good reasons, gold (and silver) have served as money for thousands of years. Without sound money, you cannot build a secure economic foundation.

Once we are clear about what the money is, we can go to the study of credit in its different forms. I showed in my last column as credit through loans must be differentiated from credit, better called terms, by offsetting; and as the Gold Standard cannot survive without the clearing mechanism, which is the real Bill circulation.

There is a very accurate, clear … the distinction between money and credit money is something of positive value, a ‘ good mind ‘ … and the credit that is a negative thing, a good future ‘ or the promise of a good mind … to be delivered sometime in the future. Similarly, there is a clear and distinctive line or ‘ tipping point ‘ between Real Bills (credit clearing) and bonds (credit through loans).

The difference between bills and bonds is clear; Real bills circulating in the free market for their own merits. bonds and all other forms of non-credit. But what exactly ‘ circular ‘ mean? Simply that real bills acquire monetary aspects that bonds never acquire.

In more detail, real bills are used to make payments directly; bonds are never so used. Bonds represent the value, but their value is variable and depends on many things … like expiration time, interest rates, perceived risk etc. In order to use the value of an obligation to make payment, the bond must first be sold, which is exchanged for money.

The money redeemed through the sale of the bond is then used to make the payment. This is not how real job bills. Invoices are not sold or bought as bonds are. Instead, the Bill is the vehicle used to clear the debt. The need to invoice not exchanged for cash before running this task.

Real bills take a monetary aspect, the chance to erase debts directly, something denied to the bonds. The very definition of real bills relies on this fact. Any card that doesn’t circulate (do not assume a monetary aspect) on its merits is not a real law.

Real bills are not sold or purchased; they are drawn (written and accepted against real estate on their way to the customer pays); are paid at maturity (acceptor) and in between, they are often re-discounted … that is assigned to another entity … but they are not ‘ sold ‘ or exchanged for cash payment; the Bill is paid.

This is not semantics, it is a key concept. Just like the money must pay off all the debt, or is not money … so real bills must circulate, or assume the role of monetary payments. If a Bill does not circulate so it’s not a real law. Only those bills circulating, which takes on a monetary role, qualify as real bills. Of course, the monetary aspect disappears together with the Bill, once the Bill matures into gold.

So, where this leave us? The triangle has three legs and they are all yours … but you can look at her legs in a linear fashion. the first stop is the money, the second stage is true, bills closer to money … and the third leg is bonds, further away from the money. Money doesn’t have to be; but the money must be something of positive value. The closest things to money bills are true … bills take a monetary role. As we move more money, then we arrive at bonds. The bonds are too far to be money to circulate as a surrogate for money.

There’s an old saying, ‘ between the lip and the Cup is there ‘; Real bills are so low risk, as the Cup is already to the lip … and drink one simply needs to slurp. The bonds are further away and ‘ leaked ‘. This is the reason that the bonds do not assume a monetary role … are seen as being too risky, both through default and possible changes in value. The fact that their market value may vary significantly prevents them from being used as money and sales forces … to determine their true current value.