What’s Up Daddio? Evaluates the Amazon FBA Business Model

AMAZON FBA: The first business idea I want to review is Amazon FBA. Everybody has purchased something on-line from Amazon. Everybody knows what Amazon is. Many of you are familiar with the Fulfillment By Amazon (FBA) program. It’s basically a value-add service. Amazon agrees to make sure the customer is 100% satisfied with the merchandise they have ordered and goes to great lengths to ensure customer satisfaction.

What you may not know is that on the other side of an FBA transaction is a regular person, who purchased and sent in the merchandise and gets the monetary credit for the transaction.

Here’s an example of how it works. Let’s say, for instance, that one day, after work, I have to go to Walgreen’s drug store to pick up something for my wife. As I’m picking up her prescription, I walk by the clearance rack. In Walgreen’s in particular, the rack is usually located in the same place in each and every store, so there is a pattern to be followed. Many times, the actual merchandise on clearance is also the same, so if you can find a winner, you can go to multiple Walgreen’s and purchase that particular item over & over again. I’m getting ahead of myself. Back to store #1.

Read more…….


Observations From Dallas, Part Deaux. Or, Conversation With A Millennial

One of the things I did not mention in my recent post about our transition to Dallas is my current living arrangement. It was not germane to the topic last time, but now it becomes necessary for me to share with you the back story.

When I was 18 and living in rural Oklahoma, my dad and his then wife (Wife #2 for those keeping score at home) adopted a baby boy. They could not have children of their own and after many years of trying, were finally able to adopt a newborn infant. Interestingly, within a year of this milestone event, they were divorced. I probably did not have this thought as a conscious thought, but at some intuitive level I understood that my dad was not going to be there for this baby. I made it a point to stay involved in his life over these last 25 years. When I was in college, about 1 weekend per month, I’d drive to Tulsa and stay the weekend with him and do what I could with him, within my meager means. He still remembers the time we made a racetrack in the backyard for his RC Cars. After college, I got married and moved to Corpus Christi, TX. My wife and I would fly him in and we’d go to San Antonio to Six Flags or to Corpus and spend the weekend at the beach. Because of our love of roller coasters, he has mentioned that it was us who introduced him, and are responsible for, his love of the adrenaline rush.

The point is, he’s not a stranger off the street. Now, he’s a young man, with a successful career in the IT world. He’s making some pretty decent jack, and the company he works for sends him all over the world, doing IT stuff. I think his job is to make sure the flux capacitor is integrated with the ion modulator. Or something like that. He’s got a nice young lady friend he seems quite smitten with.

Now, on with the story: When I planned this move to Dallas, leaving wife and kids behind in El Paso to finish the school year, I did not want to rent a place. Frankly, this move is costing us, big time. We’re hemorrhaging money at every turn. In order to cut down on expenses, I called him up and said, “Hey, dude. I’m moving to Dallas, can I stay with you?” To which he responded, “All I’ve got is a couch, but you can use it for as long as you want.” Hell, I haven’t crashed out on somebody’s couch in 25 years, so I thought it’d be fun. And it is. We’ve joined a group called Makerspace, which is a community owned workshop, and he’s building a new desk. I’m the Transporter Of The Lumber, since I have a truck and he doesn’t. He’s building it, and it looks nice. He kicked me out on Valentine’s Day, which was cool, also. I remember being young & smitten with my wife. Nice. And we’ve drank a lot of beer. Dear God, have we drank some beers! He chastised me just last night for taking more than my fair share of the 12 pack in the fridge. To which I responded, “We’ll get more.”

Here’s a quick summary: Me: 42 years old. Married, 3 kids. Construction supervisor. In the midst of a move which is more than just a little stressful. Politics: Political atheist, with extreme libertarian tendencies, bordering on anarchism. My little brother: 25, single with a girlfriend. Making good money setting up computer networks. Politics unknown.

Last night, over burgers and beer (Twisted Root Burgers: Epic Win!) he let me have it, and how! He gave it to me with both barrels. I don’t even remember exactly how it got started. I don’t really like to talk politics, and I’m certainly no apologist for ANY political party. I’ve come to my views based on my own research. People can do their own research and listen to the same podcasts and watch the same videos I have. The information is out there. So, I assume he must have bought it up. Maybe it was the beer flowing, or maybe he’s just passionate about the topic. Actually, there’s no “maybe” to it. He’s passionate about the topic. And I don’t know that he speaks for an entire generation of millennial. He’s the only Minnie I know. To say he’s a left-leaning liberal is an understatement. He’s a statist. Plain and simple, he thinks Government is the solution to the world’s problems. So much of what he said rankled me so bad, I had to take deep breaths. I didn’t want to try and “convert” him to my way of thinking, so much as I wanted to try and understand his position. So, instead of countering his every point with a counter-point, I asked a lot of questions. Here’s a brief recap of some of his major points:

  • Everybody should be paid a living wage. Everybody. I mean every single solitary citizen of America should receive money to a certain level. To make sure I understood his point, I used hyperbole to make the extreme case. So, yes, even the gang-bangers in South Dallas should receive a living wage. The street artist should receive a subsidy to make up whatever difference his art sales should not generate. When asked where this money will come from, he responded, Higher taxes. A heavier, much heavier tax burden on the rest of us. Somehow, in this system, I will have a salary 3x higher than what I make now, so I should be more willing to pay more taxes. When asked again where this money will come, I was unclear how I was going to make more money and pay more taxes.
  • Also, in his utopian vision, somehow, this payment of a living wage to the gang-bangers eliminates the generational cycle of crime & poverty. I agree whole-heartedly with reducing this cycle, but I am unclear on how giving people money for doing nothing will do this. Don’t we have a system like that in place now?
  • He said that Obamacare was a step in the right direction, but Obama and the Democrats are too weak-willed to really accomplish anything substantive. A totally comprehensive Government health care system is the solution. Nobody should be able to make a profit when it comes to taking care of the health needs of the people. When the profit motive becomes involved in better health for humanity, then the whole process gets corrupted. He used the example of a study that demonstrated that a saline bag costs $0.39 to manufacture and it shows up on your hospital bill for $800 bucks.
  • He correlated the greatest growth period in America in the 50’s & 60’s, which also had the highest tax rates in history. So, apparently, high tax rates = high economic growth.
  • The Post Office could generate money hand over fist, if only they could make their own decisions. But, any time they make decisions for them, then they lose money. (Loosely, I think “they” is the post office people, and “they” on the other hand is Congress.) I had a hard time trying to explain that “They” are both the same people: Government Drones.
  • He set up as a model systems the various statist countries around the world: Spain, France, and course, the Scandinavian countries. I didn’t explain to him that most of Europe is in flames, and what isn’t burning now, will be aflame soon enough. I don’t have any idea how the statism of the Scandinavian countries.
  • The Republican Party is in place for the express purpose of serving the rich. When asked if the Democrats weren’t simply another side of the same coin, he agreed, and stated that the Democratic Party does not have the strength or will to pass really meaningful legislation. I thought of Nancy Pelosi’s remark about “passing a law to see what’s in it.” Seems pretty strong-willed to me.
  • He supports the 2nd Amendment. I told him the left wants to take away his guns, he agreed and said he disagrees with the Democrats on that issue. That’s all I’m going to say on that item.
  • He said that there should be a minimum wage of $20-$25 per hour. Even for burger flippers. When asked what that will do to the price of a burger, he said it will stay the same and the evil burger corporations (And I might agree that the giant burger corporations are, in fact, evil) will take that out of their profit margin. Because no one has the right to charge $6-7 bucks on a burger that costs them $.20 to make.
  • Apparently, in the IT world, a company will profit some 3x the amount they pay a worker and that’s not fair. I tried to explain that the reason the construction company I work for is profitable is because they make more money using me than they have to pay me. They agreed to pay me x. I agreed to work for x. If I wanted a different deal, then I should have not agreed to work for x. If I wanted to take the risk and put in the time and energy to run a construction company, I would have done that. I don’t want to do that, so I agree to work for someone who did want to do that. Presumably, it’s the same thing in the IT world. He said the same opportunities don’t exist today that existed then and it’s harder for people to start a business. I agreed that starting a business now is probably very much more difficult today then it was “then.” (Due to the Government!!) (Now, at this point, a little light bulb is starting to go off in my head.)
  • It’s the Boomers fault. The generation that had the greatest opportunity in the history of the world has taken that opportunity, turned it upside down, and fucked the upcoming generations. (DING, DING, DING! We have a winner!)

There’s more, but you get the general gist of it. It was basically a model of more statism for more solutions to the worlds problems and to take care of people. Look, he’s a smart guy. He’s a computer guy. He’s making good money, and he’s traveling the world. He’s studied, at least to some level, this information. Some of it sounded like sound bites he quoted from another source; Maybe something he heard and liked. He had facts & figures in his head and cited studies to prove-up his points. I can’t disprove the Scandinavian countries models work, because I’ve never been there. But I’ve never seen something that the Government didn’t touch that they didn’t fuck up.

Here’s my takeaway from this. (Here’s where I’m going to go out on a limb. I don’t know Stephanie, and I don’t have anything against her or her writing. But from reading her work and talking to my little brother, I’m going to lump all millenials into a cohesive group, and use the word “they” from now on.)

They know something’s wrong. They see it, they feel it, they live it. Shit is fucked-up and bullshit. But, the see it and draw the wrong conclusion. It’s like they see half the equation correctly, and get the answer wrong. I had to agree with half of his premises. We’re waging unjust wars around the globe, and not taking very good care of our people here. Our current healthcare system sucks. Our education system sucks. (We talked about the student loan debt load, too.) America, once the freest country in the world, is no longer small-business friendly, while at the same time, favoring the large corporations. No one has been indicted in the scandals of the 2008 crash. Our elected officials are criminals, serving only those who donated enough money to get them elected and then seeking re-election. As human beings, we should take care of one another. We don’t do a very good job at that. All these points we were in agreement on.

It’s the solution where we disagree. As a libertarian/anarchist, I think it’s up to every human being to take care of him/her self. (I think men have a special role in this, but that’s a post for another day.) If someone wants to reach out and lend a hand up to someone who is down and out, that’s a beautiful thing, BUT I SHOULD NOT BE FORCED TO DO IT AT THE THREAT OF VIOLENCE! And the state IS violence. There can be no mistaking that.

For some reason, the minnies don’t get that. Is it the claptrap they teach them at school? Do they pick this up from their peer group? From the media? The internet?
How can anyone at this point, seeing how fucked up things really are in the world, think that Government is possibly the answer to ANY of our societal problems? I think that the overall trend is going to be MORE statism in the future, not less. LESS freedom, not more. I don’t think, at this point, that there will be any reversing this train until it runs off the rails, collapses, runs into a brick wall and explodes in flames. God help us all.

I love you, bro.

One Man’s Anecdotal Observations in Dallas, TX

Briefly, here’s my story:

We’ve lived in El Paso, TX for the last 7 years. We moved there in 2007, chasing construction work, and were going to stay there for one year. Just to try something new and different. One year turned into two. Two years turned into four. Four years turned into 7.

Now, that was no problem for me. We live in a pretty nice house with an indoor pool. We just remodeled the pool room and it looks FABULOUS! If I don’t say so myself. I make pretty decent income working for a commercial construction company. They’re known, and have a high reputation, across the entire state of Texas. There’s consistent work in construction in El Paso, and minimal travel. I found the idea of permaculture and fell in love with the idea of greening the desert. I worked almost non-stop in my backyard implementing the ideas I’ve learned. I’ve developed a few friends, although none particularly “close.”

If you’re keeping score: Tim – Nice house, good income, good company, steady work, a hobby I love, and a few friends.

My wife, on the other hand, had one big obstacle she couldn’t overcome. Her family lives 800 miles away in a small town in SE Oklahoma. This was consistently a roadblock in our marriage and would come up as “an issue” every six months or so. I finally realized, It doesn’t matter how nice I make the pool room, her heart isn’t here. It doesn’t matter if I planted fruit trees in the back yard, her heart is with her family. Around Christmas time, we had another “discussion” about the issue, and I’d had it up to here. (See? I’m holding my palm at approximately to my forehead.)

I made arrangements with my company, and we’re currently in the process of relocating to Dallas, TX. That’s about 3 hours away from her mom & sister & family. By relocating, I mean that I am up here now, sleeping on the couch of my brother’s one bedroom apartment, and she’s coming up June 1 when the kids get out of school. We decided not to pull the kids out mid year.

The back story took longer than I wanted, but that’s the gist of it. Now, here’s what I wanted to share and get some feedback on. I get my news almost exclusively from TBP. I think Jim does a great job of aggregating current news stories from around the web that are relevant to our economic situation, the police state, Government Gone Wild, etc. I sometimes wonder if I’m biased to the point that I’m only gathering information that aligns with my current worldview. (Isn’t there a name for that?) According to everything I read, the US economy is in complete shambles. The stock market is poised for a major crash. Unemployment is at an all-time high. The Free-Shit Army marches on, taking, taking, always taking. Race relations are on the threshold of a major shooting war, The Fed keeps printing, Buy gold & silver now, while you still can.

Yet, my experience in Dallas for the last three weeks is exactly the opposite of that. To say that Dallas is experiencing a boom is the understatement of the year. Here are my anecdotal observations:

Every major highway is under construction. And I don’t mean a lane here, and an exit ramp there. No, I mean EVERY FUCKING MAJOR HIGHWAY IN THIS CITY IS UNDER TOTAL RECONSTRUCTION! If the infrastructure in America is failing, it damn sure is getting re-built in Dallas. From north-central Dallas out to the west side of Ft. Worth, they are rebuilding every fucking road in this town.

Commercial construction appears to be at an all-time high. In addition to the highway construction, they are building something on every vacant lot and every field. We met with our roofer the other day to finalize our contract. In making small talk, the roofer said there are eight warehouse facilities over 1 million square feet under development right now. He said that in 30 years of roofing in Dallas, he’s never seen that many of that size, at one time. He said he’s seen as many as four at one time, but never eight. One thing about the construction industry: If you want to know the heartbeat of construction, talk to the guys who make their living listening to the pulse. They know.

Traffic is everywhere. It takes me an hour to get anywhere, no matter what time I go, what route I take, or what I plan to do. (I hate that shit, by the way. El Paso wins in fucking SPADES, in terms of traffic analysis!) All the shopping centers, restaurants, retail stores, etc. appear to be full-throttle busy.

All this to say: I’m experiencing cognitive dissonance since I moved here. Things on the ground in The Metroplex don’t align with what I’m reading about in TBP. So, I’m left with a couple of possible conclusions:

  1. The alternative media is full of shit. I’ve only been selecting news that fits my preconceived notions. Now, I’m faced with the stark reality that the economy of the US is fucking boiling hot right now, and I don’t need to worry about keeping some dollars tucked in the mattress for safekeeping. OR,
  2. All economies are local. The local economy here is burning hot, but that doesn’t mean that major shopping centers in the NE aren’t emptying out at a rapid pace. Maybe both are true: Things are good here, not-so-good in other places. OR,
  3. The local economy here is over-heating and destined for a dump. The developer that we’re working with now on the current project mentioned to me that this is always the case: Real estate developers build as fast as they can, because the first one to open their doors wins, and they overbuild, and then, there’s too much space.
  4. Maybe this is the last big hurrah before the hangover.
  5. Perhaps there are other options I’m not thinking of.

I know that several other TBP’ers are from the Great State of Texas. Your thoughts?

What Am I Gonna Do?

WHAT AM I GONNA DO?

What am I going to do? This question has been foremost in my mind for many months now. Years, really. Then, I saw a comment on the forum, which I believe was mostly antagonistic, asking Mr. Quinn what he was going to do. What’s Jim going to do? Stucky? AWD? What are any of us going to do, for that matter? I thought it might help me to gain some clarity into my own thought processes and help me to flesh out some thoughts I’ve had on the future of our country and our economy.

First, let me begin by saying, “I’m a regular guy.” I’m 42 years old, married for 18 years, I have 3 kids under the age of 10. I work for a living. I am a superintendent for a commercial construction company. The company treats me well. I make above-average income, but not into the 6-figure area. My wife has a part-time job at our church, but that’s primarily because she wants to, not because we need to. In other words, I’m in the 99% percent. Nothing special about me or my family roots.

Now, let me back up a few years: In 2007, I moved to El Paso, TX to participate in one of the largest government spending programs I’ve seen, first-hand. The US Army Corps of Engineers spent a gazillion dollars upgrading Ft. Bliss. Entire cities went up in the desert, in a period of a couple of years. A massive amount of construction. Incredible. And good for my family, and all of El Paso and surrounding area in general. While many portions of the country were hit by the economic crisis of 2008, we were largely insulated from (most) negative effects of that crisis.

This created cognitive dissonance for me. At that time, I was listening to Glenn Beck on the radio. Say what you will about Beck, but his extreme message was enough to cause me to seek other information elsewhere. I couldn’t understand it: I was working and making good money, being offered multiple jobs with more and more money thrown at me, and the rest of the country was unemployed? How can that be? How can the economy be crashing when all around me, when things are booming?

I committed to read and listen to everything I could on the subject. No rabbit hole was too small to go down.  I chased down every lead, every angle I could to figure out what the fuck was going on. The more I learned, the more I wanted to know. I am not necessarily a detail-oriented guy. In other words, many of you can explain the intricacies of the financial system with charts and graphs much better than I can. I grasp the concept of the Fed and our debt-based monetary system at a level I am comfortable with. I don’t understand every chart Jim publishes, but I understand that you can’t pay for debt with more debt.

As a result of my studies, here are some changes I’ve made in my life:

1)    I’ve become a political atheist, with libertarian leanings. In other words, I think the system is fucked but I believe autonomous human beings have the god-given right to be free.

2)    I’ve basically walked away from the church, as an institution, and traditional Christianity, as a religion. Not to go into too much here, but…….well, nevermind.

3)    I got my permaculture design certificate and spend an inordinate amount of time trying to grow my own food and improve my health through good nutrition. I live in a very harsh environment (high desert). You cannot imagine how many times I’ve wanted to throw the garden hose down, and say “Fuck This! This shit is too hard!” But, then, I have a few small successes, like garden-fresh tomatoes, fresh apricots, a delicious home-brew, a nice glass of homemade wine, or fresh eggs from the backyard, or a fresh salad and I get re-inspired. What I’m doing is a good thing, and good for my family, and it’s good for the earth. It’s noble and it’s spiritual.

4)    I see things that others may not understand. I only have one or two people I can share ideas with, in real life. Other kooks, I jokingly say. I have to share most of my ideas on the internet as most of my peer group have no fucking clue, or aren’t interested, or it’s too hard to make changes, or whatever.

 

The question, though, still remains: What am I gonna do? What do I expect to happen in our future? How do I prepare for what is, ultimately, unknown? I’ve constructed an arbitrary 1-10 scale to evaluate the future with. In other words: On a scale of 1-10, with 1 being full economic recovery and good times are here again, and a 10 being full-out Mad-Max style survival, what do I think our future looks like? At this time, I am steady in the middle, a 5, but I reserve my right to adjust to a higher number (ie, worse outcome) at any time.

Does the information I seek out on the internet only serve to reinforce my beliefs because of bias and prejudice? Do I seek out other sources of information that challenge my current belief system? These are the questions I ask myself.

Here are some of the things I see: I think all TBP readers will agree that a major economic upheaval is going to occur in the next x years. Tomorrow? Or ten years from now? I hear different opinions, from sources I trust, about the time-scale of peak oil. (For a view that opposes Kunstler, et al, listen to Jack Spirko at thesurvivalpodcast.com) I think that as the economic situation of our country (and the entire world) gets worse and worse, our Federal Government will increase it’s authoritarian, statist tendencies. More taxes, less freedoms. Those in power are not going to give up that power easily.

What does that mean for me, a regular guy? I don’t have the resources of Doug Casey to move to a luxurious Argentinean private community. I think I am destined to be here in the good old U-S-of-A. How do I best protect my family? Is my plan good enough? Are my resources deep and wide enough? Will I be able to protect my wife and children in the event of a worst-case scenario?

You’ll notice that there are lots of questions. Maybe more questions than answers at this point. But, here are a couple of things I HAVE decided” Fuck ‘em. Those in power. Any of them. All of them. From the Government to the Church to the Media to anyone else in a current position of power, THERE IS NOT ONE SINGLE SOLITARY MOTHER-FUCKER WHO WILL TELL ME THE TRUTH! I will rely on myself to discern the truth. The Church, as I see it, doesn’t address half the problems in real life and instead, wants to focus on songs, and leading time-wasting events such as day-long workshops about nothing relevant. (I acknowledge there may be a few outliers in the church structure. I like the work of Triple-X Church, for instance.) The Government and the Media appear to be two whores in the same bed. They will fucking juice my children up on psychotropic drugs, that arguably, turn them into mass-murderers. They will fucking feed me shit for food and fucking poison while telling me it’s “health food.” They will take my guns away to “protect me”. They will take my money from me in the interest of “helping others less fortunate.” My health care gets more and more expensive and I can’t figure out why our budget is so fucking tight every month. So, fuck them all. I walk away from them.

The alternative media (internet) is good, but it takes a huge amount of discernment to distill truth out of the massive amount of information. On the one hand, it’s easy to get bogged-down in the (D) vs. (R) debate. Bush=good. Obama=The Devil. Or, Obama=good. Bush=The Devil. It’s all the same shit, and a distraction. On the other hand, you can get into the reptilian, shadow government, Rothschild, secret illuminati, alien bases in New Mexico stuff, too. Nonsensical, and a time-waster.

How do I fight back against an increasingly authoritarian regime? I’ve got my kids to look after, you know. It will not do me any good to resist and end up in some fucking obscure FEMA camp. (If that’s even for real.) It won’t do me or the country any good to go off and start firing shots and end up in prison for the rest of my life, only to have the shots NOT start the revolution. What a wasted pud-puller THAT would be.

No, for me, I think the solution is to keep my head down, but be on the lookout. At all time. I’m a good little W-2 rank-and-file wage earner. I pay my taxes. I’ve decide it’s better not to hang the Gadsden Flag in my front yard. Keep a lower profile that way. I work hard for my company, with no complaints. I go to church when my wife asks me to. I’ll give some fresh eggs and fresh parsley to my little-old-neighbor lady.

But, on the inside, I’m another guy entirely. Right now, in my head, I’m re-designing my garden beds to be more effective with less work. I’m going to learn to grow medicinal herbs and what-not to take care of my own medical and spiritual needs. I’m going to slowly acquire silver coins, with cash, anonymously, in person at a local shop. I’m going to develop some kind of business that I can work hard but under the radar. I don’t know what this is yet, but does anybody need any lawn work done? I can cut your grass for cash or help you build a garden bed, or something. I may have a little home-brew or some labor or basic carpentry skills to trade you for something in return. I’m learning to play the guitar so I can entertain myself and my wife sings. Family-style sing-along anyone? I’m developing a practice of meditation so I can Be Still when the world around me is in chaos. I’m continually thinking about moving to a less-harsh environment where I can develop a strong sense of community. This one hasn’t been easy, but I trust I will know what to do when it’s time to do it.

In short: Fuck them. Trust myself.