December 2001 - President's Remarks - Business Models

December 2001 Michael Collins

Most business models were built during times when technology was constant. Today, however, the only thing constant is change. These changes were driven by the rapid development of computer technology, which was the number one factor driving the economy. Even the smallest organizations were forced to respond to these rapidly changing economic conditions. It is crucial

that all of us as business owners watch the trends and understand how the economic fundamentals are constantly changing, and how it is going to affect OUR business! The new world situations that we find ourselves in the middle of are another major factor and are driving change at an even faster rate.

Some fundamental changes have taken place, and you, as business owners, should be aware of them and understand their impact on the economy and your business. The changes are. Unemployment has gone from 8%-9% to 4.2%, the lowest in 29 years. Interest rates are also low. At their highest, interest rates went up to 21%. Now the interest rate is at 6 %, and it is staying low. The last time there was a 6% interest rate was during the 1960s. In this new economy, everything stays low: low-interest rates, low inflation, low costs, and low sales. One exception is the price of energy. Companies have lost pricing power. Today, it is exceedingly difficult to increase prices and keep your market share on a long-term basis. The recession is officially upon us; sales are down, and profits are minimal.

It is not my intention to paint a bleak picture; however, it is my intention to keep you informed on the state of our economy. National statistics can look bleak, but we are a strong community and are capable of policing our own economy. We do not have to fall within these statistics. We can write our own. We are now in the third and final month of the retail golden quarter. This is the “make it or break it” time for many of us for the year. I have beaten the term “Shop Local” to death. Today I heard a new term used by our neighboring Chamber of Commerce in Yucca Valley. “Shop here first!” What a concept! Before you leave 29 Palms to do your Holiday Shopping this year, shop around locally and see what you can buy at home, then only buy those items out of 29 Palms that you can’t yet buy here. The more you buy locally, the more opportunities local businesses will have to grow and provide the services and products not currently being supplied.

Happy Holidays,

Respectfully Submitted,

Michael Collins

Ummmm....let's see. Veterans, USMC birthday, thankfulness, watchfulness, shop local christmas is only a few weeks away, light parade, pioneer day thanks, community, importance of tourism especially now so be nice to foreigners and snowbirds, new visitor's guide, buy Dee some more of that sexy perfume 'cause last year's supply is gone, figure out how to top a new car for your wife's xmas gift....there, that should get you started.