Rights of Ownership

President Remarks December 2001

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 very difficult to increase prices and keep your market share on a long term basis.  Recession is upon us, sales are down and profits are minimal.

Rights of Ownership
Michael Collins
President’s Column
December 2001

For the past several months I have been dwelling on the topics such as Shopping Local, our Local Economic Health, providing quality Customer Service, supporting your Chamber of Commerce through volunteerism, your “rights of ownership” and “your responsibilities” as a member of the Chamber of Commerce.  This month there is so much to talk about, but so little space to write.  Pioneer Days 2001 is behind us and I see it as an “overwhelming success” in every event in spite of the world’s situation and lack of support from some local organizations.  Although the financial outcome was very positive, the important measuring stick of success was that community support and participation was extremely high.  The parade was in a word, “Excellent”; the Rodeo attendance was the best it’s been in years.  The volunteers worked countless hours towards this success.  To all of you, I send my sincere appreciation.

November is destined to be another busy month for us all as our neighbors to the north commemorate the 226th anniversary of the founding of the Marine Corps.  Active Duty and Retired Marines everywhere will take pride in their contributions to our great nation.   We will also celebrate Veteran’s Day to salute our Nation’s Heroes where all gave some and some gave all.  But let us not forget Thanksgiving, a day for families and friends to join together and express our thankfulness for this great country in which we live.

November is also the 2^nd month of the Retailer’s Golden Quarter.  This is when the average retail store earns up to 80% of their revenue for the year.  Considering the changing of our times and the slowing of our economy, it may well pay off for everyone to put their best customer service foot forward.  Embrace our foreign visitors and those that are only with us this time of the year. It is very important, however, to not forget your long time customers.  Give everyone a smile, a thank you and a reason to Shop Local and keep their shopping dollars in 29 Palms this holiday season.

May we all have good fortune and a prosperous Golden Quarter?

Michael Collins