my happy blog

Just as the sporting goods retail industry has been taken hostage by wholesale prices from internet vendors, motorsports retailers are feeling the pinch. At the same time, online merchants like the streamlined nature of a uni-dimensional sales atmosphere. Just as sporting goods stores will never be ran out of business by their online competitors, there is and will always be a need for corner retailers for the everyday needs of the motorsports enthusiast.

Since their inception, dealers were their own parts source; their parts counter personnel were the authority on filters, tires, gear and oil. The great thing was/is that these are the guys you see at the tracks, some customers race with on the weekend and have good knowledge of local conditions and vendor support. The downside of the parts and apparel business is that dealers aren’t consignment shops and owners and management are faced with forecasting the next year’s business based on a mix of last year’s hot products, cleaning out the mispurchased inventory and what’s hot for the next year. To make matters worse, it’s always difficult for a dealer to stock parts for make of machinery that they don’t represent. When manufacturers have problems, or one particular product line is down, well, then showroom traffic and subsequently the parts take the biggest hit.

Enter online parts warehouses. We all know how it works; few online parts superstores actually stock parts, however some do and the ones that do, can offer an awesome buying experience for the consumer. Basically, most sites will negotiate a wholesale purchasing contract with a distributer that has several warehouses for parts distribution, then upload their entire available inventory onto their website. These types of businesses can and usually are ran out of someone’s home office, living room or garage. Not as glamorous as the flashy website, but usually they get the job done. The upsides to buying your parts this way is that you can research exactly what you want, shop price without having to haggle or negotiate and not have to leave your house. We all know this. The next step to this evolution is international ordering. The US sets the standard for commercial research and development for the motorsports industry’ from motorcycle and ATV to auto and the snowmobile industry.

When it comes to the development of parts, testing and proving and marketing and promotion no other nation brings products and hop up services to the world like we do. The reality now is that online vendor’s customer bases are worldwide. The demand for suspension services, motor rebuilds, trick parts and manufacturer/retailer only parts and apparel is high overseas. Unfortunately, internet based businesses are being gouged by banks and processors for high discount rates, because this type of activity is looked upon as high risk. In fact, internet only parts and apparel sites are high risk, so the increased risk and rate hikes might drive up the prices of the low cost products and services everyone loves. Traditional banking today is under the same revamping process that the motorsports parts industry has just undergone. With international orders becoming more conventional international banking is taking the edge off many frustrated yet savvy internet based merchants.

International, offshore merchant accounts offer multicurrency processing, third party fraud scrubbing and virtual terminals for these businesses to keep their businesses that operate on somewhat of a tight budget a needed break to continue to offer the same quality for the price. Merchant service providers are in a unique position to source banks that work well in certain regions that may be more popular for a particular business; as well, certain merchant service providers specialize in specific types of industries. It’s just as important to use a processor or merchant service provider with a portfolio that resembles your industry. This can be helpful because they’ll be in tune with your sales cycles, busy times of the year and types of chargebacks that you may get, what is causing them and how to handle them.

Jennifer Loganathan is the President and CEO of Stradafee Limited. Stradafee is an electronic payments company as well as an eCommerce and Internet merchant account provider. Merchant accounts make it possible for businesses to provide online credit card processing For more information on credit card processing visit http://www.stradafee.com

Are you and your spouse worried about what’s happening with your savings, your pension, your children’s college funds, or just staying employed? The Dow Jones is under 10,000 and European banks sound as shaky as the US banks. Do you find yourself fearful of your futures together? Do you find yourselves disagreeing with your partner about how to weather this financial meltdown? Do you find yourselves arguing because one of you makes more money and feels like they have more control over how money is spent? When money gets tight as a result of reduced income or increased mortgage payments and is combined with financial fears of the future, those old money arguments (my money vs. your money) may be causing you problems again. It is time for the two of you to have discussions again about money.

In his book Love & Money, Jeff Opdyke says: “It’s not really about the money. It’s about creating another level of intimacy in your relationship and bestowing trust on each other.” He further recommends joint accounts for couples which explicitly demonstrates the trust you have with your spouse.

When we keep secrets from our spouse about how much we make, how we spend money, or even how much money we have, this indicates a measure of distrust in the other person. When times are tough like now, you need to trust and have faith in your legal and romantic partner. All your money and all your debts are consider joint by the state. If you are not considering them joint, you are losing out. You lose resources that your partner brings to solving financial problems. You lose a feeling of honesty about yourself. And you lose some ability to manage your family finances in the best way possible.

If the two of you are not quite ready to combine your accounts, at least try to agree on and be committed to the following:

1. Agree to live within your means, so that expenses do not exceed your income.

2. Agree to open, honest communication about money.

3. Promise not to blame one another, judge each other, or keep secrets about money.

4. Be prepared to listen to your partner and understand their perspective.

You both need to be fully aware of the family gross and net income, to know where household (and individual) money goes each month and to know how much debt you have and the interest costs you are paying.

If you are unable to have a frank and open discussion about your money with your spouse, you may benefit from seeing a marriage counselor. The National Registry of Marriage Friendly Therapists (www.marriagefriendlytherapist.com) is a good resource for finding a therapist who is invested in helping you save your marriage. If you are unable to curb your spending, you might consider Debtors Anonymous, an organization for people trying to reduce debt and regain solvency. If you need a housing counselor or help with your mortgage, go to the web site of the US Department of Housing and Urban Development (www.hud.gov) and click on the Hope for Homeowners link.

It’s important to realize you are not alone. Many couples and families are struggling. Don’t let your marriage be a casualty of the worst financial disaster most of us have ever seen. You and your spouse are in this together. Get the help you need to keep your marriage stable and safe.

If you decide that you might need marriage counseling, check out my website, http://www.PamLipe.com My specialty is marriage and relationship counseling. For 20 years, I have been helping couples find the love and support they want in their marriages. My therapy practice serves the metropolitan area of Minneapolis/St.Paul, MN.

With the internet making it easier than ever to source artworks, it’s relatively simple these days to build up a great-looking collection.

While prices for unique works are increasingly beyond the reach of many, limited editions of, say, 150 plus are financially and widely accessible, making it possible to acquire pieces by major artists for reasonable prices.

There can be a downside, however. While little beats the pleasure a signed work can bring, generally speaking, the larger an edition, the less likely it is to appreciate in value quickly – or even substantially.

Nevertheless, the contemporary art market is full of contradictions, and with growing demand at all levels, recent trends have often seen this assumption overturned.

As an obvious example, Damien Hirst’s early prints for Eyestorm consistently fetch $10000-$16000 at re-sale, a very substantial profit on their original price. More recently, prints by Banksy and other urban artists have proved equally lucrative.

In other words, it’s becoming increasingly possible – although by no means a certainty – to make profits quickly with relatively little outlay; although the trick, as always, is knowing what to buy and when to sell.

Buying for fast profit

The art world has a curious attitude to speculation. Buying and selling purely for profit is still regarded as just a little unsavory, even though the entire art market is dedicated to this pursuit. Perhaps it’s because art has such a curiously dual nature, combining aesthetic and cultural worth with a commercial value that can reach very high sums indeed.

Whatever the case, it would be difficult to consistently make money from art without some genuine appreciation and an insight into what will stand the test of time. And many dealers are themselves collectors, at least partly funding their own acquisitions through trading.

Yet it’s certainly true that, with contemporary art consistently showing remarkable returns on investment, it’s also become an attractive proposition to a very wide range of buyers.

In general, non-specialist speculators often trade in the work of artists whose frequent media coverage makes them well known to the public. And as shown by the two examples mentioned above – Hirst and Banksy – this can certainly reap substantial rewards.

But it’s also important to remember that, in an increasingly novelty-driven world, the next big thing is usually just around the corner. ‘Celebrity’ artists often take on the nature of a trend, and fads can become outdated with dramatic speed. Knowing when to sell such work is vitally important.

Ups and downs in the market aren’t just related to artists with familiar public profiles, of course. The art world itself frequently generates its own, ‘flavor of the month’ buzz. A few years ago, Martin Kippenberger’s prices rose dramatically, then leveled just as quickly. Chinese and now Indian contemporary art have been subject to the same kind of intensely fashion-led markets.

Clearly, money can be made through quickly identifying and speculating on trends, but you’ll need to have your finger firmly on the pulse. Knowing what’s considered exciting is essential, but you’ll also have to determine how long this excitement is actually going to last.

Long-term investment – knowing your artists

When it comes to collecting art, you’ll often read the following: the safest way to build a collection is simply to buy work you really like.

Such advice seems tailor-made to shield less knowledgeable collectors from potential disappointment, and perhaps even encourage sales of less desirable work. Buy a piece you love and if the value falls no harm has been done. If it gains in price, that’s a bonus.

I prefer to look at buying art a little differently.

Of course it’s important to purchase work you want to own and view.

But since contemporary art presents real investment opportunities, it makes sense to think carefully about what to add to your collection. After all, look at almost any online art site, and you’ll see that prices for fairly standard pieces are often equivalent to what you’d pay for work with far greater investment potential.

Although there’s obviously no way of predicting future value for sure, the key is to familiarize yourself as much as possible with the background of artists you’re drawn to.

How long have they been practicing? Is there a theme or thought process behind their work? Has this evolved coherently over the years?

Artists with at least some degree of complexity and persistent ‘vision’ are generally more likely to gain steadily in appreciation and price.

You’ll also want to know if the artist has achieved some kind of recognition. Is their work held by collections, galleries or museums? Has it been exhibited consistently?

Professional opinion is yet another important factor in trying to determine an artist’s long-term prospects. If a large number of critics and academics coincide in their high opinion of an artist, this is another good sign that they will retain or even gain value.

Mid-career artists can be judged much more easily in relation to their existing work; and after all, good art isn’t just about something that happens to look nice on a wall.

It’s about a certain kind of commitment and an obvious path of development. If all these factors are present, buying probably makes sense. Limited editions by Jeff Koons, for example, were relatively inexpensive 5 or 6 years ago, but with recent record-breaking prices for major works, have also shot up in value.

Even artists who disappear temporarily from the art market radar are much more likely to re-emerge at a later point if they show the ‘right’ kind of commitment and passion.

Emerging artists and the schlock of the new

New young artists are often fizzing with ideas, many of which can seem ground-breaking or even radical, but the problem is that they have yet to prove their long-term worth.

This said, you can certainly gain an insight into potential by applying the criteria above. It’s especially important to determine if they have something genuine to express or are simply employing methods that could, over time, increasingly be seen as just a gimmick.

Of course, if you’re looking to make a high return on investment, rapidly emerging artists can prove highly lucrative.

In such cases, it’s probably a good idea to invest in as substantial a piece as possible, although as we’ve seen, editions and multiples can also prove money-earners.

But keep a close eye on auction prices and signs of market fatigue. Such artists might be the talk of the town right now, but will they fulfill their early promise?

If, after a few years, their work appears stuck in a rut and prices seem to be leveling or even dropping, it’s time to think twice about their long-term appeal. On the other hand, if they do continue to create great work, any pieces bought for relatively low sums at the start of their careers should steadily rise in value.

Spreading your bets

If you’re lucky enough to have substantial sums of money to spend on art, newer artists, as we’ve just seen, can produce significant return on investment.

But perhaps the best way to offset the risks that they may never fulfill expectation is to ‘spread your bets’ across a selection of up and coming names.

Buying the work of several different artists might mean settling for less significant works, but with the right kind of knowledge – and luck – hitting a jackpot is still potentially viable.

If you’ve done your research, the chances are fairly good that at least one – and hopefully more – of your chosen artists will gain in recognition.

And given the phenomenal increase in prices for contemporary art, if that happens, eventual profits could far outweigh the costs of initial purchases, even if other works fail to make the grade.

It’s worth remembering that many well-known collectors buy huge amounts of work by new, ‘promising’ artists.

Charles Saatchi is a particularly good example, and although he is famous for the apparent strength of his collection, a sizable proportion consists of artists who have now faded into obscurity (you won’t see these listed on the website).

However, the phenomenal rise in value of those who became major names – Peter Doig, for example – have reaped him many millions of dollars in profit at auction.

And if those are the rewards, you can probably afford to make the odd mistake.

Mike writes for modernedition.com, a resource providing articles and news on contemporary art, as well as limited edition prints and multiples by leading contemporary artists.