Election campaigns always ask this question. Are times Better or Worse?  When flying was fun, you could pick up the phone and in a few minutes have a ticket and boarding pass mailed to you. Now we do all of their work on our computers and never talk to a live person until we meet the rude security people at the airport. Is that better or worse?

If inflation is really only 3% as advertised why are prices jumping so drastically? Why is a business loan so hard to get? Did you notice the jump in income tax brackets? Local property taxes are going berserk. Is that better or worse?

Try calling a government agency and you get a long-winded computer menu.  Streets and sewers can’t be repaired because cities don't have enough money. Crime is up because they can’t afford more police. The bureaucratic mantra is more tax money or services will be cut.  Is that better or worse?

Governments everywhere are building elaborate buildings, adding staff and buying the latest and best furnishings and equipment. Government employees attend seminars at posh watering holes at taxpayers expense on how to govern. "How to fleece the populace" would be a better name.  Is that better or worse?

They can put lipstick on it but if it looks like a pig, eats like a pig and sounds like a pig, it is a pig. We probably won't feel the repercussions of the 700 Billion Dollar time bomb our Washington representatives are tossing our way until inflation runs wild.

Are times better or worse? The answer is, YES! No matter the stripe of the politician, times are better for them, the ruling class, and worse for we serfs, better known as taxpayers.

I have heard too many people say that the "Wall Street Bailout" is simply going to put money into the pockets of already overpaid Wall Street execs.  Believe me that the problem is much more global than that.  Unfortunately our media is not giving us much information about this side of the crisis.

Investments in Lehman from banks and governments around the world has created a crisis worldwide.  China, where the banks are still government controlled has lost over $300 million on their investments in the failed company.  India, representing 1.3 billion people, has lost over $400 million although since this was from private companies rather than government owned, it may have less impact on the world.  Japan, the largest supporter of the US economically has lost $1.6 Billion.

Russia has fallen victim to their own actions but it has been exacerbated by our financial crisis.  Following Russia's invasion in Georgia, billions of dollars investing in that booming economy started being withdrawn in favor of more secure markets.  The US financial crisis piggybacked on this trend and sent the entire Russian stock market into chaos.  The Russian stock market was forced to close last week following the announcement of our crisis.  It reopened last Friday but after a few hours, they were forced to close again.

Last night the President of the US used grim language to drive home the seriousness of the situation.  Jobs in the US, loans for homes and other projects are all at risk.  If we don't solve this problem domestically, it will affect us here at home but it will also kill the global economy we live in today.  This is serious although I have confidence that, now recognizing the problem, we will find a solution quickly.

Keeping a customer is important. If you are ever tempted to not give a customer a refund or lower the price in a complaint situation, just remember what it costs to get a new customer.

Getting a new customer costs more than ten times the cost of keeping one. Advertising and sales promotion costs have accelerated in recent years while the price for services has not kept pace.

Satisfied customers will become unpaid advocates and will greatly reduce the cost of promoting a business. No paid sales representative will ever generate as much business for you as a satisfied customer. Sometimes the satisfied customer is the result of a complaint. Do everything in your power to keep those customers happy.

How about some innovation? It could happen that carpet could be more desirable, more sophisticaterd in the affordable/volume range with contract or residential application. Of course, handmade, Wiltons, and speciality items are out there in beautiful selections but only at very high end prices.  But what if  - we had a  tufting machine that would do multiple color, multiple pile heights, textures, & designs with small scale details, or large scale repeat motifs and - at high speeds.  The definition would need to very good. All yarn on the face - no buried ends.

It's happening now!  The samples are spectacular. The machine is called Colorpoint by the Card-Monroe Corp.

Reason # 1...   They're at it again! They've mounted another ad campaign for Stainmaster carpet. The commercials claim it looks better, stays cleaner and lasts longer. That means one thing to me....customers won't have us clean for them as often . 

Reason #2 ...  When DuPont hit the airwaves in 1986, I wrote to inquire if Stainmaster carpets needed special care and asked for a sample so we could experiment. They ignored me. I called their Wilmington offices and spoke to a number of people to no avail. No Respect!

Reason #3 ...  I had to know how to clean it, so I bought a plush pile for my family room in a light color and put it next to the garage entrance. We used dozens of products on it, thoroughly abused it and kept detailed records which became the substance of our operational and educational programs. It was expensive to buy carpet retail and testing was time consuming.  

But the fact is, I love Stainmaster! It reinvigorated a stagnant carpet market in the late '80s and hopefully will do the same thing today. That original Stainmaster has been on my family room floor for 21 years and still looks good.

Stainmaster's phenomenal success was more than just a good product and a massive ad campaign. They promised EASY MAINTENANCE and the consumer bought it by the truckload. Carpet mills, retailers, installers and even carpet cleaners prospered from this golden goose.

CRI has lost its way by making carpet sound difficult to clean. They say it takes special products and advanced education for the people who clean it. CRI says only certain equipment can be used or the carpet warranty may be void. Besides not being true, this strategy, if continued, will effectively kill that goose. 

Exciting News!  Lisbeth Calandrino has launched her own weblog.  It's called LizBizBuzz and can be found at http://lisbethcalandrino.typepad.com/liz_biz_buzz/. 

Have you checked it out yet? 

If you know Lis, you already know that LizBizBuzz will be filled with terrific insights.

If you aren't quite sure who Lis is then let me jog your memory...

Lisbeth Calandrino is a Woman in Flooring and executive coach extraordinaire; she presents frequently at Surfaces.  Her panel discussions inevitably deliver actionable ideas.  You see her at industry events like Designing From the Floor Up with Thom Filicia or at non-industry events where sightings of Elvis-afficionados inspire thoughts about Your Brand Wanted: Dead or Alive!...

She has touched retailers and business owners around the country with her enthusiasm and sound advice...

If you're really lucky, you've gotten to hear experience her invaluable consumer insights in person.  Maybe she's even helped you implement new customer-focused strategies, so you know firsthand how grounded and on-target her advice is.

Well, now you can expose yourself to Lis' unique insights through her blog.  Recent posts include Cashing In on Your Competitive Advantage, The Future of Retailing and  Thoughts on Value Innovation.  Definite food for thought.

Too often we are so consumed by what is happening in the USA, we miss changes in the global market that impact us here.  An example is the implementation of an 80% export duty that the Russian government has levied on logs leaving the country.  Since they were the largest exporter of logs in the world, this will have an impact on lumber prices globally.  The purpose of the duty is to entice Russians to develop a value added wood industry for export rather than just ship out raw material.  Don't be surprised if in 5 years the best value wood flooring isn't coming from Russia.

Last month, India and a group of Asian countries including China signed a free trade agreement similar to the North American Free Trade Agreement or the European Economic Union.  This agreement was 5 years in the making and provides for duty free trade between countries and dispute resolution mechanisms.

The Olympics were spectacular and I would not want to be the next city to host these games.  While China performed superbly, their shining moment does not cover up some basic problems in their economy and society.  With over 20% of the world's population, they have only 7% of the world's water.  Many of the old government owned businesses have been turned over to entrepreneurs who are ill equipped to manage profitable businesses.  The assets are carried on the state bank's books at full value; loan defaults are not recognized because state businesses are often sold for a dollar a year plus a balloon at the end of 20 years for the remainder of the value.

An global agricultural agreement promoted by the World Trade Organization fell apart last month when the USA and India objected to the way government subsidies to farmers and crops were being treated differently between countries. 

How will all of this affect you?  Ripple affects will impact businesses here in the USA over the next five years.  Whether it is a company in China that can no longer pay their bills, a new wood floor from Russia, higher food and biofuel costs due to the international agricultural market, global changes will impact your business.  Keeping informed now will help prepare for the future.

Apparently the majority of Americans are unhappy with President Bush, a Republican, because he took us to war in Afghanistan and Iraq which critics say had not attacked us. Anti-war zealots point out that more than 4,000 Americans have died in five years of combat.

I'm not one of the president's most ardent fans, but his first year in office saw a cowardly attack by Islamic terrorists that killed nearly 3,000 on September 11, 2001. They have debilitated our economy and usurped many of our freedoms.

I've been around a long time and served in two wars under two Commanders in chief, both Democrats. In this year filled with election rhetoric, take a hard look at the recent history of war and under whose watch they took place before deciding how to vote:

  President Wilson, a Democrat, led us into World War I in 1917.  Germany had not attacked us. 117,000 Americans were killed in less than two years.
  President Roosevelt, a Democrat, led us into World War II and asked congress to declare war on Germany which had not attacked us. Japan did attack us and there is evidence that politicians who wanted us in that war withheld warnings that could have prevented Pearl Harbor. From 1941 to 1945, 450,000 American lives were lost.
  President Truman, a Democrat, took us into the Korean War. North Korea had not attacked us. From 1950 to 1953, 55,000 American lives were lost. Political interference with collaboration by the United Nations caused the first loss of a war by our military.
  President Kennedy, a Democrat, put 12,000 advisors into Vietnam in 1962. North Vietnam had not attacked us. He approved the invasion of Cuba, which did not attack us. It failed when he withdrew support for the Bay of Pigs fiasco which resulted in the deaths of many thousands of Cuban patriots.
  President Johnson, a Democrat, turned the Vietnam war into a quagmire of political interference. From 1965-1975, 58,000 American lives were lost. The entertainment industry with programs like M*A*S*H 4077, joined a biased media to sway public opinion against the war, and shared the responsibility for losing that war.
  President Carter, a Democrat, allowed 52 U. S. Citizens to be held hostage for 444 days in Iran. Then his ill-equipped military failed to rescue them. Today he's traveling around the world telling everyone who will listen about America's failings.
  President Clinton, a Democrat, went to war in Bosnia. Bosnia never attacked us. After the first attack on the World Trade Center in '93, Clinton was offered Osama bin Laden three times by Sudan and did nothing. He sent military to Somalia that never attacked us.  Remember Black Hawk down?

Do you see a trend here?  We had a Democratic congress for more than 40 years until 1994 and it looks like we're in for another long run of them after the Republicans failed to keep their contract with America. Congress has nearly bankrupt our country. Wait till the other shoe drops on the Fannie/Freddie bail outs.  There will be much pain and misery in the land.

George "W" has let a democratic congress spend like drunken sailors. Monetarily, the recent Wall Street fiascos, near collapse of the financial system and the housing market bubble bursting will affect us far longer than producing war goods which will slow down soon.

Ike, a Republican, ended the Korean war and Nixon, a Republican, stopped the carnage in Viet Nam. Two so-called Republican presidents, the Bushes, are another story.  Remember "Watch my lips, no new taxes?"  Old Bush cowtowed to a Democratic congress and stopped Stormin' Norman in the Gulf war or there would have been no Iraq war.

We've yet to see a nuclear war and I'd hate to think that it may come. But according to these hard facts, the odds are 7 to 1 it's more likely to happen if a Democrat is elected to the White house.