Marklin Financial Services LLC

The last few months have been good for me in checking off some bucket list items:

-A trip to Maui

-Seeing a Duke basketball game in venerable Cameron Indoor Stadium

-And seeing another Moody Blues concert before they retire

I always had far-off things I wanted to do in life, but had never put them on paper. Then I saw the movie The Bucket List a few years ago and decided it was time to formalize my list of things I wanted to do.

Putting the list together, at first, was easy. But after the first 10 items, the list became harder. Was it because I was completely happy and had fulfilled everything I wanted to do in life? Not quite.

It was more due to the fact that I had not devoted enough quiet time to reflect.

If you haven’t yet compiled a bucket list, why not start one? Consider sorting the list into easy and harder-to-attain items. Compiling a list will help you visualize the event and also put a dollar amount and time frame on it.

If you wish, please email me some of your bucket list items at jvmarklin@marklinfinancial.com. As I scratch one off the list, I usually add one in its place. And I could use a few suggestions.

John Marklin

www.marklinfinancial.com

I am glad to have another Guest Blog post from brother Rich (or Ricardo). I have witnessed him dropping Spanish words to numerous people over the past few years. I now know why. Enjoy.

Learning Spanish for Professional Development

By Richard Marklin, Professor of Ergonomics, Marquette University

I started learning Spanish 7 years ago when I was middle aged -  48 years old.   I cannot speak Spanish fluently but I can converse in Spanish pretty well and express many of my ideas in Spanish.  Interestingly, my ability to speak Spanish is better than my oral comprehension, probably due to my strong interest in grammar.  I took 6 semesters of Spanish at Marquette U., where I work as a professor of engineering.  I was always the oldest student in the class – a statistical outlier – but that did not deter my quest to learn Spanish.

Many people have asked me why I am learning Spanish.  My answer is simply “ I want to develop more professional and business opportunities.”   I stay focused on the professional and business opportunities, and I avoid the social and political issues that involve Latinos in the US. 

The latest demographic data from the 2010 US Census show a compelling reason to learn Spanish:

• Almost 1 in 6 Americans are Hispanic.  The Hispanic population in the US is almost 50 million.
• According to Robert Lang, demographer at U. of Nevada-Las Vegas,  “an entire Venezuela’s worth of Hispanics was added in just the last 2 decades.”
• Almost 40% of the residents of California and Texas are Hispanics

I do not know what percentage of Hispanics who live in the U.S. speak English, but I am sure most of them do.  However, I do know that some Hispanics in the U.S. speak no English or have limited ability to speak English.  These people tend to be in the lower wage jobs, based on my anecdotal experience.

I already have had a professional and business opportunity to use Spanish.  I was fortunate to provide ergonomics training to Spanish-speaking hotel room cleaners last year.  This project was funded by OSHA and contracted to The Ohio State University.  I was able to provide 90 minutes of ergonomics training in total Spanish to many groups of hotel room cleaners, and the evaluations reflect that the workers did understand the principles and appreciated the training.   I spent 4 months translating the ppt slides from English to Spanish and writing a narrative for each slide.  A native Spanish speaker checked the translation of the slides and the commentary.   It was a rewarding experience to help these workers, who often are invisible to the hotel guests. 

I have also used my ability to speak Spanish to augment the service component of my job as a professor.  I became one of the advisors to the Engineers Without Borders (EWB) chapter at Marquette U.  At first, it was because the group needed an advisor, regardless of whether he/she could speak Spanish.  However, my strong interest in the language and Latin American culture convinced me that it was a good fit to help lead this group.  The EWB chapter has an ambitious agenda – to develop a system to generate electricity for a small village (pueblo) in Guatemala.  I serve as a translator and also as a laborer.

Eventually, I hope to speak Spanish fluently and have more opportunities to use Spanish in the discipline of ergonomics.  However, there is one thing that will never change – I will always have a bad accent!

If you are interested in learning Spanish and would like some advice to get started, let me know.  I have specific recommendations for a plan of action, which is more than courses and books.   

Richard.marklin@marquette.edu

Treat others like you would like to be treated. This golden rule has been around for thousands of years. And a good rule it is.

The golden rule is simple, and can be used with every social action we take.

In business, there is a similar rule. One that I believe can catapult your career to new heights. One that takes the confusion and clutter out of any decision to be made.

That rule is: Treat all business assets as if they were your own.

This is easy to say, easy to hear, but very difficult to follow. But for those who do, your worth becomes priceless.

Unless you own a business, or have your money actually at stake, you really have no idea of the stress and importance of every business decision that is made. The goal is to transmute the idea of business ownership  to your employees and co-workers, so that they treat your assets as you would treat them.

In order to help employees implement  the Business Golden Rule, I have them begin every decision with the following phrase: If it were my money, would  I ……………………?

If it were my money, would I hire John Doe?

 If it were my money, would I buy that new piece of equipment or fix the old one?

 If it were my money, would I miss that deadline?

 If it were my money, would I call in sick when I really am not?

 If it were my money, would I not pay for that cup of coffee I just drank?

For those employees who can demonstrate to the owner that they treat your money very seriously, and act like they are stewards of your money, they become indispensable to you. And you will pay top dollar to keep them onboard.

John Marklin

www.marklinfinancial.com

I am sure you have received offers from cable, satellite, phone or fitness companies offering reduced rates for new customers. The rates are teasers and usually last a year. After the year is up, the rates go up unless you call and threaten to leave, at which time the rates are usually lowered again for a year.

My question has always been, what about offering reduced rates to the loyal customers? Those who have been your customer for years.

This marketing ploy has always baffled me to the point that I find it offensive.

It usually happens in service industries, but rarely in retail.

Consider how bizarre it would be to offer a reduced price for meat and produce only for new grocery store customers? Or a reduced price for only new car customers? Retailers usually don’t play this game. They will take a sale no matter if you are new or returning. Other industries could learn from this.

If I did have to choose between spending marketing dollars on getting new customers or existing customers, I would pick existing. They have used your service before and chances are they probably had a positive experience. Up-selling to existing customers is not only easier, but cheaper, than getting a new customer.

Up-selling to existing customers doesn’t have to be in the form of advertising. It could be with samples or tastings. This is often done in the grocery business with good success.

A woman was eyeing our new coffee kiosk in our Bridgewater Foods Supermarket. I asked her what she thought. She said the display was lovely, but a little overwhelming-too many choices. I asked her what kind of coffee she liked. She said robust. I offered her a free “Fog Mountain” sample. She liked it. I showed her our grinding station. She bought a pound for $9.99. She left very happy.

If you treat your current customers well, chances are they will spread the word and your new customers will come from referrals. And that is the cheapest ad money you will ever spend!

John Marklin

www.marklinfinancial.com

Last week I was rushing through a mountain of work and I made a simple mistake in adding up daily sales for a key report we use. I didn’t realize the mistake until a few days later when I thought the result looked strange and went back to verify it. Sure enough, I fat-fingered a number.

The next day, as I was reviewing the numbers with our front end manager, I told her I messed up. My  fault. And I told her I would be more careful next time.

I felt better for two reasons:

-that the sales weren’t screwed up like I thought they were, and

-that no one else messed up; I could only blame myself.

Admitting a fault shows everyone that you are not perfect (even the boss), but more importantly that you own your mistakes.

We learn from our mistakes. The slip-up  intensifies our concentration which hopefully prevents future similar blunders from happening.

The next time you make a mistake, be the first to admit it. You will feel better for it.

John Marklin

www.marklinfinancial.com

A concept that was explained to me way back in my college finance class was opportunity cost. It, however, is involved in nearly every decision I make today.

Opportunity Cost (OC) is the cost of any activity measured in terms of the value of the next best alternative foregone. In other words, if you choose A over B, the cost of B, or the lost profit of B, is your opportunity cost.

-If I buy a product cheaper online, then the OC is the extra cost of buying it at a brick and mortar store.

 -If I choose to ride my bike to an event, the OC is the cost of gas and wear and tear on my car to get there.

 -If I choose to eat dessert, the OC is the extra pounds it will put on my body.

 -If I choose to change jobs, the OC is the loss of income of the job I give up.

 -If I choose to buy another grocery store, the OC is the loss of consulting income since I will have less time.

Thinking about the OC ahead of time, helps me quantify the two alternatives, which helps me make the best decision.

Inherently, we think about OC all the time. But rarely do we actually take the time to put dollars and cents into the two decisions. Sometimes, they are not easy to quantify. And sometimes we don’t know all the aspects of the other decision ahead of time.

-There was a huge OC (benefit) for those who did not go into the Twin Towers on 9/11.

 -A man decided to go to an event. He met a woman at the event he later married.

We don’t have the luxury of using hindsight to make the best decision. But we do have the ability to make the best decision with the facts known ahead of time.

John Marklin

www.marklinfinancial.com

For the past few years, Debbie and I make a mad rush in January and February to see all of the movies up for an Academy Award. We started our annual dash last weekend and saw three movies. The one I liked the best so far was The Artist, a silent black and white movie.

Admittedly, I was a little reluctant to see a movie with no sound. Other than a few old-time comedy flicks, I really can’t remember sitting through an entire silent film.

But this movie is wonderful. The story is about a popular Hollywood silent movie star in the 1920’s who falls in love with an actress rising in fame as she becomes a star in “talkies”. The actor, however, refuses to adapt his acting style from silent to movies with sound. Hanging onto the past, he struggles and falls from stardom.

During the movie I found myself concentrating more so as not to miss any gestures that I would take for granted with sound. The movie had drama mixed with comedy and the 1 hour and 40 minutes seemed to fly by.

Afterwards, I reflected on the struggles of the “artist” and how it plays out in so many other later adaptations. Moving from hardbound encyclopedias to internet based media like Wikipedia was traumatic for the World Book encyclopedia company. Transitioning from film to digital cameras caught on like wild fire and left some companies like Kodak filing for bankruptcy as they were slow to change. And the switch from land line phones to cellular phones has resulted into some of the biggest companies yet like ATT and Verizon as well as hardware manufacturers like Apple and Nokia.

Another industry that has experienced rapid change is coffee. Starbucks are now seemingly on every corner and stores like Panera have become very popular with the young business crowd. Giving customers more choices in coffee has become very popular.

A month ago, we looked at changing the way we sell hot coffee in our Bridgewater Foods Supermarket. Forever, we brewed one flavor of coffee in the deli and served it in small and large cups to our customers. We looked at ways to do things differently and came across a company willing to invest in our coffee business. Within a month we added a coffee kiosk in the store that offers six different flavors in canisters (including my favorite Fog Heaven). We now have small, medium and large sizes and our coffee sales, as well as doughnut and pastry sales, have increased.

How do you adapt to changes in your line of business?

John Marklin

www.marklinfinancial.com

Back in 1978 and fresh out of college, Debbie and I got into the real estate market in St. Louis and bought our first house. A one bedroom bungalow in south St. Louis on Carlsbad Ave. We had little money at the time but both had good jobs and were getting married. We paid less for that house than I paid for my Hyundai Azera that I now drive. We put 20% down and took out our first mortgage.

With help from family, I knocked down a wall to enlarge the kitchen and installed used cabinets. My brothers cut and installed Formica counter tops and a kitchen island. We laid the vinyl flooring and painted all the walls after removing the dreaded wallpaper. A lot of work, but it was just our “starter home”.

Two years later, we bought a two bedroom home at double the price of the first home. Three years later, we bought a larger home in New Hampshire when I transferred jobs, and another larger home when I returned to St. Louis a year later. Five years later we moved to Reading, PA and bought our first “newly constructed” home and five years after that we then moved to Richmond and bought another new home.

For much of my life we lived in a real estate boom hence we made money on each house we sold. Plus the relocation bonuses paid by my employer (a thing of the past) helped defray closing costs. Starting out small eventually landed us in a larger new home.

Just a year ago, my business partner and I bought our first grocery store; a small Save-a-lot (SAL) in southwest Virginia. Nine months later, we bought a much larger IGA store in western Virginia. Buying the SAL was a strategic move for us. We used those nine months as a learning tool to decide if we really meshed as partners. We also worked out the organizational processes before we jumped into the big leagues with a store doing three times the volume. We were comfortable with our abilities and were convinced we could take on a bigger challenge.

Our stores are performing as expected and soon we will be looking for others to buy.

A few months ago, I spoke to a young person who appeared to be so excited. After asking why the glee, she told me she bought her dream home at the age of 26. With three bedrooms, 2 and ½ baths and granite counter tops, she had the home she always wanted.

The generation today wants things bigger and faster than my generation. I see this in other things as well: the perfect job, the best computer or phone, and new things instead of used.

Wanting bigger and faster is not wrong, it is just a change in thinking.

But for me, that  house on Carlsbad was the start of little things that ended up very big.

John Marklin

www.marklinfinancial.com

On our trip back from Hawaii, Debbie and I enjoyed an in-flight movie Courageous. The movie, about four police officers each coming to grips with the challenges of fatherhood, struck a chord with me.

-My father was a courageous man. He stood up mainly for his belief in the Catholic faith. Never wavering to anyone challenging his belief in God.

-My mother’s father was a courageous man. A strong man who was committed to his family and his trade as a carpenter. In his retired years he devoted much of his time volunteering on special handyman jobs needed in our parish.

-My mother’s brothers were courageous men. All served in the military and three gave their lives for our country.

-My friends Steve Martin and Dave Bolduc are courageous men. They devote much of their time volunteering and leading the Richmond Boys-to-Men organization into becoming a change agent for boys at risk.

-My friend, Father Dan O’Rourke. A Montana priest and mentor who has taught me the power of listening over speaking and observing the good in people.

I am sure you know of courageous men in your life. Men who do the uncommon. Those who do what they say they will do. Those men who are accountable for their actions blaming no one but themselves for their failures.

Take a moment to reflect and think of the courageous men in your life. And pray that you can live like they do.

John Marklin

www.marklinfinancial.com

Debbie and I are in the Hawaiian islands with our good friends from St. Louis, Barb and Kevin Smith. We spent our first 3 days on the island of Oahu and devoted a whole day to sightseeing on Pearl Harbor.

We did the customary trip to see the sunken battleship USS Arizona, then a tour of the USS Missouri (Mighty Mo) where the war with Japan officially ended with the Japanese surrender. Next stop was a tour of the submarine USS Bowfin.

We ended the day with a tour of the US Veteran’s grave site (known as the “Punch Bowl”) where thousands of the deceased veterans of the wars in the Pacific were buried. We were on a mission to find the grave site of an uncle, my mother’s brother Richard Grosch, who was killed by a Japanese sniper on Tinian Island. We found the grave site, dusted it off, and gave remembrance to Richard and all the men and women who lay at rest in the Punch Bowl defending the American cause. The above photo is of his tombstone and the majestic tree that adorns his grave.

My mother had three brothers die within two years during the war (two in service and one right before enlisting). She occasionally told us stories about her brothers whom I never met. My mother has never been to Hawaii and thus never seen the grave. Hopefully she will feel some sense of finality now that I can bring a photo of Richard’s grave back to her.

December 7, 1941, was a day that will “live in infamy”. The rally cry from the Americans to defend our country after that brutal assault by the Japanese on Pearl Harbor was a signature event. It showed the strength, resiliency and commitment Americans had when our backs were against the wall.

Our tour guide on the Mighty Mo told of a story where a Japanese Kamikaze pilot tried to blow up the ship. The pilot was shot down just in time and diverted the plane which brushed the side of the battleship. The pilot was killed when his plane went into the sea. His body was recovered and the Captain of the USS Missouri ordered a full Japanese burial for the fallen man. He said this man was fighting for his country, no different from our men and women fighting for our country, and he deserved a proper burial. The US sailors later constructed a Japanese flag to be used in the burial ceremony and dropped it into the sea along with the body.

The captain of the Mighty Mo showed another side of America, compassion and dignity. It made me proud to be an American.

John Marklin

www.marklinfinancial.com