jedcstuff

2008-12-06

Parable-communication technique & business investment dividends

The Bible uses some time-proven communication techniques that can be fun to use in one's current living awareness. One is the Psalm-communication technique, where each sentence is immediately followed by a redundant sentence, which says the significant thing of the first sentence through saying it a different way or contrasting with opposite, for example.

Another communication technique that works well down through time is the parable-communication technique. Use of the parable-communication technique has some esteemed users in the past; so in using the technique, one is in good company. Not all parables communicate something that is comfortable to hear. Some scientists might say that it is a subset of "morphological equivalences"; but, no matter. During the past election campaign rivalries, there were quite a few uses of the parable technique floating around, mostly to ridicule the opponent; so, there is much precedent for its use in many ways.

In recent times, I have been struggling to understand our economic system, how it works, explaining it to myself with models that simplify and make a little sense to me. Given that I consider myself so poor a businessman as to not be able to sell a tall glass of cool clear water for a dime to a rich man dying of thirst in the desert; in fact, I probably couldn't give it away for free - witness my success in my KESTS to GEO and Pull-Band Commute System efforts of recent decades - I have a lot to learn. The model is continually evolving whenever I happen upon some news item that seems to fit with a missing piece of the puzzle. The model seems comprehensible to me in the form of a parable; so here is one such, that explains the concepts of profit, dividend, value-added, and usefulness-to-customer.

An enterprising businessperson decides to form a business, a corporation. It will have investors; each investor is to invest in increments of $100, and is guaranteed at least a 10% dividend each month, so that in the first 10 months, the investor will have gotten back the $100 invested, and from there on, it is all extra; and they can always sell back their $100 investment to the company and get the original investment back. Part of the business agreement is to be a customer membership; each week, the corporation will send with free shipping, a priority mailed package to the customer; each package of the product costs $25. The customers are part owners in the corporation via their investments and monthly dividends paid to them, plus they are owners of the product, too, the more product on hand, the higher the feeling of ownership. Now, this corporation has some business expenses, such as management, which consists of the lady of the house; and one employee, which consists of one rabbit. Management performs such duties as providing supplies for the employee and providing health care for the employee. The product is the litter the rabbit makes, converting timothy hay and kibbles into fertilized rabbit pen litter, which is the company product. The fully processed fertilized litter is put into a sealed ziplock bag in one pound (or more) quantities, and is shipped out weekly to the owner-customers of the corporation, per the business agreement. The shipping cost is a business cost, of say $4 per package; and the rabbit hay and kibbles cost maybe another $5 per week per pound produced of product. So each owner customer each week pays $25 per package of product delivered to them; and each month they get a corporate investment dividend of $10, a nice $120 dividend received per year of investment of a mere $100 in the corporation. So the employee is paid in the supplies given, housing provided, and health care given. In return the employee is required to produce corporate product. Management needs also to perform duties such as scooping up the product, packaging it in ziplock bags, weighing the product to verify it is at least 1 pound in weight, placing product in shipping containers, and getting product to the shipper. Management salary is the return of $25 per package-week less the supplies expense of $5 per package-week and providing health care for the employee rabbit. The employee provides value-added to the timothy hay, kibbles, fresh litter, and tap water, by converting it into company product of juicy fertilized litter; the management salary is thus $25 - 5-4 = $16 per package-wek. However, the company must pay the investor-customers a 10% dividend each month, $10 for each investor-customer's $100 invested; since each investor-customer is required to purchase one package of product per week, that is $100 of product they buy each month and they receive $10 in return from their investment each month, plus they have also gotten four packages of company product, a nice increase to their accumulated wealth, increasingly stacked high in a corner, showing how wealthy they are getting to be, owning more and more product that they are even getting paid dividends of $10 per $100 of their investment. So the company manager each month has received income of $25 per package for 4 packages at $16 profit per package, or 4 times $16 = $64 per package-month, from which $10 dividend must be paid to the investor-customer each month, thus the manager earns $54 per package month for performing management work. Everybody is a winner: the manager receives income of $54 per package month for performing shopping and facilities provision and health care management for the employee rabbit; the employee rabbit wins because of the fresh litter and clean cage, plenty of food and water and health care when needed; and the investor-customers win by receiving a good dividend return on their investment, a guaranteed earnings of 100% return every ten months, and also has an impressive collection of product to proudly show as increasing possessions to show their increasing wealth in a substantial fashion.

Now, a few of the investor-customers have found a use for the product, in that they put a package of product in each of the houseplant root containers, enabling the plants to grow better. This is fine until the corporation decides to also get a second employee, this time a cat, in addition to the original employee rabbit. The cat produces a different kind of litter, however, but it is company product and gets shipped out in some of the packages of product each week. This is fine for most investor-customers, except those who have been using the purchased company product in the house plant planters, finds the new product is not suitable for that purpose; but, no matter. There is the great satisfaction of being an investor that is earning a lot of investment dividends, and also has a lot of product stacked in the corner to show how wealthy they are, increasing possessions.

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