Bank of America started it all with their ridiculous $5/month fee to access your own cash by using a debit card and customers reacted by moving to credit unions or online banks like PerkStreet or Ally Bank. Verizon followed up with a fee for paying your cell phone bill online and customers cried “FOUL” so loudly that the company quickly backed down. It seems that companies, like governments, are obsessed with finding new ways to extract additional cash from customers and citizens.

There’s nothing wrong with getting your customers to give you more money … so long as you provide them with more value. Where these two giants erred was that the customer got nothing in return. Customers will gladly fork over more cash when the product or service warrants it. But when a big company tries to squeeze blood from a turnip (it’s a Southern saying!), well, that dog don’t hunt (another Southern saying!).

These two situations made me think about other potential epic fails giant corporations conceivably could use to pad their bottom line. But if you’re an officer in one of these companies, use these potential “fees” at your own risk!

Potential epic fail fees

• Walmart – a $2 fee for using their parking lot for 15 minutes … additional hours are 50 cents each
• The Home Depot – a $3 fee to get home improvement advice … $25 for advice that actually works
• Chase Bank – a $4 fee to breathe the air conditioning in their branches
• AT&T Wireless – one cent fee every time you use the “4″ key on your phone
• State Farm Homeowner’s Insurance – $250 to file a claim
• Olive Garden – a $1.25 fee for a napkin and 50 cents for utensils or $2 for both!
• TicketMaster – a fee for “will call” tickets, a fee to email tickets, and a fee to snail mail your tickets (oh, wait … )
• ExxonMobil – a $3 fee to use their gas pumps
• Walgreens – a $5 fee to have your prescription filled by a real pharmacist
• Johnson & Johnson – a $1 fee for the security packaging on over the counter medications
• The Gap – a $2 fee to use their changing rooms
• Starbucks – 50 cents for one of those little cup jackets that prevents hand burns
• Foot Locker – $1 for shoelaces
• Kroger – $2 (non-refundable) to use a shopping cart
• McDonald’s – 75 cents for each child to use PlayLand

All this is, of course, tongue in cheek, but would any of these “fees” surprise you?

Why do companies add fees without adding value?

Companies add fees without adding value because

1. They’re low on cash
2. They’re programmed to generate more and more profit
3. They’ve grown out of touch with their customers
4. The fee is so small for each individual that the company believes no one will notice
5. They’ve pushed themselves into a cost structure that isn’t maintainable

That last one is why banks like PerkStreet is growing by leaps and bounds. With no branch costs, they’re able to offer outstanding rewards and benefits that other banks just cannot match.

There is NO LIMIT to the rewards you can earn with a PerkStreet checking account!

Do you know what it costs to operate a branch bank? I formerly worked at a very large bank and I can tell you, the expenses were huge. First there’s payroll for three to six tellers, two or three loan officers, an assistant branch manager, the branch manager, and possibly a security guard. Then there’s the cost of building and maintaining the building, it’s electronics, it’s computers, the vault, the drive through windows, the insurance, the landscaping, the ATM machine, utilities, taxes, runners to pick up the paperwork, office supplies, and then there’s the bad loan expense.

By operating primarily online, PerkStreet avoids many of these expenses and by doing so, can offer you and other customers the outstanding rewards and perks that leave other banks just shaking their heads in disbelief.

Does PerkStreet have any fees?

Of course. But their fees are very few and they make sense. There are fees associated with overdrawing your account or bouncing a check, as well as stop payment fees and wire transfer fees. There’s also a fee for using an ATM outside of their network but with over 42,000 free ATMs, why would you?

You can avoid most PerkStreet fees by simply:

• Signing up for overdraft protection
• Using your account at least once per month
• Staying inside their 42,000+ strong ATM network

When you consider that the average family can easily earn $600 or more each year in cash back rewards without incurring any additional debt, PerkStreet just makes good sense.

Sign up for PerkStreet’s checking account here!

Links to products or services may be affiliate links. See my disclosure policy on the site or on my About page.

Today’s post is by contributor, Tom Walker, writer and product reviewer with CartridgeSave.co.uk, an online store selling printer ink cartridges.

Operating a business without a written budget is comparable to building a house without a blueprint. Even the least experienced business owner can draft a meaningful business budget that will become a useful financial guide throughout the fiscal year. Budgeting does not have to be difficult or dreaded, but instead can be embraced as a planning exercise for anticipated growth and new business ventures. Embrace these tips to draft a budget and gain control over business expenditures.

Drafting your business budget has two key components:

• Gathering the information you need to write it
• Using it to control your finances

How to write your business budget

1. Use budget software

Many free online budget programs exist that are useful in learning the practice of establishing a business budget. Some are question-driven and allow for detailed input and then generate a useful spending plan. All amounts must be accurate for the plan to be meaningful against the actual business operation. Research will be required to find the information needed by the program.

2. Calculate operating expenses

There are basic percentages used to construct a budget when the business has no actual financial history to use for reference. Employee expenses, facility costs, and utility use can be estimated as a certain percentage of the overall budget based on the industry standard. Accountants will often compute these percentages and raise concern if any one of these major categories strays from the norm.

3. Refer to checking account statements

Bank statements are very useful tools for examining every purchase and expenditure. Budget amounts can be constructed from previous months and years of business. Create a spreadsheet that shows actual monthly expenditures and build a monthly budget. Annual budget amounts are only guidelines that must be broken down into month-by-month operating limits.

4. Estimate income

Nearly every business experiences seasonal lulls, so income should be estimated on a monthly basis. When income wanes in the same month that expenditures rise, some savings must exist for the company to continue to operate. Income estimates will place visual emphasis on the months that will require special consideration.

5. Evaluate equipment

During the budget exercise every year, all equipment must be evaluated for possible replacement. Vehicles, computer equipment, and all equipment used by employees are essential to revenue generation. Budget amounts for repair and replacement will reduce the risk of unanticipated capital expenditures. Any request for new equipment should be documented with prices and associated expense estimates.

6. Assess existing inventory

Companies have sales inventory, supply inventory, or office supplies that remain on the shelves throughout the year. When cash flow is consistent, too much inventory does not challenge the operation. Close evaluation of every type of inventory will reveal stagnant sales inventory that must be sold to redeem the cash. Supplies allowed to expire are a direct waste of money. Every inventory must be managed at the lowest possible level without impeding the operation.

Control business finances

Operating the business within budget can become a way of life if some simple guidelines are implemented soon after the budget is written.

7. Include employees in cost reduction efforts

Employees will participate when rewards are implemented for their creative contributions to reducing costs. If a business owner can spend $50 on a gift certificate for an idea that saves $1000, he would be wise to do so. All employees enjoy being recognized and included in the improvement of the workplace.

8. Consider selling unused assets

When the equipment review is performed, list all assets that are not utilized and consider selling them to another business. If a loan exists on the asset, selling the piece of equipment will also eliminate the monthly loan payment. Even selling a piece of heavy equipment for the scrap metal is better than having a hazard sitting on the property.

9. Combine employee roles

Employees who resign should not be immediately replaced unless the role is unique within the business and generates revenue. Create opportunity for existing employees by asking for internal applications to fill the role or combining the vacant role with another role. Reevaluate salary and compensation to retain the best employees and operate with fewer people.

10. Conduct monthly budget reviews

At some point within every 30-day period, conduct a formal budget review against the actual expenditures in the previous month. Look at the coming 90-day period and anticipate anywhere that expenses are going to overwhelm income in the same month. Make adjustments to cover any surprise expenditures and keep good notes for the next annual budget exercise.

Whether the business is just starting out or has been around for years, the basic budgeting process is the same. Just as the blueprint is the guide for building a house, the budget is a guide for financial decisions throughout the year. Creativity is important when addressing needs in lean times. Many business challenges can be addressed without spending money. As revenue increases, maintaining a budget is even more important to control expenditures and grow the business.

Links to products or services may be affiliate links. See my disclosure policy on the site or on my About page.

Ever wonder how much the average employee “costs” their employer? Most estimates are in the two to three times annual salary range but employees, particularly new employees fresh from the interview and job offer process, rarely know how much this new employer is counting on performance.

Unless you’ve actually run a company and hired employees, it can be difficult to fathom how much an employee costs an employer. The costs can be significant and unless that employee is able to pull his or her weight by producing revenue or something of value, the employer won’t, and shouldn’t, hire him or her.

What does an employee “cost?”

There are a myriad of costs associated with hiring anyone these days. Some of these are one time costs and some are ongoing. Regardless, they have to be paid by someone. Among them are:

Recruiting

Advertising for the position, identifying candidates, reading resumes, making phone calls, transportation, interviewing, meals, hotel expenses, use of vehicles.

Salary

Straight salary, commissions, signing bonuses, payroll processing.

Human Resources

Paperwork to set up the employee, training expenses, background checks, drug screens.

Space

Office space, cost of furnishings and furniture, cubicle costs along with repairs and maintenance.

Equipment

Company car, computers, telephones, cell phones, copiers, printers, printer ink, and other equipment necessary to do the job. Be sure to add repairs and maintenance.

Benefits

Retirement matching, costs of maintaining the retirement fund, life insurance, health insurance, disability insurance, dental plans, dependent care assistance, tuition reimbursement, vacation, sick pay, paid holidays, Holiday bonus (ham, turkey, etc), promotional gizmos and gadgets with the company’s logo, etc.

Taxes

Federal, state, and local taxes, unemployment taxes, FICA (Social Security), Medicare, workman’s compensation all must be calculated, processed, and paid.

Bad Hire Costs

They happen. Unfortunately, studies indicate that a bad hire can cost the employer between two and three times the employee’s annual salary.

Separation Costs

Firing or losing an employee can be as costly as hiring one. Litigation, attorney costs, funds spent to defend the company’s position.

Soft Costs

Soft costs are very difficult to quantify.  The opportunity cost of time spent managing employees is often overlooked and generally underestimated. A full time employee wants someone to design a career path, conduct regular, performance appraisals, and provide coaching and counseling sessions. Some experts estimate that as much as 20% of a manager’s time is spent in these areas.

Other soft costs could include mistakes made by employees that don’t warrant termination but must be paid nonetheless, performance reviews, meetings, and other difficult to quantify costs.

Bottom Line

It’s a wonder that more employers don’t use temporary services and consultants.

If you provide more value than you cost your employer, you are golden. The important thing is to always know the value you provide, quantify it, and keep a record of your accomplishments.

Links to products or services may be affiliate links. See my disclosure policy on the site or on my About page.

UPDATE: The Inner View of Your Interview is now ready for purchase!

Click HERE to purchase your copy and use coupon code “save10″ to save $10 immediately! Be sure to APPLY the coupon before you checkout!

—

Within the next few weeks (maybe even days?) my eBook on job interviewing will be finished and available for purchase here on The Wisdom Journal. I’ve been working on this project for almost a year now and I believe I’m finally ready to stop editing! Now if I could just get my editor to give her final stamp of approval! Hint-hint.

The Inner View of Your Interview is written for job seekers from the perspective of a Human Resources professional. It examines the top 100 questions asked by interviewers but applies a unique twist – not only does it give you a framework for crafting the best answer, it also warns you of the worst answers and the traps that interviewers set for job candidates. But it goes much deeper than even the best and worst answers – The Inner View of Your Interview clues you in on why the question was asked in the first place.

One of the keys to understanding human nature is knowing why people think a certain way and The Inner View of Your Interview uncovers the motivations behind the top interview questions asked by interviewers. It’s like seeing your interview from inside the mind of the person asking the questions.

I’ve written quite a lot on job interviewing, mostly because I majored in Human Resources Management before getting my MBA. Knowing some of the ins and outs of HRM as well as the business principles I learned in graduate school helped me write this book.

Here are a few of the stats:

• 80+ pages of actual content (that’s huge for an eBook)
• 35,000+ words
• 100 actual interview questions dissected and examined
• Dozens of examples on what to say and how to say it
• FREE bonus chapters on handling illegal questions
• FREE bonus chapter on the new rage: behavioral interviewing
• Worksheet to help you uncover your motivational Success Factors
• Worksheet to help you find open positions through networking
• Yet another FREE bonus chapter on background checks

Yes, I wrote this book for the job seeker, but interviewers can also benefit. If you interview people for almost any type of position, you can use these questions as a template to help you better prepare to be on the question side of the desk. And yes, all of the questions are legal – except the ones listed in the “illegal question” section!

If you know anyone who is:

• Unemployed
• Laid off
• Recently graduated
• Searching for a job
• Wanting to make a job change but fearful of interviewing
• Confused with how to “prepare” for an interview
• Searching for qualified help to fill a position

This is the perfect gift for them.

I’ve used a career and interviewing coach before.

I paid over $7,000 for less than half the information you’ll discover in The Inner View of Your Interview. Not only that, but the information is presented in an easy to read format and in language anyone can understand.

The Inner View of Your Interview will retail for $29.99 but I’m offering an instant $10 off during the launch phase to those who are interested. If that describes YOU, just drop me a line on my contact form and I’ll send you the coupon code when The Inner View of Your Interview is released.

Many more eBooks to come. Future books will include:

• Home Organization
• Building a deck (a Spring 2011 project)
• Saving for college
• Retirement planning beyond the finances
• Grant writing for fun and profit

The eBook cover design was by the master – Peter Anderson from Logos for Websites. He is awesome!

Links to products or services may be affiliate links. See my disclosure policy on the site or on my About page.

Preparing for a layoff isn’t anything anyone wants to do, but with unemployment just under 10 percent, the Federal Reserve taking steps to devalue our currency by up to 20 percent, and greater numbers of businesses outsourcing jobs to cheaper foreign alternatives, making preparations for a layoff is important for even the most secure jobholder. Even with the proliferation of severance lawyers and unemployment attorneys, layoffs have been numerous over the past few years.

If you get the sense that layoffs are coming to you or to your department, be prepared to brush up on your negotiation skills, particularly as they relate to negotiating a severance package. It’s always best to work your severance package out beforehand, but you have very little to lose by preparing for negotiations ahead of time. And don’t fall for the “layoff insurance” scams that are out there since most of them are just gimmicks.

10 steps to take to prepare for a layoff

1. Review your health insurance

Make sure you understand what your health insurance plan covers, and calculate how much it costs to continue your employer’s group insurance coverage through the COBRA. Be aware that under this coverage, you pay both the employer and employee shares of the premiums but at least you can continue the same coverage.

2. Beef up your emergency fund

It is CRITICAL that you set aside enough money in an emergency fund to cover your basic living expenses for three to six months … possibly as many as eight to twelve. These are your basic living expenses only – housing, food, basic insurance, transportation. Consider stashing this money in an online savings account or a money market account.

3. Slashing your spending NOW

Even if you’re only mildly concerned about a potential layoff, avoid spending on items and services you don’t truly need. Doing so will make it even easier to build up that emergency fund once and for all. Monitor your expenses for a few weeks or a month so you can see where you can realistically cut back. Then cut, cut, cut!

4. Talk about money with your spouse

A layoff — or the possibility of one — can put the spotlight on such differences you have with your spouse concerning your financial goals. Talk honestly and set goals together about how to cope as a team in the coming weeks and months. You’re going to need each other and you need to be pulling your financial wagon in the same direction.

5. Network like crazy

If you sense a layoff is around the bend, think of all your friends, colleagues and contacts you’ve ever made in your industry, and start reaching out to them now. Ask whether they’re aware of any openings, future openings, opportunities, or potentially useful contacts in your field. If you’ll always make a point of getting to know as many people as you can in your line of work, you’ll stand a better chance of finding work quickly if you are laid off.

6. Get disability insurance before you lose your job.

Personal disability insurance is important and it’s important to secure coverage based on your current level of income. By applying for disability coverage while your income is at its highest, you can supplement the group disability insurance you may have through your job. If you buy additional coverage on your own, you can take it with you when you change jobs, and it may be tax-free (check with your tax advisor). Comprehensive disability coverage can be very costly, but you can find accident only disability policies for as little as $25 – $35 a month.

7. Get higher education while it’s free … or at least cheap

If you work for an employer that helps cover education costs at schools in your area, take advantage of it while you can. Tap into that resource to improve your skills and polish your resume. If you work for a large company that offers a “Corporate U,” remember that hundreds of corporate university classes have been accredited, meaning you could get college credit for them if you decide to finish your degree while you’re laid off.

8. Get rid of any high-interest debt

Before a layoff ever strikes, make sure you’re not letting debt hang around for months on a high-interest credit card. Transfer that debt to cards with lower interest rates, or consider paying it off with proceeds from a Lending Club low interest loan.

9. Get a line of credit while you’re still employed

If you own a home and you can see that a job loss might be coming, consider opening a home-equity line of credit just in case. Don’t use money at all; just know that it’s there in case a serious emergency occurs. You may find that it’s harder to arrange for a line of credit in the current economic environment, but it’s still worth trying. Just remember that failing to pay an equity line could mean you lose your home.

10. Use credit cards with extreme caution

If you have a real concern that a layoff might be on the horizon, be extra vigilant with credit. A credit card can keep you in denial about your true financial situation because the money is so easy to use. Accumulating debt will only add to your stress — and you don’t need any more stress, whether you ultimately lose your job or not.

Links to products or services may be affiliate links. See my disclosure policy on the site or on my About page.