Monday, July 5, 2010

China Fears Warming Effects of Consumer Wants


GUANGZHOU, China — Premier Wen Jiabao has promised to use an “iron hand” this summer to make his nation more energy efficient. The central government has ordered cities to close inefficient factories by September, like the vast Guangzhou Steel mill here, where most of the 6,000 workers will be laid off or pushed into early retirement.

Already, in the last three years, China has shut down more than a thousand older coal-fired power plants that used technology of the sort still common in the United States. China has also surpassed the rest of the world as the biggest investor in wind turbines and other clean energy technology. And it has dictated tough new energy standards for lighting and gas mileage for cars.

But even as Beijing imposes the world’s most rigorous national energy campaign, the effort is being overwhelmed by the billionfold demands of Chinese consumers.

Chinese and Western energy experts worry that China’s energy challenge could become the world’s problem — possibly dooming any international efforts to place meaningful limits on global warming.

If China cannot meet its own energy-efficiency targets, the chances of avoiding widespread environmental damage from rising temperatures “are very close to zero,” said Fatih Birol, the chief economist of the International Energy Agency in Paris.

Aspiring to a more Western standard of living, in many cases with the government’s encouragement, China’s population, 1.3 billion strong, is clamoring for more and bigger cars, for electricity-dependent home appliances and for more creature comforts like air-conditioned shopping malls.

As a result, China is actually becoming even less energy efficient. And because most of its energy is still produced by burning fossil fuels, China’s emission of carbon dioxide — a so-called greenhouse gas — is growing worse. This past winter and spring showed the largest six-month increase in tonnage ever by a single country.

Until recently, projections by both the International Energy Agency and the Energy Information Administration in Washington had assumed that, even without an international energy agreement to reduce greenhouse-gas emissions, China would achieve rapid improvements in energy efficiency through 2020.

But now China is struggling to limit emissions even to the “business as usual” levels that climate models assume if the world does little to address global warming.

“We really have an arduous task” even to reach China’s existing energy-efficiency goals, said Gao Shixian, an energy official at the National Development and Reform Commission, in a speech at the Clean Energy Expo China in late June in Beijing.

China’s goal has been to reduce energy consumption per unit of economic output by 20 percent this year compared with 2005, and to reduce emissions of greenhouse gases per unit of economic output by 40 to 45 percent in 2020 compared with 2005.

But even if China can make the promised improvements, the International Energy Agency now projects that China’s emissions of energy-related greenhouse gases will grow more than the rest of the world’s combined increase by 2020. China, with one-fifth of the world’s population, is now on track to represent more than a quarter of humanity’s energy-related greenhouse-gas emissions.

Industry by industry, energy demand in China is increasing so fast that the broader efficiency targets are becoming harder to hit.

¶Although China has passed the United States in the average efficiency of its coal-fired power plants, demand for electricity is so voracious that China last year built new coal-fired plants with a total capacity greater than all existing power plants in New York State.

¶While China has imposed lighting efficiency standards on new buildings and is drafting similar standards for household appliances, construction of apartment and office buildings proceeds at a frenzied pace. And rural sales of refrigerators, washing machines and other large household appliances more than doubled in the past year in response to government subsidies aimed at helping 700 million peasants afford modern amenities.

¶As the economy becomes more reliant on domestic demand instead of exports, growth is shifting toward energy-hungry steel and cement production and away from light industries like toys and apparel.

¶Chinese cars get 40 percent better gas mileage on average than American cars because they tend to be much smaller and have weaker engines. And China is drafting regulations that would require cars within each size category to improve their mileage by 18 percent over the next five years. But China’s auto market soared 48 percent in 2009, surpassing the American market for the first time, and car sales are rising almost as rapidly again this year.

One of the newest factors in China’s energy use has emerged beyond the planning purview of policy makers in Beijing, in the form of labor unrest at factories across the country.

An older generation of low-wage migrant workers accepted hot dormitories and factories with barely a fan to keep them cool, one of many reasons Chinese emissions per person are still a third of American emissions per person. Besides higher pay, young Chinese are now demanding their own 100-square-foot studio apartments, with air-conditioning at home and in factories. Indeed, one of the demands by workers who went on strike in May at a Honda transmission factory in Foshan was that the air-conditioning thermostats be set lower.

Chinese regulations still mandate that the air-conditioning in most places be set no cooler than 79 degrees Fahrenheit in the summer. But upscale shopping malls have long been exempt from the thermostat controls and have maintained much cooler temperatures through the summers. Now, as the consumer economy takes root, those malls are proliferating in cities across China.

Premier Wen acknowledged in a statement after a cabinet meeting in May that the efficiency gains had started to reverse and actually deteriorated by 3.2 percent in the first quarter of this year. He cited a lack of controls on energy-intensive industries, although the economic rebound from the global financial crisis may have also played a role.

Global climate discussions, in pinning hopes on China’s ability to vastly improve its efficient use of energy, have tended to cite International Energy Agency data showing that China uses twice as much energy per dollar of output as the United States and three times as much as the European Union. The implicit assumption is that China can greatly improve efficiency because it must still be relying mainly on wasteful, aging boilers and outmoded power plants.

But David Fridley, a longtime specialist in China’s energy at the Lawrence Berkeley National Laboratory, said that the comparison to the United States and the European Union was misleading.

Manufacturing makes up three times as much of the Chinese economy as it does the American economy, and it is energy-intensive. If the United States had much more manufacturing, Mr. Fridley said, it would also use considerably more energy per dollar of output.

“China has been trying to grab the low-lying fruit — to find those opportunities where increased efficiency can save money and reduce carbon-dioxide emissions,” said Ken Caldeira, a climate change specialist at the Carnegie Institution for Science in Stanford, Calif. “It is starting to look like it might not be that easy to find and grab this fruit.”

Sunday, July 4, 2010

Breaking into Network Marketing Anew


A different way to break into network marketing.

Most NM companies offer a new distributor several different priced product packages. Each package is normally associated with a higher level of commission. Here's how it goes:

If you get the $100 package, you'll earn 5% commission on any (new) orders you bring in.

If you get the $300 package you'll earn 10%....

If you get the $500 package you'll earn 15%...
Nothing wrong with that. Real estate sales works like that too. The more you sell, the higher your commission percent usually is.

Did you know, however, that a large number of new sign-ups do not buy the bigger packages because of future commissions?
They buy the bigger packages because they want 1) the better product pricing that normally gets them and/or 2) they want "to try a variety of the products."
Bulk buying means better prices and more of it. That's why big box stores like Costco or Sam's Club are so popular. Most people who shop there do not buy to resell. Do you?
Bottom line: Many 'just customers' might well buy the bigger packages...AS CUSTOMERS. I'm helping the reps in a neat little company do just that - customers are buying the packages normally reserved for "sellers" but they get them as customers. And they have no intentions, right now, of selling the product.
I'd just surveyed a group of women about why they bought the bigger packages when they first signed up, and most of them told me they got the bigger "recruiter" packages not to sell or recruit, but because they wanted the better price of a bulk package. Or to get more variety if they liked it. So that they could get really familiar with the product first.

Of course we don't pressure these folks to start selling, because that's not why they got the big package. They'll do that when they feel ready and have the confidence that using the products will give them.
The good news: This bulk buying trend shows that some NM companies have products people like so much they want to buy them in bulk, whether they sell them or not.
This is big for the NM industry. The perception of our industry and its products has been, for decades, that the only people who buy NM products are the ones selling them. Not a good thing.

For some companies at least, this negative perception is changing. Finally.

P.S. If you're interested in classes that teaches you language for such stuff, email me here. Or, check out the Customer Enchilada or the Art of Recruiting courses here.

Do Smaller Goals Get Better Results?

Many folks come into NM boasting about the big monthly incomes they are going to earn. If that works for you, i.e. that keeps you motivated to keep on doing the business each day, do it. But for most people, big numbers don't keep them going. Could it be that deep down their brain just doesn't believe the big number?

Sue and Cheryl are currently multi-million dollar earners with their companies. Both started out 18-20 years ago, with VERY small goals. One wanted just enough money so she could buy her own nylons without having to ask her penny-pinching husband (3rd story), and another wanted just an extra $150 per month. Neither in her wildest dreams expected to end up a millionaire.
Women aren't the only ones who use relatively small goals to get their brain to believe they can do the thing...
At the U.S. Open Golf tournament this weekend, two top ranked players, Tiger Woods and Phil Mickelson, BOTH said that their goal for the tournament was just to finish at "par" - i.e. not require more shots than what was par for the course there. They did NOT predict that to reporters that they expected win. Or explode. Or leave the others in the dust. They both finished in the top 5 (top 5 in the world).
When I set smaller, incremental goals, my brain not only believes I can, but it relaxes enough so I get the best performance out of myself. Funny how setting smaller goals brings out the confidence you need to do your best.

What's your experience?

P.S. We've all heard "Whatever you believe, you can achieve." Perhaps the strategy of setting 'goals you you can believe in' is a way for some people to succeed - big. Think?

Lady Gaga's Secret


Her secret? Her attitude.

Lady Gaga, perhaps the top pop star today, installs it in herself each day:

"When I wake up in the morning, I feel just like any other insecure 24-year-old girl," she says. "Then I say, 'Bitch, you're Lady Gaga, you get up and walk the walk today.' "

So, who are you? Which walk are you walking today?

P.S. It's what YOUR brain can believe that matters. Do whatever THAT is. Little steps work, for many folks. Bigger goals work too, BUT IF and only if your brain can believe the bigger picture. So do what works for YOUR brain, not someone else's. Who cares how you get there, as long as you DO get there?

Story of Mad Money


It all started in the 1920s...

Mad money was money carried by a woman in case she wanted to return home from a date without her escort, usually because she was angry about the escort’s unwanted sexual advances.
While the amount of mad money is small, what it represents - independence from others - is not.

Find a woman who's mad about being financially dependent on people or situations she doesn't like. Show her how to free herself from that dependence with just a few dollars extra per month (her mad money). For most women who've never had a business, mad money is a believable goal. And who knows - it's possible that what started out as a mere mad money might balloon.

That's what happened for Sue and Cheryl.

Do you know any mad woman who might be drawn to the possibility of earning some mad money of her own?