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And then there’s Mississippi. A 389-page audit released in 2020 found that money overseen by the Mississippi Department of Human Services (DHS) and intended for the state’s poorest families was used to hire an evangelical worship singer who performed at rallies and church concerts; to purchase a Nissan Armada, Chevrolet Silverado, and Ford F-250 for the head of a local nonprofit and two of her family members; and even to pay the former NFL quarterback Brett Favre $1.1 million for speeches he never gave. (Favre later returned the money.) There’s more. DHS contractors squandered TANF dollars on college football tickets, a private school, a twelve-week fitness camp that state legislators could attend free of charge ($1.3 million), and a donation to the University of Southern Mississippi for a wellness center ($5 million). Welfare funds also went to a ministry run by former professional wrestler Ted DiBiase—the Million Dollar Man and the author of the memoir Every Man Has His Price—for speeches and wrestling events. DiBiase’s price was $2.1 million. Brett DiBiase, the Million Dollar Man’s son, was serving as deputy administrator for Mississippi’s Department of Human Services at the time. He and five others have been indicted on fraud and embezzlement charges.[15]
Matthew Desmond (Poverty, by America)
Premium Pricing Improves Commitment We never want our clients to be in situations where it is easy for them to decide to not take our advice. Any time someone hires an outside expert, the ultimate outcome he seeks is to move forward with confidence. What is the value of good advice not acted upon? Yes, it is our job to tell him what to do, but that is often the easy part. We are equally obliged to give him the strength to do it. We are not meeting our full obligations to our clients when we make recommendations that they find easy to ignore. The price we charge for such guidance should be enough that our clients feel compelled to act, lest they experience a profound sense of wasted resources. There must be the appropriate amount of pain associated with our pricing. This implies the need for our pricing to change as the size of the client changes. Larger organizations need to pay more to ensure their commitment. Larger Clients Get Greater Value Another reason larger clients must pay more is they derive greater financial value from similar work we would do for smaller organizations. To charge John Doe Chevrolet what we would charge General Motors for the same work would be irresponsible of us. The larger client pays more to ensure his commitment to solving his problem and to ensure his commitment to working with us – and he pays more because we are delivering a service that has a greater dollar value to him. Reinvesting in Ourselves Of all the investment opportunities we will face in our lives, few will yield returns greater than those opportunities to invest in ourselves. Price premiums give us the profit to reinvest in our people, our enterprise and ourselves. The corporations that we most admire are the ones that invest in research and development. We must follow their path. While others get by on slim margins, winning on price, we will use some of our greater profit margins to better ourselves and put greater distance between our competition and us. Better Margins Equal Better Firms and Better Clients On these many levels, charging more improves our ability to help our clients and increases the likelihood that we will deliver high-quality outcomes. It allows us to select the best clients – those that we are most able to help. Like leaning into the discomfort of money conversations, charging more might not come naturally or seem easy, but it is better for everyone, including the client, and so this too we shall learn to do with confidence.
Blair Enns (A Win Without Pitching Manifesto)
his peers have expressed considerably more skepticism. “There is nothing Tesla [can] do that we cannot also do,” Fiat Chrysler CEO Sergio Marchionne said in June 2016. Two years earlier, he had asked customers not to buy the Fiat 500e electric car, because the company lost $14,000 on the sale of each one. Fiat would sell the minimum number of electric cars needed to meet government mandates and “not one more,” he said. In April 2016, Marchionne continued that theme in an interview on the sidelines of his company’s annual meeting, this time responding to the price of the Model 3. If Musk could show him that the car would be profitable at the $35,000 price tag, Marchionne said, “I will copy the formula, add the Italian design flair, and get it to the market within twelve months.” The German automakers have been even more dismissive. In November 2015, Edzard Reuter, the former CEO of Daimler, called Tesla a “joke” and Musk a “pretender,” suggesting in an interview with a German newspaper that Tesla didn’t stand up to serious comparison with “the great car companies of Germany.” Daimler, BMW, and Volkswagen were slow to accept that Tesla could one day challenge their market dominance. “German carmakers have been in denial that electric vehicles can create an emotional appeal to customers,” Arndt Ellinghorst, an automotive analyst at Evercore ISI, told the Los Angeles Times in April 2016. “Many still believe that Tesla is a sideshow catering to a niche product to some tree-hugging Californians and eccentric US hedge fund managers.” GM wasn’t quite so blasé. In 2013, then CEO Dan Akerson established a team within the company to study Tesla, based on the belief that it could be a big disrupter. GM’s Chevrolet Volt, a hybrid sedan that could drive about forty miles in full electric mode, had won Motor Trend’s 2011 Car of the Year, but GM was looking further into the future. At the 2015 Detroit auto show, it unveiled a concept of the Chevy Bolt, a two-hundred-mile electric car that would retail for $30,000 (after a $7,500 rebate from the US government). It was seen as a direct response to Tesla and new CEO Mary Barra’s biggest risk since she took over in 2014. Wired magazine celebrated the Bolt’s impending arrival with a February 2016 cover story about how GM had beaten Tesla “in the race to build a true electric car for the masses
Hamish McKenzie (Insane Mode: How Elon Musk's Tesla Sparked an Electric Revolution to End the Age of Oil)
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