Leasing News is a web site that posts information, news, and
Monday, April 29, 2013
Today's Equipment Leasing Headlines
Balboa Capital, Irvine, California
You May have Missed---
######## surrounding the article denotes it is a “press release” and was not written by Leasing News nor information verified, but from the source noted. When an article is signed by the writer, it is considered a “by line.” It reflects the opinion and research of the writer.
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Balboa Capital, Irvine, California
This complaint was "settled"; however with the opening of a new complaint, the procedure is "Should a new complaint be posted, previous complaints that have not been posted, or removed as the matter has been satisfied, may be re-instated as per policy regarding the postings."
This complaint also brings again one of the matters that is brought up by many making a complaint about Balboa to Leasing News:
In this instance, the original proposal had "bargain purchase option" on it (2). The actual contract had "fair market value." (3) As the Burton's thought there was another form, they did not that the both the proposal and the "fair market value" had the same monthly payments. There was no change in what was originally proposed. The proposal “bargain purchase option” and “fair market value” contract have the same lease payment.
This is also an example of the continuing payments following the Evergreen Clause without notifying the lessee.
From Travis Burton:
February 25, 2013 they received this email:
"To: 'Burton Lumber' <email@example.com>
By the time Leasing News got involved, there was an agency trying to pick-up the equipment.
There were there were "11 extra payments with each payment being $2161.34 deducted from checking account. Total amount in extra payments $23,774.74."
There also was a $3,758.96 or $751.32 documentation fee. (4)
There were also property tax, and a termination fee, not covered in the contract.
There were two other issues, including the justification of the "fair market value" and an issue that the proposal was issued in Arizona, although the contract had no address. Balboa Capital was not licensed under the Arizona Department of Corporations for receiving an Advance Fee (5)
After numerous attempts and communication, Robert J. Rasmussen, COO, wrote:
"In regards to the Burton Lumber transaction we intend to hear the customer out and treat him fairly as we attempt to do with all of our clients.
"While I appreciate the gesture to be involved and with all due respect, given our history, we find it hard to believe that you could be a neutral party.
"We will work directly with the customer. To the extent that he wants you to be involved then that is his prerogative."
He stated he contacted the Arizona Department of Financial Institutions and was told because it was a "commitment fee," they did not need to be licenses as an Advance Fee Loan Broker.
A call to the supervisor of the department read the law and as both for the lease and the proposal, commitment fee is defined as an "Advance Fee." The way to resolve it, was to have the lessee file a complaint and they would issue a finding. The penalty for not being licensed could be up to $5,000 a day, Leasing News was told.
We contacted the Arizona Department of Financial Institutions (AFDI) which is the entity responsible for licensing Advanced Fee Loan Brokers in the state of Arizona in order to clarify whether Balboa is considered an Advanced Fee Loan Broker as defined by applicable AZ statutes.
In the course of the conversations, Leasing News was told that Balboa Capital was going to waive the residual and all costs in the payoff with the settlement to become confidential (6)
(1) Unsigned addendum
(2) Balboa Lease Commitment
(3) Fair Market Lease Contract
(4) Payments made
(5) Advance Fee Loan Regulations
(Other Balboa Capital complaints located)
(These ads are “free” to those seeking employment
Free Posting for those seeking employment in Leasing:
All “free” categories “job wanted” ads:
(Leasing News provides this ad as a trade for investigations
and background information provided by John Kenny)
Vehicle Leasing Conference Finds Daylight
Lamborghini Veneno $3,900,000. The Veneno gets you from 0 to 60 mph in a swift 2.8 seconds allowing you to hit a top speed of 221 mph. Only three cars are being made available every year. If you want to lease this hyper-supercar, you will have to be placed on a waiting list along with other aficionados.
The Road to Success Leads to Light at the end of the Tunnel
FT. WORTH, TEXAS,– Nobody stumbles into the National Vehicle Leasing Association’s (NVLA) annual conference by mistake, but for the 100 plus attendees that journeyed deep in the heart of Texas the conference was well worth the trip.
Marking its 45th annual conference since the Association’s creation, this year’s edition was driven with the tag line, “Road to Success.” For an industry that has been battered by the Great Recession, it is an uphill winding and bumpy road, covered with pot holes, but clearly on the mend.
Possibly the strongest indicator that the industry is on the mend is the number of funders that attended the conference this year. At least six funders, banks and independent finance companies attended prospecting for business.
Steven C. Jason
“I’m here to introduce Signature Financial to the leasing community and expand our offerings to NVLA members,” said Steven C. Jason, Vice President of Signature Financial, Director of Vehicle Finance. New York based Signature Financial provides recourse and non-recourse lines of credit to vehicle and equipment lessors.
“This Association provides value and networking ability,” stated Jack Tracey, the NVLA Executive Director since 2010. While membership in the Association and attendance at its annual conference has sharply declined, those members in attendance were provided many opportunities to participate in educational seminars and networking events.
Sponsored in part by Ford, GM, Kelley Blue Book, banks and industry related vendors, this year’s two day conference was split in two tracks, one for the general automotive leasing industry and a second track for the Lease Here Pay Here industry. “Lease Here Pay Here” is a deep subprime auto leasing alternative to the “Buy Here Pay Here “industry.
Since “Lease Here Pay Here” is an attractive business model to many independent lessors forced to adapt to economic conditions and it is fraught with many technical, legal, and accounting nuances, the Association determined a full day track of seminars was warranted. The seminars, led by industry experts, focused on taxes, legal issues, operations, residual setting, insurance, and funding.
“I was pleased with the turnout for the ‘Lease Here Pay Here’ track and received a lot of positive feedback from many attendees,” stated Terry Bowdler, the program director of the “Lease Here Pay Here” track and an industry consultant.
“We’re here to try to evaluate the risks of getting into the space,” said Brad Fisher, Senior Vice President, Lender Finance, of Texas Capital Bank. Texas Capital Bank currently provides financing to “Buy Here Pay Here “dealers nationwide but does not offer lease financing.
The conference also reintroduced its Certified Vehicle Leasing Executive (CVLE) program. Comprised of six modules, two live and four online, this program will enhance the skills of leasing company principals and management, provide insight, prepare the participant to take control of operational issues and develop capabilities. The successful completion of the courses earns the attendee the right to use the respected CVLE designation.
The final order of business during the conference was to elect a new association president. Patrick (P.J.) McMahon of McMahon Automotive Group of Norristown, Pennsylvania was unanimously elected president. “I’m a proud member of this organization, it’s helped me in my business for many years, and now it’s my turn to give back,” he stated.
Based on attendance and comments from the industry and conference participants, the road to success is heading towards light at the end of the tunnel -- and it appears to be sunlight, not oncoming traffic.
The National Vehicle Leasing Association is a member-based organization representing the vehicle leasing industry - from automobile dealerships to independent vehicle lessors, to banks and suppliers. The NVLA hosts educational programs and annual conferences, produces informative publications and represents the vehicle leasing industry through legislative advocacy. The NVLA is also a forum for members to discuss vehicle leasing ideas and information and for collaborating with industry experts.
Edward P. Kaye is president and CEO of Advantage Funding, a non captive financing and leasing company to the ground transportation industry and a subsidiary of Marubeni America Corporation, the multinational general Japanese trading company. He was also a conference speaker and attendee.
Story Credit Lessors
These companies specialize in "C" and "D" credits, often new businesses, or businesses where the principal(s) have Beacon score around 600 or previous difficulties; meaning to become comfortable with the credit and financial situation you need to learn the "story" to make a positive decision, often requiring further security, shorter term, or additional guarantors. Many of these companies may also have programs for “A” and “B” rated companies, but their specialty is not being a “cookie cutter” and often require full financial statements and tax returns as well as a “story about the company, its history, goals, circumstances” to fully understand the full financial picture.
Also listed below the dollar amounts are companies that who are known for accepting "subprime leasing."
To qualify for this list, the company must be a funder (as qualified by Leasing News and on the “Funder List” and not a "Broker/Lessor" or "Super Broker/Lessor", along with an acceptable Better Business Bureau Rating and no history of complaints at Leasing News, as well as notifying lessees in advance when the lease will end and what the residual will be, specifically not automating extra lease payments, or insisting their discounter follow the same policy. We reserve the right to not list a company who does not meet these qualifications.
We encourage companies who are listed to contact us for any change or addition they would like to make. Adding further information as an "attachment" or clarification of what they have to offer would be helpful to readers is very much encouraged.
Story Credit Lessors
“Tips for Online Job Searching”
Question: Can you give me some tips regarding online job searches?
Answer: On-line job hunting can be daunting and time-consuming. Be prudent, if you drop all your other approaches and focus solely on exploring the Internet – you won’t be acting in your best interest. A major concern is security and confidentiality: on-line privacy is an issue for everyone using the Internet; confidentiality is an important issue for your well-being (current employers may find out you are searching!).
Many online job boards promise job seeker confidentiality. However, you sometimes reveal yourself through an email address or through information on your resume / cover letter that you forgot to remove.
--- Create a private email account and create a professional address (please – NO Hottie@gmail.com) – personally I have seen some very inappropriate addresses
Sanitize your resume:
---- Create a short list of Internet resources that will best suit your goals
If uploading your resume (in addition to sanitizing the resume)
For more tips, please contact us at firstname.lastname@example.org
Career Crossroads Previous Columns
Leasing Industry Help Wanted
Please see our Job Wanted section for possible new employees.
Caterpillar’s Junior Lien Prevails Over Senior Lien
Peoples Bank, Which Was Senior By Subordination Failed to Obtain Underlying Loan Documents And Could Not Prove Its Security Interest.
Caterpillar Financial Services v. Peoples National Bank, 710 F.2d 691 (6th Cir. 2013).
“When you’re hot, you’re hot. When you’re not, you’re not.”—Jerry Reed, American country musician.
After years in banking, I’m aware that some bankers view UCC-1 Financing Statements like negotiable instruments of title, that can traded, bought and sold in the open market. What they fail to realize is that the UCC-1 is merely evidence of the filing of a security interest, not the security interest itself. The other parts of the security interest include the obligation (the note, lease or contract) and the pledge of the security interest (security agreement).
In today’s case, the bank purchased a senior lien, and of course, got the UCC-1, but failed to obtain the obligation or the pledge, and when it came time to proving a security interest was empty handed. It lost $1.4 million dollars. It couldn’t get worse for the bank—Check That—Yes it could, the bank had repossessed the collateral, then sold it and pocketed the proceeds. Caterpillar was awarded $2.4 million dollars in damages. The facts follow:
The debtor in today’s case was S Coal Company, which financed mining equipment through EFAs and leases. In 2005, Peabody Energy loaned S Coal an unknown 7 figure sum secured by all its equipment. Peabody filed a UCC-1. In 2006, Caterpillar came along and loaned S Coal $7 million dollars secured by S Coal’s equipment, and duly filed its UCC-1. In 2008, Peoples Bank loaned S Coal $1.8 million dollars, and duly filed its UCC-1 on all of the debtor’s equipment.
So at that instant, Peabody was on 1st, Caterpillar was on 2nd and Peoples Bank was on 3rd.
Peoples Bank did a UCC search and saw both the Caterpillar and Peabody UCC-1 filings, so in a stroke of genius, purchased the interest of Peabody, through a subordination agreement. Peoples Bank did not obtain the security agreement, nor the loan documents. The case does not explain why. Peoples Bank believed that it had just leapfrogged Caterpillar and was now in 1st place.
When S Coal defaulted, Peoples Bank stepped in and repossessed the equipment over the objection of Caterpillar, who claimed to be in 1st position. Not so, said Peoples Bank who waved their subordination agreement, which should have put the pecking order as follows: Peoples, Caterpillar, and Peabody. Peoples Bank was so confident that it sold the equipment for $2.5 million dollars, and pocketed all but $1.1 million dollars, which it gave to Caterpillar, who did not cash the check. Caterpillar sued Peoples Bank in United States District Court.
The case went to trial and the trial court ruled that Peoples Bank had the burden of proving its security interest, and if it was going to claim priority because of the subordination of Peabody, then it had to prove Peabody’s security interest. As stated, Peoples Bank did not have Peabody’s security agreement, nor did it have the loan documents. Although Peoples Bank subpoenaed Peabody, but it did not produce the underlying loan obligation, nor the security agreement.
Thus, while the UCC-1 of Peabody was fine as far as it went, Peoples Bank simply could not prove up its security interest. Thus, its repossession was unlawful, and the sale illegal. Caterpillar was awarded damages of $2.4 million dollars, which was the value of the collateral sold by Peoples Bank. This ruling was correct in my judgment.
The lesson for leasing companies is to obtain all the underlying loan documents when obtaining an assignment or subordination. Many of my clients do “wrap” leases, in which the lessor refinances other equipment leases and “wraps” them into a single lease. Thus, the lessor’s security interest in the “wrap” lease will depend on proving the security interest of the lessor from which it obtained the assignment. The lessor should obtain the underlying loan documents (EFA, lease), the security agreement, a ledger to prove the amount owed at the time of the assignment. We also go the extra mile, and request that the lessee execute an “Estoppel Agreement” whereby the lessee admits the balance owed and the priority of the security interest.
Going this extra mile in getting these documents will insure that that the lessor is, in the parlance of Jerry Reed, “hot.” Put another way, again in the parlance of Jerry Reed, Caterpillar got the gold, Peoples Bank got the shaft.
Tom McCurnin is a partner at Barton, Klugman & Oetting in Los Angeles, California.
Previous Tom McCurnin Articles:
How Much Do You Know?
I have been training people to know more about the Commercial leasing profession for over thirty years and I have found that the most successful people and leasing firms have been the most educated. Ours is an industry that must deal with a complex set of rules and regulations and how they interact with each other. You cannot expect to learn it from any university or schools of higher learning so you must look to books on leasing and classes provided by our national trade associations or a few teachers that have lived through the development of these rules and regulations and can therefore explain the thought behind their development.
One of the difficulties or road blocks to learning commercial leasing is the quantity of information you need to know. I know from experience that many people believe that their employees can learn everything they need to know from one day of training and yet if you look at the body of knowledge required by the CLP foundation you would see that it would take a concentrated effort of many weeks and years to gain the knowledge necessary to become a Certified Leasing Professional (CLP). That is why they created the leasing Handbook. It presents leasing in an understandable way.
The three book series offered by the practicing law institute, on commercial equipment leasing, is a key to the complexity of this business because it would take a few weeks to get through it and only covers the legal and tax approach. Credit and accounting must be learned elsewhere.
The list of requirements to be a true professional in the commercial leasing business is long and complex because you must understand all types of leases and how they relate to the rules of the road irrespective of what limited array of products or leases you have to offer. In addition many of the rules we rely on are constantly changing requiring a constant diligence to determine its effect on your approach to the business.
The changes in accounting for leases proposed for next year and the possibility of major income tax deduction changes means that everyone should seek out training to be able to make the appropriate adjustments to their marketing effort.
In addition, funding may change as your product base changes so you need to anticipate as many of the changes as you can and address them with your funding source.
Educating your funding source if it is not a lessor is a constant challenge to eliminate the fear of the unknown. Many banks fear residuals, or puts, and need to be trained on the value of leasing to remain interested in leasing transactions.
Training is necessary but some say they do not have the time or it is too expensive. However, knowing the rules and regulations are necessary if you want to be successful next year so look for ways to improve your knowledge and allocate the time to get it right.
(To learn more about the CLP Handbook)
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty-five years and can be reached at WindersConsulting@yahoo.com or 502-649-0448
He invites your questions and queries
Previous #102 Columns: http://www.leasingnews.org/Conscious-Top%20Stories/Leasing_102/Index.htm
(This ad is a “trade” for the writing of this column. Opinions
Real Estate takes Bank Down in Georgia & North Carolina
The four branches of Douglas County Bank, Douglasville, Georgia were closed with Hamilton State Bank, Hoschton, Georgia, to assume all of the deposits. Founded June 25, 1974, the bank had 74 full time employees year-end 2012 at their office in Dallas, two offices in Douglasville, and one office in Dallas. The bank had 82 full time employees in 2008.
Tier 1 risk-based capital ratio 0.51%
Douglas County Bank is the 86th bank failure in the state since mid-2008. That is more than in any other state over that period.
According to Douglasville patch April 25,2013, unemployment dropped to 10.1%.
In this story about Douglasville, story dated July, 2012, "Fully 70 percent of local residents leave the county every day for employment."
Unemployment, real estate speculation, and an aggressive loan program brought the bank down.
"In February 2009, Douglas County Bank president and CEO Billy Mayhew told The Atlanta Journal-Constitution the bank was well-capitalized, but struggling with losses from real estate, as has been the case for many Georgia banks
“'We just have a lot of real estate loans that have fallen in value, ” he said at the time. “But we feel very confident that we will get through this downturn.”
"The bank was founded in 1974 by the Thornton family. Key shareholders included John Thornton, namesake of John Thornton Chevrolet.
"Lee Bradley, senior managing director of Community Capital Advisors, said the bank was well-respected in the community, but the hole they had fallen into was too deep.
“'They were a fine bank for a long time,' he said. 'Like everybody else, real estate was the virus that got them.'
Here is the list with photos and descriptions of Douglas County Bank owned 1,026 home Properties:
The real estate "virus" got many banks in Georgia, and you can see in the charge offs it is "construction/land" and home loan write offs, as well as the very high "non-current loans," all related to real estate.
(in millions, unless otherwise)
Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans
(in millions, unless otherwise)
As of December 31, 2012, Douglas County Bank had approximately $316.5 million in total assets and $314.3 million in total deposits. Hamilton State Bank will pay the FDIC a premium of 0.5 percent to assume all of the deposits of Douglas County Bank. In addition to assuming all of the deposits of the failed bank, Hamilton State Bank agreed to purchase approximately $260.9 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $86.4 million.
The three branches of Parkway Bank, Lenoir, North Carolina were closed with CertusBank, N.A., Easley, South Carolina, to assume all of the deposits. The acquisition of Parkway Bank is the fifth acquisition of a failed bank by CertusBank since 2011.
Parkway was founded August 13, 2001 they had 33 full time employees at their offices in Granite Falls, Hudson, and Lenoir. The end of year 2011, they had 44 full time employees. The stock hit a high of $14.00 a share in 2006.
The problems started in 2008 and snowballed in construction/land loan write offs as well as very high non-current loans resulting in losses.
Press release May 23, 2011:
It was much too late as the numbers below and by July 23, 2012 Parkway Bank’s common stock was deleted from OTCBB due to ineligible for quotation on OTCBB due to quoting inactivity under SEC Rule 15c2-11.
The numbers show up to March 31, 2013 that resulted in a Tier 1 risk-based capital ratio .0196
(in millions, unless otherwise)
Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans.
As of December 31, 2012, Parkway Bank had approximately $108.6 million in total assets and $103.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, CertusBank, N.A. agreed to purchase approximately $99.2 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $18.1 million.
Bank Failure Map--2013 Bank Closed Count:http://leasingnews.org/archives/Mar2013/3_28.htm#failed
List of Bank Failure
Abbott and Costello Prediction
Surprised at how many did not get the photo---nevertheless:
Top Stories April 23-April 25
Here are the top stories opened by readers:
(1) Balboa Capital, Irvine, California
(2) Vegas Conference Biggest Turnout since 2006
(3) Wildwood Industries Fraud Snares Lessor and Lender
(4) Marlin Leasing Has Forum Selection Clause Upheld
(5) Placard-FEAR has two meanings
(6) Leasing 102 by Mr. Terry Winders, CLP
(7) Real Estate Loans Take Three Banks Down
(8) Audit: Las Vegas cabs overcharged $15M in airport ride
(9) Harris Leasing Joins Funder List “A”
(10) Abbott & Costello Predicted This
SNL Financial ranks top 50 credit unions of 2012
Idaho Central Credit Union took the top spot in SNL's 2012 credit union ranking. Chubbuck, Idaho-based Idaho Central came in ahead of Corpus Christi, Texas-based Navy Army Community Credit Union and Cincinnati-based General Electric Credit Union, which finished as first and second runners-up, respectively. Interestingly enough, Idaho Central, Navy Army Community and General Electric also placed in the top five in SNL's previous credit union ranking.
Out of the top 50 best-performing credit unions, Idaho Central ranked in the top 15 in every financial metric measured, placing ninth in both member and market growth. Idaho Central, on a year-over-year basis, has grown both its loan book and deposit balances every year going back to 1995, the earliest year for which SNL has data. Throughout this period, Idaho Central significantly improved its efficiency, registering full-year operating expenses as a percentage of operating revenue of 54.53% in 2012, compared to 73.64% in 1995.
The largest credit union to crack SNL's top 50 was Alexandria, Va.-based Pentagon Federal Credit Union, which had $15.53 billion in total assets as of Dec. 31, 2012. Pentagon Federal is the third-largest credit union in the U.S., surpassed only by State Employees' Credit Union and Navy Federal Credit Union. Out of the top 50 best-performing credit unions, Brea, Calif.-based Credit Union of Southern California and Wichita, Kan.-based Credit Union of America were the only two to have both member and market growth rates above 25.0%.
For the 2012 ranking, SNL graded the best-performing credit unions using five core financial performance metrics that focus on growth, asset quality and operating efficiency for the 12-month period ended Dec. 31, 2012. The metrics used were: member growth; net charge-offs as a percentage of average loans; operating expenses as a percentage of operating revenue; delinquent loans as a percentage of total loans; and market growth.
SNL measured each institution's standard deviation from the mean for each metric. The standard deviations, which were equally weighted, were then added together to calculate a performance score for each company. Caps and floors were also implemented to prevent significant outliers from skewing an institution's rank. To be included in the analysis, a credit union had to have total assets greater than $500 million and be well-capitalized with a net worth ratio of at least 7.0%, as of Dec. 31, 2012. Based on the criteria, 410 credit unions were eligible for the analysis.
Be Like Bobby---How to use strategic top-down
My idea of “inclusive exclusivity” started in a boardroom many years ago in Atlantic City, New Jersey. I was making a presentation to a group of executives at the Borgata Hotel, Casino, & Spa to explain how they could import the feel of New York’s hottest nightclubs and restaurants to the Jersey Shore. Although this sounds like a glamorous undertaking, it is time-consuming and complicated. Atlantic City is both geographically and energetically another world from downtown Manhattan, and I was really concerned that our team would not be able to solve this problem.
Luckily, the heavens opened for me that day. Call it divine inspiration or a moment of clarity; whatever happened, the idea of “inclusive exclusivity” popped into my head. There was no need to drive the team crazy trying to get “influencers” from New York to drive three hours to Atlantic City. We needed to run the Borgata’s outlets as other luxury brands had for years.
What we did was create the illusion of exclusivity through a marketing campaign and operational plan that produced an “aspirational experience.” Once the brand and experience were established, perception became the reality. Our job then became a systematic propaganda program for perpetuating the myth with tools like marketing, events, and great service—commodities that are far easier to bottle than the magic dust that make a hot spot hot.
WHERE: Washington D.C., New Jersey, Maryland, New York, Ohio, Pennsylvania, Massachusetts
Now, I might like to think this was my Einstein moment, but the truth is that all I did was adapt an idea from the world of fashion. French billionaire Bernard Arnault perfected this model years before. Arnault realized that he could take established luxury brands from the world of fashion, beauty, and luggage with hundreds of years of heritage and leverage their brand across multiple platforms to maximize returns. So he bought Louis Vuitton, Marc Jacobs, and many other fashion staples and used their expensive luggage and couture clothing to maintain the brand while driving the real profit centers like key chains, wallets, and perfumes. The model? Use the top end to build the brand and use the low end to drive the profits—fairly obvious now, but simply genius then. Arnault realized what you might have when you got into quick-service restaurants: The money lies in driving volume sales with a simple product.
The good news is that this model is applicable to all businesses, especially hospitality, and particularly the quick-service segment. In order to understand this phenomenon, look no further than modern-day celebrity chef Bobby Flay.
Flay earned success through his restaurants Mesa Grill and Bolo in New York City, as well as TV spots on the Food Network, and parlayed that good fortune into a personal brand that, to many people, is very aspirational and exclusive. Once that brand was firmly established, he opened licensed restaurants in casino hotels like Borgata, Atlantis, and Caesars Palace.
Then the time came to cash in and complete the trifecta of a modern upscale food brand with his one missing piece: quick service. In this case, it was burgers and buns. Flay opened a fast-casual concept, Bobby’s Burger Palace, in 2008 and now has 10 outlets in multiple states. His brand is exclusive, his restaurants are inclusive, and his cash flow is obtrusive.
Flay is not the only big name getting into quick service. Mario Batali, Jean-Georges, Wolfgang Puck, Rachael Ray, and all the big culinary personalities are laughing their way to the bank on the shoulders of quick-service and fast-casual concepts. Leveraging your brand to sell high-profit merchandise is the quickest way to short-term financial success.
Quick-service concepts that are already experts at driving volume sales can tap into inclusive exclusivity, as well. For example, they can learn from brands like In-N-Out Burger, which has done an excellent job controlling its growth and focusing on quality. The chain has opened pop-up units as far away as Japan with huge lines and massive press coverage, creating exclusive experiences that everyone is welcome to enjoy.
Other brands might consider hyping new products as significant occasions or purposely limiting supply. Do what you do best, but creatively pump up the demand with great out-of-the-box thinking. Inclusive exclusivity is all about creating the air that a product is special, but making it available to everyone who is willing to pay. The emotional connection that comes from obtaining something customers believe is exclusive and special not only increases customer satisfaction, but it also ignites the best marketing tool available: word of mouth.
As the saying goes, in order to sleep with the classes, you need to sell to the masses. Get busy selling now, so you can enjoy sleeping later.
Australian Shepherd Puppy
Shelter: Irvine Animal Care Center
The Center's 3.73 acre, park-like facility cares for thousands of homeless, neglected and abused animals every year.
Come Meet Our Pets...
Hours of operation:
Address:6443 Oak Canyon
How to get to the shelter:
From the 5 Freeway, take the Sand Canyon exit and turn right; turn right into Oak Canyon; the shelter will be the second driveway on the right.
Please visit our website at www.irvineshelter.org for more information.
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
McDonald's considers all-day breakfast, delivery
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SparkPeople--Live Healthier and Longer
The Bean Eaters
by Gwendolyn Brooks
They eat beans mostly, this old yellow pair.
Two who are Mostly Good.
And remembering . . .
From The Bean Eaters by Gwendolyn Brooks, published by Harpers. © 1960 by Gwendolyn Brooks. Used with permission. All rights reserved.
NFL Draft Grades: Jaguars, 49ers, Rams top the class
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Why is Ridge adding ingredients to its back labels?
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This Day in History
1749- Benjamin Franklin on the banks of the Shuylkill River, Philadelphia, PA, became the first person to cook by electricity. In a letter dated this day in 1749, he wrote: A turkey is to be killed for our dinner by the electrical shock and roasted by the electrical jack, before a fire kindled by the electrified bottle
The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?
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