So, Christmas has come & gone. Overall sales were down across the major stores. People are careful with their money and rightly so. In my shop we've seen a 40% decrease in spending compared to last year.
Which brings me so a new thing which I was not aware of. Spoke with some friends who're in the furniture retail industry. There is a thing called "debt counseling".
Let me explain - according to the national credit act credit cannot be given if a person does not meet certain criteria. This of course applies to the amount of credit which can be given as well.
I earn R7 000 and have a bond to pay (which cannot exceed a certain percentage of my total income). With that there's water and electricity and municipal costs - except of course when you're non-white, then these don't apply. I apply for hire purchase to buy a fridge. The longer the period of payment the smaller the amount I have to commit to and the higher the interest I have to pay.
So, now I buy the fridge over the maximum period. I have some credit left and purchase a TV and a microwave as well. Now this is how the scheme works - I skip my first payment, pay the second and maybe the third (which I don't really have to do) then go and see a debt consultant who will manage my future payments. The debt consultant will also inform the store that you are in financial trouble and that the relevant store should contact them in future and not yourself.
What gets me is that the credit provider cannot touch you. They cannot repo their goods and they're not allowed to be in any contact with you. Once your DC has paid three installments (can be anything from 15 to 800 Rands) you automatically re-qualify for your initially approved credit. So, you can buy again.
I need to investigate this a little further and see if I can't re-furbish my house, buy a new car and replace my wardrobe. So you're blacklisted for two years but that's nothing. I'm sure the goods bought will last that long. Anyone with more information on this, please contact me.
So now we know why there are so many shops going bankrupt!
South Africa (or rather our all-wise, all-knowing government) has decided to give Mugabe a nice Christmas present. 300 Million Rand is quite nice won't you agree? This after it was decided that the money will be released only after a government of unity has come into being, which won't happen for a long time to come. And to top it all, Mugabe will get his grubby little selfish paws on it before anyone even realise that it's been transferred.
Most of the previous white owned farms now belong to Mugabe faithfulls. Totally unproductive soil that's going to waste in a starving country.
Finally, something to chew on.., I received this as a newsletter from Scott
From: Scott Cundill (Majestic) [hownot@majesticinteractive.co.za]
When told that I carry South African, Australian and UK passports, many ask me in a flurry “what the hell are you still doing here then???”
I’m here because I am South African born. And besides, the other countries are more screwed up than we are.
Here, there is hope.
Take Australia for example. You are not allowed to walk in a crowd after midnight. You cannot cut down a tree without council approval. If it says “don’t walk on the grass” and you walk on the grass, someone who is paid by the state WILL jump out and fine you. What you may think is the last Bastian of sun and sport is really unbearable thanks to a regimented system designed to control a bored youth with a serious drug problem.
The UK is worse. It is full of ill tempered children, the cities are filthy and traffic ridden and it’s way too expensive. And just you try and brave the health care system or find an affordable dentist.
Other SA emigration hot spots are Canada and the US. I’ve never been to Canada and it does sound fantastic, but shoveling snow six months of the year just isn’t for me. And then there are two groups of people in this world: those that like Americans and those that do not. Corporate Americans are the most personality-less human beings on the planet. They are fearful, politically correct zombies who do their job in fear of being fired or sued. Sure, I have met some of the best people in the world in the US, but there aren’t enough of them to justify living there. Corporate America has sucked that country dry.
Environmentally, you probably want to hang around here in SA. The water systems in all these other countries (including Australia) are shot to pieces and the cost of decent land in rural or city areas across the globe is nightmarishly expensive. While SA has serious environmental problems, there is still hope for a clean and safe future if we as individuals take a stand. Besides, with global warming a reality, beach side property is probably not a great investment right now and that writes off most of Oz.
Yes, I am passionate about South Africa, but is it perfect? No it’s not. But the reason why is one you probably do not expect: South Africans simply DO NOT SUPPORT EACH OTHER.
The crime I can handle (trust me people, it’s EVERYWHERE, not just here). The government situation is a joke in all countries. The fact that we don’t support our own products and services is unforgivable. We are always fighting. It pains me to say it but most South African business owners HATE watching other South African business owners become successful. I struggled for years, going through some of the most depressing times of my life just to reach break-even. Very few other business owners supported me, most just shafted me. It’s even worse now as I watch it happen to others around me. My mission in life is to change it.
Small Business South Africa MUST support itself.
Australians are incredible. They support each other and it is testimony to a strong economy. The Olympic Games in Sydney were demonstrated this in action, but it doesn’t stop there. Australians are constantly supporting Australian stuff. There is real pride over there and this is why I am pushing so strongly for a real, authentic South African business community. If we can make one little attitude adjustment, we can really create an amazing country.
I’m not ready to emigrate yet and I will keep Majestic rooted here in South Africa for as long as possible. Regardless of the animosity that I receive from business owners who disagree with my direct and open approach to business, I WILL keep pushing until we have a 100% small business success rate here in South Africa. And to all those that share this sentiment with me:
Dankie.
Scott
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