Wednesday, January 30, 2013

The Mystery Monk Making Billions With 5-Hour Energy

 

 

Manoj Bhargava. Photo by Eric Eggley.

 

This story appears in the Feb. 27 edition of Forbes magazine.

In one corner of Manoj Bhargava’s office is a cemetery of sorts. It’s a Formica bookcase, its shelves lined with hundreds of garishly colored screw-top plastic bottles not much taller than shot glasses. Front and center is a Cadillac-red bottle of 5-Hour Energy, the two-ounce caffeine and vitamin elixir that purports to keep you alert without crashing. In eight years 5-Hour has gone from nowhere to $1 billion in retail sales. Truckers swear by it. So do the traders in Oliver Stone’s 2010 sequel to Wall Street. So do hungover ­students. It’s $3 a bottle, and it has made Bhargava a fortune.

 

 

 

What's In A Bottle Of 5-Hour Energy?

His company, Living Essentials, is the biggest player by far in the ­energy-shot market, and not because 5-Hour is so delicious. Chalky cough syrup is more like it. The reason Bhargava has won is that he plays tough. Sitting in that cemetery are a dozen or so neon copycats with names like 6-Hour Power and 8-Hour Energy. Each has been sued, bullied or kicked off the market by Living Essentials’ lawyers. In front of each are little placards with a skull and crossbones drawn in felt-tip pen. Bhargava points at the gravestone of one of his late competitors and says with a chuckle, “Rest in peace.”

 

 

The privately held Living Essentials doesn’t report revenue or profits, but a source with knowledge of its financials says the company grossed north of $600 million last year on that $1 billion at retail. The source says the company netted about $300 million. Checkout scan data from research firm SymphonyIRI say that 5-Hour has 90% of the energy-shot market. Its closest competitor, NVE Pharmaceuticals’ Stacker brand, has just over 3%.

 

 

Yet Bhargava, 58, is so under the radar that he barely registers on Web searches. His paper trail is thin, consisting primarily of more than 90 lawsuits. This is his first press interview. “I’m killing it right now,” he says, adjusting a black zip-up cardigan from behind the table of a soulless conference room in a beige low-rise building in a suburban business park in Farmington Hills, Mich. “But you’ll Google me and find, like, some lawyer in Singapore.”

 

 

Vague and inscrutable is how ­Bhargava likes things. The names of 5-Hour’s parent company, Living Essentials LLC, and that company’s parent firm, Innovation Ventures, are purposely bland. “They were intended as placeholders, and they stuck,” he says, smiling.

 

 

Colleagues and acquaintances uniformly describe Bhargava as “humble,” and he seems proud of his frugal lifestyle: his ancient flip phone, his cheap office furniture, the modest two-story home he shares with his wife and 20-year-old son. Yet, over vegetarian lasagna at Antonio’s, his favorite strip-mall Italian joint off Detroit’s Twelve-Mile Road, Bhargava says, apropos of nothing: “I’m probably the wealthiest Indian in America.”

The rise of 5-Hour began in the spring of 2003, when Bhargava found himself at a natural products trade show in Anaheim, Calif. At one booth the sales reps peddled a 16-ounce concoction claiming to boost productivity for hours. Bhargava took a swig. “For the next six or seven hours I was in great shape,” he says. “I thought, Wow, this is amazing. I can sell this.”

 

 

Right away, though, he knew 16 ounces wouldn’t sell. He didn’t want to compete with Red Bull, at the time new to the market. Nor did he want to share fridge space with Coke or Pepsi. “I thought, If I’m tired, am I also thirsty? Is that like having a headache and a stomachache? It didn’t make any sense.” He glanced at the ingredients label and made a mental note. Six months later his version was on the shelves, two ounces of ­caffeine-infused B vitamins such as niacin mixed with acids like taurine.

Bhargava’s team still had to convince stores and buyers alike that their product was safe. The initial job of getting 5-Hour Energy on the shelves went to Rise Meguiar, Living Essentials’ vice president of sales and the only woman on a team of 17. Health chain GNC was the first to bite, agreeing to stock 5-Hour in 1,200 of its stores in 2004. Slowly but surely, Walgreens, Rite Aid and regional chains like Sheetz followed.

 

 

Forbes 400 Newcomers 2012

1 of 20

Eric Eggley Manoj Bhargava

+ show more

 

 

Manoj Bhargava

No. 311: $1.5 billion
Age: 59

 

Indian-born math whiz moved to Philadelphia with his family as a teen, dropped out of Princeton, returned to India to live as a monk for 12 years and then came back to the U.S., where he got into plastics. Eight years ago he concocted the formula that made him rich: 5-Hour Energy, a 2-ounce elixir of caffeine, B-vitamins and taurine. Last year he sold $600 million of the $3 red minibottles.

 

 

 

Clare O'ConnorBy: Clare O'Connor Forbes Staff

Tuesday, January 29, 2013

"New Income Tax Rates for 2013"




When you file your federal income tax return before April 2013, you're filing your 2012 taxes, and the 2012 income tax brackets define the amount of tax you owe to the government before credits and after-tax adjustments. The first paycheck or consultancy fee you earn in 2013 falls under new rules, however. The 2013 income tax brackets apply to money you earn during that year, although you may not notice how this affects you until you file your income taxes in early 2014. If you pay estimated taxes throughout the year, you may be more aware of the change in brackets.

Now that Congress has passed a new law to avoid the fiscal cliff, the American Taxpayer Relief Act of 2012, we have a better picture of the marginal tax rates for 2013 ahead of the official announcement from the IRS. With the changes to the top tax bracket set by the law and the remaining brackets adjusted by inflation with help from The Tax Foundation, this article includes the likely tax scenario.

In 2013, the Bush-era tax cuts have been extended -- made "permanent" -- for all taxpayers but the highest tax bracket. This is similar to one of the scenarios predicted earlier, but the question up until the last minute has been at what income level would the older, higher top marginal tax rate be effective.


Republicans wanted this number to be high, where the top tax rate would affect only those taxpayers earning over $1,000,000, while President Obama was aiming for the top tax rate to affect more taxpayers, including those earning over $200,000 or $250,000. The Congress settled on a compromise of $400,000 for taxpayers filing single as the threshold for the top tax rate, which is very close to what the top tax bracket would have been anyway, due to inflation.


As a result, these are the tax rates you can expect in 2013.

 

image


Keep in mind that the tax rates listed in these tables are marginal rates. That means that you do not owe your rate on all of your income. For example, if you single, you earn $100,000 per year, you would not owe 28% on all of your income -- you would not owe $28,000 to the federal government. You would owe 10% of $8,925, 15% of $27,325 (the difference between the top and the threshold of the second tax bracket), 25% of $51,600, and 28% of $12,150 (the difference between your income and the threshold of the third tax bracket).


That calculation results in $21,293, or an effective (not marginal) tax rate of 21.2%. That will be further reduced by any credits, assuming your taxable income is the same as your gross income. Your effective tax rate could be much lower if deductions have already reduced your taxable income to $100,000 from a larger gross income. For example, if a 401(k) contribution reduced your taxable income from $115,000 to $100,000, you would still use the same tax calculation I've described here, but your effective tax rate would be 18.5%.


Income tax isn't the only concern for workers' paychecks in 2013. With the elimination of the temporary cut to payroll taxes, employees earning less than $110,100 will go back to paying their full share of the tax. For someone earning $50,000, that's $83 less in his take home pay each month than he would receive if the cut had been extended.


With the American Taxpayer Relief Act of 2012 now law, rather than Congress needing to extend the Bush-era tax cuts every year, they will be permanent. Congress can, however, create a new law at any time to change the rates or the tax brackets, but the end-of-year political dance about whether to renew these specific tax cuts will no longer exist.

This article originally appeared on Consumerism Commentary.

2013 Federal Income Tax Brackets and Marginal Rates


By Tim Waller

 

More From Forbes

Monday, January 28, 2013

Yahoo News’ 10 Stunning Beaches

Guarantee yourself a unique travel experience with this guide to the world’s most pristine and tourist-friendly beach destinations.

 

 

South Beach (Miami, USA)

 

 

South Beach (Miami, USA) This is one of Florida’s best features and the USA’s best kept secrets. The warm sand, gentle waves and hip crowd make this beach a must-go destination. Young people will especially enjoy the frequent beach parties hosted by various clubs scattered along the beach.

 

Pink Sands Beach (Bahamas)

 

  1. Pink Sands Beach (Bahamas) Located on Harbour Island and extending over 3 miles, this beach is definitely unique in every sense of the word. Its pale pink colour is a result of tiny crustaceans living in the coral reefs off the coast – when they die the waves wash their pink and red shells up onto the beach. This alluring and distinctive feature makes the beach a popular choice among holidaymakers.

  2. South Beach (Miami, USA) This is one of Florida’s best features and the USA’s best kept secrets. The warm sand, gentle waves and hip crowd make this beach a must-go destination. Young people will especially enjoy the frequent beach parties hosted by various clubs scattered along the beach.

 

 

Maldives Beaches (Maldives)

 

 

Maldives Beaches (Maldives).The tropical island canopy, crystal clear water and clean soft sand are all remarkable features of these islands’ beaches. The Maldives islands are also famous for their rich coral reef ecosystems, making them ideal for divers and snorkelers. The islands have gained in popularity over the last decade, as many honeymooners have chosen these beaches as their dream destination.

 

 

Boracay Island (Philippines)

 

 

Boracay Island (Philippines).This island has a magnificent beach with over two miles of pure white sand. Never too hot to lie down on, it is perfect for suntan enthusiasts. The best time to visit is between September and June, when the eastern breeze is perfect, rain is rare and the sky is exquisite.

 

Navagio Beach (Greece)

 

 

Navagio Beach (Greece)This beautiful sandy cove on Zakynthos Island in Greece is only accessible by boat. It attracts thousands of tourists every year and is well known for its rocky cliffs surrounding the bay from three sides. Fans of this beach remark on the clear blue water and beautiful white sand.

 

 

Hanalei Bay (Hawaii)

 

Hanalei Bay on Kaua‘i Island, Hawaii, is famous for its crescent shape. The backdrop of quick-moving clouds, waterfalls, mountains, grassland and tree canopy make this bay an exceptional spot. Fans of Hanalei praise it for summertime sunbathing and wintertime surfing – or simply watching the sun-kissed professionals demonstrate their skills!

 

Zlatni Rat (Croatia)

 

Zlatni Rat (“Golden Cape”) Beach in Croatia is one of Europe’s most popular beach destinations. Located on the southern coast of the island of Brač, the beach extends along a heavenly 580m promontory stretching out into the sea. This pebble beach has exceptional wind patterns and tides, as well as a beautiful shape.

 

 

Maya Beach (Thailand)

 

 

Maya Beach (Thailand).This flat beach is located in a bay on the island of Koh Phi Phi Leh, and is completely surrounded by rocky mountains. The beach became very popular after the movie “The Beach” was filmed there in 2000, starring Hollywood hottie Leonardo DiCaprio. One of its best features is its marine life, so divers are advised to give it a try.

 

Whitehaven Beach (Australia)

 

 

Whitehaven Beach (Australia).This stunning beach is located on Whitsunday Island, the largest in the Whitsundays group off the eastern coast of Australia. It extends over 6 km, with pure white sand so clear (98%) that it is used by space agencies to construct telescope glass. The beach opens out onto a narrow bay on the north side and a perfect picture is painted by the crystal clear water breaking onto the shore at various tidal levels.

 

Tulum Beach (Mexico)

 

 

And the top,

  1. Tulum Beach (Mexico)., This beach is on the eastern side of the Yucatan Peninsula and is a valuable historical site with ruins from an era long gone by. The beach is still home to some Mayan remains, from a time when the civilization was waning. Tourists enjoy the pristine beach and vivid splash of history overlooked by a luscious canopy of trees.

Friday, January 25, 2013

6 Hefty Questions that Block Buyer Offers

iStock_000017149287XSmall-BLOG

 

“The right home for the right price” – If only finding it was as easy as saying it. To do so these days, you can’t be just a good salesperson or property hunter.  Now buyers expect you to play  builder, designer, and financial expert all at the same time.

Clients need you to tackle their biggest questions, no matter how closely (or loosely) related to your real estate license.

So, which questions do you need to be ready to answer?

Here’s a list of 6 you want to be ready to respond to to move your clients toward an offer and a few helpful tools for tackling each one.

     

1. “Will my Grandma’s antique table fit here?”

When touring a home, it’s usually not the total square footage that keeps clients from stepping toward closing. Many times there’s one wall, nook, or doorway where the feet – or inches – cause buyers to question whether a home is right.

It’s likely that you (and your clients) won’t know exactly how their favorite furniture will fit. But, if you’re serious about closing the deal, you can get your hands on the answer.

     

The apps for answering furniture fit:

Not too many agents keep a tape measure on hand. Here are two apps that allow you to simply take a photo of the space you want measured and calculate an accurate measure with your fingers.

Photo Measures for iOS
My Measures for Android

     


   Price: $4.99      Price: $4.99

 

 

2. “I wonder what we could do with this space?”

Whether you want to admit it or not, there are certain homes with designs that are, well, let’s just say “interesting.” Your goal is to get buyers thinking outside the box (or whatever shape you’re dealing with.)

Offer suggestions of rooms you’ve seen in the past. The more personal you can make it for the client, the better. If you know that their huge movie buffs, why not suggest turning that odd-shaped office into a mini-theater with just enough seats for the entire family.

     

The apps for instant room ideas:

Check out this interior design database right from your phone to help clients get the decorative juices flowing and generate ideas for how they could use those “interesting” spaces.

Houzz for: iOS and Android

     

    Price: Free

 

 

3. “What were they thinking with these walls?”

Ok, so maybe the floral wallpaper or the do-it-yourself sponge-painting wasn’t the previous owner’s best choice ever. Don’t let your clients dwell on the current look. Instead, ask “What are you thinking for these walls?”

The more you can your clients imagining themselves living in the home, the better. It helps get them one step closer to purchase.

     

The apps for seeing past the ugly wall:

Selling potential is easy when you can show potential. Help take your clients painting ideas a step further with virtual “paint” features that them visualize their take on an existing space.

Color Capture available for iOS and Android
ColorClix available for iOS and Android
Wall Painter available for iOS

     


 

   Price: Free         Price: Free        Price: $.99

     

 

4. “What’s nearby?”

You know as well as we do that clients aren’t looking just for a home. They’re looking for a neighborhood and lifestyle. Be prepared to answer the neighborhood questions with tips and insights to share on the surrounding area.

     

Tools for looking like the neighborhood know-it-all :

Have your iPad or laptop? Get all the information you need withTrulia Local, recently nominated as a top 5 finalist for SXSW’s 2013 Interactive Awards.

Only traveling with your home? We hope you’ve got the Trulia for Agents App to manage your business, but make sure to use the great “nearby” features on our Trulia app that bring Trulia Local right to your handheld device.

Available for iOS and Android

Price: Free

 

 

     

5. “What will our mortgage on this place look like?”

Even if your clients love the home you’re showing them, the ultimate

question is: can they afford it? Just like a bedroom, if buyers can’t visualize how a monthly payment is doable, they won’t offer.

Don’t make them wait to run the numbers. Help them estimate their cost commitment on the spot with one of these free mortgage calculator apps for your smartphone.

     

Apps for estimating monthly mortgage payment:

There are lots of mortgage apps out there, so make sure you choose one that’s simple and actually works. Here are a few of our top picks:

Karl’s Mortgage Calculator for Android
Simple Mortgage Payment for iOS
Trulia’s Mortgage App for iOS.

 

     

    Price: Free      Price: Free        Price: Free

     

6. “Can we make an offer?”

Cue the hallelujah chorus. It’s time to make an offer. You’ve helped your clients find the perfect home, but that doesn’t mean you have to stop wowing them – it’s your time to really shine.

Keep the transaction moving forward smoothly and quickly through the offer, contract, and other paperwork sign-offs that can seem overwhelming. Take advantage of document signing tools to avoid being slowed down by a pile of paperwork.

     

Apps that help get an offer signed from anywhere:

Docusign Ink for iOSand Android
HelloSign for iOS

 

     Price: Free      Price: Free

Docusign Ink for iOSand Android

Price: Free

HelloSign for iOS

Price: Free

     

Keep these tips and smartphone tools in mind when you’re out with clients on the go. When it comes to buying, your answer could be the difference between a closed deal or a ‘so close’ deal.

     

WRITTEN BY Trulia Staff

            More about Trulia Staff

Thursday, January 24, 2013

4 Ways to Hater-Proof Your Home, Before You List It

382213_1358980744034_bBy Tara-Nicholle Nelson

 

 

   In my experience, there’s one fundamental  truth about haters:  you can never fully escape them. The only way to live a 100% hater-free life is to never stick your neck out, and never do anything because, as the saying goes, you simply cannot please all of the people all of the time.

 

And this is particularly true with real estate and putting your home on the market - because homes, locations, aesthetics and such are so much a matter of personal preference, some people will find something to criticize about even the most perfectly staged, priciest properties on the market.  

As a home seller, your job is not to try to make your home be all things to all people.  That said, you don’t want to be the house that nearly every buyer and broker sees, rolls their eyes and utters the same few, predictable deal-killing criticisms. Fortunately, what is predictable is avoidable. Let’s explore the most common things buyers hate about listings they see. In the process, you’ll get equipped to sidestep those issues and, in large part, hater-proof your own home.

House Hater Complaint #1: Odors. Some of you might think I’m beating a dead horse, here. But as long as house hunters keep emailing me to ask why, in the name of all that is sacred, they keep seeing homes that smell like all sorts of madness and mayhem, I’m going to keep repeating this message.

Viewing a home sounds like it’s all about the visual of the experience. And visuals are critical - your home should be in its Sunday best, so to speak, when it’s being shown, in terms of being spruced, staged and clutter-free. But when a buyer comes to see your home, they don’t turn off the rest of their senses. And there is nothing that can turn a buyer off from a home, they’d otherwise like, quicker than a powerfully bad odor - in particular, cigarette and pet odors in a house that seems to have been well-cleaned create the concern that they might be permanent and that the buyer might not be able to get rid of them without dropping some serious cash on cleaning or even removing wall, window and floor coverings.

 

 

If you are a seller and you know that someone has been habitually smoking in your home or that you have had a “challenge,” let’s say, with pet accidents, do not ignore the problem. And do not think that because you had the carpet shampooed or the drapes cleaned, or because YOU can’t smell anything, that the problem is gone.  The fact is that the human sense of smell very quickly gets used to smells that it lives with or is surrounded with on a regular basis.  So it’s critical to get your agent, stager or even your friends and family members - who don’t live with you and love you enough to be honest! - to help you detect bad smells and odors, and make sure they are eradicated by any means necessary, before you place your home on the market.

House Hater Complaint #2: Glaringly extreme overpricing. There’s the kind of overpricing that makes a buyer say, “Hmmm - seems a bit high. Let’s go see it, but we might have to offer a little less than the asking price if we like it.”  Then there’s the kind of overpricing that makes buyer say “I’ll wait until a price reduction” or worse, hold their sides from laughing.

 

 

When overpricing is glaring, many buyers and buyer’s brokers will comment on it or inquire about it. What they are less likely to do is actually come out and see the place - especially if they weed it out online after comparing its specs to all the other homes in the area and the price range.  Often, homes this severely overpriced simply don’t sell, or not until after they’ve had some serious price cuts or have been on the market so long buyers begin to feel confident about making lowball offers.
In fact, the goal is the opposite - you want your home to stand out as a property that is not dirt cheap, but does present a good value for the money - that’s what motivates buyers to get out of their chairs and into the property for a viewing.

Here’s how to hater-proof your home’s listing against this issue: fixate on the comps. Smart sellers deactivate their emotional attachment and very human tendency to overvalue their precious homes by poring over the sales prices (not list prices) of similar, nearby homes that have recently sold. Your agent will be happy to help you walk through this data and will almost certainly recommend a list price, but ultimately you make the decision about the price point to list your home at.
Also, consider using your broker’s first Open House as an additional hater-proof measure: if the agents overwhelmingly comment that they think the

home is significantly overpriced, listen.

 

House Hater Complaint #3: Dirt and messes. Possibly the single largest source of House Hater Complaints I’ve ever heard are the dirt, messes, piles and personal belongings that buyers find so distracting, when they walk into a home for a viewing or Open House. Obviously, homes that are filthy from floor to ceiling are fertile fodder for haters, but often those homes are bank-owned or otherwise distressed so that the sellers aren’t likely to do much.  What is underestimated is how often even savvy home buyers are distracted (and disgusted) by relatively clean homes that just have a few outstanding messes, like piles of dirty dishes in the sink, piles of dog poo in the yard or even piles of papers, mail, books or clothes lying out in plain view.  

 

 

Will one or two such items ruin the sale of your home? Perhaps not. But a few of them (or more) can certainly distract a buyer enough that they fixate on your messes and, in the process, fail to see what is so great about your property.  And as I see it, cleaning up, meticulously, before every single showing is free - so it makes no sense to even run the risk of turning off a prospective buyer by letting messes get in the way of their ability to visualize themselves and their families flourishing in your home.

House Hater Complaint #4: Lots of little malfunctions.  All of us tend to think our homes are in fantastic condition.  After all, you have the furnace maintained regularly, you’ve got granite and dual paned windows - maybe you even had the floors refinished or the walls painted in preparation for putting your place on the market.

That’s all fantastic - all the non-cosmetic work you’ve done to maintain and improve your home should be trumpeted in your marketing materials, and the cosmetic items will (or should) speak for themselves. But here’s the thing: buyers who visit your home won’t be running your dishwasher or testing the furnace (at least not until inspections).  What they will do - almost unconsciously - is:
    •    flick light and fan switches
    •    open or close window coverings, closet, room and entry doors,
    •    open and close drawers, cupboards, gates and fences and
    •    hold the handrails as they walk up and down the stairs.  

 

 

They will hear leaky faucets and point out water spots from long-ago repaired leaks, and they will notice (or potentially trip on) uneven exterior tiles, paths and walkways. And even though these items might be vastly less expensive to fix than the roof or sewer line you had replaced, they are much more visible and noticeable to a buyer.  In fact, buyers don’t always even know that the little malfunctions and repairs that need doing are little or inexpensive. And when they notice a bunch of these sorts of things in a single property, they can jump to the conclusion that the whole place is rickety.

Since these little fixes are inexpensive to make, have them completed before you list, if at all possible. You might even ask your agent to walk through the property with you and to give you a handyperson reference for someone they know works efficiently.

Agents and Buyers:
What things have you encountered in multiple listings that make you cringe, eye roll or otherwise immediately dismiss a house?

 

Credits from: http://www.trulia.com/blog/taranelson/2013/01/4_ways_to_hater_proof_your_home_before_you_list_it?ecampaign=cnews201301D&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2013%2F01%2F4_ways_to_hater_proof_your_home_before_you_list_it

Wednesday, January 23, 2013

Open house at 2010 S Paddock Drive, Wasilla

Openhouse Flyer

 

ANNOUNCEMENT everyone!!! We will be holding an Open house this Saturday, January 26, 2013 from 1pm-4pm. You may contact Les Bailey at 907-230-8628 for more details. We hope to see you there.

Monday, January 21, 2013

600 N. Day Road, Wasilla AK 99654, USA

Friday, January 18, 2013

22545 Lampert Circle, Chugiak AK 99567, USA

Thursday, January 17, 2013

10531 Chatanika Loop, Eagle River AK 99577, USA

2705 E Fallbrooks Ave, Wasilla AK 99654, USA

Wednesday, January 16, 2013

This Month in Real Estate, John Papasan talks about, 'The Spring Home Shopping season.'