Greg Tirico

August 28, 2022

Episode #405: Interview with Pano Kanelos - Founding Trustee UATX

Greg Tirico

August 28, 2022

Ron and Ed welcome Pano Kanelos, a founding trustee of UATX, a nonprofit dedicated to founding a university. It is currently in the process of applying for accreditation of the institution and its programs. The University will be devoted to the unfettered pursuit of truth as the cornerstone of a free and flourishing democratic society.

A bit more about Pano Kanelos…

Pano Kanelos is a founding trustee of UATX, a nonprofit dedicated to founding a university. Previously he served as the President of St. John's College in Annapolis, MD. Kanelos holds a Ph.D. from the Committee on Social Thought at University of Chicago, a M.A. in Political Philosophy and Literature from the University Professors Program at Boston University, and a B.A. in English from Northwestern University.

Use these show notes to follow along with the audio…

Segment one:

The idea for UATX really started to move forward about one year ago during a conversation about the state of American universities and the dangers associated with allowing them to continue to move forward in their current direction. “We should start a university.”
A good friend prodded Pano, “If people like you don’t step up, who’s going to do it? What are you waiting for?” For starters, we haven’t seen great American universities built in over a century.
How does it feel to go head to head against the status quo when starting an American university today? “Oh, it feels great!” — Those were the words of Pano WITH excitement. He’s deadly serious.
What does success for UATX look like to Pano? “Success for me is when we have dozens of competitors who are pushing us to be even better.”
“There’s a reason we call it higher education. We should be aiming for what’s higher. We should be aiming for what’s transcending.” —Pano Kanelos

Segment two:

Pano and the team have had about 5,000 faculty at other institutions reach out about jobs and the employment process for UATX. FIVE THOUSAND!!!
The price point of higher education has risen precipitously and it’s not because more money is being channeled into classroom instruction. That has remained flat. Pano wants to try and undo some of the habitual spending practices.
Ed mentioned the South Park episode that spoofs the NCAA. For those that are fans, check it out: https://www.imdb.com/title/tt1932265/
What would it look like if all graduate students could apply for a startup grant the moment they graduate? That’s an example of the kind of creative thinking that can be done today when you are creating a university from the ground up.
If institutions become responsible for the results of their graduates post-graduation, institutions will ensure those graduates have optimal results.

Segment three:

“The age of the college major is ending.” —Pano Kanelos of UATX. The statistics are clear. Over 70% of the people working today are working in a field unrelated to their college major.
UATX will have centers for academic inquiry instead of traditional major based schools within the college. Students will be taught by people who have studied deeply and also those that have worked — as examples — for the Federal Reserve or opened their own business.
Rather than have a traditional major students will become junior fellows within their centers for academic inquiry as they learn through example and participation regarding how to get things done in the real world.
“Politics should be studied at universities. Politics should not be the operating system of universities.” —Pano Kanelos
“What we need to find is the HIGHEST common denominator. Not the lowest. We are truth seeking creatures.” —Pano Kanelos
The Forbidden Courses 2022 summer program at UATX brought together undergraduates to cultivate the habits of civil discourse. There were 80 spots and 40,000 students reached out about it. https://www.uaustin.org/forbidden-courses
A big THANK YOU to Pano Kanelos of UATX for joining us today and talking about THE FEARLESS PURSUIT OF TRUTH. Great stuff!

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

This past week was bonus episode 405 - Student Loan Forgiveness
Here are a few links Ron and Ed discussed on the bonus episode:

Click the “FANATIC” image to learn more about pricing and member benefits.

Greg Tirico

August 21, 2022

Episode #404: Interview with Kevin Smoot, EA, AccountAbility, Inc.

Greg Tirico

August 21, 2022

Ed and Ron were honored to have Kevin Smoot on the show, who Ron met at various accounting conferences. After the first time Kevin heard Ron speak, he went back to his firm and completely transformed his business model. We dove into the details of this transformation, Kevin’s current strategy, and future plans.

A bit more about Kevin Smoot…

Since preparing his first tax returns as a senior in high school, Kevin has dedicated his entire professional career to assisting and educating clients on how to become better stewards of their finances. He has worked for CPA firms in the DC area and has extensive experience in the preparation of both personal and corporate tax returns along with identifying the unique tax deductions associated with each of these entities and their relationship to the owners. Kevin has a love for art, mainly photography, and finds it intriguing to look at things from multiple points of view. He uses this method when looking at tax returns to implement strategies to achieve the optimal results for his clients. Kevin has been interviewed on a number of podcasts such as Ben Haggerty’s Black With No Cream and YouTube channels with Kai Andrew. He has also been featured on platforms such as Practice Ignition and continues to serve as an advisor to Intuit and QuickBooks on software development. Kevin’s Designations: Enrolled Agent, Certified Concierge Accountant, Certified Tax Coach, Registered Investment Advisor, QuickBooks ProAdvisor

Use these show notes to follow along with the audio…

Segment one:

Kevin prepared his first tax returns in high school! He took an accounting class in high school, fell in love with it, and dove right in with some help from his cousin who owned a firm. It was a 1040EZ but Kevin was in HIGH SCHOOL!
Kevin likes puzzles and he likes numbers. He would iron all of his money from chores at a young age. He knew he was “an organizer of money” (his words…..GREAT words).
Once college hit, Kevin didn’t have any questions. He wanted to be an accounting major. After that he wanted to jump into his own business but needed experience and went to work at a tax firm.
Around 25 years old, Kevin quit his job and went out on his own. Then a recession hit and he learned a lot about business beyond simply having ambition. So he went back to CPA firms until about 4 years ago when he struck out on his own again.
When hiring, Kevin prefers someone who is able to nurture the customer relationship and also has an accounting background. He admits, it’s an odd combination but works really well.
Check out the brief onboarding questionnaire on Kevin’s website. It’s on the homepage and at the top. Really well done and it’s only 4 questions. https://www.accountability-inc.com/

Segment two:

What made Kevin select the EA designation instead of the CPA designation? He knew he wanted to focus on tax from he very beginning. It’s a bit of a non-traditional route but Kevin knew he wanted to be very specific in his focus.
What is Kevin’s why? He is focused on employees and the clients. For employees, it’s all about work/life balance with unlimited PTO. For clients, it’s about using tax to build and preserve wealth.
In 2016, Kevin saw Ron speak for the first time. It was mostly about value pricing but — even back then — Ron touched on subscription pricing during the talk.
Before the 2016 talk from Ron, Kevin’s “pricing was terrible” (his words, not mine!). He knew this and began to study the resources available to help him improve. He started with The Pumpkin Plan by Mike Michalowicz!
“The consumer’s not an idiot. She’s your wife.” —Ron Baker

Segment three:

What does the value conversation look like for Kevin? His clients want more than just a transaction. He’s done a lot to focus on the broader relationship.
Kevin’s client interview is a bit different than most. He knows who he is going to work with in the first 30 seconds. Your personality needs to be a good fit. “One of us has to laugh in the first 30 seconds or it’s not going to be a good fit.” —Kevin Smoot
Have you considered joining us at Patreon.com/TSOE for access to bonus shows and commercial free shows? Now sponsored by @90Minds! Need a mind? Find one at 90Minds.com
Does Kevin have a minimum price? Yes. He could really like you but the relationship needs to be equitable for all involved and that includes a minimum price.
What does the value conversation look like in years 2 and 3 as a client, for example, goes from 10 rental properties to hundreds of properties? Most clients now it’s coming. It’s not a surprise.
Real estate and service based entrepreneurs are what Kevin’s organization has niched down to recently. https://www.accountability-inc.com/

Segment four:

How long did the subscription transformation take for Kevin’s firm? Each year he takes about 1/5th of the firm and helps transform the relationship.
At RateThisPodcast.com/TSOE, you can — Yep! — Rate. This. Podcast. We read all reviews on the air. Good, bad, or indifferent.
Kevin’s firm is virtual so how does he view KPIs since there is no time tracking? It’s straightforward, he looks at margins and general turnaround time of assigned projects.
The shift to subscription pricing has done two important things for Kevin: 1) He’s just much happier now and 2) He has been able to hire 5 teammates since making the shift.
A big THANK YOU to Kevin Smoot for joining us today and talking about his journey to subscription pricing. Real estate and service based entrepreneurs are his thing! Find out more at https://www.accountability-inc.com/

Bonus Content is Available As Well

This past week was bonus episode 404 - Roomba and furniture ads
Here are a few links Ron and Ed discussed on the bonus episode:

Click the “FANATIC” image to learn more about pricing and member benefits.

Greg Tirico

August 14, 2022

Episode #403: Interview with Andrew Stuttaford

Greg Tirico

August 14, 2022

Ron and Ed welcomed Andrew Stuttaford to the show this week. Andrew edits National Review's Capital Matters which focuses on financial and economic coverage. We talked about a wide range of topics including: inflation, energy in Europe in the wake of war, China and Taiwan.

A bit more about Andrew Stuttaford…

Andrew Stuttaford is the editor of National Review's Capital Matters. He took up full-time positions with National Review and National Review Institute in March 2020 and is now the editor of National Review's Capital Matters, a new initiative focused on financial and economic coverage. Prior to joining National Review and National Review Institute, Andrew, who qualified as an attorney in the U.K., worked in the international financial markets for nearly four decades, latterly as the CEO of the U.S. subsidiary of a Nordic investment bank. Andrew has written for a wide range of publications over the years including the Wall Street Journal, The New Criterion, The Weekly Standard and Standpoint on political, economic and cultural matters and has been writing for National Review since his debut with the magazine in 1992. Andrew tweets at as @astuttaford and a sporadically updated archive of his work can be found at andrewstuttaford.com.

Use these show notes to follow along with the audio…

Segment one:

Andrew Stuttaford has been writing for National Review since 1992. Capital Matters has been running since 2020.
Andrew was lucky to have met William F. Buckley at a dinner. “Now, tell us what’s going on in Europe…” was Buckley’s first question to Andrew. No pressure!
Having investments in products that are tailored to the needs of clients is perfectly acceptable. But how did ESG fuse so fast? The cynical answer is money.
ESG is part of a broader shift from shareholder theory to stakeholder theory. Andrew commented on this as “the vice or the virtue”. Very clever turn of phrase.
The whole point of free markets is consumer welfare — not shareholder or company welfare.
Stakeholder capitalism can be traced back to the Middle Ages under various names and it took form in the 20th century during the post war years.
Under the Chinese model, you can have a free market - sort of - but it is subordinated to the interests of the state.
Our bonus episodes (and commercial free shows) are at Patreon.com/TSOE and are sponsored by @90Minds! More minds meld at 90Minds.com!

Segment two:

Ed referenced this interview during the show today — Whole Foods' John Mackey: 'I Feel Like Socialists Are Taking Over' https://reason.com/podcast/2022/08/10/whole-foods-john-mackey-i-feel-like-socialists-are-taking-over/
Milton Friedman was right in that the first duty of managers is to maximize shareholder value — within the bounds of the law — so as to increase profitability.
Stakeholderism is a way of getting around the law — not in the sense of law breaking — but in the sense of activities being imposed in the name of ESG.
There are two sides to the struggle of stakeholderism: The boardroom and day-to-day management of the business vs the bastardization of the concept of what ownership of a share means.
1/2 The giant institutional shareholders - particularly the index funds - own a huge slice of corporate America and are now saying, “If we are invested in you, we want you to pursue A, B, and C.”
2/2 However, these shareholders are insisting that companies behave in a way that is not in the interest of increasing profitability.

Segment three:

Andrew wrote an article just a few days ago called, “China and an ESG ‘Dilemma’“ https://www.nationalreview.com/2022/08/china-and-an-esg-dilemma/
“Any ESG fund that invests in China ought to be laughed out of court.” —Andrew Stuttaford
“There’s no dilemma when slave labor is involved.” —Andrew Stuttaford
The problem for the world is that China is a massive part of the global economy. What you need to do is reorient your supply chains.
If we have a revised nuclear industry in the US (and Andrew stipulates we will), how are people going to react if there is a disaster? Not a Chernobyl-level disaster but an accident such as a leak. Will it shut us down completely again?

Segment four:

Paraphrasing Andrew: Europe became dangerously reliant on Russian gas but simultaneously invested in renewables. Prices have soared for natural gas and renewables infrastructure is not ready for prime time.
A big THANK YOU to Andrew Stuttaford for joining us today. Please check out National Review’s Capital Matters, of which Andrew is the editor. More at this link: https://www.nationalreview.com/capital-matters/

Bonus Content is Available As Well

This past week was bonus episode 403 - Is Amazon going DPC?
Here are a few links Ron and Ed discussed on the bonus episode:

Click the “FANATIC” image to learn more about pricing and member benefits.

Greg Tirico

August 7, 2022

Episode #402: A Pricing Miscellany

Greg Tirico

August 7, 2022

Over the past few weeks, Ron and Ed have collected a few pricing related items including some listener email and podcasts that raise some interesting questions about value and subscription base pricing. This episode addresses all that and more.

Use these show notes to follow along with the audio…

We’ve had a bric-a-brac, a potpourri, and…..miscellany. All show titles with a grab bag of topics. Today’s miscellany is all about pricing.
Stay tuned for some upgraded technology that will let our listeners (our AMAZING listeners) call in and talk LIVE on the show with Ron and Ed.
We started the show off today with a great comment/question from Mark Stiving, former TWO time guest — episode 246 and 348
Billing by the hour leads to customer surprises. “The lawyer never told me it would be $100k.” The Professional Pricing Society is on a crusade to bury the billable hour.
There is a scene in The Firm with Tom Cruise in which he is called out for billing 33 hours in a month. Cruise remarks, “That’s what you were billed?” The customer, “You don’t look at the bill?” Cruise, “I just submit my timesheets.”
We’d like to give a shout out to Mark Gandy at CFOBookshelf.com. He’s a great Patreon member (Patreon.com/TSOE) and at a certain level, you can get a shoutout as well.
Subscription pricing blows up lots of issues associated with scope of work. Most importantly, it de-emphasizes scope. The more complex the project, the more benefit you will see from the subscription model.
It’s Value Pricing…not value billing. Billing takes place in arrears.
One of our listeners sent in a great email about subscription pricing. Among other things, it turns out he has been subscribing to his veterinarian….for 20 years!
For those interested in all the shows we have done on the topic of subscription pricing, check out this page on the website (under the Categories navigation menu): https://www.thesoulofenterprise.com/subscription-model
So what is considered subscription pricing? Ron shared a top 10 list today, including that It’s a periodic payment for recurring (increasing) value. “You’ve gotta bake in plussing.”
Subscription pricing is also…
- Frictionless interaction
- Convenient - you have to save the customers time and hassle
- A lower transaction cost
- Giving your customers insurance (What you need, you’re covered)
- Continuous innovation
- Focus on the relationship
Here’s a working definition for subscription pricing: “Periodic recurring payments for ever increasing value and serial transformations.”
In episode 34, we had a discussion with Joe Pine on The Experience Economy, and especially how professional firms are poised at the top of his Economic Value Progression graph, providing transformations for their customers. https://www.thesoulofenterprise.com/34
Ron Baker and Paul Dunn are BACK with a new book, “Time’s Up” — You can be a part of private Zoom calls and other perks simply be pre-ordering. More details are here: https://www.thesoulofenterprise.com/timesup
We can’t fit this in a tweet but Ron and Ed talked about THREE DIFFERENT WAYS you can incorporate subscription pricing into your firm today. Start a new firm, slowly roll it out, or rip the band-aid off. This was during segment three of the show.
Lions, and tigers, and bears! Or, in our case, commercial-free episodes, bonus episodes, and special events. Oh my! Only at Patreon.com/TSOE which is sponsored by 90Minds. Need a mind? Hire one at 90Minds.com
RateThisPodcast.com/TSOE - What do you think you can do there in 15 seconds or less?
It’s really hard for a business to disrupt itself. REALLY hard. When thinking about the options for transitioning to subscription pricing, option A discussed today (a new entity) gives you the freedom you need.
Why does Ron want Apple to shift to a subscription? Why is it better to rent a product instead of buying one? Many think of it as a lease mindset. That might be a barrier/issue for some in terms of their thinking. “Plussing” is a much better approach/mindset.