Paying with good deeds

Using a unique model, the Linda Tutt High School in Texas, USA, has launched a student-run grocery store where students can purchases necessities through points earned from doing good deeds. According to the principal Anthony Love, there are about 2,750 students enrolled of which 43pc are economically disadvantaged and 3.6pc are homeless. Through this system, the can buy essentials such as toilet paper, meat and basic food items. The points are initially set depending on the size of their family. Subsequently, students can earn points through outstanding performance in school, doing good deeds that staff and teachers can award points for, or doing odds around the school such as helping out in the library or mentoring elementary school students.

(Adapted from “A high school in Texas opened a grocery store for struggling families where good deeds are accepted as payment,” published by CNN in December 2020)

The “Made in America” premium

Promoting “Made in America” has become fashionable, but importantly it has become more profitable. American made is perceived to offer a higher quality and can thus afford to charge a price premium. Research from Consumer Reports and Standard Textile indicates that 80pc of consumers prefer products with the “Made in America” tag. About 60pc of consumers would be willing to pay roughly 10pc more for a product they perceive to be produced in USA. Thus American made positioning is an intangible asset it that it can provide a competitive advantage. However, the claim must have evidence to support it. The Federal Trade Commission has authority over claims of US origin and it requires that the claim can only be made if the product is “all or virtually” made in the United States.

(Adapted from the “FTC and ITC — Protecting America’s Industry,” by Chet Dominik, published by Ocean Tomo, a consulting firm)

Posting losses

A government-owned entity, the Pakistan Post provides postal services to around 20 million consumers. It also provides life insurance instruments, performs agency function on behalf of Central Directorate of National Savings, and collects taxes and utility bills, money and remittance transfer facility without taking in deposits. According to the Pakistan Economic Survey 2018- 19, it had 10,496 post offices in 2018-19, down from 12,339 outlets in 2004-05. However, the number of employees did not fall during this period, instead the ratio of employees per post increased from 3.8 to 4.2. The overall contraction of postal activities is indicated by the decrease in the number of letter boxes from 19,136 in 2008-09 to 12,803 in 2018-19. All the while, private courier companies have penetrated the postal market and are providing stiff competition. No wonder the impact is reflected in the bottom line: the entity reported substantial net losses of around Rs7.5 billion and Rs9.3bn in 2015-16 and 2016-17 respectively.

(Adapted from “Enhancing Financial Inclusion through Pakistan Post,” by Dr Waqas Ahmed, Talha Nadeem and Khurram Ashfaq Baluch published under State Bank of Pakistan Staff Notes, June 2020)

The future of telehealth

While Covid-19 has impacted almost all areas of life, one of its most interesting affect is the relationship we have with our health, and therefore, our healthcare providers. Unlike other industries where the pandemic forced people who would prefer in-person interactions to opt for digital methods, healthcare evolved differently. It is not necessary that people did not want to interact digitally, but that telehealth was not an option that was widely available. This raises the question that if patients continue to opt for telehealth, is it because they don’t feel comfortable visiting in-person or because they prefer the virtual experience. For those who used telehealth for the first time during the pandemic, the answer appears to be the latter. Telehealth could be a solution to frequent visits to the doctor to monitor an ongoing condition or for general access to those living in remote areas.

(Adapted from the study “An emerging digital audience: First-time telehealth adopters,” by Hero Digital)

Published in Dawn, The Business and Finance Weekly, December 14th, 2020