The Strategic Blending Process – The Only Way To Succeed Today

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Marketing & Sales – The Current State of Affairs And The Strategic Blending Process

If you are paying attention, the social media folks would have you believe that all you need to do to be successful in your business or career today is to be a social media guru with Facebook, LinkedIn etc. I beg to differ.

Don’t get me wrong, I believe that social media or any other approach that improves exposure, new business or repeat business. But beware – relying only on a single approach, whatever it is, to build your business or career can be filled with uncertainty, inconsistency and false hopes.

Just because you have 5000 Facebook friends, are at the top of the heap on LinkedIn or get thousands of visitors to your blog each week is no guarantee these folks will buy or even consider buying as a result of this exposure.

Let’s go back a few years – maybe even before some of you knew what marketing or sales was. How did people grow their business? Well, the businesses who had common sense and a reasonable budget used a combination of;

- Public Relations
- Billboards
- Direct mail
- Direct sales approaches
- Trade show participation
- Cold telephone calling
- Word of mouth
- Advertising
And many other “old fashioned” approaches

Did these work? Well yes, they did for companies like; FedEx, IBM, McDonald’s, Nordstrom, Ford and GE.

None of these organizations or other successful ones during the past 50 years relied on the same combination of the above strategies, but they all used a unique combination of them that best suited their markets and their business philosophy. None of them, I might add, relied on a single approach or strategy – their key to success was a combination of them that gave them the results they desired.

I know many individuals and businesses that are becoming hooked even obsessed with the latest strategy of social media. YES, it should become part of the mix as you consider your growth approaches, but to believe that all you need for success is thousands of Facebook fans, is a recipe for disaster from my point of view.

I can hear some of you now (those under the age of 30) “Tim you are nuts, you don’t get it, you are stuck in traditional mindsets of the past and just out of touch with reality when it comes to the use of the internet for growing your business.” You could be right and time will tell who is right, but I will tell those of you that have that viewpoint that over the years surviving businesses did not totally embrace fads, new philosophies or approaches as their only marketing or sales strategy.

What they learned was that the right “mix” or combination of approaches was the key to success and not throwing all of their time, resources or energy into a single approach or strategy.

I will admit that direct mail over the past few years has lost a great deal of its effectiveness and can often be a waste of money and trade show participation has become more expensive and has lost some of its glamour. Times and circumstances change and we must all do what we can to stay current and relevant, but in the end, relying too heavily on a single approach no matter how alluring or popular, can over time be a mistake and cost you business, sales, customers, reputation and even success or survival.

Why people buy has not changed a great deal in the past 50 years, but how they can and do buy has been significantly affected by technology i.e. websites, blogs, I Phones, Email marketing etc. To have a current effective sales and marketing strategy requires that these must be added to the mix, but the real question is – what’s next or what waits around the next corner in terms of marketing and sales opportunities and how to best to anticipate them, prepare for them, deal with them and take advantage of them. Yes, you need to use social media with all its complexity, competition and opportunity, but consider for a moment how many millions of people are using this and what is the potential for awareness even results.

I am a believer in adapting and adopting to change, but I am also a strong believer in continuing to use and embrace the basics or fundamentals. In many ways technology improves our ability to keep in touch with others, but the way we use these approaches to keep in touch is most often void of the human touch. We are losing human connectedness. Yes, I know what you had for dinner last night and where you are going on vacation and thousands of other useless pieces of information, but when was the last time you met face to face, had a live dialog or just hung out with a client, friend or even your kids?

I have written numerous articles the past few years relative to the loss of human connectedness in the area of sales, customer service and management and the general philosophy I teach is – use technology as a tool not a crutch.

When it comes to positive and consistent results in sales and marketing it is vital that you embrace a blending process when it comes to wide exposure, reputation building, positive word of mouth and overall success.

Mud Engineer Jobs

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Opportunities in the Field
Looking for more information on entry level Mud Engineer jobs? The following page will describe everything you want to know about the occupation and more. Included is a detailed breakdown of what Mud Engineers do in the field as well as a basic outline of some areas with great employment opportunities. To continue learning about this high paid specialty, please reference the page below.

Work Life
For those that don’t know, a Mud Engineer is a type of specialist who manages the “mud” used on drilling rigs. This “mud” is a basic mixture of fluid that is used to clean out the rig’s borehole. Since the borehole can extend thousands of feet below the surface of the earth, mud must have specific qualities in order to work effectively. If not, the mud is said to be out of balance and serious problems can develop at the drilling rig. For example, when the mud’s weight is too low the borehole can weaken and in some cases this can cause devastating cave-ins. As you can see, controlling the mud’s quality is of great importance in the field.

To effectively manage the mud at a drilling rig, a Mud Engineer must be onsite and perform certain tests. In order to do this, a “mud kit” is taken out on each rig to measure mud properties and diagnose any problems. After using the mud kit to perform key tests, findings are then taken and analyzed to describe the mud’s performance. When findings indicate that the mud is not in good shape, a Mud Engineer will develop custom treatments to make necessary adjustments. Because of this, Mud Engineers are highly respected for their unique set of skills.

Earnings
So what does the job normally pay? Typical earnings for Mud Engineers average around $75,000 per year. In addition to this are employee benefits like; health insurance, relocation assistance, and employer provided work trucks. Although there are several different payment methods being used out in the field, Mud Engineers with experience can easily earn $100,000 or more. (This is especially true if they work in an area that is in high demand.)

Some areas that are currently reporting high demand include; Pennsylvania, West Texas, and even North Dakota. In these states Mud Engineer jobs have really been taking off. In fact, those with the proper training have often reported that they have been able to get jobs in these regions with little or no downtime. So what do you need to do in order to enter the field?

Requirements
Employers require entry level Mud Engineers to complete a training program known as Mud School. While training in Mud School, aspiring students learn how to treat, troubleshoot, and build pilot samples of mud. During their training important skills are ingrained into students so by the end of their course every skill has been mastered. Mud School training courses typically last for around a month and by the end students usually have a good idea where they would like to work. To find out about what training typically covers, Google Ace Mud School and visit their website to learn more.

Kids’ Sunglasses Are Perfect for Art Fair Vendors

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Do you find that you spend a lot of your summer days, packing up some of your wares and setting up temporary shop at art fairs and street fairs all over the state? If the answer to that question is yes, one of the things you might want to think about doing is adding one or two sunglass displays to your booth. You’ll be surprised by how popular the displays are. They can turn into a lucrative source of income.

Don’t make the mistake of only trying to sell designer eyewear while you are at the street fair. In fact, the type of glasses that you should load your display with is kids’ sunglasses, these are the most likely to turn into your big seller.

The reason you shouldn’t get too excited about adult sunglasses in the street sale and art fair situation is because most of your grown up customers are already going to have their sunglasses. In fact, most will be wearing their glasses when there are perusing your wares. The only way the adults are going to be purchasing sunglasses from you is if the pair they have breaks, or if you happen to have a pair that they really like the looks of.

Kids are different. Kids tend to be hard on their stuff. It is not at all unusual for a child to do something while they are at this function that will cause their sunglasses to break. The even more likely scenario is that they are going to set the sunglasses they came with down, and have no idea where to even start looking for them. Their parents will have no choice but to buy a pair of kids’ sunglasses from you to replace the lost pair. They might even buy two pairs of kids’ sunglasses to that they have an extra set on hand if they need it.

Kids usually aren’t nearly as excited about outdoor art fairs as their parents are. Most of the vendors are going to be marketing crafts and products that your child just won’t care about. Just because the child doesn’t like any of the items that are being sold at the art fair doesn’t mean that they aren’t going to be begging their parents to buy them something. Odds are pretty good that the kids’ sunglasses you are selling will be just the thing the parent’s need to keep their little ones pacified.

The best way to stock your displays with kids’ sunglasses is to buy wholesale and in bulk. Doing this will cut down on the cost of the order and your will be able to pass these savings on to your customers which will increase the likelihood of a sale.

Online Advertising for Small and Medium Enterprises – A Huge Marketing Advantage

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The importance of online advertising for Small and Medium Enterprises (SME) can never be understated. It is also complete misguided thinking from the SME fraternity, that advertising will be expensive, time consuming and that the results are not always guaranteed.

Advertising for small business is extremely important

Why in the world is there a need for advertising? Why do giant conglomerates advertise? If such gargantuan companies find the need for advertising, shouldn’t there be an even bigger demand for local community advertising?

Simply put, all companies whether big or small, advertise with the purpose of increasing their revenues and sales. But in saying so, it should also be put quite clearly that advertising could become expensive if you do not make informed decisions. Your final decision must be based on comparisons and true value for money.

Thus, the importance of online advertising for Small and Medium Enterprises must be understood

When huge corporations are spending a fortune on advertising, is it not understandable that small business can also benefit from this practice? Conceivably, it will be on a much lower scale and the advertising will be aimed at the local community and areas of operation.

The advantage of advertising cannot be neglected, as it enhances the image of the company, and brings the goods and services right to the forefront of potential buyers. It is this particular power of advertising that gets companies noticed, and extends their marketing footprint. Ironically, the smaller the company, the more it should spend its efforts on advertising because the potential return on investment is directly linked to this.

The uncertainty of advertising is a low risk consideration

There is always a risk with advertising as the results can never be known for sure. This is the very reason why advertising is spread over TV, radio, newspapers, magazines and the internet.

Online advertising is extremely important, more so for small businesses and in the case of small companies catering to local businesses. This is because online advertising can target extremely specific markets that cater for niche products and services.

The advantage of advertising by targeting markets online

The target market is the market which has people who are ready to spend on what you are selling. By advertising online, Small and Medium Enterprises are addressing the needs of these clients very effectively. By catering to very specific niches of consumers, you are honing in on people who are quick to take a buying decision.

After all, when so many millions of people are now relying more and more on the internet, what better way of advertising to them than by advertising online?

What is the BIG advantage of advertising ONLINE?

This form of advertising is highly effective as it allows advertisers to get a direct response from consumers and this is beneficial to both the consumer and the seller. Every small business owner has a computer these days, so even a simple but well structured email marketing campaign, has the potential to effortlessly reach clients.

Thus understanding the importance of online advertising for Small and Medium Enterprises is extremely important, more so in the case of advertising for small business and local community advertising.

How to Publicise Your Edinburgh Fringe Show

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The Edinburgh Festival Fringe is a very colourful and riotous event that’s held in the city of Edinburgh, Scotland for three weeks every August. A cultural highlight since it was first unveiled in the late 1940s, this festival has become well known for launching the careers of a number of theatre companies, directors and actors, but for every show that is hailed as a critical and a financial success, there will be dozens of productions that just don’t hit the dizzying heights of stardom that they hope to achieve. However, while it can be hard to get your work noticed at the Fringe, this doesn’t mean that it’s impossible to do, so here is a very brief guide to making your show as popular as possible this August.

While the Edinburgh Fringe only happens once a year, a lot of work goes on behind the scenes to ensure that everything runs smoothly. This process takes all year, and so starting some work early is one of the best things that you can do in order to ensure that your production does well. For a start, make sure that your get your application, and all relevant forms are submitted before the deadline, make sure you’re aware of what facilities your venue has, and most importantly, the familiarise yourself with the location of your venue. This will not only ensure that you find it in August, but will also ensure that you will know what kind of area it’s on, and how this will affect your ticket sales, ie, if you’re in the centre of town the venue should be quite busy, but if you’re on the outskirts it might be quieter. Knowing where you will be in relation to the general public and busy areas will help you concentrate your marketing efforts later on.

One thing to remember is that you can never have too many flyers or posters, as running out of these tools of marketing is worse than having too many left over at the very end. Try to make your posters stand out – let them show something unique about your show, use a good photographer, or a good camera if possible, and make sure all the details on the posters and flyers, such as venue, price, etc, is correct. Get everyone in the company involved in flyering, everyone from the actors to the tech crew so that they can reach the most people possible. When it comes to putting up posters, put them in the designated areas, or they will get torn down, also try to be respectful with poster space, as covering up someone else’s poster is not only rude, it’s mean.

If you can, try to see if you can invest in getting a PR company to help you publicise your show, this is a task that you need to arrange several months in advance, so don’t just arrive in Edinburgh on the 1st of August and assume that you’ll be able to find a Scottish PR agency to help you. Start searching for public relations companies in advance by searching for phrases like public relations Scotland or Edinburgh in Google. If you’d like to use a PR company closer to you, then go ahead, but just make sure that you go for one that specialises in performance-related clients and has experience of working for a company during the Fringe.

Remember, the Edinburgh Fringe is a world-renowned cultural event, so just make sure that you are ready for whatever this wonderful festival has to throw at you.

 

Taking Some of the Mystery Out of the Balance Sheet

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Understanding the different types of financial statements that can be prepared for your business, and being fluent with the information each contains helps you better understand your financial position and make more informed decisions about your business. Remember – forewarned is forearmed…and you can’t manage until you measure! That being said, I have found that a critical measuring tool – the Balance Sheet – is often overlooked by small business owners – likely because they don’t understand its importance. Let’s see if we can change that…

The Balance Sheet is merely a snapshot of your company’s financial position as of a given point in time. Today’s balance sheet could be different tomorrow – simply by writing out a check, or invoicing a client. This financial statement provides the details your assets, liabilities and equity – the three components of a business’ financial accounting – as of a particular date. Although balance sheets may be created as of any date, they are typically prepared at the end of an accounting period, such as a month, quarter or year.

The Balance Sheet is layed out in a particular fashion that reflects one of the most basic precepts of accounting:

Assets = Liabilities + Owners’ Equity or A=L+C

Since we are dealing with an equation, one side must ultimately and always equal the other side (think back to high school algebra!) Therefore, the total dollar amount is always the same for each side, i.e., total assets will always equal the total of liabilities + capital (or equity). Stated differently, the left and right sides of a balance sheet are always in balance. Some balance sheets will have assets at the top and liabilities and capital at the bottom…no matter…A will always = L + C.

Assets are the things your business owns that have some monetary value. Your assets are tangible items such as cash, inventory, buildings, land, and equipment, as well as investments, prepaid expenses and money owed to you (accounts receivable, notes receivable, etc.)

On a balance sheet, assets are listed in groups based on their liquidity. Liquidity is a measure of how quickly these assets can be converted into cash, sold or consumed. Current assets – assets that one can reasonably expect to be converted into cash within a year (e.g., accounts receivable) or can be converted into cash on demand (e.g., stocks) are listed first on the left-hand side and then totaled. Fixed assets follow next – fixed assets are expected to be around a while and persist – these include buildings, vehicles and equipment.

Finally, total assets are added-up at the bottom of the assets section of the balance sheet.

Liabilities reflect all the money your business owes out to others. This includes amounts owed on loans, accounts payable, wages, taxes and other debts. Similar to assets, liabilities are categorized based on their due date, or the timeframe within which you expect to pay them. Current liabilities are expected to be paid within a year; long-term liabilities in more than a year.

Current liabilities are generally due within a year of the balance sheet date and are listed at the top of the right-hand column and then totaled, followed by a list of long-term liabilities, those obligations that will not become due for more than a year.

Owners’ equity (sometimes called net assets or net worth or capital) represents the assets that remain after deducting what you owe. In simplified terms, it is the money you would have left over if you sold your business and all of its assets and paid off everything you owe.

Depending upon the structure of your business, owners’ equity may be your own (sole proprietorship), collective ownership rights (partnership), or stockholder ownership plus the earnings retained by the company to grow the business (corporation).

Total liabilities and owners’ equity are totaled at the bottom of the right side of the balance sheet.

With balance sheet data, you can evaluate important indicators concerning your business – such as your ability to meet financial obligations (current ratio, days cash on hand) and how effectively you use credit to finance your operations (debt ratio, debt to equity ratio).

Although the balance sheet represents a given moment suspended in time, it can be prepared to include information from the previous accounting period for comparative purposes. This will permit you to evaluate how your business is performing over time.

Compare the current reporting period with previous ones using a percent change analysis. Do you have more assets? Have you accrued more debt? Invested in equipment and facilities? Are your pressing financial obligations (current liabilities) under control? Is the amount that payers owe you growing? Calculating financial ratios and trends can help you identify potential financial problems that may not be obvious.

Often overlooked by the small business owner, the balance sheet can be a critical decision making tool…it is like taking the pulse of your business. Fear it no longer!

Be Known for One Thing

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What is the personality of your business? A lot of people have trouble growing their business very quickly and big because the business has a split personality.

When I was first starting out in business when I had my nutrition business, I saw people who would say, “Oh, I’m a holistic nutritionist but I also do Reiki and I also do jujitsu and I also do bach flower remedies and I teach yoga.” That’s great but they would try to communicate what they did and people just didn’t really get it.

Then when I started hanging out with a bunch of coaches they’d say, “Well, I’m a sales coach, I’m a relationship coach and I’m a divorce coach and I’m all these different things.”

What I’ve realized is the more things that you focus on in your business, the harder it is to grow. Why? Because if you’re not clear about what you offer then the person on the other end, what we look at as the prospective client, they will be confused as well. So, split personalities in business do not work.

The strategy that I want you to think about this week is to be known for one thing and one thing only. You can, and this is what I call the umbrella concept; now think about Client Attraction. In Client Attraction I teach the basics of marketing and client attraction, I teach systems, I teach leverage, I teach organization infostructure of business at least to me high level private clients, I teach mindset, I teach universal principles and spirituality in business, virtual marketing and so many other things; how to price, how to create packages and programs, all of these things.

You would think, “Fabienne, isn’t that kind of a split personality thing?” No, because they are all under the umbrella of Client Attraction. All of these things help you grow your business, make more money, working less, etc.

I want you to think about your business. Are you offering lots and lots of little things and does it seem like a big old mess? Or is it all under one umbrella? When it’s captured all under one umbrella, people get it.

Perhaps one day if you stop somebody on the street in Times Square and say, “Who do you think of when you think of Client Attraction,” hopefully they’ll say, “Fabienne Fredrickson.” But at least in my industry, that’s what people think of me as.

What about you? What are you know for? What is the one thing that you are known for and only that? That is your assignment for the week because as you get clearer on that one thing, then it’s kind of like the French thing le crème de la crème, the cream rises to the top. When you stand out in your marketplace that way by being known for one thing and one thing only, you rise above the rest. People know you and you become the industry leader and that’s what I want for you because that’s how you’ll get more clients, you’ll make more money and you’ll grown your business much faster.

So that’s your assignment for the week. Enjoy. Really think about this. This is not a five minute thing. This is one of the things that I work with in my higher level masterminds with clients who really want to leverage their business. We look at the strategy and the tactical, pragmatic ways that we can grow their business.

Fabienne Fredrickson is founder of ClientAttraction.com, ranked on the Inc. 500/5000 List of America’s Fastest Growing Private Companies in 2011. ClientAttraction.com is devoted to teaching entrepreneurs around the world how to consistently attract ideal, high-paying clients, put their marketing on autopilot, shift their mindset towards abundance and take a no-excuses approach to creating a highly successful and meaningful business, while working less. Through her workshops, courses, coaching programs, and products, Fabienne shows her students how to go from 5-figures to 6-figures in their business and then from 6-figures to 7-figures, while experiencing freedom and creating an abundant life they love.

The Opportunities For Employment With A Degree In Business

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Deciding to earn your degree in business is a great option for many individuals, but it can also be cause for concern. What exactly can you do with a degree in business? The answer is plenty! With a business degree, you can go on to do a variety of things, and you can pursue numerous career fields as well. If you choose to earn your degree in this field, it can open doors that you never would have imagined.

One option available to students in business is to choose a career in the field of sales. Sales is a broad field and can incorporate anything from retail sales to wholesale to wine. Just about every industry needs individuals who can sell their products or services, so your options are nearly endless. If you are passionate about a certain item or industry and you like to work with people, going into sales is a great choice.

You can also choose to pursue a career as a manager. Managers are key players in the world of business. They oversee people and make sure that deadlines are kept and met. It is essential that managers are able to effectively create relationships with those under them so they can create a cohesive environment. Managers need to be able to take charge and take responsibility for all of those who they manage.

CEOs are also very important people within businesses. In order to pursue this type of path, you will need to work your way up. CEOs are a part of the upper management team of a business and usually are focused on creating and maintaining a stable business that is able to grow its wealth. While this position offers great financial benefits, it can also be stressful to be in charge of a whole business or corporation.

One part of business that is vital to creating a successful empire is marketing. This is a great path to follow if you like being creative, while promoting what your business has to offer. Marketing is what helps businesses get their names known and is what gets people to buy their services or products. To be successful in this type of position, you need to be able to effectively promote your ideas.

Human resources is also a viable option for business degree graduates. This profession falls more on the administrative side of business but is also very important. Those in human resources help businesses by providing administrative help. They work to put together employee packages and benefits as well as handle interpersonal situations within the business. If you are interested in this type of profession, you can specialize in business administration while you complete your Bachelor’s degree.

You can also choose to create and run your very own business after you graduate. By becoming an entrepreneur, you can provide clients and customers with your very own unique service or product. Many individuals have created businesses out of their homes or have created online businesses. This is a great way to use your expertise and skills while becoming your own boss. Starting your own business can be very rewarding but also requires hard work and exceptional motivation.

All About Subliminal Advertising

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Subliminal advertising (also known as SA) is simply defined as promotional messages with hidden meanings that involves the recipient’s subconscious mindset. The efficiency of subliminal advertisements is likely supported by scientific evidences, while certain industries are considering it as a jurisdiction in business practice deception.

The term “subliminal advertising” was invented by James Vicary during the 1950s. A market researcher by profession, Vicary founded The Subliminal Projection Co. to address the hidden messages between advertisements shown in movie theatres. The “Hungry? Eat Popcorn!” and “Drink Cola” messages seen throughout the film “Picnic” were deemed subliminal. However, Vicary claimed that these messages made the 1955 film successful.

In 1957, Vance Packard wrote and published “The Hidden Persuaders”, a book about media manipulation during the 1950s. In his book, Packard revealed the significance of psychological techniques and motivational studies in manipulating public interest. A year after its release, The National Association of Broadcasters and concerned American networks prohibited the use of subliminal advertisements in television. The prohibition also took place in Australia and United Kingdom.

In 1973, an advertisement for the “Hüsker Dü” game was aired in the US and Canada. During the children’s game commercial, the “Get it!” message was inserted. This in turn resulted to Canada’s move in banning the said advertisement. Also in 1973, Wilson Bryan Key’s book “Subliminal Seduction” was published. Although credible information in the book was accepted, public complaints were still made in opposition to SA. In January 1974, The Commission of Federal Communications issued a statement saying that subliminal advertisements are only means of tricking public interest.

The use of subliminal messages in advertisements still exists up to now. In fact, many marketing industries use SA as endeavor to input messages that may influence people. Any impact brought by subliminal advertisements may lead to overwhelming bad publicity, unless the hidden message behind the ad is unclear. In a report by the NEW SCIENTIST magazine (April 2006 issue), many researchers found out that subliminal advertisements work – only in some conditions. Furthermore, subliminal messages are more effective in convincing target audiences to choose a product (or service) over another instead of recreating their own necessity for the product.

Recent studies show that the human mind and eyes can notice and preserve subliminal advertisements, leaving mixed perceptions. In a CBS News report, a UK study revealed that the brain is more likely to record subliminal words, as well as those associated with positive emotions. However, several effects may be considered negative regardless of the gravity of subliminal messages addressed to a particular audience.

Subliminal advertisements influences the mood and product familiarity, but the evidence on its impact remains uncertain. Max Sutherland wrote in his “Advertising and the Mind of the Consumer” book that subliminal advertisements are oftentimes used as motivational strategies in slackening boredom and mediocrity in promoting a product. Subliminal messages also affects the things people buy. Case in point: You may hardly notice the soda brand the actor drinks since your mind is on the actor himself.

Credit Card Processing: The History of the Magnetic Stripe

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For 40 years, the magnetic stripe has served the credit card processing industry well. It revolutionized shoppers’ buying habits, set the standard for sharing personal information and made real-time processing possible. Already replaced by EMV technology worldwide, the mag stripe is about to be phased out in the U.S. as well. Before it disappears, let’s take a look back at its history.

Originally used on paper tickets on the London Underground, the mag stripe concept was borrowed by IBM to develop database access for the professional computers it was developing in the mid-1950s. It was also quickly adopted by airlines, who used it to streamline the ticket purchasing/check-in/boarding process, and by banks, who were experimenting with early ATMs.

But the biggest impetus for the development of mag stripe technology was a rise in credit card fraud during the 1960s. In those early days of credit card processing, merchants would use a flatbed “knucklebuster” machine to make an imprint of a card on a multi-sheet receipt, which then had to be physically transported to the bank where the account number would be checked against a list of known fraudulent accounts. It was a time-consuming process that often took days to complete and was highly susceptible to fraud.

The mag stripe was first tested in a joint pilot project by American Express®, American Airlines and IBM at O’Hare Airport in Chicago in 1970. Three years later it was put to work on bank cards and employee ID cards. MasterCard and Visa adopted the mag stripe in 1980 after production costs dropped from about $2 per card to just a nickel per card.

The mag stripe revolutionized credit card processing, contributing to an increase in U.S. credit card balances from $9 billion in 1973 to $796 by 2011, according to Federal Reserve statistics. This simple-yet-complicated idea allows cards to be swiped through an electronic reader in a terminal that encrypts and sends the data to the issuing bank. Once the bank verifies that the cardholder has sufficient credit to cover the purchase, it sends an authorization to the merchant, who completes the transaction – all within seconds!

As part of its 100th anniversary celebration in 2011, IBM included the mag stripe as one of its top 100 contributions to society, a list that also includes the Selectric typewriter, IBM punched card, personal computer and the rise of the Internet.

The mag stripe has truly been a workhorse when it comes to information technology and credit card processing, but its days are numbered. Europe and much of the rest of the world has already adopted EMV cards (sometimes called chip-and-PIN), which rely on microchip technology to do what the stripe does (and far more securely, too.) Additionally, mobile payment options that turn smartphones into wallets are catching on, particularly among the younger generation.

Even the “father” of magnetic stripe credit cards acknowledges that it’s down, but not totally out. “My guess is the stripe will disappear,” says Jerome Svigals, IBM’s project manager who engineered the mag stripe technology. “It’s already disappearing – you don’t see the stripe on mobile phones or smartphones – but you do see the equivalent information content on chips and they emit that into the network. The information structure will be around forever.”

To learn more about magnetic stripe, contact Merchant Express. Merchant Express offers credit card processing and merchant accounts to small and medium-sized businesses.