Monthly Archives: August 2013

Arte Maren Interviews Inc. 500 Award Winner Joy Gendusa, CEO of PostcardMania

Arte Maren, author, business consultant and host of BusinessWise.TV, interviews Inc. 500 Award Winner Joy Gendusa, CEO of PostcardMania:



Arte Maren
Professional Speaker, Writer and Business Consultant
Author of  The Natural Laws of Management: The Admin Scale


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Products & Service: Short-Changing Yourself (Chapter 7, Superlative Service)

the-market-has-been-in-the-dumps-for-months-what-s1I recall an instance where someone was delivering a product—a great product—and selling it for $250.00. He was not doing well. An analysis was done, and he was told to double his price. Now this person had serious misgivings about this advice, as he felt that he was not doing well even at the lower pricing, so why would he raise his price? “I am starving with the pricing I now have and not getting lots of buyers. I can’t possibly double it,” he said. And the answer given was, “You are actually creating an imbalanced exchange. You are under-priced.” Remember, truth “is what is.”6  The product was not worth $250.00; it was worth $500.00. So people were not buying it because they felt (innately) it was worth more.

The lower price made them suspicious. They knew it was a great product, so why was he selling it for $250.00?

What did he do? He priced it in accordance to its successful-businessman-natural-laws-of-management-arte-maren-admin-scaletrue value in the marketplace and he had more buyers than he could handle. Now everybody wanted it. It “felt right” to them.

The solution is not, then—if you are having any problem at all— simply to double your price, but in some specific cases, it might well be good to examine this factor. Beware of this kind of exchange imbalance, shortchanging yourself!

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of  The Natural Laws of Management: The Admin Scale

6  Hubbard, Technical Dictionary.


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Organization and Attitude – Excerpt from “The Natural Laws of Management”


“If you really feel that you have something of value, that’s an attitude that others can perceive.”


There are several major factors to understand as regards expansion: the amount of activity we generate outside of a business which drives in the traffic to the business; the capacity to efficiently handle what’s driven in; and lastly, the quality of the product or service that is delivered to the consumer.

All too often, what is driven in simply walks out the back door, meaning that the capacity of the business was not up to handling the traffic. And if so, it must be handled.

Anything which stops or delays the flows of a business or delays or puts a customer or product on WAIT is an enemy of that business.

Good management carefully isolates all stops on its flow lines and eradicates them to increase speed of flows.1

A full understanding of VFPs [Valuable Final Products] by all those on the “front lines” dealing directly with the buying public is vital. Customers, clients and patients are aware of when they are actually getting a VFP, whether they can verbalize the VFP or not. A failure to deliver impacts the customer on a personal level also, a point to consider carefully.

A staff idling in Reception, offhand handling of callers, wrong address or names misspelled drive off customers. Aside from simply blocking sign ups,2 these points also REDUCE CUSTOMER STATUS.3

The ability to reach out into the environment and make something occur is vital to expansion. Sometimes, however, to get a company solvent, it’s not only necessary to get involved in its marketing, it’s necessary to fix the capacity of the business to handle substantial traffic—at which point, magically, it starts getting traffic!

As mentioned earlier, in order to organize anything, it is only necessary to look at the end result and then work backwards from that.  At the very start, we can begin with attitude.

Some business owners think that they are lucky when a customer walks in the door. If you don’t feel that your customer is lucky, you had better take another look at your operation. Knowing that you are delivering a product that is extremely valuable exudes a certainty. When that person walks into your business, it is that person who is fortunate that you are there to provide a service he or she needs.

One of the best marketing campaigns I’ve ever run was based on this viewpoint. In the early 1970’s, I got a call from the Narconon [drug rehabilitation program] representative in the state of Washington, and he said, “The state needs drug programs and we might be able to get in if we go there and…” I said, “Call the State Director of Prisons and let him know that I will fly to Washington and do a tour of all their installations. If we think that they deserve our program and their facilities are conducive to what we’re doing, we will bring it to them.” The public relations rep said, “You’ve got to be joking. I’m not calling them and telling them that.” I convinced him to do it and he did. He called back amazed, saying that they gave me an appointment. We went in and I conducted a check of their facilities.

The Seattle newspaper ran an article the next day. It said, “State May Get Drug Program.” If you really feel that you have something of value, that’s an attitude that others can perceive. I truly believed that we produced something valuable—that they were fortunate, not I.


-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of  The Natural Laws of Management: The Admin Scale


1 Hubbard, “Speed of Service,” Policy Letter of 3 January 1968, Organization Executive Course.
2 Sign Up: “Enlist in an organization; also, register or subscribe to something.”
3 Hubbard, “The Org Image,” Policy Letter of 17 June 1969, Organization Executive Course.


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Four Conditions of Exchange: The Quality You Must Deliver

It is not simply amount of production alone but, additionally, the quality you must deliver to ensure exchange. L. Ron Hubbard discovered four conditions of exchange.


1. First consider a group which takes in money but does not deliver anything in exchange. This is called rip-off. It is the “exchange” condition of robbers, tax men, governments and other criminal elements.

The first of these conditions is really a criminal condition. Rip-off is an attempt to get something and give nothing. And it’s the road to ruin.

2. Second is the condition of partial exchange. The group takes in orders or money for goods and then delivers part of it or a corrupted version of what was ordered. This is called short-changing or “running into debt” in that more and more is owed, in service or goods, by the group.1

A customer orders five blue pencils to arrive on Wednesday and, two weeks later, receives three orange pencils with a note: “The other two will be coming but they will be green. I hope you don’t mind.” This incomplete exchange causes a backlog and eventual insolvency. And if the pending insolvency is not handled, it can move back down to condition number one: rip-off or fraud.

3. The third condition is the exchange known, legally and in business practice, as “fair exchange.” One takes in orders and money and delivers exactly what has been ordered. Most successful businesses and activities work on the basis of “fair exchange.”2

A customer orders three blue pencils to arrive on Wednesday and he gets three blue pencils on Wednesday. This is legal and fair exchange. It’s also what is accepted as “normal.” The generally accepted belief is that “if you just give people what they want, then everything will be fine.” But, in fact, giving people only what they want does not necessarily bring about expansion. At best, it just keeps your head above water. It does not guarantee survival. The real answer to guarantee success in any endeavor is delivering in abundance. “Normal” exchange does not always bring about success.

4. The fourth condition of exchange is not common but could be called exchange in abundance. Here one does not give two for one or free service but gives something more valuable than money was received for. Example: The group has diamonds for sale; an average diamond is ordered; the group delivers a blue-white diamond above average. Also it delivers it promptly and with courtesy.3

Thus we can see that the fourth condition is the only real guarantee of success.

The fourth condition is the preferred one. It is the one I try to operate on and have attempted to for ages.

The Four Conditions of Exchange

Produce in abundance and try to give better than expected quality. Deliver and get paid for it, for sure, but deliver better than was ordered and more. Always try to write a better story than was expected; always try to deliver a better job than was ordered. Always try to produce—and deliver—a better result than what was hoped for.

This fourth principle above is almost unknown in business or the arts.

Yet it is the key to howling success and expansion.4

Condition four is the only one that guarantees survival in abundance and that is achieved by delivering more than is expected. That doesn’t mean if somebody ordered ten pencils you send them twenty. That’s a good way to go out of business. It does mean that if they ordered ten pencils to be delivered on Wednesday, you send them ten pencils, perhaps on Tuesday, with a few erasers and a little note that says, “Thank you very much for the order.”

It is the pluses that guarantee greater survival. And the pluses don’t have to cost more time or money. It’s a question of care, not cash.

Additionally, how quickly success comes about does not and must not rest on the shoulders of the company executives alone.

Where a group is concerned, there is another factor which determines which of the four above is in practice. It is group internal pressure. Where this only comes from executives, it may not get activated. Where it comes from individual group members in the group itself, it becomes assured. The internal demand of one staff member to another is what really determines the condition of the group and establishes which of the four conditions above come into play.

Thus the organization collectively, in electing which of the four principles above it is following, establishes its own level of income and longevity and determines its own state of contraction or expansion.

While this is a must in an executive—to establish the principle being followed—the real manifestation only occurs from pressure by individual staff members or others within the group.5

We can easily see that executive leadership is vital but individual responsibility is also a key factor. It is the group that sets the standard and which of the four conditions is applied or implemented.

It is up to the individual staff member in a group what the group income is and what their own staff pay is. The organization cannot earn more and the individual staff member cannot be paid more than will be established by which principle above they elect to follow.6

If you look at every successful business, giving people more than they expect—especially in the area of service—is, in fact, normal. That’s the way that it should be. That’s the concept that you want to bring into your business or indeed into your life.

You must continuously do those little extras that helped to build up your business.


Arte Maren
Professional Speaker, Writer, Business Consultant
Author of  The Natural Laws of Management: The Admin Scale


1,2,3,4,5,6 Hubbard, “Exchange, Org Income and Staff Pay.” Policy Letter of 10 September 1982, Organization Executive Course.


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What is the Formula for Expansion in Business and in Life?

So expansion should be your viewpoint in running your business and your life. And there is a vital formula:

[E]xpansion formula:


Thus we can see that expansion does have some definite rules. Expansion does not simply arrive on its own. This is further highlighted by specific actions for expansion:




It takes hard work and it takes your intention.6 You make it happen.

You can target statistics being up, which helps create more motivation and willingness. But it would be an error to simply tell people what their targets are, to tell people what their quotas are, without gaining any real agreement.



4   Hubbard, “The Structure Of Organization, What Is Policy?” Policy Letter of 13
March 1965, Organization Executive Course.

5  See note #4 above.

6 Intention: “It’s an idea that one is going to accomplish something. It’s intentional, which means he meant to do it, he means to do it.” Hubbard, Technical Dictionary.

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