The Big American Retailers With The Worst Service

Customer satisfaction in the retail and online e-commerce industries is getting worse. There is no single reason for this, but it is likely that the recent economic downturn is one of the biggest factors. A recession often cuts into retail payrolls, and so full-time workers are replaced by part-time ones. Anxiety among people who are not laid off rises. The employees in the stores who are the spokespeople for their companies have their morale shaken. A drop-off in customer service is bound to result.

Recessions also rob businesses of the ability to compete effectively on price. A downturn hurts sales. This takes away the flexibility for businesses to offer discounts, unless their balance sheets are strong enough to fund losses in exchange for improved market share. Big companies such as Wal-Mart can afford to take a long view. Much smaller ones including OfficeMax probably cannot.

The American Customer Satisfaction Index is as close to the gold standard for the measurement of customer service. ACSI reports scores on a 0-100 scale at the national level and produces indexes for 10 economic sectors, 45 industries (including e-commerce and e-business), and more than 225 companies.

The ASCI data which was just released on the retail and e-commerce industries shows an erosion in consumer satisfaction scores. It is the largest drop the research operation has reported since 2008 – at the depth of the recession.

National ACSI figures for all economic sectors were off to 73.5 in the fourth quarter compared to 75.7 in the third. The national retail number fell from 76.2 in 2009 to 75 in 2010. E-commerce dropped even more from 81.4 to 79.3 year compared to the previous year.

24/7 Wall St. reviewed the data to find the companies which were hardest hit in the ratings from 2009 to 2010. We picked only firms with satisfaction ratings down at least 2% year-over-year with the goal of finding common themes between the companies, or at least reasons why they are performing worse than their peers.

After reviewing the data, 24/7 Wall St. observed several key attributes in common between the companies on this list. Companies which were in the number 2 or number 3 spot behind a large industry leader often did very poorly. These companies include Target (NYSE: TGT), Lowe’s (NYSE: LOW), OfficeMax (NYSE: OMX) and Newegg. Firms which are not in the top spot for their sector often do not have the financial resources of their larger competitors. They are often the first to begin layoffs, meaning their staff-per-location falls along with morale, and often the number experienced workers. People who have been with a company the longest often earn the most. As they are laid off, institutional knowledge is bled out of a company. Cheap becomes expensive.

9. Newegg
> Industry: Internet Retail
> % Change In The Last Year: -2.3%
> % Change Since First Year Of Rating: -3.4%
> % Change of Industry In The Past Year: -3.6%

In 2008, Newegg led the Internet retail industry in customer satisfaction. The company is now behind both Amazon and Netflix, with a score of 84. Newegg.com, an online consumer electronics retailer originally focused on discount computer components, has now expanded to consumer electronics, including televisions and digital cameras. This shift to a wider range of products, and customers, has led to less impressive deals in many cases. Many people simply looking for a better price on a flat-screen TV are now confused by a website originally designed for tech-savvy consumers.

8. Barnes & Noble
> Industry: Specialty Retail Stores
> % Change In The Last Year: -2.4%
> % Change Since First Year Of Rating: -1.2%
> % Change of Industry In The Past Year: +1.3%

Barnes & Noble currently has a customer satisfaction score of 82, a decrease of 2.4% from 2009. The company may suffer more than any retailer on this list in comparison to a larger online rival. Amazon.com has many more titles online than Barnes & Noble has in stores. The online Barnes & Noble brand attracts far fewer visitors than Amazon, which also offers a wide array of products besides books. Furthermore, Amazon has been able to market its Kindle e-reader as superior to the Barnes & Noble Nook. All of these taken together are a good demonstration of why bricks-and-mortar operations are losing customers to their large e-commerce competitors. Customer satisfaction is based on selection, ease of access and price.

7. Target
> Industry: Department & Discount Stores
> % Change In The Last Year: -2.5%
> % Change Since First Year Of Rating: +4%
> % Change of Industry In The Past Year: +1.3%

Target’s customer satisfaction score dropped 2.5% to 78 in 2010, decreasing its rank from second to sixth. The average score for department and discount stores is 76, which has increased 1.3% from a score of 75 in 2009. Target operates in the shadows of rival Wal-Mart, which leads the industry in everyday low prices and has to compete in a part of the retail industry that is driven almost exclusively by price. The primacy of price among the largest national chains may be reflected in how poorly they all do in customer service. Sears and Wal-Mart performed even worse, with scores of 75 and 73, respectively. It appears that the stores in this category have divided themselves into two sectors. In one, stores have low prices and relatively few frills. The companies at the top such as Nordstrom have elected to combine strong in-store service and higher prices.

6. Lowe’s
> Industry: Specialty Retail Stores
> % Change In The Last Year: -2.5%
> % Change Since First Year Of Rating: +2.7%
> % Change of Industry In The Past Year: +1.3%

Lowe’s customer service rating drop of 2.5% was quite sharp compared to that of its rival, Home Depot, which underwent an increase of 4.2%. Demand for housing supplies is weak because of the huge drop in home prices. This caused fiscal year sales to drop in 2009 and 2010. Lowe’s recently cut the number of its middle management staff, which is likely to hurt morale. Several analysts pointed out that the cuts in full-time staff in favor of either cost savings or part-time workers badly hurt the company’s ability to provide customer service.

5. TJX
> Industry: Specialty Retail Stores
> % Change In The Last Year: -2.6%
> % Change Since First Year Of Rating: +2.7%
> % Change of Industry In The Past Year: +1.3%

TJX currently has a score of 76, a 2.6% decrease from 2009. This is one of the lowest scores among specialty retail stores, where the average is 78. TJ Maxx is caught between large chains such as Macy’s and Target and more specialized stores such as Abercrombie & Fitch. It is also likely TJ Maxx does not have a strong enough brand to engender the kind of loyalty that helps drive the industry. The company’s lack of a major online presence almost certainly hurts it among its target of young consumers.

4. SUPERVALU
> Industry: Supermarkets
> % Change In The Last Year: -3.9%
> % Change Since First Year Of Rating: -3.9%
> % Change of Industry In The Past Year: -1.3%

SUPERVALU has a score of 74, which is a 3.9% drop from 2009. This is lower than the industry average, which is 75. Competitors which do much better include Publix, which scored 84, and Whole Foods, which scored 79. SUPERVALU has 160,000 employees, and it operates over 2400 discount food retail scores and 855 Save-A-Lot stores. SUPERVALU is one of the smallest national chains in its business. Kroger and Safeway are much larger. The grocery store industry in general has been hurt by the rapid rise of agricultural commodities including corn, wheat, and coffee. Supermarkets have done what they can to pass these costs onto shoppers, a practice which is unlikely to help customer satisfaction. SUPERVALU has also suffered during the recession. Revenue has dropped over 5% in the last fiscal year, and the company had razor-thin margins. Consequently, SUPERVALU trades near its 52-week low. The lesson from SUPERVALU is that selling commodity-based products during a period of rapid inflation will almost certainly alienate customers, even if the balance of the company’s relationship with consumers is strong.

3. OfficeMax
> Industry: Specialty Retail Stores
> % Change In The Last Year: -3.9%
> % Change Since First Year Of Rating: -2.6%
> % Change of Industry In The Past Year: +1.3%

OfficeMax has the lowest score in the specialty retail category, at 74. The company underwent a 3.9% decrease in customer satisfaction since 2009, the greatest in this category. OfficeMax competes with much larger chain Staples and Office Depot. The difference in customer satisfaction between OfficeMax and its two rivals is significant. Both Office Depot and Staples have scores of 81, and the industry in general has a score of 78. OfficeMax also has to compete against big box retailers Sam’s Club and Costco, which have successfully entered the small business supply market. The company cannot afford to lag behind its larger competitors which have stronger supply chains, marketing operations, and probably inventory availability, all of which almost certainly affect consumer impressions.

2. CVS Caremark
> Industry: Health & Personal Care Stores
> % Change In The Last Year: -3.9%
> % Change Since First Year Of Rating: 0.0%
> % Change of Industry In The Past Year: -1.3%

CVS is one of the largest retailers in the United States, with revenue topping $100 billion. The company operates more than 7,000 retail drugstores in 41 states and 569 health care clinics in 25 states. CVS currently has the lowest rating among Health & Personal Care Stores, at 74, which is a 3.9% decrease from 2009. Industry customer satisfaction among CVS and its peers dropped 1.3% to a grade of 77. The highest scoring chain in this category is Walgreens, at 77, which means the spread in customer satisfaction is relatively small and consumer perceptions of the entire industry are relatively low. Pharmacies operate on tight profit margins and, with the exception of the pharmacists themselves, workers are often paid little more than the minimum wage. The other thing that tends to work against drug store chains is the rapidly changing landscape in the health care industry, which has confused consumers, and in some cases has raised the cost of health care.

1. Priceline
> Industry: Internet Travel
> % Change In The Last Year: -3.9%
> % Change Since First Year Of Rating: +10.6%
> % Change of Industry In The Past Year: +1.3%

Priceline currently has the lowest rating among Internet travel companies. From 2009 to 2010, customer satisfaction with the online travel industry rose 1.3% to 78. Priceline’s score dropped 3.9% to 73, the greatest decrease within the industry. This gave it the lowest score in the group. Priceline has been a darling of Wall Street, and its price has risen from a 52-week low of $173 to its current level of $460. Priceline has begun to suffer from the fracturing of the online travel industry as carriers work to sell more tickets directly from their own sites. The other insurmountable factor for all travel e-commerce sites is that consumers cannot differentiate between the service given by sites like Priceline and the service given by the airlines themselves. The airline industry has notoriously poor customer satisfaction, and the blurring of these lines tends to harm the online independent middleman.

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The Twitter-24/7 Wall St. Market Report (2/18/2011) China Rate Increase, Zynga IPO

Twitter has, by most estimates, 175 million members, which makes it one of the largest social networks in the world. All major media companies are on Twitter and some have more than one million Twitter users. It raises the question of whether there is wisdom in crowds.

24/7 Wall St. will look at the Twitter posts at Reuters Biz, WSJ, Financial Times, CNN Money, MarketWatch, CNBC, and 24/7 Wall St. each day to see which stocks are most frequently mentioned. It is clear that in this area of social media these tweets are a sign of which companies the Twitter universe is interested in. Together, these financial sites are followed by nearly 1,000,000 Twitter users, which makes them a sizeable sample of Wall St.’s interests. In some cases, we will publish the actual tweets from the sites

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The Top 10 Tax Mistakes That Couples Make, and How To Avoid Them

While you’re mining this year’s tax instructions for savings on deductions and credits, don’t forget the special rules that come with your marital status. The so-called “marriage penalty” affects only couples with roughly equal incomes that year. Everyone else gets an Ozzie-and-Harriet “marriage bonus.” Here are the top 10 questions you and your spouse should ask yourselves in order to make sure you’re getting your maximum tax benefits:

1. Do you have two retirement plans? If not, start them now. When one spouse isn’t working, the other can fund an Individual Retirement Account in his or her name. You can salt away up to $5,000 for a spouse under 50, and $6,000 if your spouse is 50 or older. Contributions to a traditional IRA made by April 18 are deductible on your 2010 return. (A Roth IRA isn’t deductible; instead, its earnings accumulate tax free.)

2. Did a spouse who’s been out of the workforce get a job last year? The second income could push you both into a higher bracket. In that case, you might not have had enough withheld for taxes last year. Fill in your tax forms right now so you’ll know how much money you’ll have to raise by the filing date, April 18 (for calendar reasons, you get three day’s grace this year).

Whenever joint income shoots up, employees should revisit their W-4 forms, which tell their companies how much to withhold from each paycheck. Do the same if deductions increase — for example, if you welcome a new child.

3. Did you marry or divorce last year? Don’t file with a name that doesn’t match your Social Security number. It will delay your refund while the IRS clarifies your status, says Larchmont, N.Y. tax attorney Julian Block, author of Julian Block’s Tax Tips for Marriage and Divorce. If you changed your name, notify the Social Security Administration. Until the change is registered, file your tax returns under the name you held before.

Your marital status on December 31 dictates your tax status for the entire year. A wedding that day gives you a joint return, a divorce takes it away.

4. If you married last year, did each of you sell a home that you owned individually? If so, you both can exclude as much as $250,000 in profits when you file your joint return — $500,000 in all.

5. Did your spouse die within the past three years? Don’t make the mistake of filing as a single person or head of household when you don’t have to. You’re entitled to file a joint return for the year your spouse dies. If you have a dependent child and remain unmarried, you also get favorable joint-return rates for the two years after your spouse’s death. Your 2010 taxes will be forgiven if your spouse in the military died last year in a combat zone or as a result of a terrorist attack or military action.

6. Are you a low-earning spouse who suffered high out-of-pocket medical expenses last year? Consider the possibility of filing separately from your spouse. The tax code lets you deduct only the qualified medical expenses that exceed 7.5 percent of your adjusted gross income. On a joint return, that might not amount to much, but it could be significant on an individual return, Block says. Likely candidates for “married filing separately” are spouses without health insurance or those who entered a nursing home. Nursing home, home-care costs, and private nursing are generally deductible as a medical expense.

Married couples filing separately lose a number of tax breaks, including the dependent-care credit and student loan interest deduction. Your top tax rate might be higher, too. To make this strategy worth your while, the expenses have to be large enough to exceed the cost.

In community property states, separate tax returns generally make no financial sense. Your joint income has to be divided equally, so you both report the same amount.

7. Do you suspect that your spouse is diddling the IRS? Don’t sign the tax return. If you do, you become fully liable for that year’s unpaid tax, including penalties. If the fraud is uncovered and your spouse takes off for Venezuela, the IRS will come after you for the money. Unfortunately, it’s hard for suspicious spouses to say “no” to joint filing unless the marriage is already coming apart. If that’s the case, however, don’t pick up the pen. You’re liable for unpaid taxes on joint returns even after you divorce.

If the IRS audits the return and demands more money, the “innocent spouse” rule might save you from paying the arrears. But “innocent” is hard to prove. You have to show that you didn’t know about the lies, had no reason to know (for example, you weren’t living higher on the hog than your incomes would normally allow), and that it would be unfair to make you pay. In fiscal year 2010, more than 50,000 spouses applied for relief. Only 15 percent of them got entirely off the hook; 13 percent escaped with paying only part of the tax. Everyone else had to ante up.

8. Are you married but living apart from your spouse? You’re not stuck with the higher cost of “married, filing separately.” You can file as head of household if you meet the following conditions: you were separated for the last six months of 2010, you had a separate residence, paid more than half the cost of its upkeep, made a home for your dependent child for more than half the year, and never, ever, let your spouse stay overnight — not even on the couch.

9. Are you a same-sex married couple? Don’t make the mistake of filing a joint federal tax return. Even if your names could signal either sex (say, Cameron and Mitchell), the IRS could check your gender using your Social Security number. Married or not, you can claim your mate as a dependent on your federal return, if you’re supporting him or her. Your partner has to have had a reportable income of less than $3,650 last year and lived with you for the entire year except for short absences.

10. Can you take a medical deduction for the cost of divorce if your psychiatrist says that your marriage made you sick? Nice try but no cigar. Courts have already heard this one (in fact, they’ve heard practically every excuse for not paying taxes). They’ve said that getting out of a bad marriage is reward enough.

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The Net Worth Of The American Presidents: Washington To Obama

George Washington,the nation’s first President, was also one of the wealthiest men to hold the office. His Virginia plantation, “Mount Vernon,” consisted of five separate farms on 8,000 acres of prime farmland. Washington made significantly more than subsequent presidents: his salary was two percent of the total U.S. budget in 1789.

Our 16th President, Abraham Lincoln, was not one of America’s wealthiest - any opportunity to make money after his term of office was cut short. He was born in a log cabin and served as an attorney for 17 years before his presidency. He owned a single-family home in Springfield, Illinois.

Editor’s Note: This article was first published on May 17, 2010. The net worth of any of the Presidents on this list who are no longer living cannot change, except as measured by inflation. The fortune of the presidents who remain living have changed somewhat, but it would be nearly impossible to measure the full effect of that over the last nine months. The value of Bill Clinton’s real estate may have risen. Jimmy Carter’s publishing royalties may have improved. None of these events is likely to have a substantial effect on the rankings.

The Net Worth of America’s Presidents is a study that can be updated from time-time-time, but the figures relative to the passage of a few years will almost certainly never be more than modest.

24/7 Wall St. has examined the finances of all forty-three presidents. This article provides net worth figures for each in 2010 dollars. Because a number of presidents, particularly in the early 19th Century, made and lost huge fortunes in a matter of a few years, the number for each man is based on his net worth at its peak.

In the case of each president we have taken into account hard assets like land, estimated lifetime savings based on work history, inheritance, homes, and money paid for services, which include things as diverse as their salary as Collector of Customs at the Port of New York to membership on Fortune 500 boards. Royalties on books have also been taken into account, along with ownership of companies and yields from family estates.

The net worth of the presidents varies widely. George Washington was worth over half a billion in today’s dollars. Several presidents went bankrupt.

The fortunes of American presidents are tied to the economy in the eras in which they lived. For the first 75 years after Washington’s election, presidents generally made money on land, crops, and commodity speculation. A president who owned hundreds or thousands of acres could lose most or all of his property after a few years of poor crop yields. Wealthy Americans occasionally lost all of their money through land speculation—leveraging the value of one piece of land to buy additional property. Since there was no reliable national banking system and almost no liquidity in the value of private companies, land was the asset likely to provide the greatest yield, if the property yielded enough to support the costs of operating the farm or plantation.

Because there was no central banking system and no commodities regulatory framework, markets were subject to panics.

The panic of 1819 was caused by the deep indebtedness of the federal government and a rapid drop in the price of cotton. The immature banking system was forced to foreclose on many farms. The value of the properties foreclosed upon was often low because land without a landowner meant land without a crop yield.

The panic of 1837 caused a depression that lasted six years. It was triggered by a weak wheat crop, a drop in cotton prices, and a leverage bubble in the value of land created by speculation. These factors caused the US economy to go through a multi-year period of deflation.

The sharp fluctuations in the fortunes of the first 14 presidents were a result of the economic times.

Beginning with Millard Fillmore in 1850, the financial history of the presidency entered a new era. Most presidents were lawyers who spent years in public service. They rarely amassed large fortunes and their incomes were often almost entirely from their salaries. From Fillmore to Garfield, these American presidents were distinctly middle class. These men often retired without the money to support themselves in a fashion anywhere close to the one that they had as president. Buchanan, Lincoln, Johnson, Grant, Hayes, and Garfield had almost no net worth at all.

The rise of inherited wealth in the early 20th Century contributed to the fortunes of many presidents, including Theodore Roosevelt, Franklin D. Roosevelt, John F. Kennedy, and both of the Bushes. The other significant change to the economy was the advent of large professionally organized corporations. These corporations produced much of the oil, mining, financial, and railroad fortunes amassed at the end of the 19th Century and the beginning of the 20th. The Kennedys were wealthy because of the financial empire built by Joseph Kennedy. Herbert Hoover made millions of dollars as the owner of mining companies.

The stigma of making money from being a retired president also began to disappear. Calvin Coolidge made a large income from his newspaper column. Gerald Ford, who had almost no money when he was a Congressman made a small fortune from serving on the boards of large companies. Clinton made millions of dollars from writing his autobiography.

24/7 Wall St. performed an analysis of presidential finances based on historical sources. Most media evaluations of the net worth of presidents have come up with a very wide range, a spread in which the highest figure was often several times the lowest estimate. Most sources provided no hard figures at all. Most of these efforts have focused largely on the analysis of recent chief executives. That is because it is much easier to calculate figures in a world where assets and incomes are a matter of public record.

One of the most important conclusions of this analysis is that the presidency has little to do with wealth. Several brought huge net worths to the job. Many lost most of their fortunes after leaving office. Some never had any money at all.

The following is the net worth of all forty-three presidents.

Images President (Term) Estimated Net Worth Historical Points of Interest
1st George Washington (1789-1797) $525 million His Virginia plantation, “Mount Vernon,” consisted of five separate farms on 8,000 acres of prime farmland, run by over 300 slaves. His wife, Martha Washington, inherited significant property from her father. Washington made significantly more than subsequent presidents: his salary was two percent of the total U.S. budget in 1789.

2nd John Adams (1797-1801) $19 million Adams received a modest inheritance from his father. His wife, Abigail Adams, was a member of the Quincys, a prestigious Massachusetts family. Adams owned a handsome estate in Quincy, Massachusetts, known as “Peacefield,” a working farm, covering approximately 40 acres. He also had a thriving law practice.

3rd Thomas Jefferson (1801-1809) $212 million Jefferson was left 3,000 acres and several dozen slaves by his father. “Monticello,”
his home on a 5,000 acre plantation in Virginia, was one of the architectural wonders of its time. He made significant money in various political positions before becoming president, but was mired in debt towards the end of his life.

4th James Madison (1809-1817) $101 million Madison was the largest landowner in Orange County, Virginia, with land holding consisting of 5,000 acres and the “Montpelier” estate. He made significant money as secretary of state and president. Madison lost money at the end of his life due to the steady financial collapse of his plantation.

5th James Monroe (1817-1825) $27 million Monroe’s wife, Elizabeth, was the daughter of wealthy British officer. He made significant money during eight years as president, but entered retirement severely in debt and was forced to sell Highland plantation, which included 3500 acres.

6th John Quincy Adams (1825-1829) $21 million Adams inherited most of his father’s land. His wife was the daughter of a wealthy merchant. He devoted most of his adult life to public service, notably after leaving office.

7th Andrew Jackson (1829-1837) $119 million While he was considered to be in touch with the average middle class American, Jackson quietly became one of the wealthiest presidents of the 1800’s. “Old Hickory” married into wealth and made money in the military. His homestead ”The Hermitage” included 1,050 acres of prime real estate. Over the course of his life, he owned as many as 300 slaves. Jackson entered significant debt later in life.

8th Martin Van Buren (1837-1841) $26 million Van Buren made substantial income as an attorney. He was one of only two men to serve as secretary of state, vice president, and president. He owned the 225-acre “Lindenwald” estate in upstate New York.

9th William Henry Harrison (1841) $5 million Harrison married into money – wife’s father was prominent judge and landowner. When Harrison’s mother died, he inherited 3,000 acres near Charles City, Virginia, which he later sold to his brother. He also owned “Grouseland” mansion and property, in Vincennes, Indiana. Despite his assets, Harrison died penniless, causing Congress to create a special pension for his widow.

10th John Tyler (1841-1845) $51 million Tyler Inherited 1,000-acre tobacco plantation. His first wife, Letitia, was wealthy. Tyler bought “Sherwood Manor,” a 1,600 acre estate, previously owned by William Henry Harrison. He became indebted during the Civil War and died poor.

11th James Knox Polk (1845-1849) $10 million Like his wife, Sarah Childress, Polk’s father was a wealthy plantation owner and speculator. Polk made significant sums as speaker of the house and governor of Tennessee, and owned 920 acres in Coffeeville, Mississippi, as well as 25 slaves.

Images President (Term) Estimated Net Worth Historical Points of Interest
12th Zachary Taylor (1849-1850) $6 million Taylor inherited significant amounts of land from his family, which at one point included property in Mississippi, Kentucky, and Louisiana. He made substantial money in land speculation, the leasing of warehouses, and investments in bank and utility stocks. Taylor owned a sizeable plantation in Mississippi and a home in Baton Rouge.

13th Millard Fillmore (1850-1853) $4 million Neither Fillmore nor his wife had significant inheritance. He founded a college that is the current State University of New York at Buffalo, and his primary holding was a house in nearby East Aurora, NY.

14th Franklin Pierce (1853-1857) $2 million Pierce’s father was frontier farmer, and his wife was well-to-do aristocrat. He served as attorney for 16 years and held property in concord, NH.

15th James Buchanan (1857-1861) less than $1 million Born in log cabin in Pennsylvania, Buchanan was one of 11 children. He was the only president never to marry. He worked for nine years as attorney, and spent 16 years in public office, including four years as secretary of state.

16th Abraham Lincoln (1861-1865) less than $1 million To the log cabin born. Lincoln served as an attorney for 17 years before his presidency. He owned a single-family home in Springfield, Illinois.

17th Andrew Johnson (1865-1869) less than $1 million Johnson’s father was a tailor, and his wife was a shoemaker. He served the public for 20 years, including as Governor of Tennessee and U.S. Senator. Johnson owned a small house in Greenville, TN.

18th Ulysses Simpson Grant (1869-1877) less than $1 million Grant’s father was a tanner, and his wife was the daughter of a wealthy merchant. He lost his entire fortune when swindled by his investing partner. Grant owned a modest home in Galena, Illinois. Although he died with little money, his autobiography kept family afloat.

19th Rutherford Birchard Hayes, (1877-1881) $3 million Hayes’ father was a shopkeeper. He was an attorney for 15 years and owned “Spiegel Grove,” a 10,000 square foot home that sat on 25 acres in Fremont, Ohio. Hayes also served as Governor of Ohio and was a member of the House.

20th James Abram Garfield (1881) less than $1 million Garfield was born in a log cabin in Ohio. He spent 18 years in the House of Representatives. Garfield owned “Lawnfield,” a home and small property in Mentor, Ohio. He died penniless.

21st Chester Alan Arthur (1881-1885) less than $1 million The son of an Irish preacher, Arthur’s wife came a from military family. He made substantial sums as Collector for the Port of New York. His townhouse in New York was well-appointed with furniture commission from Tiffany.

22nd and 24th Grover Cleveland (1885-1889, 1893-1897) $25 million Cleveland’s father was a bookseller and preacher, and his wife was the daughter of wealthy lawyer. Cleveland served as an attorney for twelve years, and also made significant sums on sale of his estate outside of Washington, D.C. He bought “Westland Mansion” near Princeton, New Jersey.

Images President (Term) Estimated Net Worth Historical Points of Interest
23rd Benjamin Harrison (1889-1893) $5 million Harrison had no significant inheritance of his own or from his wife’s family. He was a highly paid attorney for 18 years, and served as attorney for Republic of Venezuela. Harrison owned large Victorian home in Indianapolis, Indiana.

25th William McKinley (1897-1901) $1 million Mckinley had no significant inheritance. Served 30 years in public office, including local prosecutor and member of the House of Representatives. Went bankrupt during depression of 1893 while he was Governor of Ohio.

26th Theodore Roosevelt (1901-1909) $125 million Born to a prominent and wealthy family, Roosevelt received a significant trust fund. He lost most of his money on a ranching venture in the Dakotas and had to work as an author to pay bills. Roosevelt spent most of his adult years in public service. His 235-acre estate, “Sagamore Hill,” sits on some of the most valuable real estate on Long Island.

27th William Howard Taft (1909-1913) $3 million Taft’s wife’s father was a law partner of former president, Rutherford B. Hayes. Taft was president of the American Bar Association, an active attorney for nearly two decades, and only president to serve on the U.S. Supreme Court.

28th Woodrow Wilson (1913-1921) less than $1 million Wilson received modest compensation as head of Princeton and Governor of New Jersey. He never served in any position that provided him with a reasonable income. Wilson had a stroke in office and died five years later.

29th Warren Gamaliel Harding (1921-1923) $1 million Harding obtained wealth through marriage to his wife Mabel, daughter of a prominent banker. He owned the Marion Daily Star and a small home in Marion, Ohio. Most of Harding’s net worth came from his newspaper ownership.

30th Calvin Coolidge (1923-1929) less than $1 million Coolidge’s father was prosperous farmer and storekeeper. “Silent Cal” Spent five years as an attorney, and almost two decades in public office, which included time as Governor of Massachusetts. His net worth derived primarily from his home, “The Beeches,” in Northampton, Massachusetts, the advance from his autobiography, and the money he made from his newspaper column.

31st Herbert Clark Hoover (1929-1933) $75 million An orphan, Hoover was raised by his uncle, a doctor. He made a fortune as a mining company executive, had a very large salary for 17 years and had extensive holdings in mining companies. Hoover donated his presidential salary to charity. He also owned “Hoover House” in Monterey, California.

32nd Franklin Delano Roosevelt (1933-1945) $60 million Roosevelt had wealth through inheritance and marriage. He owned the 800-acre “Springwood” estate as well as properties in Georgia, Maine, and New York. In 1919, his mother had to bail him out of financial difficulty. He spent most of his adult life in public service. Before he was president, Roosevelt was appointed assistant secretary of the navy by Wilson.

33rd Harry S. Truman (1945-1953) less than $1 million Truman was a haberdasher in Missouri and nearly went bankrupt. He served 18 years in Washington, D.C. Despite his modest income, he was able to save some of his presidential salary.

Images President (Term) Estimated Net Worth Historical Points of Interest
34th Dwight David Eisenhower (1953-1961) $ 8 million Eisenhower had no inherited wealth. He served the majority of his career in the military and five years as president of Columbia. Ike owned a large farm near Gettysburg, Pennsylvania.

35th John Fitzgerald Kennedy (1961-1963) Although he never inherited his father’s fortune, the Kennedy family estate was worth nearly $1 billion dollars. Born into great wealth, Kennedy’s wife was oil heiress. His Father was one of the wealthiest men in America, and was the first chairman of the SEC. Almost all of JFK’s income and property came from trust shared with other family members.

36th Lyndon Baines Johnson (1963-1969) $98 Million Johnson’s father lost all of the family’s money when LBJ was a boy. Over time, he accumulated 1,500 acres in Blanco County, Texas, which included his home, called the “Texas White House.” He and his wife owned a radio and television station in Austin, TX, and had a variety of other moderate holdings, including livestock and private aircraft.

37th Richard Milhous Nixon (1969-1974) $15 million Nixon was born without any inheritance, and was a public servant for most of his life including a term as a Senator from California. “Tricky Dick” made significant sums from series of interviews with David Frost and book advances. He sold his New York townhouse to the Syrian ambassador to the U.S. and purchased a large home in Saddle River, NJ. At various times, Nixon also owned real estate in California and Florida.
38th Gerald Rudolph Ford Jr. (1974-1977) $7 million Ford had no inheritance, and he spent virtually his entire adult life in public service. Over the course of his lifetime, he owned properties in Michigan, Rancho Mirage, and Beaver Creek, Colorado. After he left the White House in 1976, he made nearly $1 million a year from book advances and from serving on the boards of several prominent American companies.

39th James Earl Carter, 1977-1981 $7 million Carter was the son of a prominent Georgia businessman. He was a peanut farmer for almost two decades. Carter left office deeply in debt, but made substantial sums from writing 14 books. Part of a family partnership that owns 2,500 acres in Georgia.

40th Ronald Wilson Reagan, 1981-89 (Republican) $13 million Reagan had no inheritance, but his first wife, an actress, had her own money. He was a movie and television actor for over two decades. “The Gipper” owned several pieces of real estate over his lifetime, including 688-acre property near Santa Barbara, California. Reagan was highly paid for his autobiography and as a GE spokesman.

41st George Herbert Walker Bush (1989-1993) $23 million Bush was the son of Prescott Bush, a Connecticut Senator and successful businessman. Aided by his friends in the financial community, he made a number of successful investments. One of his major assets is his home and 100+ acre estate in Kennebunkport, Maine.

42nd William Jefferson Clinton (1993- 2001) $38 million Clinton was born with no inheritance, and he made little significant money during 20 plus years of public service. After his time in White House, however, he made a substantial income as an author and public speaker. Clinton received large advance from autobiography. His wife, the secretary of state, has also made money as author.

43rd George W. Bush (2001-2008) $20 million Bush was born into a wealthy family. Over ten years, he made substantial sums of money in the oil business. The largest contribution to his net worth was the profitable sale of the Texas Rangers.

44th Barack Hussein Obama (2008-present) $5 million Obama is the grandson of a goat herder. He is a former constitutional law professor and civil rights attorney. Book royalties constitute most of Obama’s net worth.

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GrowOp: The Hydroponic IPO For Medical Marijuana

Medical marijuana is easily one of the most controversial businesses in America today. It is also one super-fast growth industry. 24/7 Wall St. is always on the lookout for issues where Wall Street meets Main Street, and if this does not fit that bill then nothing else does. If you heard that a technology player in the field of medical marijuana was about to have an Initial Public Offering you might not believe it. Well, it is. A California company called GrowOp Technology Ltd. plans to have an IPO later this year. We just interviewed GrowOp’s CEO and found out more about the company.

Derek Peterson, GrowOp’s founding-CEO and a director, was an investment banker at Wachovia and Morgan Stanley. Clearly, he is not blowing smoke. GrowOp is based in Oakland, Calif. and is the technology behind hydroponic growing systems and it has retail branded franchises in the works.

Legal medical marijuana sales are astronomical. Even the smaller dispensaries often have annual sales of $4 million to $5 million, according to Peterson . The larger well-run dispensaries have annual revenues of $10 million or even more. California has more than 500 hydroponic retailers, and GrowOp estimates that they generate more than $250 million in annual sales. On a nationwide basis this is a billion dollar business and has seen growth rates of roughly 40% in the last several years.

GrowOp manufactures and sells indoor hydroponic and agricultural equipment. The company also created and distributes the portable hydroponic cultivation units called the BIG BUD and the little BUD. Cities and states are licensing large-scale cultivation facilities to legal growers now in states which have approved medical marijuana. Peterson noted, “Our goal is to become the Apple of hydroponic technology, and we feel by developing and offering innovative designs, clean packaging, and competitive prices the market share is there for our taking.”

The company began selling the growing equipment and systems last May and 2010 sales were roughly $800,000 in equipment distribution outside of franchise sales. So far, sales in January were close to $275,000 and the company’s target for equipment sales is about $4 million to $5 million in 2011 and $10 million to $15 million for 2012.

Generally speaking, a retail franchise fee will run about $25,000 and the franchisee will pay a 5% royalty fee on sales back to GrowOp. It also offers larger territory franchises that depend upon each local market. Michigan, California and Colorado are practically sold out and the total franchises sold so far would cover 70 to 75 stores around the country.

Peterson indicated that the company has close to 40 private shareholders who have invested nearly $1 million in aggregate and those holders currently own about 22% of the company with options to boost their stake up to 30%. GrowOp is also looking at a mini-max financing round of financing before the IPO, and Peterson said the company is “in the ninth inning of the IPO process after its audit is completed.”

It opened a 15,000 square foot flagship retail store called weGrow with partner Dhar Mann near the Oakland Airport. We wanted to get a bit more clarity on the separation of the two entities. Peterson noted, “GrowOp is the distribution company and is the foundation or bottom of the vertical, while weGrow is strictly retail and we will be supplying product as a separate entity with an entirely corporate structure. The franchise will not roll-up into the public offering our benefit is building our own outlet for product sales while at the same time selling to the existing base of brick and mortar as well as online retailers.”

Peterson further noted that the company has signed a contract to be the sole supplier to a couple of online retailers as well egrow.com and hydroponicpros.com, which should generate close to a million dollars a year in sales.

In a last statement, Peterson added: “Medical Cannabis, like any commodity, has multiple uses. Almost any product you see today, will have a multitude of peripheral opportunities around it; food products, clothing, retail, merchant services, transportation etc. And cannabis is no different the market opportunities are endless.”

As you can imagine, it is very likely that GrowOp and any company in the business around medical marijuana will not come without controversy. Can you imagine the “threats and risks” section contained in its S-1 filing? Taxation, regulation, political change, tampering, sabotage, crime, society-shifts, and religion are some of the risks to the business. If everything pans out as Derek Peterson and his business partners expect, GrowOp may become “GrowthOp” for investors.

There is a term for entrepreneurs in the businesses around legalized marijuana or medical marijuana… Hempreneurs. Green Generates Green.

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