Monday, April 29, 2013

401 (k) Plan

Meaning O Explanation: A 401 (k) is a tax-deferred

savings account that employers are scheduled for employees.

This vehicle savings can be used for almost any type of investment.

The 401 (k) will remain intact even if the employee leaves the company. If

employees left to start a new business, the 401 (k) can

used to invest in, or even finance, new venture.Appropriate For: Any company in any stage of development.

Due to employer pension fund companies in their own

conservation, they just need to make sure that the deal is worth


Supply: This option is for entrepreneurs who have

breaks from corporate America, with (k) plan their 401. Beyond

It has a 401 (k), an additional supply is affected by how

Many tax-deferred retirement savings of their employer

want to put risk.Best Use: Financing start-up. When start-up companies

financed with equity from outside sources, the most

expensive method of financing because the company is worth to

bit. A round of seed financing cost of 30 percent of

equity. Although the 401 (k) funding forced to surrender company

equity, allowed the founder of the company and, as such,

not really lost.Cost:Costs can run higher because some professional

required to engineer the transaction. However, 401 (k) financing

It is not worth the founder of any equity in their business.Ease The acquisition: Average challenges. Have

Some legal and accounting issues to solve for

Strategies for working properly.Funds Average Available: $ 100,000 and greater.From Where Money? Bang-Fire Solutions for Finance

Your Small Business, by Art Beroff and Dwayne Moyers. (C)

Thursday, April 25, 2013

One Year Later, BATS Is doing just

Photo by Ryan Lowry BusinessweekCEO Ratterman BATS Bloomberg HQ in Kansas CityLong after the market closes on January 9, Joe Ratterman, chief executive of BATS Global Markets, was in his office trying on the understanding how to keep your computer error smaller than the killing business. Its programmers just found an error in the code of the company which, for four years, has led to hundreds of thousands of transactions to be bought and sold at the wrong price. BATS Running an acronym for Alternative Trading System Better and BATS Global Markets as the third largest electronic stock exchange in the U.S. is stealing business from rivals many older NYSE (Nyx) and Nasdaq (NDAQ) since it opened in 2006. On a typical day, BATS is administered about 12 percent of the share traded on public markets in the U.S., about 750 million shares. It managed this with only 160 employees and headquarters away from Wall Street and other financial centers, with a two-story office complex along the interstate in Lenexa, Kan., A suburb of Kansas City. Notwithstanding the above, BATS does not have a lock on the honesty of the financial markets. No no. As irregularities in the bank MF Global Futures and Hedge fund traders, and more proven again and again, trust is everything, and then it was gone, the finance company can collapse overnight.

VIDEO: Bats Market Rules Blamed for Mishaps

Sitting at his desk, Ratterman poured through a detailed report has shown that, since October 2008, BATS has average error of about 410 per day, which could cost around $ 420,000 market overall. It is a small amount by the standards of Wall Street, and owned no danger to the future of a healthy company. However BATS still recovering from near-death experiences. Less than a year earlier, on March 23, 2012, BATS is planned to start listing the company on the stock exchange, such as the NYSE and Nasdaq are doing, and the IPO itself. To mark a major step forward, BATS is the first listed company in the stock itself, ticker BATS marks. Agents of insurance company worth $ 810 million in 2010, and was prepared to offer $ 100 million in stock. As the transition process began offering bargain, the bug that causes the BATS platform to stop receiving incoming orders symbols from A to BF, including BATS and Apple (AAPL), which fell sharing to a low of $ 542 before trading was halted. (Even Apple is listed on Nasdaq, as all stocks traded sharing a lot, and that means that the mini-crash felt throughout the market.) Trade BATS compromise caused its own share drop from $ 16 in less than a penny.

Story: Following BATS NYSE In the Dark

Finally got Ratterman IPO morning. What should a banner moment rather BATS advised not ready for the big leagues and popular fears reinforced in electronic commerce in general. The new market looks so fast and big and complex that even the builders of the system 'will not be able to control them, even when they take themselves public. Manifest MIT tagapagpananaliksik Lynne Markus prompt to warn the potential for disaster similar to trade mortgage crisis and spur the Securities and Exchange Commission to set up a new monitoring system for computerized traders. And now there's a problem with the system of trade BATS again. For the fiscal authorities, Ratterman unusual. At 46, he has a shaved head, wearing square-rimmed glasses, and classic sports, casual programmer polo dress shirts, jeans, and sneakers business casual. He is also a devout Christian, who spent her spare time driving around Kansas City to deliver food and blankets at home. He will have a private plane, the mode of the master of the universe, but he flew alone, and not Cannes, but for a home in Wyoming. He was also committed to the extreme level of transparency that helps BATS do more than survive the disaster under his leadership, thrive. BATS earned $ 100 million before interest, taxes, and other non-cash items in 2012. (Ratterman compensation in 2010, according to the SEC filings of the company, was $ 2,480,000.)

Story: The welfare Bats: When Machine embarrass their masters

After two exchanges of magic processing in less than a year, Ratterman decided to inform the customer immediately. He helped draw up a detailed description released to 06:40 ET, the exact time frame for errors and incidents forecast along time to patch the problem. The next day it was all financial news. Blowback is fierce, as expected, but Ratterman quietly absorbed either wonderful or know. The magazine has an interview scheduled with him today, instead of canceling, he met with reporters after spending time fielding calls from other media outlets. "It is strange, but really we make a better system to find it," he said this afternoon. His gaze fell on a small figure Yoda perched on the end of his desk. "We are in an evolutionary path toward better, not worse." Outside the glass wall of his office, trading floor operations empty, empty expanse of computer terminals and monitors The dark walls. About 40 workers were sent to a remote location to test the company's backup system in case of a natural disaster. Ratterman hold emergency drills such as monthly, and decided not to cancel the good. He was determined not to let a crisis little damage anything. "It is not the most pleasant thing to look forward to when you said to yourself," he said. "But I do as a normal business day as much I can, so I'll go with my wife and a good night." Last year, a few days after the IPO uprooted BATS, Peter Buckley, a former board members are personally invested $ 150,000 in exchange, send framed printed Union Jack Ratterman with the slogan now hanging in the office of Ratterman "Keep Calm and carry.". It was a great gesture, but not necessary to remind Ratterman. Michael Richter, a current member of the board, said the board was disappointed BATS but never considered oust CEO. "This is not a case of bad judgment or we lose confidence in his ability to manage," he said. "We fumbled the ball and the clock ran out. We are the Champions "Some cause Ratterman willingness to take the blame and the ability to turn the mistakes into profits, starting with a letter of apology he wrote after failed IPO ... "I actually came right out and said we messed up and we expect better from ourselves and we will do better," he said. He was also careful to explain that he always saw the broader minimal consequences. "We just decided to walk away and come back another day," he said. "I probably would not want to go through that again if I do not, but I do not see how this negatively affected our business at this time."

VIDEO: Bats CEO Says System Fails Its Own

Suggest two days after the failure of the IPO, the founder Dave Cummings wrote a letter to the industry push BATS continue to offer even if it means settling for a lower price. Cummings noted that it was his personal opinion, not the company line, but press notice about the same time as it Ratterman MEA culpa, making it seem as if the former CEO and current board member of the public may be trying to dictate the next course of action. Ratterman keep calm and carry. "People see it as, you know, Dave, just her style unfiltered," he said. "I do not give a letter that he has done for my purposes. The letter that we reached the right man "because he said the company has no plans to go public ... Ratterman agreed to step down as chairman of the board, but said he also to provide freedom to the board if BATS became public. Richter, who noted that the internal subcommittee examines the failure of the IPO, agrees: "Council has not taken a significant diversion," he said, meaning Ratterman still have confidence in the board. Although there is no stock trading on BATS market, Ratterman found a way to repay the investors. In August he gave $ 100 million in dividends, then get a loan to pay an extra $ 300 million in December. Ratterman and most employees sharing of undisclosed payments, even though 97 percent of the money went to big investors. As a result, Richter said, was "very satisfactory." When Ratterman was 9 years old, his father, a maintenance worker signs Card, dies in water skiing accident, leaving his mother, who works in the accounting department of industrial gas companies, to improve herself and her sister. During high school in Kansas City, Mo., In the early 1980s, Ratterman taught himself programming on the Apple II. He graduated from the University of Central Missouri in 1988 with a double major in mathematics and computer science. Once he is considered to be a math teacher but changed his mind after visiting the school field problems. "I got a taste of what it's like a teacher when no one wanted to teach," he said.

Stories: Bats: The epic fail of the worst IPO ever

Ratterman spent the next decade and a half career at Bridge Information Systems, a provider of financial information that have since been acquired by Thomson Reuters (TRI), and then Labone, medical examinations and diagnostic testing company later acquired by of Quest Diagnostics. In 2004, Ratterman realized he missed the securities industry, so he obtained his Series 7 license brokers', among others, and went to work for Tradebot Systems, an automated trading firm that ultimately lead to Inspiration for BATS. Tradebot powered from a small brick with a green awning Ratterman called "Mayberry," a quaint little shopping district in North Kansas City. Cummings, a former programmer turned day trader in Kansas City Board of Trade, established in 1999 Tradebot. In June 2005, Cummings, Ratterman, and 11 other employees of Tradebot rental shop next door and put a whiteboard draw their own exchange. Cummings became the first CEO of BATS that. Ratterman, chief operating after the head, replaced in July 2007 before BATS registered with the SEC as a formal exchange. (Cummings continues to represent Tradebot the board of directors,. He denied that interviewed for this story) Although the initial founders will not disclose how much they originally invested, rent is cheap, about $ 10 per square foot , and employees do not take much alive and well in Midwestern cities. They built their initial platform for less than $ 10 million, Ratterman said. Photo by Ryan Lowry Bloomberg BusinessweekIn Kansas, BATS is bellBATS own small business model is simple: as the main exchange rate, and eliminate them at that price. When first launched on January 27, 2006, the company has accumulated about 1 ¢ per 100 share traded, the competitors, trade at the same speed, getting as much as 10 ¢ at the time. "We certainly have the mentality of kill the dragon, but not snob," said Ratterman, credit Cummings, his team, and the Lord of success. "We just said, 'Hey, we have to go up and challenge the big guys. '"

Stories: Sale, NYSE has shown It lost $ 2.8 billion of value

Although the location of the headquarters, BATS is from the beginning of the rebellion was established in partnership with many traders and institutions are frustrated by the NYSE and Nasdaq duopoly. Among the first investors in Getco, high frequency trading firm established in Chicago, and Wedbush, an investment bank based in Los Angeles representing more speed commercial clients. In 2006, Credit Suisse (CS), Morgan Stanley (MS), Lime brokerage, and Lehman Brothers join. To attract business and investment, Cummings wrote about mission BATS newsletter and e-mail it to Wall Street trader and analyst. (In one, dated February 2007, he reported to Nasdaq CEO Robert Greifeld called "bully" who treats her clients as "hostages.") Deutsche Bank (DB), JPMorgan Chase (JPM), Citigroup (C), and Bank of America Merrill Lynch (BAC) since signed on as an investor. In all, BATS raised a total of $ 159 million in funding. According to SEC filings, nearly 32 percent of the company's annual revenue in 2010 came from trades made by investors and partners. "They have the advantage of having the major players in the market as the owner, so it's really to steal a march on some older players and become a major competitor trade landscape," ; said Justin Schack, Rosenblatt Securities partners. At the end of last year, BATS average of 713 million share of the match day, more than 825 percent increase from the first year of business. "We thought, 'We knew we had something good, we just need them to try it,'" said Ratterman. We have started to list some sharing, as planned, though still not alone. In recent years, BATS has recruited issuers of exchange-traded funds such as ProShares and BlackRock (BLK) iShares host the 18 securities exchange. "In the ETF issuer, once convince them that you have a program that works and they like, they've product after product after product," Ratterman said. "Operate in creating a connection, and it generates a lot of impact." BATS is expanding into other markets in the United States and other countries. Over the past year, the U.S. began Ratterman exchange option and enter the European equity market. In April, five months after the acquisition of Chi-X Europe, the largest European operator in the stock market, BATS has done to its own technology platforms. BATS Chi-X Europe to end the year hold nearly 25 percent of the European market. As a former member of the board Buckley said, "It is a plug-and-play exchange building to these people. They can do it anywhere "Two weeks after coming clean on the latest error., Ratterman said BATS Off the preliminary estimate of losses. Instead of causing a loss of $ 420,000, the final tally closer to $ 17,000 more than 12,000 incidents in total. In many cases, this means that BATS will owe just a few dollars per customer.

Stories: Lights dim for the lure of NYSE Trading

According to spokesman Randy Williams, Ratterman not afford to wait for the final accounting before reporting a potential worst-case scenario. "He said, 'We have to let the customer know. I would not be able to sleep if we do not tell the customer, '"Williams recalled. "He did not fool anyone because it is not in accordance with his faith." He said Ratterman rely more strongly on prayer to help guide business decisions due to failure of the IPO. "I have strong faith before, but I always thought I had a church and how I live in the community and all that God cares, he does not care about the business," he said. "That is not the way it is. He taught me that I expect him to do it. "After work one night in mid-February, he climbed into a delivery truck, which he owned and which he called" The Van Vittle, "to start its activities provide clothing, bedding, and food for the house. (Ratterman will not share the name of charity because he did not want the recipient to know that he is the founder and not just "Joe," a volunteer they see regularly.) Before hitting the road, he stopped at a temporary warehouse- set up in a corner BATS gym to collect a wide range of jackets, hats, gloves, blankets, water bottles, including 50 sandwiches delivered from a local sub shop. Dark and below freezing. His wife, Sandy, sitting near the sliding door of the van.

Stories: New York Stock Exchange Nasdaq Pad Lead Over It

At each stop, with a fixed inter Ratterman, calling them by their first names and asked about people that are not visible. "Our foundation is not about making large scale and get the headlines, it is about responding to specific, individual needs are targeted," he said. To find out what the stock onboard, he tracked handout every stop he can not help but do the analysis on-the-spot. As he put it, "Under the bridge is a hit rate of 100 percent of people's needs." Maybe under the bridge that he had discovered the secret to his management style, after all, what the crisis than the computer?

Tuesday, April 23, 2013

'Made in USA' Still Matters

A friend of mine in New York two days before Christmas for a client meeting. Three of the people he met there to fly from Hong Kong, the other from Seoul, two others from Bermuda. Some of them bring empty suitcases so they can return gifts.They not only shopping for a high-end luxury goods. A lawyer, Hong Kong native, showed my friend some socks she bought for her mother. He is quite happy with himself.What visitors all in common is that they want a product that's what is important to Americans mourn them.As the slow economic recovery and wallow in the absence of "Made in USA." Uncertainty, they continue to ignore the power of big brands and goods.To stamped "Made in USA" most of the world, "Made in USA" still means something special: quality, reliability, safety, product reliability, featuring the most advanced technology and the coolest styles. Purchase this product and you can also share in the United dream.Consider one of America's most iconic brands: Harley-Davidson (pig). While dozens of brands of motorcycles available to consumers around the world, there are only a Harley. And many consumers in Europe, Latin America, and now even China, where there are 13 Harley-Davidson finally count deal, will pay a significant premium to have Footing The same goes for "pig." In many other products made in America. As Ro Khanna, a former deputy assistant secretary of commerce in the Obama administration, said recently: "Products made here will have a huge stamp abroad." Words Made in the USA, he said, represented Now the "highest standards possible. ", Some executives were surprised by the fact that about 80 percent of Americans, according to a recent survey by my colleague Kate Manfred and others with BCG & Consumer Center: Customer Insight, will pay more for products labeled Made in USA. They might be surprised, however, to learn that it is also 60 percent of Chinese consumers are willing to pay more for products labeled Made in the USA as 80 percent more, in some cases, the BCG survey.In reality, more than half of China questions BCG consumers said they would buy, the more expensive American-made products cheaper Chinese products in the month before the survey. Nearly 50 percent said they ginugusto US-made goods to Chinese-made goods and the price equivalent quality.With Chinese consumer market is expected to grow to more than $ 6 billion per year by 2020, it is extraordinarily important insights.America best brand is American itself. This was after World War II, when Europe and Japan are in the process of rebuilding. And is only valid today, hundreds of millions of middle-class consumers China and India seek a better life.

Thursday, April 18, 2013

The American merger with U.S. Airways is a Bad Idea

Endlessly repeating lies does not make them right, something that stock analysts and the press need to know about merger general and specific airline merger. So no, United merger with U.S. Airways much can not be expected to be a success by any measure. That is because, in the airline industry, as in many industries, size really does not matter for success, except perhaps negatively.Pick measure the performance of your choice, and see if it shows any relationship to the size. A prominent U.S. airline performance ranking Brent Bowen of Purdue and Dean Headly from Wichita State listed as the best airline in 2012: AirTran (AAI), Hawaii (HA), Jet Blue (JBLU), Frontier (frnt), Alaska ( ALK), Delta (DAL), Southwest (Luv), U.S. Airways (LCC), Skywest (SKYW), and American (AMR). States (UAL), keeping its excellent aforementioned problems of integration with Continental, ranked 12th. In general, the larger the airline, the lower the ranking. What about international? Measured by number of passengers carried, the top 10 list of the International Air Transport Association (IATA) containing not one of the top 10 Best Airlines World for the year 2012 as reported on the CNBC website, a list may include, in order, Qatar Airways, Asiana (020 560), Singapore (SIA), Cathay Pacific (293), All Nippon (9202), Etihad, Turkish, Arabic, Thai, and Malaysian.But cares about passengers obviously not most U.S. carriers. What about benefits? From the second quarter of 2011 the second quarter of 2012 (the latest period from the U.S. Department of Transportation), three of the four highest average margin received by the Alaska operation, Skywest, and JetBlue, which ranked 7, 8, and 9 in size. Same story with a unit cost-ExpressJet (XJT), JetBlue, and Airtran lowest.The simple fact is, as Gary Hamel commented years ago, is still zero plus zero equals zero. Or in the airline business, if you take one of the troubled airline and combine with the other, you will get a larger catastrophe.The problem is not a measure of economies of scale is not so important in many industries, not only airlines, and is any case the size is smaller than the large companies. The problem for airlines flying experience that causes people to want to drive for short trips and long trips to avoid if they can. It is not by chance that some of the most consistently profitable, such as Singapore and the country's international airline Southwest, continuous ranks high in customer satisfaction. As research Claes Fornell, founder of the American Customer Satisfaction Index, shows, customer satisfaction drives profits and shareholder-return.Maybe preoccupation with size because many stock analysts and aviation experts males. But the airline, like most industries, size does not matter. Integrating only increase market concentration, raise prices, and make customers worse.

Sunday, April 14, 2013

The Ten Innovative Ideas on Consumer Electronics

Every year hundreds of new products and technologies made their debut at the annual Consumer Electronics Show. Some will have their 15 minutes of fame, others will have a lasting impact because they represent the products or trends that have the potential to reshape the business world. Here's my choice for the top 10 tech trends of CES 2013: Tablet everywhere

Tablet become the tool of choice for business applications that many companies looking for new ways to adapt them. Compulocks, Seek Innovation (PDF) and other accessory manufacturers convert display mounts the iPad and other tablet devices to a new all-stall from customer service to monitor quality control. IHealth Labs startup has a line of medical devices such as blood pressure monitors on the iPad dock so they can be used as a control and monitoring. It may be just beginning, as the tablet is cheap and easy to program, making them a superior replacement for many devices. Smartphone replace the remote control

Television and home appliance manufacturers such as LG (066570) and Sony (SNE) began offering smartphone app to allow replace TV remote control or oven, dishwasher, and other appliances remotely. Some cars, such as India's Tata Motors (TTM), which seeks to develop a smartphone (PDF) on their car so they can replace the built-in GPS system. Gaming company, such Orbotix, changed the game with control smartphone apps. In the future, the smartphone is used to control the office and factory equipment remotely without investing in a fancy remote control. Cameras everywhere

HD video cameras captured so small and inexpensive, and made it so easy to stream content, they are adopted for new uses, including live-streaming meetings and activities of day-to-day business. Some companies offer a "man-cams" which can be used secretly by the police or a bank teller to record everything that happened during the day. DropCam, for example, make $ 200 in a small camera that automatically connect to Wi-Fi and video streaming site that clouds can be seen anywhere, at any time in the age of the smartphone or tablet.The drones

Some companies put a small cheap wireless camera remote control drones that can be used as a surveillance device without a crew. Parrott made the AR.Drone 2.0, $ 300 toy helicopter fitted HD camera. Noise can program to fly the route using the iPhone right above the highway building, or construction site to monitor the activity. Cheap drones will allow the company to keep track of all their operations more efficient, even in remote locations. Virtual Salesperson

Retailers can reduce costs and improve customer service through a virtual store that sells. The Beam by appropriate technology enabling mobile video kiosk salespeople in remote areas to speak of in-store shoppers via computer and wireless connection. Consumers can see the face of the clerk of the video screen and talk to him in real time. An officer can cover the store at once, reducing downtime.Smart

After years of hype and promises that are not fulfilled, the house finally getting smarter, thanks to Wi-Fi and cloud computing. Major equipment manufacturers such as LG and Samsung have self-monitoring refrigerator, oven, washing machine and report performance and allows the user to control them remotely using the iPhone. Is a system that allows homeowners to control lights, door locks, thermostats, and almost all home electronics remotely using the iPhone application SKYLINK Group. Smart appliances have the added advantage of allowing the company to create a database to understand the behavior of the use of the use of consumer and require monitoring better.Human

The human body can be tracked, it also allows us all to do better and live longer. Math heart makes heart monitors worn every day and online reports directly to the doctor. Nike (NKE) has a new massive monitor, Nike Plus Fuel Band, a bracelet with an accelerometer that keeps track of all the calories you burn in a day. Hapi Hapi Fork Labs found that the track diet and alert users if they eat too fast. Brain Control

By monitoring the brain waves and convert it into energy, it is possible for people to move physical objects by simply focusing. Interaxon brain-Sensing startup launched a $ 200 headband called Muse. Initially it was used as a controller for video game, but there are many possible business applications for people who want to move things effortlessly.Ultra high definition

Becomes clear video and photography. All the major TV manufacturers, such as Panasonic (PC), Sony, and Samsung Electronics (005390), now offers ultra-high-definition video, with four times the regular high definition clarity. Nikon and other camera companies have Super HD version. As HD has become the current standard for all business presentations and video graphics, UHD has the potential to change, clear communication and more power lifelike.Portable

With all this new technology, we all need more energy. The MagicCharger from Mobee and PowerNow of DateXX lighter sized portable charger that can be used to recharge the smartphone and tablet anywhere.

Tuesday, April 2, 2013

The Story Behind approximately Germany E-Book Sales

In passenger subway of New York City has seen the number of people ditching the novel for a kindle or iPad to explode. E-books last year considered for 20.2 percent of all books sold in the U.S., up from 7.3 percent in 2010, according to Market Research Bowker. But that mass use of digital words are far from one of Europe's most cultured, Germany, where e-books account for only 1 percent of all book sales, according to a report- published last month by market research firm GDK Spiegel International. last week taking a closer look at slow warm German for digital reading and found out that there are two reasons. The main reason is that the physical book is so ingrained in the German way of life. "I think this is first and foremost a cultural thing," says J├╝rgen Harth from the German Publishers & Booksellers Association Spiegel. "In almost every corner there is a bookstore. That's the big difference between Germany and the United States "Dominique Pleimling, tagapagpananaliksik the Institute for the Study of the book of the Johannes Gutenberg University of Mainz, echoed that sentiment Harth. "Germany has an emotional interaction with the book," he said, noting that the printing press was invented in Germany and publisher today pride in producing quality books there. "If you look at American and German hardcover hardcover, or novel, you'll see a clear difference in how they are made, American often use paper log book not much fun. German book has some beauty, and beauty "Threats to quality never. Welcome, Pleimling added, shows that Germany took nearly a decade to bask in the novel when they were introduced to 1950s.Perhaps because of their deep attachment to the printed word, many Germans believe that they can not read well digital device, despite contrary evidence. A 2011 Johannes Gutenberg University Mainz study found almost no difference in speed when reading or retention of the test subjects reading from paper vs. digital display. However, the German test subjects insisted that they are better at reading than paper.Beyond Germany bibliophilia, sales of e-books will suffer economic barriers. According Pleimling, the German market is set to protect the book, but not necessarily e-books. While the U.S. is determined by the price of German booksellers book price book publisher. Fixed price system of the state, is designed to protect a small seller of books, meaning books cost the same no matter where you buy it. German publishers are also set e-book prices, and tend not to discount too much, so it does not weaken sales printed. E-books, according to Pleimling, can cost as much as € 19 ($ 25). Another factor in the economics textbooks are generally exempt from the German value-added tax of 19 percent. Instead they are taxed at 7 percent, a special tax rate for government goods considered essential. Discount does not apply to e-books, based on the 19 percent VAT. Germany Boersenverein, a lobby group representing publishers, is currently fighting the e-book reduced.The VAT tax differences can not be given too much significance, though. In the UK, e-books are about 11 percent of all book sales in 2011 despite the fact that it is based on the 20 percent VAT is not applicable to the printing books.Germany is not alone shows a lack of interest in digital books. The same is likely to take place in all of Europe (except UK), where the level of e-book sales tend to just hover around 1 percent, if that, according to the Global eBook Market (PDF ) prepared for the 2011 Frankfurt Book Fair. Report notes that the cultural barriers in France, where sales of e-books is estimated at around 1.8 percent: "Defending cultural diversification of infrastructure in particular, the close network of bookstores echoed various media reports and continuous political activism aimed at limiting and should negatively impact both the book and the advent of online e-book marketable, seen as a threat to small library [bookstore], " , read report.It 'is likely to change with time. "In Germany, we still 1 percent, but it increased by 77 percent from last year," said Pleimling. "If the growth rate continues like this, we are the same level as the United States in recent years. You can buy a kindle here, the iPad is very successful in Germany, the iPhone has been very successful, and now Barnes & Noble is coming to Germany, too. If the device is constantly getting cheaper, more people will buy it, and everything can change very quickly. '