Article Number : 4448 |
|
Article Detail |
|
 | |
| Date | 5/5/2009 9:17:42 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4448 |
| Abstract | GOOD SIGNS: I don’t think the recession is over or that it has bottomed out, but I am encouraged by some reports that have been surfacing in recent days. The housing market is showing some improvement, not a giant step but improvement; consumer confidence has improved slightly and spending has... |
| Article | GOOD SIGNS: I don’t think the recession is over or that it has bottomed out, but I am encouraged by some reports that have been surfacing in recent days. The housing market is showing some improvement, not a giant step but improvement; consumer confidence has improved slightly and spending has picked up a bit; the stock market has been positive for a couple of weeks and that has brought renewed hope to the financial community, and filings for unemployment benefits are down slightly, indicating more people are opting for retirement and some are finding new jobs, as scarce as they are. I guess you can see the glass half empty or half full. GOOD CAUSE: Carpet One Floor & Home is helping the Breast Cancer Research Foundation (BCRF) and the Canadian Cancer Society (CCS) find a cure for the devastating disease with a new collection of colorful welcome mats, each with a pink ribbon. The collection features a variety of spring and summer themed designs as well as a signature pink “Hope” mat and will be available through May at Carpet One stores. They will sell for $24.99US/$34.99CDN and 25% of the sales will be donated to BCRF and CCS to help support their research programs and, eventually, a cure. Carpet One has been supporting the cause since 2004 and to date its pink ribbon welcome mats have raised more than $750,000 in the U.S. and Canada. Well done! GOOD MOVE: A recent industry survey looked at Special Pricing Allowances (SPA) and found a third of distributor respondents have more than 250 individual SPA, customer-defined, agreements. Another 13.6% had more than 100 SPAs and about two-thirds say the number of SPAs they negotiate will increase, while just 9.1% feel they will eventually have fewer SPA agreements. Distributors in the survey ranked SPAs as a 7.64 on a scale of 1 to 10 in importance to their current and future profitability. Allen Ray, who’s eponymous company assisted in the survey, observed: “SPAs can be a competitive advantage for manufacturers and distributors to take market share when appropriately used. The key is distributors claiming their funds to ensure their profitability.” Sounds like a plan. GOOD BILL: The National Federation of Independent Business (NFIB) is backing a bill that would increase the deduction for new businesses from $5,000 to $20,000. “Most new small businesses face significant startup costs, including advertising, obtaining licenses, permits and fees, paying rent, hiring business and financial consultants and providing employee training,” says Susan Eckerly, senior vice president of federal public policy at NFIB. “This increase in the startup deduction allowance for new businesses will help new firms survive the challenging and often expensive first year of business,” she added. Small retail operations, or any small floor covering business, would benefit from this important tax bill. Check it out. GOOD ADVICE: While business executives concentrate on how to pare expenses during these difficult times, their strategic focus instead should be on reallocating expenditures, according to an industry consultant. He said there are a number of ideal areas to target where it is easy for the company to absorb. “But you must hold sacrosanct advertising and communications,” he warned. “In these times your relationship with people is one of your most important functions. Recent surveys show that companies that nurture customer relationships will be among those most likely to endure the bad times, as relationships matter more than transactions when it comes to the long-term health of the company.” He feels when you lose contact with your customer, you mortgage your future and it is eminently more expensive to redeem it than to maintain it. Makes sense. |