FYI November 2015

NORTH HARBOUR BUSINESS ASSOCIATION MEMBER NEWS AND INFORMATION

NOVEMBER 2015

Feel the experience PG 10

Business Success Together we are stronger Pg 14

Who’s who?

Rod Jenden of Wet & Forget Pg 16

Customer care Why you need to aim higher Pg 19

nhba.org.nz

S E T A L P E R SECU HAVE YOUR NUMBER PLATE SECURED FREE! This 'Secure Plates' campaign will help reduce: Theft of plates to commit further crime.

Unpaid petrol drive-offs.

Contact Dave Loader, 021 560 287 crimeprevention@nhba.org.nz

CONTENTS & FROM THE CHAIR

B

FROM THE CHAIR

y the time that you read this our new board for 2016 will be in place. I would like to acknowledge the contribution that all our board members make and welcome the new members of the team; Ross Keith, Allan Kent and Emma Monsellier.

The coming year will see significant changes in the legislative environment in which we, as an association and all our members’ businesses, function. It also promises great changes for NHBA itself.

All of those of you who attended our recent AGM will know that we gained approval to change our name to Business North Harbour.

This change better reflects our identity as a progressive, dynamic region – one that is the business destination of choice. We feel justifiable pride in the achievements of our members and also in the success of the many programmes that we run on your behalf. Business North Harbour reflects that pride. Look for it soon.

What we also highlighted to the AGM was

our intention to conduct an expansion poll of those businesses in the area bounded by Oteha Valley Road, SH1 and Albany Expressway (excluding Westfield). We believe that the businesses within this area face the same

What we also highlighted to the AGM was our intention to conduct an expansion poll of those businesses in the area bounded by Oteha Valley Road, SH1 and Albany Expressway (excluding Westfield). We believe that the businesses within this area face the same issues as our existing membership. issues as our existing membership. We also think that including them in our membership strengthens even further our assertion that we represent the North Harbour business community, property owners and business managers, when we talk to local and central

government about the challenges that we all face.

It makes sense for our submissions on issues such as Auckland Council’s Proposed Unitary Plan and the complex infrastructure planning underway in our area to include all those directly affected.

These high profile projects will not detract from our ability to continue to deliver operationally through our transport and security programmes, rather they will enhance our efforts.

Similarly we will continue to enhance our economic development projects and undertake to deliver a range of industry sector networking and training initiatives.

It really does promise to be an exciting year ahead. We all look forward to working with and for you. So please take advantage of all we offer.

It’s a privilege to serve.

Yours sincerely, Kevin Moore Chairman

IN THIS ISSUE 3 4 6 7 8

From the Chair In Brief Dates for your Diary Upcoming Events Events Review

10 13 14 16 18

The future of retail One Day Sale Annual General Meeting Who’s who Crime Prevention

19 20 21 22 23

Customer Care Property Fleet Management Transport Gold sponsors

NHBA GOLD SPONSORS 2015 – 2016

CONTACT FYI MAGAZINE General Manager - NHBA Janine Brinsdon janine.brinsdon@nhba.org.nz

Editor Anne Gray annegray@xtra.co.nz

Advertising Sara Ellis-Jack comms@nhba.org.nz

Design Lewis Hurst lewis@hcreative.co.nz

Printer Trade Colour Print tradecolour@orcon.net.nz

North Harbour Business Association 12 Parkway Drive, North Harbour, 0632. PO Box 303 126, North Harbour 0751 Office 09 968 2222 Web nhba.org.nz The opinions expressed in this publication are not necessarily the views of the publishers.The publisher does not endorse any person, company or organisation that advertises in this publication.

NHBA.ORG.NZ FYI NOVEMBER 2015 3

IN BRIEF

Be part of the One Day Sale shopping extravaganza

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f you want to promote your business or products to more than 15,000 people, this is your last chance to be part of the North Harbour Business Association’s legendary One Day Sale shopping extravaganza.

This is a massive consumer event and last year’s participants averaged a 35 percent increase in sales for that day. But you need to be quick to be part of this event.

For all the shoppers in the district save the date, November 21, to get all your Christmas shopping done. For more information contact Tracey at events@nhba.org.nz or call 968 2222 or 021 167 0071. For the full map to date, see page 13.

Supporting youth development on the North Shore S KYCITY Breakers has a new official partnership with the North Shore’s largest law firm Simpson Western which includes a programme to be rolled out across North Shore secondary schools.

“This is a fantastic new partnership and an exciting new venture for the SKYCITY Breakers.

We’re delighted to be working alongside Simpson Western as an official partner in developing our new youth development programme Game Plan,” says Breakers CEO Richard Clarke in a statement.

“Game Plan is a unique self-development programme targeted at Year 11 students, and their parents. Together with Simpson Western, we will hold focused workshops on culture, goal-setting, preparation, attitude and brand awareness. Our players, coaches and management will call on their experience in the dynamic world of professional sport and business. The outcomes, however, are shaped on the ultimate goals and areas of interest for the participating students and these may not be sport-related at all.

“The Breakers’ values and reasons for existing as a basketball club are very much based in the community, on providing pathways and opportunities for young people to better themselves through an involvement in basketball. Game Plan takes that a step further,” he says.

4 NOVEMBER 2015 FYI NHBA.ORG.NZ

Jamie Barr (Associate, Simpson Western), Richard Clarke (CEO, SKYCITY Breakers), Greg Woodd (Partner, Simpson Western), Ken Paterson (Partner, Simpson Western), Mika Vukona (Captain, SKYCITY Breakers).

Game Plan will encourage the students taking part to set a ‘big goal’ they wish to achieve, and develop their own ‘game plan’ to attain success. The Breakers and Simpson Western will provide case studies which demonstrate how having a plan has helped them achieve success in their respective fields of sport and business.

Simpson Western partner Ken Paterson says,

“We are all proud to be an official partner with the Breakers in the development of the Game Plan programme. Since its inception 30 years ago, Simpson Western has always had strong ties to our North Shore community... This is a marvellous opportunity to ‘give-back’ to the North Shore. We’re very excited about working not only with the Breakers but also the nominated Year 11 students and their parents.”

IN BRIEF

Great progress on Albany Highway

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ocals are impressed with the speed at which the upgrade of the northern section of Albany Highway is taking place.

The four kilometre route which stretches from Bush Road to the Albany Expressway currently carries 15,000 vehicles per day and that is just too many for the two lane Days Bridge (pictured) which crosses the Oteha Stream just south of Albany Senior High School, says Auckland Transport.

In just eight months, the first half of a new, higher, four lane bridge has been built to the east of the original, which is due to be demolished over the next few weeks.

The second half of the bridge will be built and the two will be ‘stitched’ together early next year creating a four lane structure.

The highway services four major schools with more than 4,000 pupils and traffic capacity is expected to exceed 20,000 vehicles in the next five years. Other improvements include a T2 transit lane, on-and-off-road cycle facilities and a wider footpath in both directions. Construction is due for completion in 2017, but with the excellent progress the contractor is making this may now be late 2016.

January 2015; the original Days Bridge carrying just two lanes of traffic.

September 2015; the first half of a new bridge has been built to the east maintaining one lane of traffic each way, and the old bridge is set for demolition.

54

IN BRIEF

6 3

BY THE NUMBERS 628,000 broadband connections

had no data cap in June 2015, up from 155,000 in 2014. One-third of all broadband connections are now uncapped.

1.5%

increase in

labour costs according to Statistics NZ’s Labour Cost Index for the June 2015 quarter and non-wage labour costs increased 1.0 percent.

14%

decrease

in workplace accident insurance costs.

2,380,000

overseas trips taken by New Zealand residents in the September 2015 year, up six percent and a record number.

Diary Dates November 6 Facebook and Remarketing Seminar 9:30 -11:30AM ECENTRE, ALBANY - FREE

Learn how to model seven Facebook advertising steps and you will be well ahead of your competition when it comes to generating leads and sales. ecentre.org.nz/events/facebook-and-remarketing-seminar/

11 Seminar: Building a better app 12:00 - 1:30PM ECENTRE, ALBANY- FREE

This one hour seminar from the experts at ‘3months’ will discuss the do’s and don’ts of developing apps for mobile solutions. ecentre.org.nz/events/lunchbag-seminar-builidng-a-better-app/

10 Southern Trust Funding Discussion 5.30PM–6.30PM, BAR AFRICA, 1B WILLIAM PICKERING DRIVE, ALBANY

The Southern Trust is holding a meeting to discuss the availability of funding generated from the gaming machines operated at Bar Africa and Vino’s in Albany. We and the venue operators want the proceeds to go to local not-for-profit organisations. Executive members of organisations supporting the local community are invited to attend. The purpose of the meeting is to explain the application process, eligibility criteria and timing issues.

Contact Campbell Wilson, camw@southerntrust.org.nz for more details.

11 NHBA Business Breakfast 7AM–9AM, QBE STADIUM, ALBANY

Craig Young, the CEO of TUANZ, will take a look at linking efficiency through technology and innovation, future-proofing communications and telecommunication trends. nhba.org.nz/events

12 NHBA Crime Prevention Workshop 5PM–6.30PM, 12 PARKWAY DRIVE, ALBANY

Retail Security with guest speaker Tere Ryan of Armourguard. Retailers should prepare for Christmas by attending this workshop focused on retail security including topics such as security checklist, staffing, cash management, theft and fraud – internal and external. nhba.org.nz/events

13 Charity Quiz Night Charity Quiz Night in aid of Humane Rescue, Rehabilitation and Rehoming Charitable Trust (HURRAH).

Contact lizzie@gbpensions.co.nz or olivia@blkcat.co.nz to see how you can get involved.

21 NHBA Annual One Day Sale 8AM–5PM, NORTH HARBOUR BUSINESS AREA

235,600

The legendary NHBA One Day Sale is happening again in 2015. Set the date aside for all your Christmas shopping bargains. nhba.org.nz/onedaysale

taken in September

BETWEEN 7.30AM–9AM PICKLES CAFÉ, 1 ANTARES PLACE, ROSEDALE

overseas trips were

2015. Coinciding with the Rugby World Cup kicking off, the number of holidays to the United Kingdom nearly doubled from September 2014.

6 NOVEMBER 2015 FYI NHBA.ORG.NZ

26 NHBA General Event Bring your burning questions to bubbles and breakfast. Come along to our drop-in breakfast to have all your questions answered about the Proposed Auckland Unitary Plan. The NHBA team will be there along with Jeremy Wyatt, Auckland Council senior planner. Breakfast and bubbles are on us. nhba.org.nz/events

To keep up to date with what’s on please see nhba.org.nz/events. If you’d like to feature your events in future editions of FYI Magazine please contact comms@nhba.org.nz

EVENTS

Is your business prepared for digital disruption?

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Gain valuable insights into what the digital future might hold for your business.

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earn how your business can prepare for the coming digital tsunami from the CEO of the Telecommunications Users Association of NZ (TUANZ) Craig Young. He’s the guest speaker at the next NHBA Business Breakfast on November 11 at QBE Stadium in Albany.

Craig Young told FYI he will give attendees an update on the state of the telecommunications industry and what business owners can expect to see from digital and telecommunication developments.

He will also look at some of the technology changes that are coming that will make an impact on your business. What are the disruptions that will have an effect on your business?

Another tangent will bring in what the very tech-savvy Generation Y and Gen Z workers will be expecting from your business, how do they like to communicate and what do you need to prepare for?

He’ll also look into what other technology issues are coming down the track and the impact of these changes on the way we communicate and the way we do business.

And expect to be challenged. Young says he will challenge those attending to get these technologies in place in their businesses.

What are you doing with these changes and how far on the digital disruption journey can your business go? What have you done about learning how this will affect your business?

Craig Young

Save the date

Date: 11 November Time: 7.00am - 9.00am Venue: QBE Stadium Cost: Free for one representative from NHBA members. Additional guests are welcome at $45+ GST per person. Non NHBA members are welcome, $65 + GST.

Keep your diary open We are expecting a very special guest with a unique insight into one of New Zealand’s major export markets, for our first Business Lunch in 2016 in February. Keep an eye on your inbox in December and January for all the details.

NHBA.ORG.NZ FYI NOVEMBER 2015 7

EVENTS

The Hon. Paula Bennett: Looking at the whole of government

G

etting all of government “fit for purpose” is the work set out for the Hon. Paula Bennett, who is ranked number five in Cabinet and is the Member of Parliament for Upper Harbour.

The Minister, who holds the State Services, Local Government and Social Housing portfolios and is Associate Minister of Finance and of Tourism, told the 100 plus attendees at a NHBA business lunch that in her State Services role the Prime Minister asked her to look at the culture of the government overall and ask if it is fit for purpose.

Based on the historic Westminster System, she says, government departments are not indicative of how New Zealanders live their lives today. “We are not keeping up with our ‘customers’.”

In a wide-ranging and amusing address Minister Bennett also talked about her six years as the Minister of Social Development where she had decided to find out the lifetime cost of someone being on welfare.

Teenagers were the highest cost but we had let them go onto welfare at 16 or 17 and then wondered why they were still on it later in life.

Some 75 percent of 35 year olds on welfare

went on as teenagers. Under targeted youth programmes they were now working proactively with these teenagers and, she said, the results had been outstanding with a 50 percent drop in the number of teens on a benefit at age 19.

The Minister’s Upper Harbour electorate spans from Massey and West Harbour to Greenhithe across to Albany and Wairau Park and 55 percent of the electorate is on the North Shore.

A statistic – the electorate has the highest rate of home ownership with a mortgage in the country.

The development in the area bringing job opportunities is fantastic, she said, as people want to work close to home.

She also pointed to Auckland’s infrastructure

issues and later said that as Minister of Local Government she has huge expectations of councils, but they must live within their means.

“No one minds them spending more as long as they can see it’s sensible and smart.” She also questioned councils with infrastructure needs sitting on billions of dollars of assets.

As the local MP, she says she worries about infrastructure and believes we will not be having a discussion about housing in the years ahead but will still be having discussions on infrastructure and about how people get around.

Tourism, she said was the good news area of the economy and had just hit it three millionth visitor in a year, although it has challenges around infrastructure and having enough beds.

Finding the networking snakes

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he October Snakes and Ladders Workshop, hosted by Ngaio Merrick, offered a hands-on practical session on building relationships. It covered the basic “which group to approach and how to enter the conversation without stopping it” when you walk into a crowded networking room.

The session also looked at conversation

8 NOVEMBER 2015 FYI NHBA.ORG.NZ

topics to avoid when building relationships (snakes) and ones which help you to build relationships (ladders) towards your end goal.

Merrick says her workshop also discussed when, and how, to turn the conversation to business and then how to exit the conversation leaving both your, and the other person’s, dignity intact.

She also delved into the five “networking personalities” who can be challenging to network with. This serves two purposes; 1) if you recognise yourself, now is a good time to change your networking style and 2) if you encounter one of these personalities, how to deal with it leaving your sense of selfworth intact.

A grand opportunity to network and gain brand visibility

T

he North Harbour Business Expo attracted 92 exhibitors this year, all of whom were asked to complete a short survey on how they found the experience. Excitingly 58.18 percent of those who replied were first time exhibitors.

The survey provided useful information we can take on board for our next expo including the fact that while the bulk of respondents felt the 9.30am to 3pm timing was right, around 20 percent would have liked the expo to go later in the day.

Asked what they found most valuable on the day, networking accounted for 47 percent; brand visibility 45 percent; brand recognition 32 percent; and, sales leads 21 percent.

The venue was rated very highly. There were some comments around parking availability. We accept this was an issue for some and will ensure the stadium doesn’t have another event on at the same time as our next expo.

Visitors to the expo also had an opportunity to provide feedback.

The primary reasons given for attending were; business networking (83 percent), looking for new suppliers (30 percent) and checking out the competition (17 percent).

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NHBA Expo 2015 prize winners Congratulations to these lucky prize winners from the NHBA 2015 Expo.

• North Harbour Business

• Fairfax Media $640

Association GoPro action camera worth $200: Anton Ross, Smile Plan; Neil Barker, Barkers Business Brokerage.

• North Harbour Networker $200 advertising voucher for North Harbour Networker and $100 dining voucher at Ambrosia Restaurant and Bar: Tere Ryan, Armourguard; Vivienne Brumby, Hon Paula Bennett Office.

• NetworkPro $1000 worth of labour and consultancy: Shaun Pahalad, Air Concepts.

advertising voucher for the North Shore Times or North Harbour Times: Mandy Holt, Registered Master Builders.

• The Alternative Board, three months free membership including three board meetings, three one-on-one mentor sessions, three months online strategic tool plus diagnostic of your business: Geoff Ashenden, Vital Health NZ. • Wine and More $250 retail voucher: Ricky Stephens, iStorefront.

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FEATURE

The future of retail: Feel the experience J

ust last month some 50,000 people turned off their computers, got into their cars and took themselves off to the opening day for the new NorthWest megamall in West Auckland.

This 100-shop, $170 million mall, which is reportedly one third of a kilometre long and as big as four rugby fields, is being heralded as the next generation of shopping centres in both design and retail offering. And, if nothing else, these numbers seem to indicate New Zealanders still have very much of an appetite for physical shopping.

But the online retail market in New Zealand is growing fast. The BNZ Online Retail Sales report for August found that, for the categories the Marketview report covers, online retail sales are equivalent to approximately 6.5 percent of reported retail sales.

In turn a report last month from Nielsen, Nielsen’s Online Retail Repor t says that shopping has been embraced by mainstream New Zealand with close to two million adults (1,952,000) making a purchase via the internet in the last year.

Digital consumers are purchasing more items online (+nine percent year on year) and spend much more (+21 percent). New Zealanders now buy 18.2 million items online per annum to the value of $4.6 billion. Spend is expected to reach $4.8 billion by the end of 2015.

Tony Boyte, research director, Nielsen NZ said in a statement, “While the growth of new online shoppers has slowed those already online shopping are hooked. For the first time, those who purchased six or more items each year make up

10 NOVEMBER 2015 FYI NHBA.ORG.NZ

half of all online shoppers, up from 38 percent in 2010”.

The amount spent by New Zealanders on overseas websites is estimated at $1.6 billion.

Two-thirds of online shoppers (66 percent) have made a purchase from an overseas website in the last three months, up from 61 percent in 2014. More than 60 percent of those people say that they could not find the items available on a New Zealand retail site.

Boyte observes, “Consumers everywhere want a good product at a good price, and the seemingly limitless options available in a virtual environment provide new opportunities for both merchants and consumers.”

The number of New Zealanders buying flights and travel services such as accommodation and car hire has grown and is the leading category for online shopping. Fashion (clothing/shoes/ accessories) is most popular outside of travel.

Books declined in the last year from the third most popular category to fifth. Event tickets, music, consumer electronics, games and

The amount spent by New Zealanders on overseas websites is estimated at $1.6 billion. Two-thirds of online shoppers (66 percent) have made a purchase from an overseas website in the last three months, up from 61 percent in 2014. More than 60 percent of those people say that they could not find the items available on a New Zealand retail site.

consoles, sports equipment, flowers, insurance, home appliances and alcohol saw strong growth in the last year.

Consumers shop online for convenience, which includes being able to compare products and prices. But traditional retailers are fighting back. The Warehouse has a click and collect model, where shoppers buy online but then go to their closest store and pick up their purchase.

Menswear chain, Barkers also promotes its in-store pick up so shoppers know the product will be available for them the next day.

Offshore things have got a tad more sophisticated with Singularity University reporting on its website that the massive hardware chain Lowe’s is using robots, dubbed OSHbot, employing a suite of new technologies to field simple customer questions, identify items, search inventory, act as guides, and even summons experts for a video chat in its Orchard Supply Hardware stores.

Retail NZ’s Greg Harford, the general manager of public affairs, agrees that online channels are part of the mix.

He says customers are increasingly expecting retail to be online... but they are also looking for an instore experience and he points to online-only merchants which are “retrofitting” into bricks and mortar – both internationally and domestically. An online homeware seller in Wellington has recently opened a physical store in response to customer demand.

Harford says people want to use online to purchase at home, so they can shop around and some want to pay for it online and pick it up instore, a concept that is very big in the United Kingdom.

Retailers are being led by their customers who want the ability to compare prices and while this opens retailers up to global competition it does mean any New Zealand retailer can also sell offshore which provides a huge growth opportunity. But, says Harford, retailers need a strong brand and niche as well as an international supply chain in place.

So while online retail in New Zealand is growing, New Zealanders shop less online than in other countries with 25 percent of all shopping in the United Kingdom now online.

And bricks and mortar retailers are fighting back in other ways too – turning their physical shops into something that provides a full experience for the shopper.

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Like a swathe of other industries, traditional bricks and mortar retailers are being challenged by online competitors, both local and global, but the retail sector is fighting back with a plethora of innovative and high technology offerings.

SECTION

“Customers want a destination store – not only a great product and great service but a whole experience” – Retail NZ’s Greg Harford

NHBA.ORG.NZ FYI NOVEMBER 2015 11

FEATURE

Labyrinth Solutions has just installed New Zealand’s first ever 24/7 Storefront window that allows full online shopping at The Homestore in Newmarket. Its front window is “transformed into an interactive touchscreen; the first of its kind to have full e-commerce capability”.

Harford points to gardening stores colocated with cafés and NHBA member, Barkers “has done some amazing marketing around its stores” with two of its stores offering full men’s grooming and a barber.

Some wedding suit providers are offering a whiskey for the groom and his best man as they are fitted for their suits.

“Customers want a destination store – not only a great product and great service but a whole experience,” says Harford.

As to the rise of the megamalls, Harford says if you look internationally, particularly in Asia, malls are everywhere and are becoming a destination in themselves.

In New Zealand part of their attraction may be the ease of free parking and Harford notes that significant CBD parking fees by councils do hurt the high street trade.

As to the trends ahead, Harford told FYI that over time, retailers will see increased use of mobile technology which will recognise the shopper as they come into the store and be able to make special offers.

Internationally RFID (radio frequency identification) technology enables retailers to track their stock as it moves around – in terms of knowing where stock is and if it’s running out, which would vastly simplify stock management.

He also points to the use of biometric data through thumbprint and facial-recognition software that means the retailer has the ability to engage more closely with their customers and allows them to target their offering to that particular customer.

Personalisation is another trend and Harford mentions an Australian shoe company where customers design their own shoes. Again this was an online only store but has retrofitted into a bricks and mortar store.

12 NOVEMBER 2015 FYI NHBA.ORG.NZ

“Technology wise, the sky is the limit,” he says.

Lizzi Hines, the founder and managing director of Spaceworks, a retail design company, says the retail experience is not just about what it looks like, but how it feels.

And the experience is very much about getting people to get up from their laptops and go instore.

She scours the world for retail trends and one thing she noticed on a recent trip was how shopping assistants engaged with their customers. It’s not just about a basic greeting but asking the customer, whether they know much about the brand – asking questions where there is no such thing as a yes or no answer, but

Trends coming out of the United States are for smaller footprints in store size and a central warehouse to distribute the goods from. something that starts a conversation.

She says customer service in New Zealand is lacking this real engagement with the customer, which in turn means that customers engage with the product.

Visually, one of the most interesting things about retail is they are becoming more homelike, perhaps with a mini café instore.

Hines notes too that online doesn’t necessarily create loyalty but an experience instore can.

Essentially she says retailers must be online and it must be integrated with their physical presence.

This is backed up by Vaughan Reed at Labyrinth Solutions, which is based in the North Harbour Business District.

He says that in the retail space this convergence of the real and digital worlds is known as an omni-channel retail strategy. “It is not just about having a substantial online offering anymore, it’s about bringing the digital experience into the store and using it to deliver a consistently unbeatable customer experience,” says Reed. He says this implies a consistent user experience in all marketing and communications across all channels.

“If I was online and previewing the product, I should be able to get the same experience instore – the same across all marketing channels.”

He believes this is what’s going to give retailers with physical stores the upper hand.

He too points to technology allowing retailers to have just one of each item in store, so the customer can touch and feel the product but the retailer doesn’t need to carry a full range. They might purchase instore and then their exact size and colour is shipped to them the next day. If a retailer can reduce their footprint by one half or one third the cost benefits are huge and trends coming out of the United States are for smaller footprints in store size and a central warehouse to distribute the goods from.

Labyrinth has just installed New Zealand’s first ever 24/7 Storefront window that allows full online shopping at The Homestore in Newmarket. Its front window is “transformed into an interactive touchscreen; the first of its kind to have full e-commerce capability”.

“The 24/7 Storefront is so much more than an attention grabbing digital display,” says Reed in a media release. It allows window shoppers to quickly access product information, make secure purchases, access specific information such as a wedding register and view special offers all via The Homestore’s front window.

ONE DAY SALE

One Day Sale, Saturday 21 November 2015 Get ready for the North Harbour Business Association One Day Sale.

New outlets are still being added daily so check nhba.org.nz/onedaysale for the most up to date list. Enjoy your shopping!

NHBA.ORG.NZ FYI NOVEMBER 2015 13

NHBA AGM

Stronger together As a collective voice for businesses in the North Harbour Business Improvement District, the association is ensuring the views and needs of local businesses are being heard.

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key focus of the North Harbour Business Association over the past year has been ensuring that individual and collective voices are heard by Auckland Council as part of the review of the Proposed Unitary Plan, chairman Kevin Moore told the annual meeting in October.

“Together we are stronger. This message, that we represent the views of thousands of individual business and property owners and tens of thousands of employees has been acknowledged, not just by the council but also by the independent review panel hearing submissions on the plan,” he said.

Moore also discussed the changing funding environment where central and local grant funding has “declined markedly”. But the association continued to look for ways to cost effectively deliver “more for less” for its members.

NHBA also sought a special resolution to expand the geographical area of the association. Explaining the strategy behind the move Moore said, “We see a commonality of interest with the business area currently being developed in the triangle formed by SH1, Albany Expressway and Don McKinnon Drive.

“We believe that bringing those businesses into the North Harbour Business Improvement District will benefit both that area and existing members, through an even greater voice and tangible economies of scale.”

He said that the association would conduct an expansion ballot early in 2016 to invite these business and property owners to join the association effective from July 1, 2016. The resolution was passed.

The annual general meeting also saw the association unveil its new branding and new name – Business North Harbour. The rebrand is due for release at the end of the year and general manager Janine Brinsdon says the new name and look better reflects the needs and aspirations of the membership.

urrent North Harbour C Business Improvement District Proposed Expansion Area 14 NOVEMBER 2015 FYI NHBA.ORG.NZ

“North Harbour as a region continues to drive the Auckland economy through employment growth, business innovation and thought leadership. A name change to Business North Harbour best identifies our area and our leadership position in making it the top location to do business in the region,” she said.

Priorities Chairman Kevin Moore and general manager Janine Brinsdon outlined the business plan the board and management has put in place to take the organisation out to June 2018 and the key targets under each priority.

The plan is based around five priorities: One Voice – Together Stronger: “Our ability to provide a voice for our members in the meetings that count remains essential. This work includes the proposed business district expansion; advocacy; formal submissions and public meetings.

Connect, Communicate, Collaborate: NHBA is set to become Business North Harbour to

better reflect the needs and aspirations of its members. This area includes media targets, external media work, events and membership retention and growth.

Grow and Strengthen Your Business: This includes the business capability programme, economic development work such as the One Day Sale and Business Expo; working with special interest groups (export, innovation and organisational development); and social responsibility.

Keep Your Business Moving: Over the coming four to five years, hundreds of millions of dollars are being invested in North Harbour projects. As contracts are awarded, this level of investment requires significant time spent consulting with NZTA, Auckland Transport, Fulton Hogan and others to ensure the infrastructure projects planned will improve connectivity and mitigate the inconvenience to business and investors.

The objectives here are to reduce congestion; improve safety and access; representation; commuter education.

Keep your investment Safe: Following the cessation of Ministry of Justice funding NHBA has undertaken a comprehensive review of the crime prevention programme and will retain specialist crime prevention skills within our team. We have a programme for the year which works to protect your property; your business and enhance community safety.

Go to nhba.org.nz/ AGM2015 for an e-book version or email admin@nhba.org.nz if you require a hard copy of the full Annual Report 30 June 2015, Business Plan 2015-18.

NHBA AGM

Board elections The new board was also elected at the annual general meeting.

Returning board members are Katheryn Chivers, representing Easy Forms; Greg Fritelli, ILG; Peter Jollands, Jollands Callander; Nicky Lukar, BNZ; Janet Marshall, PJCK Holdings; Kevin Moore, Crown Worldwide NZ; Steve Plummer, Centurion Property Management; Vaughan Reed, Labryinth Solutions and Terry Zouch, KiwiBank.

The new board members are Ross Keith, Advantage Business; Emma Monsellier, Davenports Harbour Law and Allan Kent of Zeald.

Many thanks to our retiring board members: Ken Paterson of Simpson Western Lawyers, Brenden Rolston of Actionhq and Dominic Sutton of Pumpt Advertising.

NHBA.ORG.NZ FYI NOVEMBER 2015 15

WHO’S WHO

Rod and Leigh Jenden.

Rod Jenden of Wet & Forget Rod Jenden, the founder of Wet & Forget, has been in his own businesses since he was 21 and while Wet & Forget is very successful today, operating in New Zealand, Australia, the United Kingdom and in the United States market, Rod is the first to admit it has been a rocky ride.

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s a 21 year old, Rod Jenden had just finished a boat building apprenticeship when he started a dry cleaning and a bakery run – hard work for not much return.

While undertaking all this work, in the 1970s he noticed a lot of dirty roofs so started his contracting business with a product he had that killed the biological growth on tile roofs.

This, he tells FYI, was a very strong bleach and very corrosive, so much so it would eat into the spray equipment, causing blow-outs which then pumped bleach all over the houses’ gardens, cars, washing, or whatever else was in the vicinity. He felt there had to be a better way and with help from a Forest Research Institute scientist developed a compound that could remove the growth off the roof without causing damage because it was non-caustic and non-acidic.

Again the business morphed, this time as well as the roof cleaning, the company moved into designing coatings to protect the roof once it was clean.

It was hard work and it didn’t dawn on Rod,

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and his wife and business partner, Leigh, that the customer might want to buy the product until the occasional overspill of the product onto a driveway had customers ringing to say that where the overspill happened was still clean, could they buy the product?

The couple started their own manufacturing around this time and have continued to manufac-

Unless you are extremely lucky, don’t expect it to be easy. Work ethic is huge and getting good professional advice is pivotal. ture their products here and in the international markets where they have joint venture operations.

That was around 15 years ago and the first product sent out was in five litre plastic bottles with a photocopied paper label.

Rod did his first radio promotional spot around that time, which had a huge response.

The company later went on to design high quality house paints.

A few years further down the track, Rod says he sold the roof coating contracting business but he and Leigh decided to hold onto the cleaning product – they built another factory and Wet & Forget was born.

They now sell a wide range of products in 14 of their own stores around NZ and also through major retailers in Australia, the UK and the USA. “We have fantastic people that we work alongside and it is like a big family here,” Rod says noting that quality control is key. “They are a cool bunch of people and we would be nothing without the crew.”

So what good advice did you get along the way?

It was “suck it and see technology. It all looks very flash now but there was many a walk at 2am wondering how we would make the wages.”

He says at one point the bank looked likely to close them down.

Rod says the only thing that is constant in business is change and if you don’t change you

WHO’S WHO

will fall behind. Having a team that is smarter than you is important, he says.

What is your advice to newer businesses starting out?

“Unless you are extremely lucky, don’t expect it to be easy.” Work ethic is huge and getting good professional advice is pivotal.

He says he and Leigh didn’t get advice earlier on, because they thought they couldn’t afford it, but you can’t afford not to have it.

And, he says, make sure you are putting money aside for tax.

Any other points?

Always try and employ people smarter than you and delegate and listen to other people.

If you can talk to other people about what they are doing, that is very helpful. You can glean good ideas from others in business, as long as they are successful, no matter what industry they are in, businesses do have lots in common.

And, he says, people shouldn’t look to buy themselves a job, and mortgage themselves heavily. “Take really good advice.”

But after all the hard slog and the ups and downs Rod says today it’s lot of fun. “We enjoy coming to work.”

Wet & Forget Head Office, 38 Apollo Drive

Could you get to Tauranga from the North Shore in 45mins?

If you travel to Tauranga or Kerikeri weekly or monthly for business then we have great news for you.

We fly direct to Tauranga from our airfield at Dairy Flat (270 Postman Road) 4 times a week: • Monday + Thursday + Friday + Sunday: • 07:15 to 08:00 North Shore to Tauranga • 18:20 to 19:05 Tauranga to North Shore • $375.00 per adult (return) Plus, our shuttle service uses the bus

lane so you can wave bye-bye to rush hour traffic as we zip past them. We can pick you up from Quest Hotel (Kell Drive, Albany) for $10 or Smales Farm bus station (Platform 3A, Northcote) for $12. Or from AKL CBD for $15 (Quay St).

We also fly to Kerikeri 3 times a week (see our website for the schedule).

We're your airborne connection between the stunning bays at North Shore, Tauranga (Bay of Plenty), and Kerikeri (Bay of Islands).

Did you know we can provide you with charter flights to any NZ airport?

Get a group of 3 to 6 people together and see our website for pricing and examples. Charter flights are available 7 days a week. eg. Fly North Shore to New Plymouth in 60 minutes for $2800 return for 6 people.

We are a small and friendly air line. Just sit back and relax as our pilots take you on a timely, scenic flights between these locations.

FOR BOOKINGS AND INFO:

northshoreair.co.nz 0800 229 862

CRIME PREVENTION

Greater security presence N

HBA is ensuring a greater security presence in our business district. Tere Ryan, account manager from Armourguard, will be working closely with NHBA to ensure our newly-signed night security patrol contract will provide a proactive visual presence throughout the total area every night.

Electronic security reports will be provided daily identifying any perimeter insecurities at members’ premises, any suspicious behaviour, graffiti, street lighting that is out, trespassing or vandalism to street signage.

For the last three years Armourguard has been patrolling only the eastern area of the NHBA area but from October 23, 2015 it has been patrolling the total western and eastern areas combined.

The aim of this service is to reduce, and prevent, crime which will lead to increased confidence in the North Harbour Business District.

Our nightly patrols will support the police to identify any suspicious vehicles or people entering our area by following appropriately and contacting the police.

Tere Ryan (left) from Armourguard Security with Dave Loader from NHBA.

Preparing for the Christmas rush As we enter the Christmas shopping period retailers will be gearing up for the rush and will also be keen to ensure their stock and products are well protected.

NHBA has organised an experienced retail loss prevention manager, Tere Ryan who will cover important topics and offer his insights into: • A security check list • Staffing • Cash management • Theft • Fraud.

Save the date

Date: 12 November 2015 Time: 5.15pm to 6.30pm.

Venue: NHBA, 12 Parkway Drive Cost: Free for two representatives from NHBA members. Additional guests are welcome at $25.00 + GST per person.

Non NHBA members are welcome, $45.00 + GST. See more details on our website nhba.org.nz/events

Be alert for burglars

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18 NOVEMBER 2015 FYI NHBA.ORG.NZ

usiness owners in the NHBA area need to be alert for burglars.

There have been recent burglaries within our area where offenders have entered the business premises by smashing the front door glass panels and reaching in and unlocking the door lock. Offenders have been targeting cash and product from the sites.

Our advice to these businesses is to upgrade their door locks and, where practical, to install deadlocks to prevent this method of entry. Any businesses which have concerns regarding their perimeter security can contact Dave Loader at crimeprevention@ nhba.org.nz.

A reminder to all members not to overlook the other free services the association offers regarding security issues: • Vehicle registration plates secured on-site to company and staff vehicles.

• Pallet swap programme to help you find pallets within our area or help you move surplus pallets.

• Security survey of your business premises to ensure your assets are secure and that staff work in a safe environment.

PROFESSIONAL DEVELOPMENT: CUSTOMER CARE

You need to aim higher

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If your customers believe that you are an important part of their own success, they will not think of themselves as being your customer any more, they will want to be your partner, says Ian Brooks.

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ike all savvy business people, you know that your financial success will not come from going out and capturing lots of new customers, but from getting your existing customers to come back again and again to buy more and more.

The cost of attracting new customers is very high – often much more than the value of the first sale. Existing customers, on the other hand, are easier to sell to because they already know about you, they have a relationship with you and they probably trust you. Also, if you want to sell more to your existing customers, you first have to keep them. But in this crowded and competitive market retaining customers can be very difficult. Customers are so fickle.

They switch suppliers for no apparent reason.

The problem is that most businesses aim to satisfy their customers and that target is too low. Satisfied customers walk. Research shows that 68 percent to 85 percent of the customers who switch from one supplier to another were happy or very happy at the time they switched.

Happy customers deserting you? Now that is a scary thought. The trouble is that when you satisfy someone you simply give them what they expect; and when they get what they expect, they don’t notice it. And people who don’t notice you will not stay loyal.

You have to do more than satisfy your customers to retain them. Years ago, an American company discovered that very satisfied

customers were six times more likely to re-purchase than those who were simply satisfied.

To make your customers very satisfied so they notice you, you have to aim to make them successful. Rather than accepting your customer’s order, you must be proactive and work to understand what your customer is trying to achieve.

Find out the problems your customer is trying to solve and help them to solve them. Under-

Do not just talk to your customers.

Talk to your customer’s customers and find out what they want from your customers.

stand the value they expect to obtain from your product and service and make sure they get it.

Identify customers they have that they are trying to satisfy and help them to satisfy them.

Basically you have to get inside your customer’s business, find out what they hope to achieve and work to make them successful. Do not just talk to your customers. Talk to your customer’s customers and find out what they want from your customers. And, then work to help your customers make their customers successful.

But understanding your customer’s business is only part of it. You will not be able to make

your customers successful unless you have the right attitude. You must follow the philosophy that if your customers win, then you win.

This is not what most of us do. Our policies, procedures, terms of trade and methods of doing business scream at the customers “I’m going to win out of this transaction. If you get something out of it that is nice, too. But I definitely will win.” As a result, we end up making our customers work for us, take the risks and pay the price when things go wrong. Today’s customers are simply not prepared to do that.

If your customers believe that you are an important part of their own success, they will not think of themselves as being your customer any more. They will want to be your partner.

Most businesses want to develop partnership relationships with their customers but they do not realise this will not happen unless the customer wants the relationship. And that will not happen unless your customers believe you are committed to their success and see evidence that you can make them successful.

Partners are worth having. They are easy to retain, easy to sell to and easy to profit from.

They are also easy to turn into advocates and that is the best kind of advertising you can get.

And it’s free.

Dr Ian Brooks is one of Australasia’s leading experts on customer care. ianbrooks.com NHBA.ORG.NZ FYI NOVEMBER 2015 19

PROPERTY

Purchasing and leasing for commercial landlords

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When executing a lease the landlord is entering into a long term contractual relationship with a person, people or a business. Ensure this is a tenant you wish to do business with over an extended period of time, says Janet Marshall.

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he commercial property owner is usually an astute investor who already owns residential property, albeit their own family home, and is adding to their growing investment portfolio.

If purchasing commercial property for the first time, talk to your bank first as the lending criteria is quite different for commercial, the loan to value ratio (LVR) from banks can require a minimum 40 percent deposit.

Whether an investor or owner occupier of a commercial property, with vacancy levels dropping and rental rates increasing, it is likely you are sitting on an appreciating asset.

When leasing premises, it is recommended that a Property Council and Property Institute (formerly BOMA) measure is carried out by a registered surveyor or valuer. The rentable area may well have been derived from a set of architectural drawings to obtain the appropriate council consents but is unlikely to be correct in terms of a standardised method for rentable areas.

A difference of as little as one percent of the calculated rentable area can, over the lifetime of the lease, become as influential on the property’s return in the same way that an incorrect assessment of the correct market rental rate would.

20 NOVEMBER 2015 FYI NHBA.ORG.NZ

The current Auckland District Law Society (ADLS) Agreement to Lease – Fifth Edition 2012 (3) is a preliminary document which is prepared by a commercial real estate agent or broker and contains the basic information agreed upon by the landlord and tenant, eg, term of lease, rental and brief description of the premises.

The formal Deed of Lease, current Sixth Edition 2012 (4) is normally prepared in accordance

Research the prospective tenant, look up their website, check the New Zealand Companies Office register and take advice from a commercial lawyer.

with the terms and conditions of the Agreement to Lease by the landlord’s lawyer.

A landlord and tenant walk-through of the premises before the tenant moves in affords the parties the opportunity to discuss their expectations and avoid last minute surprises.

The premises condition report, which is included in the Deed of Lease, provides evidence of the condition of the premises at the start date of this lease. Similarly the walkthrough towards the end of the expiry of the

lease provides an opportunity for discussion on the tenant’s work for any “make good” provisions of the premises.

Take into account expenses required to lease premises: legal fees, real estate agent’s fees, marketing costs and possible tenant incentives (fit out costs and/or rent holiday).

Research the prospective tenant, look up their website, check the New Zealand Companies Office register and take advice from a commercial lawyer.

As income is devalued over time as a result of inflation, a good rent today may be inadequate in the future. The best protection is a CPI (Consumer Price Index) annual adjustment to the tenant’s rent to ensure the dollars specified remain constant in value over the term of the lease.

When executing a lease the landlord is entering into a long term contractual relationship with a person, people or a business.

Ensure this is a tenant you wish to do business with over an extended period of time. Once the lease is signed, both parties are obligated to uphold it, so be cautious and take legal advice.

Janet Marshall is the commercial manager at Colliers International’s North Shore office.

FLEET MANAGEMENT

Why do businesses lease vehicles?

Paul Tobin explains the financial implications that make leasing a car an attractive option for businesses.

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usinesses prefer to lease their vehicles rather than buy them outright for many reasons but usually it comes down to the financial advantages leasing provides.

We all know that monthly lease payments can be more affordable than buying on HP (we can advise on both options) but there are further financial implications that make leasing a more attractive option.

The major benefit with vehicle leasing comes in how it is accounted for.

With a vehicle lease, the costs are an operating expense just like the lease on your office space. The vehicle is not a depreciating

asset on the books but a 100 percent tax deductable expense.

This enables the business to stretch its dollars further and be driving either new or late model vehicles, which may not have been affordable with HP finance.

Vehicle costs are a big expense for many businesses and often they can’t, or don’t want to, write out a cheque for tens of thousands of dollars taking valuable capital out of the business.

Smart businesses opt to keep their capital in the business where it can be used for growth and lease their vehicles instead.

Paul Tobin

Many business owners like driving new cars, it’s good marketing and makes them and their brand look good.

However, not all vehicle leases are created equal. It pays to read the fine print and make sure the lease is flexible enough to adapt to your business’ needs.

If your business is in growth mode, the vehicle you need today may not be the same as you need in two years time.

With a flexible lease it’s easier to be driving a new car every few years without being locked in for the duration of the term or paying a hefty penalty for breaking the lease or doing too many kilometres.

If you’re investigating leasing for your business, give us a call to talk through our flexible SmartLease and how it could work for you.

Paul Tobin and the Driveline team are based at 65 Paul Matthews Rd, Rosedale and have offices across NZ. Email paul@driveline.co.nz or see driveline.co.nz

Do you want to belong to NHBA but are just outside the zone?

Become an Associate member and you will be able to attend our Women in Business, Business Breakfasts, Business Luncheons events – plus our training workshops. You will even be able to exhibit at the next Business Expo!

Membership is available by contacting Debra Metcalfe on 968 2222 or admin@nhba.org.nz

TRANSPORT

Strong community and business feedback More than 1200 people provided feedback on the latest design plans for major transport improvements in North Harbour/Albany.

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usiness owners and residents from across Auckland either visited one of six Northern Corridor information events, emailed, phoned or filled out a formal feedback form.

The NZ Transport Agency says it is incredibly grateful to everyone who gave their time and thoughts to help shape the next version of design plans for the project, which aims to build a strategic motorway connection and provide the northern-most link in the city’s new Western Ring Route.

The new connection will directly link the Northern Motorway (SH1) and an upgraded Upper Harbour Highway (SH18), providing an alternative route for north-south travel.

It also aims to improve local road links in the area, to support housing and economic growth; extend the Northern Busway from Constellation to Albany; and provide more than five kilometres of new walking and cycling paths alongside the Busway and along and across SH18. The Transport Agency is also working with Auckland Transport to propose a network of over

25 kilometres of connecting paths from the surrounding suburbs.

The Transport Agency’s Northern Corridor project manager, Sarah Cronwright, says people told the project team they could see the importance of the Northern Corridor project for helping them to get around Auckland in the future.

“People were really interested to hear that this new connection would provide them with the ability to travel from the North Shore all the way to and from the airport without leaving the motorway, or travel a second way through the region by circling around the city and connect back up with SH1 in Manukau.”

Although the feedback is still being analysed, the Transport Agency says clear themes came through including support for the new route’s benefits for the freight industry, and for the Northern Busway extension.

Many people also provided support for Auckland Transport’s plans for a new bus station on the Busway extension in lower Albany/Rosedale, and talked about the importance of car parking at all the stations.

Business owners were also particularly interested in the local road changes proposed around Upper Harbour Highway (SH18), where the Transport Agency is proposing either bridges or underpasses or realigning the main roads, to make sure connectivity is retained and residents and businesses are not ‘cut off’ by the motorway upgrade.

All of the proposed plans are still available to view on the Northern Corridor Improvements Project’s website, at nzta.govt.nz/ auckland-northern-corridor.

Feedback is now being analysed along with ongoing geotechnical work, traffic modelling, environmental investigations and the results of meetings with neighbouring properties. The next version of the design plans should be announced by early next year. At that point the project will move into detailed design and resource consenting processes, with the aim to start construction from 2018.

Find out more on the project’s website, email the team on northerncorridor@nzta.govt.nz, ph 0800 NCI PROJECT or visit the InfoHub office at 33A Apollo Drive, Rosedale, Wednesday – Friday 9am-2pm.

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GOLD SPONSORS

Pickles Cafe Pickles Cafe is located in the hub of the thriving business district of Albany, a great location for meetings, catch ups or big tables.

NHBA GOLD SPONSORS 2015 – 2016

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ickles provides parking, free wi-fi, catering, excellent coffee and an à la carte menu. Breakfast and lunch run all day from 7am till 3pm daily and the café is fully licenced and has a sound proof meeting room that can cater for up to 30 people.

For customers in a hurry Pickles’ Deli offers fresh quiches, sandwiches, paninis, homemade slices, fresh muffins and more, all made on a daily basis.

Pickles Cafe is run by experienced chef and operator Andy Fincham who has more than 20 years’ experience in hospitality.

His hardworking team have a passion for the business which is passed on to the customers so the experience for their meeting or a weekend family lunch is as good as it can get. There’s also plenty of space in the café to relax or to have some privacy.

Pickles also has a large scale catering operation at the café, providing top quality catering at a competitive price.

If something is not on the menu just ask, says Andy, and if you need catering in a hurry, most of the time they can do it.

They prepared a full wedding in five days for 100 people.

For more information info@picklescafe.co.nz NHBA.ORG.NZ FYI NOVEMBER 2015 23