3
Solid Sales Outlook
Sales growth slowed across Michigan’s retail industry in spring, but retailers’ forecasts for summer remain solid. Page 3
5
‘Wonderful Experience’
Petoskey booksellers Matthew and Jessilynn Norcross make their store relevant to modern customers. Page 5
7
Gift Card Responsibilities
Time for a short refresher on gift card do’s and don’ts, including expiration dates and unused balances. Page 7
® June 2012 Vol. 37 No. 3
MRA eye care plan will change to VSP effective July first MRA will change vision insurance providers on July 1, switching to national leader Vision Service Plan (VSP). VSP is the largest vision benefits company in the U.S., with more than 56 million members. The change from current provider DeltaVision will be seamless for MRA members who participate. Rates will remain the same and the switch will be automatic. Enrollees will receive their new policy number in writing; no cards will be issued. There is no minimum group size to participate in the MRA/VSP program. Previously, groups needed at least two persons in order to qualify. Benefits when seeing a VSP doctor of your choice include an annual eye exam and prescription glasses, with no copay. Lenses covered include single vision, lined bifocal and trifocal, and polycarbonate lenses for dependent children. There is a $125 annual allowance for a wide selection of frames, and 20 percent off the amount over the allowance. When choosing contacts instead of glasses, there is a $60 annual copay for the exam and fitting, and a $90 allowance for the contacts. There are also additional discounts and savings on sunglasses, non-covered lens options and laser vision correction. Coverage, with different allowances, is available from non-VSP providers. For more information or to enroll, please contact MRA at 800.366.3699, ext. 681.
The official publication of the Michigan Retailers Association
www.retailers.com
More states act on Main St. Fairness While Michigan retailers continue waiting for Lansing to act on Main Street Fairness legislation, New Jersey has become the 25th state to help level the playing field for home-state businesses. The leveling in each state has come through legislative action or a negoti-
ated agreement with out-of-state, online retail giant Amazon.com to begin collecting the state’s sales tax. New Jersey Governor Chris Christie announced a collection agreement between his state and Amazon on May 30. The wait in Michigan is expected to
Think your business can’t get a loan? Think again!
continue at least until fall, because lawmakers are scheduled to return to their districts in June for most of the summer. A large loophole in state and federal laws enables out-of-state, online retailers to avoid collecting Michigan’s 6 percent sales tax on goods they sell to Michigan residents. The loophole gives nonMichigan merchants a 6 percent price advantage over Michigan companies and, researchers say, costs in-state retailers hundreds of millions of dollars in lost sales and hundreds of lost jobs. “The governor and legislature have made major improvements in Michigan’s retail climate over the past 18 months by reforming item pricing and repealing the Michigan Business Tax,” said James P. Hallan, MRA president and CEO. “However, action to ensure fair competition Continued on page 4
Insurance survey to help members
Steve Pricco (left) of Capitol Bancorp Ltd. and Dave Feldpausch of Capitol National Bank in Lansing are helping get the word out that lenders have money available for business loans. Photo by David Trumpie
by Doug Henzie Nearly two years after the Great Recession officially ended, the perception persists: Businesses can’t expand because lenders aren’t looking to lend. But while underwriting standards for conventional loans remain tight, lenders increasingly are priming the economy using loans backed by the U.S. Small Business Administration (SBA). The loans re-
duce risk by guaranteeing that the government will pay back most of a loan if the borrower defaults. “People have the belief that credit is not available,” said Dave Feldpausch, vice president of Capitol National Bank in Lansing. “But we’ve been pretty aggressively trying to place money in our market for two years now. People have gotten frustrated and they really aren’t searching out all of the opportunities available to them. Right now, we have quite a bit of money available to lend.” Capitol National currently is trying to distribute in excess of $10 million into its market using conventional financing as well as SBA-backed loans, he said. Continued on page 8
How are you handling health insurance? You can help MRA get an up-to-date handle on how members are dealing with health insurance by completing an online survey that will take less than five minutes of your time. We’re interested in knowing which carriers members are using; whether employees are given access to health insurance; and what kind of cost sharing may be place. We also wonder what your longer-term approach to providing health insurance to employees might be. How will we use the information? We’ll use it to help build better solutions to meet your health insurance needs, and to enable MRA to better participate in state-level discussions about health insurance issues from retailers’ perspectives. Information will be shared with MDA Insurance, MRA’s endorsed health insurance agency. The survey will be available from now until July 15. Please visit www. retailers.com and click on the health insurance survey link on our home page. We appreciate your participation!
2
Michigan Retailer
A new Michigan
www.retailers.com
Board of Directors: Barb Stein
Chair Great Northern Trading Co., Rockford
by James P. Hallan, MRA President and Chief Executive Officer A good year! June 30 marks the end of our fiscal year. Formed in 1940, Michigan Retailers has weathered sunny days and a few storms; like all businesses, some years are better than others. I’m happy to report that this past year was a very good one for Michigan Retailers and its affiliated entities. Not coincidentally, it was a good one for our state, too. More about that in a moment. Both Retailers Mutual Insurance Company and MRA’s merchant processing program experienced double-digit growth. Remarkably, we’re on track to process over $900 million in bankcard volume this year. And our goal of hitting $1 billion in volume is likely to be accomplished next year. Much of our success this past year is the result of the vision set by the board of directors, the execution of our business plan by extremely dedicated employees, and the return to growth for our thousands of hardworking member businesses. We also need to tip our hat to the forward-
thinking, business-oriented policies of Governor Rick Snyder, Senate Majority Leader Randy Richardville and House Speaker Jase Bolger. They have led the charge to improve Michigan’s business climate by charting a course of fiscal responsibility, with a leaner state government that imposes less regulation on the business community. One classic example is their collective will to modernize our retail pricing laws. Our monthly Michigan Retail Index numbers reflect Michigan’s resurgence. Businesses are hiring and shoppers are again roaming the aisles. Unemployment, while still too high, is down near 8 percent and no longer far above the national rate. It is indeed good to see Michigan starting to come alive again. But there is always more to done. Collectively, we need to show the importance of passing the Michigan Main Street Fairness Act. Simply put, all retailers need to be treated fairly, and government should not be in the business of picking winners and losers by allowing pure ecommerce to grow
staff to two U.S. representatives in Congress, as a chief policy person in the Minnesota Senate and as a regional d i re c t o r f o r a presidential campaign. She also o rg a n i z e d a n d managed state political activities with the AFL-CIO in Minnesota. Lisa McCalpineShe joined WalWittenmyer greens in 2008 and manages all state government relations in the mid and upper Mid-
Thomas Ungrodt
On a personal note, I had the opportunity to visit some friends in Caseville this past weekend and enjoyed the wonderful beauty of the Bay area. June in Michigan is absolutely spectacular. So while you’re ramping up for the summer season and thinking about fall inventory, make sure to take a few days for yourself. Put up the “gone fishin” sign for a day, or play one of our great golf courses, or head to the Island for a piece of fudge, or simply sit out in the backyard and read a good book. One thing is always true; these glorious Michigan days can’t be bottled up and put on the shelf for later.
Becky Beauchine Kulka
west, which includes Michigan and seven other states. She is based in the company’s Deerfield, Illinois, headquarters, and is a frequent visitor to other Midwest states. McCalpine-Wittenmyer serves as a board member of the Minnesota Retailers Association, Wisconsin Retailers Association and the Iowa Retail Federation. She is vice president of the Minnesota board and secretary of the Wisconsin board. She also serves as a member of the Pharmacy Society of Wisconsin Chain Pharmacy Advisory Board, the Kansas Continued on page 5
MRA government affairs adds coordinator Michigan Retailers Association has added an experienced state legislative aide and political activist as legislative coordinator in the Government Affairs unit. Amy Drumm w o r k s d i re c t l y with Vice PresiAmy Drumm
dent Government Affairs and General Counsel William J. Hallan and handles a wide variety of duties, including monitoring and analysis of legislative issues and actions, and communication with MRA members. Her hiring completes a reorganization designed to provide additional resources to the Association’s advocacy efforts. Drumm served for three years as legislative director for State Rep. Sharon
President and CEO Michigan Retailers Association
by tax avoidance. We will continue to carry that message in the halls of the Capitol and urge you to voice your concern to your elected officials. Also, please keep in mind the importance of Michigan Retailers Association Political Action Committee. Together our voices are stronger and we need to support those who have shown their support for retail. Your contributions are necessary and welcome.
Walgreens executive named to services board Lisa McCalpine-Wittenmyer, a Walgreens state government relations regional manager, has joined the Michigan Retailers Services, Inc. Board of Directors. MRA President and CEO James P. Hallan said McCalpine-Wittenmyer brings a wealth of national and state political experience to the position. She also serves on the boards of three other state retail associations in the Midwest. MRA directors appointed her to the services board at their April 24 meeting. During her career in politics, McCalpine-Wittenmyer served as chief of
James P. Hallan
Tyler (R-Niles). She managed the lawmaker’s legislative agenda, researched and analyzed issues and legislation, hired and managed staff and interns, planned events, wrote news releases and handled constituent relations. Previously, she was a legislative campaign assistant and member of the field staff for the state Republican Party in Lansing. A graduate of the University of Continued on page 4
Vice Chair Ideation, Ann Arbor
Peter R. Sobelton Treasurer Birmingham
Jean Sarasin
Secretary Michigan Retailers Association
Joe Swanson Past Chair Target Corp.
Becky Beauchine Kulka Diamonds and Fine Jewelry, Okemos
Dan Marshall
Marshall Music Company, Lansing
Orin Mazzoni, Jr.
Orin Jewelers, Garden City
Joseph McCurry
Credit Card Group
Larry Mullins
Brandon Tire & Battery, Ortonville
R.D. (Dan) Musser III
Grand Hotel, Mackinac Island
John Smythe Lansing
James Walsh
Meijer, Inc., Grand Rapids
D. Larry Sherman
Board Member Emeritus
Michigan Retailers Services, Inc. Board of Directors: Bo Brines Little Forks Outfitters, Midland
Brian Ducharme AT&T
Lisa McCalpine-Wittenmyer Walgreens
James P. Hallan Thomas B. Scott Publisher
Editor
Pat Kerwin
Design Manager
Publication Office: 603 South Washington Avenue Lansing, MI 48933 517.372.5656 or 800.366.3699 Fax: 517.372.1303 www.retailers.com www.retailersmutual.com
Subscriptions:
Michigan Retailer (USPS 345-780, ISSN 0889-0439) is published in February, April, June, August, October and December for $20 per year by Michigan Retailers Association, 603 South Washington Ave., Lansing, MI 48933. Subscription fees are automatically included in the Michigan Retailers Asociation membership dues. Periodical postage paid at Lansing, Michigan. POSTMASTER: Send address changes to 603 South Washington Ave., Lansing, MI 48933. The Michigan Retailer may be recycled with other white office paper.
June 2012
3
MICHIGAN RETAIL INDEX
Sales growth slows, but outlook remains solid change. The results create a seasonally adjusted performance index of 52.6, down from 57.8 in March. A year ago April it was 53.1. The Index gauges the performance of the state’s overall retail industry, based on monthly surveys conducted by MRA and the Federal Reserve. Index values above 50 generally indicate positive activity; the higher the number, the stronger the activity.
Current
Looking forward, 61 percent of retailers expect sales during May–July to increase over the same period last year, while 10 percent project a decrease and 29 percent no change. That puts the seasonally adjusted outlook index at 69.2, up from 69.0 in March. A year ago April it was 60.9. National retail sales slowed in April, rising only 0.1 percent, according to the U.S. Commerce Department.
3-Month
11 -12
Performance Index
10-11
80
70
70
60
60
50
50
40
40
30
30
Michigan sales tax receipts totaled $590.5 million in April, 18.9 percent above April 2011. Complete results of this month’s Michigan Retail Index—including data on sales, inventory, prices, promotions and hiring—are available at www. retailers.com/mra/news/michiganretail-index.html. The website includes figures dating back to July 1994.
11-12
Outlook Index
80
10-11
2011
2012
700 600
400
591
569 537
500
497
511 447
300
APR
MAR
FEB
JAN
DEC
NOV
OCT
SEP
AUG
JUL
JUN
MAY
APR
MAR
FEB
JAN
DEC
NOV
OCT
SEP AUG
JUL
JUN
MAY
Sales slowed across Michigan’s retail industry in April, but retailers’ forecasts for summer remain solid, according to the latest Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago. The 100-point Index, which measures the overall performance of the state’s retail industry, dipped five points in April to 52.6, the lowest since last June. Retailers’ outlook for the first half of summer grew slightly, to 69.2. “It appears the warm-weather boost in sales that retailers enjoyed in the 1st Quarter took away from April’s sales,” said MRA’s Thomas B. Scott, senior vice president communications and marketing. “Retail sales remained positive in April, but did not grow as fast as they did the first three months of this year or most of the second half of last year.” “It’s also noteworthy that retailers’ level of optimism remains solid going into the first half of summer. They expected the slowdown to be short lived.” The Michigan Retail Index for April found that 45 percent of retailers increased sales over the same month last year, while 33 percent recorded declines and 22 percent saw no
Seasonally adjusted diffusion index, calculated by adding the percent of respondents indicating increased sales and half the percent indicating no change, and then seasonally adjusting the result using the U.S. Census Bureau’s X-11 Seasonal Adjustment procedure. Index values above 50 generally indicate an increase in activity, while values below 50 indicate a decrease.
200 (millions)
Feb
Mar
Apr
Be sure to complete your online survey each month!
46
Michigan Retailer
States act on Main St. Fairness Continued from page 1
between Michigan companies and out-of-state, ‘vapor’ merchants is still needed to protect the heart and soul of our communities, the local retailer.” Michigan is falling farther behind other states in the battle to level the playing field, according to a new update to a landmark report issued last summer by Lansingbased public policy research firm Public Sector Consultants, Inc. and
out-of-state, online-only retailers to collect sales tax or otherwise address the Internet sales tax loophole, up from only five last year. (The addition of New Jersey brings the number to 25.) • Seven additional states – including Michigan – have introduced, but not yet passed similar laws. • Amazon has now agreed to begin collecting and remitting sales taxes in California, reversing its previous announcement that it would cancel all affiliate relationships and shutter businesses in the state. • Amazon has agreed to collect and remit the sales tax in many states that have passed new laws and where they have a physical presence, a dramatic shift in the company’s previous refusal to follow state laws. The update also documents three important trends that show the problems of unfair competition are growing worse. It found: • The volume of retail sales through electronic means is growing faster than retail sales generally. • The pace of this growth is accelerating. • Electronic commerce is seizing an ever-larger share of total retail sales. “The implications of these trends for the Michigan retail sector are significant,” the update states. “The July 2011 report estimated that total sales at brick-and-mortar retail outlets in Michigan would increase by between $39 million and $126 million per year, and between 893 and 1,615 jobs would be created in the retail sector if full collection of the sales tax occurred in Michigan. “Although new estimates of job or sales lost by Michigan-based retailers have not been made for this addendum, the acceleration of the trend by consumers to shift a larger portion of total retail sales to electronic vendors likely increases these estimates.”
“Michigan’s uneven playing field continues to have negative impacts on economic activity across the state.” commissioned by Michigan Retailers Association. The update, released May 14 and titled “Individual States Moving Rapidly toward Internet Sales Tax Collection,” found that more than a dozen additional states have enacted laws protecting local job makers in the last year and that a number of states will soon begin tax collection on Internet sales. “The major implication of this sales tax issue remains an uneven playing field for Michigan-based retailers and out-of-state, online mega-retailers competing for the same purchase,” said Ken Sikkema, a senior policy fellow at Public Sector Consultants and a former majority leader in the state Senate. “While other states are successfully taking action to protect their job makers in growing numbers, Michigan’s uneven playing field continues to have negative impacts on economic activity across the state. “Other states are addressing this problem – why not Michigan?” According to the new research, several significant events have occurred since last July, including: • Twenty-four states have now either enacted laws to require
MRA government affairs adds coordinator Continued from page 2
Michigan, she served student internships with the Romney for President campaign in 2007-08, state House, DeVos for Governor campaign in 2006 and the Lansing public relations firm The Sterling Corporation. “Amy has packed a lot of political and legislative experience into her young career. She has the experience, skills and knowledge we need as we take our government affairs program to an even higher level,” said President and CEO James P. Hallan.
President Hallan announced the reorganization after coming off landmark legislative victories reforming Michigan’s item pricing law and eliminating the Michigan Business Tax, and in the middle of a tough campaign to achieve passage of Main Street Fairness legislation. The plan included adding government affairs to William Hallan’s duties and retaining a lobbying firm in which former MRA vice president Eric Rule now serves as a partner.
www.retailers.com
Support Main St. Fairness
This column appeared originally in the The Rockford Squire newspaper. Reprinted with permission. by Jerry Coon Our Michigan state senator, Mark Jansen, came to town last week to meet with concerned Rockford residents and business owners over a topic of concern. That topic was fairness in our sales tax system. I know that seldom are the words “fairness” and “tax” used in the same sentence, but it is appropriate in this situation. Allow me to explain. Michigan assesses sales tax of 6 percent on purchases of most types of goods. The tax is collected by the retailer and the money is submitted to the Michigan Department of Treasury in Lansing. A total of approximately $8 billion is collected. About $5.4 billion goes the school aid fund and the rest goes into the general treasury. The City of Rockford gets a small part of those remaining dollars, and we are thankful for what we do get. Where the fairness issue comes into play is that only retailers with a physical presence in Michigan are required to charge sales tax and pay it to Lansing. Retailers without a physical presence, like web-based companies such as Amazon and Dell, are not required to charge sales tax and most of them don’t. This is patently unfair to the retailers in Michigan, such as brick-and-mortar businesses like Great Northern Trading Co. and Kimberly’s Boutique in downtown Rockford, Rockford Ace Hardware or even larger companies like Meijer, that are trying to compete with the web-based companies of the world. The Michigan businesses previously noted spend substantial amounts of money on their physical location. They pay property taxes, utilities and upkeep on that physical location. By employing people in Michigan, they keep the economy going. Currently, over 406,000 Michigan residents are employed in the retail industry. That means one in 10 of all workers is employed in retail trade. Where it all becomes unfair to the Michigan retailers is that the web-based retailers may not only undercut the Great Northern Trading Co. businesses of Michigan based on not having a physical retail location, but also because they don’t have to charge the 6 percent sales tax. Not having to charge the 6 percent sales tax is what is unfair. When the sales tax was instituted, the physical presence test was a valid way of determining when sales tax should be collected. If you wanted to do business in Michigan, you had to physically come to Michigan. The web has changed that ball game today and the physical presence test
is no longer appropriate. A company can be physically located anywhere in the U.S. or the world and do business in Michigan. Those companies “doing business in Michigan” should be charging Michigan sales tax, and public opinion agrees with that assessment. It’s that definition of “doing business in Michigan” that is the issue. To that end, legislation has been introduced in Lansing called the Michigan Main Street Fairness Act that will basically define “doing business in Michigan” to include many web-based retailers, including giants like Amazon. The web-based retailers will be subject to the same sales tax rules as the brick-and-mortar businesses. They will owe sales tax to Michigan on the sales made to Michigan residents. Currently, 16 other states have enacted similar legislation [a total of 25 have either either enacted legislation or negotiated a collection agreement with Amazon]. They have realized there is a problem that needs to be solved. There are arguments, of course, against the Main Street Fairness Act, and one is that the legislation could be considered a tax increase. Actually, that is not true. Currently, Michigan residents who buy items online from retailers without a physical presence but still doing business in Michigan, even though they are not charged the 6 percent, are supposed to submit the 6 percent along with their income tax return. Line 22 of the Michigan MI-1040 is used for this purpose. I do know a few people who comply with this rule, but it is a very small minority. My point is that since the law is on the books already, it can’t be called a tax increase. The Main Street Fairness Act needs our support. The businesses of Michigan that are doing business should not be subjected to unfair competition of this sort. We know these people. They are our neighbors, friends and associates. They support our city by paying local and state taxes. They employ large numbers of people to keep the economy going. They are a philanthropic group of people. A couple of projects that come to mind are the Meijer-supported White Pine Trail and the downtown Rotary Pavilion. Can you think of one project around here like these two with Amazon or Dell associated with it? Lansing needs to step up and define “doing business in Michigan” to include web-based businesses. Now that would be fair to all parties. Jerr y Coon is an IRS-licensed Enrolled Agent and owns Action Tax Service on Northland Drive in Rockford, www.actiontaxservice.com.
June 2012
5
RETAIL TECHNOLOGY NEWS
‘Wonderful experiences’– Card thieves might test you Petoskey booksellers’ edge John Mayleben CPP, is MRA senior vice president technology and new product development and a national expert on electronic payment processing. He is the first person in Michigan and among the first in the nation to receive the Certified Payments Professional designation from the national Electronic Transactions Association. If you are a merchant accepting credit card payments over the web, you should be sensitive to how criminals can use your website to “test” stolen cards. One of the biggest challenges for bad guys who have a lot of stolen card data is finding out whether the cards are still “good” and have not been reported as stolen by their owners. What they need is access, anonymously, to someone’s merchant account, where they can run card after card for a small “token” amount. If a card comes back with an approval code, then they know they can use that card number to make purchases, which they will fence or convert to cash. If the transaction comes back “decline” or “hold card,” then they know that the theft has been discovered and to discard that card number. The end result of these types of transactions is that you, as a merchant, might come in one morning and discover that “you” have run hundreds or thousands of 10¢ transactions for which the cardholder did not authorize the transaction. Usually, numerous phone calls, emails, and letters follow this discovery from cardholders about the inappropriate use of their card data. In some cases, you will also start to see chargebacks from those same cardholders. While you, as a merchant, would not stand at your register and run transaction after transaction for 10¢ with one customer, your website, if not properly configured, allows just that. At Michigan Retailers, we have seen
an uptick in the number of merchants noticing large numbers of transactions for small individual amounts from their websites. If you allow a consumer to go to your website and pay a bill or order merchandise, you should make sure that you have implemented procedures and processes to prevent bad guys from using your account as a test account. While the criminals can do this one transaction at a time, most of them are lazy and design a web bot to do it. In its simplest form, a web bot automates a series of keystrokes or mouse clicks. If you find yourself in this situation, or want to prevent it from happening in the first place, you should work with your webmaster to develop processes and procedures to validate that it is a human on the other end of the web transaction. The simplest tool is a CAPTCHA, which is a challenge-response test. CAPTCHA was a term coined by a group of computer engineers at Carnegie Mellon University and stands for “Completely Automated Public Turing test to tell Computers and Humans Apart.” This is the “gibberish” – usually you’re asked to type in the distorted letters you see – on the bottom of forms on the Internet that collect data. This simple act will dramatically reduce the opportunity for a bad guy to use your website as a test account. If you suspect that your account may have been used as a test of stolen card data, make sure that you contact your merchant-processing provider right away. Your processor also can help clear up the transactions and prevent the situation from happening again.
Walgreens executive named to services board Continued from page 2
Pharmacy Coalition, Minnesota Pharmacy Business Council and the Colorado Chain Pharmacy Committee. Prior to joining Walgreeens, McCalpine-Wittenmyer was the health and human services senior writer and policy point person for the Minnesota Senate DFL Caucus. Her responsibilities included drafting legislation, monitoring and alerting members to current and potential hot issues in health care and preparing analyses, media responses and caucus positions on state and national related
issues and legislation. From 1992 to 1999, she worked as a congressional staffer in Washington, D.C. During her time with Congress, she served as chief of staff for former Michigan congressman and minority whip Rep. David Bonior. She held a similar position with Congressman Frank Pallone, the current chairman of the Health Subcommittee on the House Energy and Commerce Committee. She earned a Bachelor of Arts degree in political science from the University of Florida in Gainesville.
by Doug Henzie When Julie Norcross opened her small bookstore in Petoskey’s quaint gaslight district in 1992, mom-andpop booksellers were enjoying the tail end of a golden era – even if they didn’t know it at the time. A “nook” was a cozy corner to curl up in with a paperback – electronic
life journey included stops at Kalamazoo College and the Chicago Board of Trade before he landed back at the family store in 2003, remembers a slower-paced world. “Back when the store first opened, somebody would come in and hunt for a book to order,” Norcross recol-
Owners Matthew and Jessilynn Norcross (back row, second and third from right) with some of the dedicated staff at McLean & Eakin Booksellers.
books and the devices used to read them were in their infancy – and Barnes & Noble and now-defunct Borders were just becoming the big guys on the block. Amazon.com wouldn’t appear on the scene for several more years. “It was a different world, overall and in bookselling particularly,” recalls Matthew Norcross, who worked on and off with his mom at McLean & Eakin Booksellers before taking over in 2009. He and his wife, Jessilynn, own and operate the energetic shop that bears his grandmothers’ maiden names. Across the nation, independent bookstores such as McLean & Eakin have been battling for two decades or longer to stay relevant and in business. While it’s difficult to find a definitive source for how many small booksellers have closed their doors in the face of overwhelming competition from large chains and Internet sellers, there’s no question the count has been large. And the unrelenting pressure today comes not only from ebooks and online megadiscounters, but also from unfair tax policy at the state and federal levels. A lucrative tax loophole gives online sellers from outside Michigan, such as Amazon, a built-in 6 percent price advantage over Michigan businesses by allowing them to skip sales tax collection on the goods they sell to Michigan residents. Different world The 36-year-old Norcross, whose
lects. “We had a microfiche reader that would sit on top of the counter.” Norcross used the reader to search through an “always outdated” publishers’ catalog of available books. The laborious process took awhile, so Norcross would advise his customer to check back later. “People were more understanding,” he said. “Nowadays, if I can’t give an answer within 2½ minutes searching online, the customer says, ‘Don’t worry about it’ and leaves.” It’s only a small example of the adjustments booksellers have had to make to survive in the electronic world. “So much has changed, from book pricing to online retail,” Norcross said. “We have to explain why we don’t give 40 percent discounts.” That’s the influence of online retailers at work, he said. They’ll sometimes deal at a loss with the idea of hooking a customer they can sell tennis shoes the following week. Cater to customers McLean & Eakin can’t compete in the discounting arena (especially since it must collect the 6 percent sales tax), so it does what it has always done – first and foremost cater to customers. “My mom built the store around great customer service, not around discounts,” Norcross said. “The goal of our store is not to have 30,000 Continued on page 7
6
Michigan Retailer
www.retailers.com
Annual legislative reception draws a crowd MRA hosted its annual legislative reception on April 24 to help foster positive relationships between the retail industry and Michigan lawmakers. Dozens of state senators, representatives and legislative aides attended the late afternoon event, which was held next door to the Capitol in the offices of the Dykema law firm. Many Michigan Retailers board members participated, as did government affairs representatives of several MRA members. As always, there was much to talk about, including appreciation for reforming Michigan’s item pricing law last year, eliminating the Michigan Business Tax, and the urgent need to enact Michigan Main Street Fairness legislation to level the playing field between Michigan businesses and out-of-state, online retailers that don’t collect state sales tax. Photos by David Trumpie.
(From left) MRA President and CEO James P. Hallan and Rep. Joel Johnson (R-Clare)
(From left) MRA Directors Joe McCurry and Tom Ungrodt and Sen. John Gleason (D-Flushing)
(From left) Rep. Phil Potvin (R-Cadillac) and MRA Vice President and General Counsel William J. Hallan
(From left) Sen. Steven Bieda (D-Warren), MRA Executive Vice President Jean Sarasin, Rep. Maure e n S t a p l e t o n (D-Detroit) and MRA Vice President Tom Tuggle
(From left) MRA Director Dan Musser, Retailers Mutual Director Larry Meyer and Rep. Peter Pettalia (R-Presque Isle)
(From left) Reps. Wayne Schmidt (R-Traverse City) and Mark Ouimet (R-Ann Arbor), Timothy Elhert of Target and Leanne Musket of JCPenney
June 2012
7
IT’S THE LAW
Check your knowledge of gift card do’s, don’ts by William J. Hallan, MRA Vice President Government Affairs and General Counsel Gift cards are a great way to bring new business into your store, and they help your existing customers choose the perfect gift for that hard-to-buy-for person. I have purchased my fair share of gift cards over the years, usually when I’m stumped for ideas. During our spring-cleaning last week, my wife discovered a gift card she received in 2010. She had not used the card and wondered whether the store would still honor it. Storeowners may be surprised to know that until 2008 they were required to return unused gift card balances to the state – filed as unclaimed property after five years of inactivity. Michigan’s Uniform Unclaimed Property Act required business owners to report and remit abandoned tangible (jewelry, electronics, cars, etc.) and intangible (checks, interest dividends, credit balances, unpaid wages, bank accounts, etc.) personal property to the Department of Treasury each year. Before 2008, retail-issued gift cards that had not been redeemed or had no transaction history in a five-year period were considered abandoned by the owner. Before remitting the property to the state, the issuing business had to send a written notice to the last known address of the gift card owner if the card had a value
greater than $50. Retailers saw important changes in the management of gift cards and gift certificates in 2008 when Michigan Retailers Association worked with legislators to change the law and make sure storeowners’ interests were protected. Gift cards and gift certificates can no longer have an expiration date that occurs less than five years after the card was issued. In addition, the terms and conditions cannot be modified after a card or certificate is issued. With the exception of a separate activation fee, there can be no inactivity fees or service fees charged on a card. Retailers must also honor a card and apply it to a purchase if the card is presented less than five years after the initial purchase. Violations of the new rules are considered a violation of the Michigan Consumer Protection Act and are handled by the state attorney general’s office. While many retailers choose to have no expiration date in order to attract return business to their stores, the law provides that after five years of inactivity, a retailer can presume that the card or certificate has been abandoned and can retain the remaining balance on the card. That’s good news for retailers and customers alike. In short, thanks to the 2008 legislation, it is much easier for a retailer to understand his or her gift card responsibilities. As for my wife, she was pleased to know that the store would still honor the gift card and she could add to her shoe collection!
Membership Services Corner
Quick notes on key services. Call 800.366.3699 for details. Credit Card Processing • Please notify customer service of any changes such as Tax Identification Number (TIN), bank account, address or phone number. • Compliance with PCI Data Security Standards – and documentation of your compliance – is mandated by the card associations. Please visit http://www.compliance101.com to document your compliance. • Pin-Based debit transactions cannot be voided. Please call customer service to discuss the correct procedure. • These terminals are no longer PCI Compliant: Zon Jr, Tranz, Omni and Hypercom T7P. Con-
tact customer service to discuss upgrade options. • Your terminal can support your s t o re p o l i c y t o re d u c e c u s tomer disputes. Call to i n q u i re a b o u t F o o t e r L i n e s . • Credit card fraud is on the rise. Call to verify any suspicious email, phone or Internet orders you receive, including shipping out of the country, wiring money or paying a third party. Never wire money. Email Do we have your current email address? We only send helpful news and information via email. We never sell or share our list with others.
Petoskey bookseller has edge Continued from page 5
square feet. It’s not to operate with razor-thin margins. It’s to create a wonderful experience.” The store, which has grown from a one-level, 2,000-square-foot shop with a crew of four to a 5,000-square-foot, two-level store with 18 full- and parttime employees, tries to do the things online retailers can’t.
upcoming promotion or simply something interesting that happened in the store recently. “They adore it,” Matthew said. “Some of our biggest online traffic days are Mondays, and that prompts a lot of foot traffic throughout the week. She’s made a connection.” Last fall, the store partnered with
McLean & Eakin provides a welcoming downtown storefront
One of those things is to draw bestselling authors such as Ann Patchett, author of Run and The Patron Saint of Liars, for book signings. It’s not always easy in out-of-the-way Petoskey, but it’s something that’s been going on since the store’s beginnings. Norcross estimates the store had 200 or so events last year. Strong on Michigan history and local authors, the store is also home to a book club. For the past 15 years, 30 to 60 regular customers have stopped in on the first and third Wednesdays of the month to discuss their favorite reads with fellow book aficionados. And while the store can’t offer huge discounts, it does offer a customer loyalty program that provides a $10 coupon for each $100 in books purchased. Customers also can choose to donate 10 percent of their purchase to a school of their choice, a promotion that has steered $113,000 to local schools in the past 13 years. “We’ve tried to make our customers aware of our community involvement,” Norcross said. Making connections McLean & Eakin also is using to its advantage the technology that has challenged its market share. Jessilynn, who met her husband while working at the store, sends out a weekly email to customers every Monday. More than 4,000 people have signed up for the email, which may mention an
author/activist Michael Moore to be a supplier of his new memoir. Moore tweeted to his fans where the book was available and McLean & Eakin ended up shipping books as far away as Sweden and Ireland. Norcross also has upgraded the store website from a bulletin board that gave store hours and information about visiting authors to one that handles ecommerce. Customers can reserve books online for pickup at the store, read store staff book reviews, learn how many books of a certain type are on the shelf or buy ebooks. “We’ve done very well with ebooks,” said Norcross, now a board member of the American Booksellers Association, which represents independent sellers. “A lot of these sales take place in the middle of the night while I sleep. It’s nice.” Overall online sales accounted for 0.2 percent of the store’s sales two years ago, a figure that has grown to 3 percent. Main Street Fairness Still, a major challenge for all local, bricks-and-mortar retailers is the tax loophole that enables out-of-state Internet merchants to ignore sales tax collection because they don’t have a “physical presence” in the state. Since last fall, Michigan Retailers Association has been mounting a full court press in Lansing to get lawmakers to level the playing field for Michigan businesses by closing the loophole Continued on page 10
8
Michigan Retailer
Is SBA Financing Right For You?
www.retailers.com
Banks providing biz loans Continued from page 1
We can help you apply and qualify for an SBA* loan. • Financing is available for starting or expanding a business as well as purchasing the building in which you operate • Lower down payments and flexible repayment terms available • Longer term loans than conventional financing We are an established SBA Lender with a dedicated SBA Department, which means better and faster service for you and your business. Contact Dave Feldpausch at 517.374.5300 or david.feldpausch@capitolnational.com for more information. Lansing Office 200 Washington Square North Lansing, MI 48933 517.484.5080
Meridian Office 4792 Marsh Road Okemos, MI 48864 517.347.1006
www.capitolnational.com
*Loans subject to credit approval.
Member FDIC and Our Community.
Summary Annual Report for the Michigan Retailers Association Multiple Employer Welfare Arrangement Dental Plan and Trust This is a summary of the annual report of the Michigan Retailers Association Multiple Employer Welfare Arrangement Dental Plan and Trust for the 12 months ended December 31, 2011. The annual report has been filed with the Internal Revenue Service, as required under the Employee Retirement Income Security Act of 1974 (ERISA), Tax ID #38-3090275. Michigan Retailers Association MEWA has committed itself to pay all dental claims incurred under the terms of the plan. Insurance Information The plan has contracted with Delta Dental Plan of Michigan to pay claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2011, were $676,324. Because it is a so-called “experience-rated” contract, the premium costs are affected by, among other things, the number and size of claims. Basic Financial Statement The value of plan assets, after subtracting liabilities of the plan, was $769,341 as of December 31, 2011, compared to $743,286 as of the beginning of the plan year. During the plan year the plan experienced an increase in its net assets of $26,055. This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $684,183, including employer and employee contributions of $676,324 and earnings from investments of $7,859. Plan expenses were $658,128. These expenses included $48,677 in administrative expenses, $531,510 in benefits paid to participants and beneficiaries, and $77,941 in other expenses. Your Rights to Additional Information You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report: 1. An accountant’s report; 2. Assets held for investment; 3. Fiduciary information, including transactions between the plan and parties-in-interest (that is, persons who have certain relationships with the plan); 4. Loans or other obligations in default; 5. Leases in default; 6. Transactions in excess of 3 percent of plan assets. To obtain a copy of the full annual report, or any part thereof, write or call the office of Michigan Retailers Services, Inc., 603 South Washington Avenue, Lansing, Michigan 48933 (517.372.5656). The charge to cover copying costs will be $5.00 for the full annual report, or $.40 per page for any part thereof. You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. You also have the legally protected right to examine the annual report at the main office of the plan: Michigan Retailers Association, 603 South Washington Avenue, Lansing, Michigan 48933, and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the Department should be addressed to Public Disclosure Room, N4677, Pension and Welfare Benefit Programs, U.S. Department of Labor, 200 Constitution Avenue NW, Washington, DC 20216.
Guaranteed loans While SBA loans aren’t new, the federal government stoked lender interest in them in February 2009 – near the nation’s economic low point – by sweetening the deal for lenders. For the SBA 7(a) program – the administration’s most popular – the feds increased the guaranteed portion of the loan from 75 percent to 90 percent. They also waived an administration fee, typically 3 percent of the loan, which had been charged to banks and passed on to borrowers. “It really made it user-friendly for the banks,” said Steve Pricco, director of government guaranteed loans for Capitol Bancorp Ltd., Capitol National’s holding company. “My volume took off. By April [2009], we were inundated by loans.” The changes to the conditions of SBA loans were part of the American Recovery and Reinvestment Act of 2009, aimed at stopping the economy’s downward spiral. “When the banks stopped making loans, the idea was to give the incentive to do loans,” said Allen Cook, assistant district director for lender relations for SBA’s Michigan office. “Our loans did significantly increase during that period of time. Generally, loans went up 70 percent. We had more lenders making loans with us than any other time in the past 20 years.” SBA now has 134 Michigan lenders in its network. The SBA loan structure has since been rolled back to the pre-2009 version. SBA put the administration fee back in place and it guarantees 75 percent of 7(a) loans, up to $5 million. Still, SBA dollars are flowing. The SBA Michigan office made $798 million in loans last year in Michigan – a record, Cook said. That made Michigan the number one lending district in the country, he said, pointing out that large states, such as California, have multiple districts. Michigan did more loans than some states with larger populations, including Pennsylvania, Illinois and Florida, he said. At the beginning of April, the SBA had backed 469 loans in Michigan this year, versus 453 loans the previous year, Cook said. The timing of Easter this year lessened April 2012’s totals, he said. More deals One lender that has made extensive use of SBA-backed loans is Huntington Bank. The SBA Michigan “lender of the year” in 2011, Huntington did 2,785 SBA loans, totaling $422 million, for the fiscal year ending Sept. 30. “We utilize the SBA when necessary to get more deals done,” said Ryan Kroge, vice president and senior SBA
product specialist for Huntington Bank’s Eastern Michigan District. “It allows us to say, ‘Yes’ more often.” Kroge said the typical SBA customer may be short on collateral, in an industry that other banks have decided is undesirable, or a business that has had a financial hiccup in its operations in the recent past but has righted the ship. “This mitigates and reduces some of the inherent risks,” he said. “2009 and 2010 were not very good for some of the businesses in our area. We’ll still do the deal, despite some [problems] in the past.” Traverse City State Bank, SBA’s 2011 “community lender of year,” didn’t do SBA-backed loans until 2009. That’s when the bank brought in Mitchell Blue, now vice president of commercial loans/SBA product manager, from another bank to tap that market. From October 1, 2011, to March 31, 2012, the bank did 21 7(a) loans totaling $2.5 million. “In two years, we went from zero to community bank lender of the year,” Blue said. “It certainly helps the dollars go farther. It’s helped us to keep dollars deployed into the market.” Good deal Borrowers seeking SBA 7(a) loans must meet several requirements. Loans must be: • Used by a for-profit business; • For the benefit of the borrower; and • Used by a borrower that occupies 51 percent of a building for which they’re borrowing. SBA also offers its 504 loans, which typically involve acquisitions of real estate or large equipment. The program was expanded in 2009 to allow for the refinancing of property, but that provision is set to expire September 27. As with any loan, SBA loans aren’t for everybody. Lack of collateral and bruised credit may be less of an obstacle than with conventional loans, but borrowers still must be running a viable business. “You still have to have the cash flow,” Capitol National’s Pricco said. The SBA, which aims to process loan requests in five days or less, will work with prospective borrowers, analyzing their financials in advance to help them apply for a loan, Cook said. “If the business can clearly show they can repay a loan, it’s a good deal,” he said. “[With bad credit], often enough, things can be done. We can’t solve every problem, but we go as far as we can.” Doug Henzie is a freelance writer and former business reporter for the Oakland Press in Pontiac.
June 2012
9
Memories and lessons from ‘my’ Jacobson’s by Steve Flaster It is hard to believe that 10 years have passed since Jacobson’s closed. It’s even harder to believe how much people still lament the loss of this Michigan-based specialty department store chain. They affectionately speak of Jacobson’s and about how much they miss the store, which is why the recently released book on the subject is appropriately called Jacobson’s I Miss It So. The fact that no other store has taken its place is testimony to the greatness that was Jacobson’s. Jacobson’s touched lives and exemplified great retailing. We shopped there, we took our children there, we had wonderful experiences there, we celebrated special occasions by making purchases there and we even ate in their restaurants and tried to duplicate their recipes. As retailers we need to realize that Jacobson’s was an example of what great retailing can and should be. For more than four decades, Jacobson’s enjoyed the leadership of a merchant prince named Nathan Rosenfeld, the likes of whom do not come along very often. The stores he led were staffed by talented people who thought their customers were great and, therefore, deserved the best service. Rosenfeld built strong relationships with each store’s community and the company’s vendors. For many years the stores lived by the highest standards that Rosenfeld created, and for those many years Jacobson’s was highly successful – in many ways. Jacobson’s acted like one big proud family, and all the members of that family had reason to feel that way. There was a Jacobson’s way of doing things, and it usually meant doing it in a great way! What Jacobson’s meant to its own Prior to working at Jacobson’s I was the president of another store. Jacobson’s gave me a new life and great opportunity when I needed it. I returned the favor by becoming one of the top women’s apparel salespersons in the entire company and by bringing my particular department from number nine to number two in our family of specialty stores. My years at Jacobson’s were some of the happiest in my life, and like so many of my colleagues and fellow staff, I will always be proud of having worked there. Jacobson’s gave opportunity and recognition to all of its
people, and how smart the company was in doing so! When staff retired after many years of service, they often retained their employee discounts for life. As a result, they continued to extol the virtues of the store, shop there, and bring relatives and friends to shop there (and who did not get a discount). Because so many employees thought of themselves as staff for life, they even formed clubs and alumni associations after they formally retired. What happened? After 134 years of business, a store should not go bankrupt and close. But it did. We will never know the whole story, but we do get some answers from the new book, and I have some ideas of my own. Jacobson’s was a unique store. It had its own way of doing things. Sometimes, you didn’t know why they did things the way they did, but it was all part of their unique style. Over time, those who succeeded Nathan Rosenfeld changed things and inadvertently chipped away at its unique culture. Unfortunately, the
more they made the store like others, the more it became less like the Jacobson’s people loved. For example, Mr. Rosenfeld believed in building stores in downtown business communities, and that there was no shopping center that could live up to Jacobson’s standards. Consequently, ever ybody worked hard at making Jacobson’s worthy of a special trip, even if it was out of the customer’s way. When Jacobson’s star ted opening stores in malls, many customers said that Jacobson’s just wasn’t as special or as great as it used to be. That’s the way it seemed to them – and that is what mattered. I think we must also recognize the simple truth that the greatness of one leader often is not visited upon his successors. Furthermore, it’s my personal belief that Jacobson’s invested too heavily in Florida and went too far in chasing after its so-called snowbirds. At the end, the number of stores it had opened in Florida was almost half the total number in the company.
Good is not good enough Looking at Jacobson’s in its prime provides three key lessons for the rest of us. First, Jacobson’s succeeded because it thought great thoughts, did great things for its staff and customers, and created standards of greatness that its customers valued and for which they gladly paid the price. Second, it had a unique corporate culture that made it special and set it apart from other stores. We need to ask ourselves how many of today’s retailers are building, communicating and maintaining a unique culture valued by our customers. Too few, I fear, which is why most of us will not be missed 10 years after we are gone. Third, and perhaps most important of all, Jacobson’s built an emotional connection with its staff and customers that continues to this day. Current political analysts are talking about the need for specific candidates to build an emotional connection with voters. Jacobson’s understood that need and satisfied it with great – not merely good – style and grace. I think and speak of Jacobson’s as “my” store, but I am certainly not alone. And, yes, I do miss it so. Steve Flaster is a retailer, instructor of retailing and marketing at Michigan State University, speaker and consultant. You can reach him at srflaster@gmail.com.
10
Michigan Retailer
Petoskey bookseller has edge Continued from page 7
for a number of major players like Amazon. State Representatives Eileen Kowall (R-White Lake) and Jim Ananich (D-Flint) have introduced the bipartisan Michigan Main Street Fairness Act to achieve that goal. Norcross has been active with the MRA/Main Street Fairness coalition, serving on the steering committee of the small business council established to help communicate strong community support for the legislation. Matthew Norcross “I find it sad that it seems to be a national pastime to find how many loopholes you can use and how to cheat on your taxes,” Norcross said. “We need to enact legislation in this state, and it will also help to enact [comprehensive] legislation on a national level.” While Internet booksellers benefit from state resources – roads to ship their products, for example – whether or not they have a physical presence in Michigan, they are not contribut-
ing, he said. “Time is running out for these guys and they know it,” he said. “It would be a really encouraging thing to have this issue decided before the holiday season, because that’s when a whole lot of online purchasing goes on.” Fans Regardless, McLean & Eakin continues to do what it has always done: offer the customer a wonderful experience. The comments posted on the store’s website provide testimonials to how well the Norcrosses are doing: – “One of the country’s finest independent bookstores.…Lots of terrific author events.…Why can’t all bookstores be like this?” – “I sadly don’t get up to this part of the state very much, but if I was in the area, I would certainly go back to McLean & Eakin again and again.” – “A great, great bookstore. I save my book shopping for my northern Michigan vacations and stock up for the rest of the year. It’s a wonderful place to spend time…” Doug Henzie is a freelance writer and former business reporter for the Oakland Press in Pontiac.
www.retailers.com
LOTTERY
Lottery to give away boat, cash and $500 per hour by M. Scott Bowen, Commissioner Summer is really heating up at the Michigan S t a t e L o t t e r y. Player’s Club is conducting two huge promotions that players will want to hear about. We’re giving away a boat and cash. Get ready, get set and remind players to enter the Michigan Lottery’s hottest summer promotion – the Summer’s Ahoy! Giveaway. The Michigan Lottery is giving players the chance to win a 25-ft pontoon boat. The drawing takes place on September 5. Beginning July 2, there are three ways players can become captain of the ship in the Summers Ahoy! Giveaway: 1. Player’s Club members can earn automatic entries for every $10 in non-winning Michigan Lottery tickets that are submitted online, which mirrors the way a player enters the Play It Again™. Players can enter by simply joining the Player’s Club for free at www.michiganlottery.com. 2. Established Player’s Club members can redeem 25 of their current Reward Points for an entry. They may enter as many times as their accumulated Reward Points will allow. They can do this by visiting the Player’s Club Rewards & Prizes catalog while logged into their Player’s Club account at www.michiganlottery.com. 3. “Like” us on Facebook (http:// www.facebook.com/MichiganLottery). Go to the Michigan Lottery Facebook page, click on the “Like” button and fill out a short registration form. After the initial registration, players can easily enter their email address to gain entry once per day. All entries must be received by August 31, 2012. Blazing 500s If winning a boat isn’t enough, the Player’s Club turns up the heat with Blazing 500s. We are giving away $500 an hour for 500 hours! That means that between July 13 at 2 p.m. and August 3 at 9 a.m., Player’s Club members will win a total of $250,000. Tell your players how to get in on the winning: Just like with Summer’s Ahoy! Giveaway, Player’s Club members can earn automatic entries for every $10 in non-winning Michigan Lottery tickets that are submitted online. (Note: A player may only be selected as a winner one time during the Blazing 500s promotion.)
Players can triple the power of their non-winning tickets being entered into their Player’s Club account between July 13 and August 3. For every $10 in non-winning Michigan Lottery tickets submitted online, players will receive three contest entries: one into the Play It Again for the chance to be a $1,000,000 finalist; an entry into the Summer’s Ahoy! Giveaway contest; and an entry into Blazing 500s for a chance to win $500. Player’s Club members are getting some summer treats for their non-winning tickets. Be sure to share these opportunities with them. Mobile Retail Outlet Remind players to visit the MRO when it is in your neighborhood. Players can take advantage of the chance to win Lottery merchandise prizes at the following upcoming events: • Ann Arbor Art Fair, Ann Arbor – July 18-21 • Labadie Pig Gig, Bay City – August 2-5 • Michigan International Speedway, Brooklyn – August 17-19 • Warren Birthday Bash, Warren – August 23-26 • Arts, Beats & Eats, Royal Oak – August 31-September 3. Instants The instant ticket scheduled to go on sale July 17 is Powerball™ ($2). The release for this ticket is subject to change. IG 442 Lucky Mom™ is expiring on July 1. Tickets set to expire on July 2 include IG 394 Let It Snow™ ($2), IG 403 Red Line Bingo™ ($2), IG 404 Decades Of Dollars™ ($1), IG 407 Casino Gold™ ($5) and IG 412 Tax Free Winnings™ ($20). Remember, if you are still selling any of these tickets, be sure to tell your customers about the expiration date so any prizes they may win on the ticket can be claimed before it becomes invalid. Over 95 cents of every dollar spent on Lottery tickets is returned to the state in the form of contributions to the state School Aid Fund, prizes to players and commissions to retailers. In fiscal year 2011, the contribution to schools was over $727.3 million. Since its inception in 1972, the Lottery has contributed more than $16 billion to education in Michigan. For additional information, please visit the Lottery’s website at www.michiganlotter y.com.
June 2012
11
NEW MEMBERS Verify Valid, Ada Potter Orchards Inc., Allendale Allendale Auto Wash, Allendale Urban Ashes, Ann Arbor Stadium Opticians Inc., Ann Arbor Wendy, Ann Arbor Lucas Coney Island, Auburn Hills Heritage of Battle Creek, Battle Creek Graphix 2 Go Inc., Battle Creek Brenda’s Recipe Box Cafe & Grill, Battle Creek Sprout Urban Farms Inc., Battle Creek Jonah of Battle Creek, Battle Creek Battle Creek Tile & Mosaic Co. Inc., Battle Creek Brooklyn Boyz Inc., Bay City Shiawassee Sports Center Inc., Birch Run Woodward Camera, Birmingham Annabel Sweets, Bloomfield Hills Indoor Growers Edge Inc., Cadillac First Presbyterian Church of Caro MI, Caro Christensen’s Furniture Inc., Charlotte Foam N More Upholstery Inc., Clawson Self Lube Inc., Coopersville City Petroleum Inc., Dearborn Pucks, Dearborn Heights NG Auto Sales LLC, Detroit Vicki’s Family Diner, Douglas Vandenbossche Farms LLC, East China Strathmore Development, East Lansing Walnut Hills, East Lansing Crossroads Outdoor, Eaton Rapids Escanaba DDA, Escanaba Steven R Ouwinga DDS MD PC, Escanaba Bead Bohemia, Farmington Ferndale Supermarket Inc., Ferndale Dino’s Lounge, Ferndale MSSD Inc., Ferndale Huda School & Montessori, Franklin North Central Co-Op, Fremont City of Fremont, Fremont Riverwalk Place LLC, Gladwin Shape It Up Health Club LLC, Grand Ledge Second Congregational Church UCC of GR MI, Grand Rapids Perrigo Printing Inc., Grand Rapids Grace Bible College, Grand Rapids Echol A Bradni Rinehart Salon, Grand Rapids Affordable Mattress, Grand Rapids Grand Rapids Christian Schools, Grand Rapids Lakeview Financial Group LLC, Grand Rapids Sweet Melissa’s LLC, Grand Rapids Merrita H Tumonong MSW, Grand Rapids Bishop Distributing Co., Grand Rapids Migrant Legal Aid, Grand Rapids DreBanks ENT, Grand Rapids Progress Chemical Inc., Grandville B & G Landscape Creations LLC, Grass Lake
Walker Music & Textiles Co., Hastings Hillsdale Jewelers, Hillsdale Doug’s Repair Service, Hillsdale The Shipping Dept., Holland Holland Free Health Clinic, Holland EPI PC, Holland Affordable Treasures 2nd Hand, Holland Michigan Wood Fuels LLC, Holland Global Performance Parts LLC, Holland Reader’s World, Holland Holland Civic Theatre Inc., Holland Zion Dominion Church, Holland Fleet Refinishing, Holland Appenx Inc., Holland Hanneken Full Potential Therapy, Holland Holland Lock & Safe, Holland Kissel Chevrolet Inc., Houghton Goodwin Motors Inc., Houghton Angelo’s Party Store, Houghton Lake Howell Homecare LLC, Howell Hudsonville Christian School, Hudsonville Painted Farmgirl, Hudsonville Hudsonville Physical Therapy Inc., Hudsonville DJ’s Pizza Plus, Hudsonville Angel Fancy, IL Best Bark & Stone LLC, Jenison Nisker’s Char-Grill Inc., Kalamazoo Bella Patina, Kalamazoo Memories Bridal & Evening Wear, Kalamazoo Wild Goose Chase, Kalamazoo Van Sweden Jewelers, Kalamazoo Kazoo Books, Kalamazoo Taste of Heaven, Kalamazoo Lac La Belle Lodge Inc., Lac Le Belle Louie’s Super Value Foods, Lake Linden Dennis Greenhouse, Lake Linden Hasselbring-Clark Company, Lansing Whiskey Barrel Saloon, Lansing Babes Party Store, Lansing St. Stephen Community Church, Lansing Hospice of Lansing, Lansing Fantastic Sams, Lansing Ludington Daily News, Ludington Changeover Integration LLC, Ludington AM Galleries, Ludington Lakeshore Coins & Expressions Jewelry, Ludington Seymour’s Sales & Service, Ludington Gigi’s Childcare Center Inc., Madison Heights Stony Point Golf Course, Manistique Ernie’s Lil Market, Marne Marquette Automotive, Marquette Great Lakes Center for Youth Development, Marquette Bill’s Hairstylists, Marshall Eldorado Golf Course, Mason Dunes Waterfront Hotel, Mears Budget Auto Sales, Merrill Athletic Republic Midland, Midland Lee’s Automotive, Midland Humane Society of Midland County, Midland Midland Christian School, Midland
Sievewright LLC dba Party Savers, Midland New Pathways Counseling Services LLC, Midland Advanced Energy Management Inc., Montague Emergency Services Inc., Muskegon Harbour Towne Marina Association, Muskegon State of Mind Gallery, Northville Gabriel Granite Marble Inc., Oakland Moo Shoe Hoof Block, Owendale McLean & Eakin Booksellers, Petoskey Willson’s Flower & Garden Center, Petoskey North Central Michigan College, Petoskey Grandpa Shorter’s Gifts Inc., Petoskey Diller Photo, Pigeon Main Street Auto Wash, Plymouth First Presbyterian Church of Pontiac, Pontiac Paragon Leather LLC, Portage Sleep Care Supplies & Equipment, Portage Darby’s Services Inc., Redford In Venue Mobile, Riverview Arena Pizza, Rockford C & G Service Center LLC, Royal Oak Spoil’em Rotten, Royal Oak Saginaw Valley Zoological Society, Saginaw Hausbeck Pickle Company Inc., Saginaw
Distinctive Eyewear Inc., Saint Clair Beacon Ministries, Scottville Natures Country Cupboard, South Haven Carriage House At the Harbor, South Haven Crescent Moon, South Haven The Perfect Setting Inc., South Haven Unique Property Ventures, Sparta Neo Manufacturing LLC, Sturgis Ousterhout’s Flowers Inc., Tecumseh UniQ Jewelry, Three Rivers New Heights Fitness Studio LLC, Trenton Big Toy Express, Troy First Presbyterian Church of Warren, Warren Whitetail Party Mart, Wellston West Bloomfield Manor Homeowners Association, West Bloomfield Universal Pump Co., Wixom White Furniture Company, Wyandotte Anchor Point Christian School, Wyoming D & D Building Inc., Wyoming Ann Arbor Bone & Joint Surgery PC, Ypsilanti Van Alstine Family Dentistry, Ypsilanti Main Street Auto Repair LLC, Zeeland Medical Accessories & Research Co., Zeeland Mikalan Roofing Inc., Zeeland
How To Increase Traffic: A Short Story With Pictures 2.
1.
3.
“Keeping up with rapidly changing technologies is difficult. What forms of advertising are now most effective?”
“Your retail operation needs new customers. And you need to keep your old customers coming back.” 5.
4.
“From websites and ecommerce ...”
6.
“... to social media, public relations ...”
8.
7.
“... and media planning and buying.”
10.
“We know what brings customers into stores ... and what techniques will best reach them.”
“... and all of advertising’s traditional venues. Television, radio, print, research ...” 9.
“Let us tell your story to your customers and potential customers.” 11.
“We’ll make them care about your store, enhance your brand and bring them through your doors.” 12.
MONARCH
TM
ADVERTISING
www.monarchadvertising.net
“A quick phone call could lead to a dramatic increase in your business.”
television
websites
“Call our CEO, Ed Borowsky, at 888-952-5696 for a confidential, free consultation.”
print ads
media
social
radio
“Monarch Advertising. The effective, affordable way to build retail traffic and sales.”
pr
research