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“”
It’s all contract business—I can’t compete.
Doctor’s offices don’t buy enough.
It’s too specialized for us.
We don’t have the time rightnow to look at that market.
As I talked with independents around thecountry, both supply and furniture dealers,I regularly heard these or similar responses.At the same time, I talked with otherindependents who are growing thisbusiness nicely.
What’s going on here?
A Market That Can’t Be Ignored
The healthcare market is exploding dueto the increase in life expectancy and theaging of the baby boom population.According to the U.S. Bureau of LaborStatistics, the number of people in the U.S.age 55 or older will increase by 19.8million between now and 2014, andduring this period, one out of every fivenew jobs will be in the healthcare field, fora total of 4.3 million.
If you were going to start in businessfrom scratch today, where would you lookfor the best prospects?
Even the most successful dealers in thismarket will tell you that it’s a difficult selland very price-driven, but perhaps nomore so than selling to the general officemarket. There are different competitors—medical supply houses, specialty furnituremanufacturers, etc., but you are also up
See HEALTHCARE page 8
Are You Getting Your Share?
The medical marketplace bought more than $4 billion in office products last year and isgrowing rapidly. How are you doing?
By Jim Rapp
TheHealthcare Market is
Booming–
Usually, the editor’scolumn in most tradepublications comesfilled with words ofwisdom and advice
for unsuspecting readers, and a stream ofsentences that start out with “You shoulddo this ... ” or “What this industry needs is ...”and it goes downhill from there.
Not this time. The theme of this issue’seditorial comes down to just two simple words:
Thank You!
Response to the first issue ofINDEPENDENT DEALER last monthcould not have been more enthusiasticand really serves to underscore, veryeloquently, just how long overdue apublication like this has been for theindependent dealer community.
Thanks too, to all those dealers whosent in suggestions on topics to cover in future issues and, in a couple of cases,volunteered to write a column or two themselves. We’re already followingup on some of the initial opportunities andwill be getting to the rest just as soon astime permits.
And if you’ve got ideas you’d like toshare with your fellow dealers, come ondown! Yours truly may be doing most ofthe writing and editing and trying to sellthe occasional ad to help pay the rent, butif you’re an independent dealer, this isyour publication first and foremost ... ifyou’ve got something to say and arelooking for a place to say it, you might justhave found it here!
While you’re sending stuff our way,don’t forget about the Classifieds sectionof the www.idealercentral.com web site ...free of charge to dealers if you can use it!
Thanks again for reading and keepthose cards and letters coming!
D.C. Dealer Gives Back ThroughEntrepreneurship Centerin JamaicaIn 1962, Milton Morris strode proudly acrossthe stage during graduation ceremonies atNorthern Caribbean University in Jamaica toreceive his undergraduate degree.
Last November, Morris, now president andCEO of Standard Office Supply inWashington, DC, was welcomed once againto a similar stage, this time as part ofopening ceremonies for the MorrisEntrepreneurship Centre, a gift to theuniversity by Morris and his wife Merrillie,also a graduate from the school.
Morris came to the U.S. from Jamaica in1963, and alongside a distinguished careerin academics—he holds a Ph. D. in politicalscience from the University of Maryland andhas served as assistant professor atSouthern Illinois University, a senior fellow atthe Brookings Institution in Washington, andsenior vice president of the Joint Center for
Political & Economic Studies—he andMerrillie founded Standard in 1984.
Today, the dealership is thriving, with close to50 employees and a product mix thatincludes office furniture, educationalsupplies and equipment, and break roomproducts as well as its core office suppliesbusiness.
And while support of the EntrepreneurshipCentre is clearly a way for Milton andMerrillie Morris to give back to their almamater for their own success, it is also a lotmore than that, says Milton.
“A major part of my academic career wasspent dealing with issues of political andeconomic development in developingcountries, and I’ve seen how entre-preneurship can serve as a key tool—not justfor individual well being but for buildingsocieties as a whole,” he explains. “The newcenter will provide training and assistancefor budding entrepreneurs throughout
Jamaica and educate high school studentson the benefits and opportunities open tothem through the free enterprise system.”
Even though it’s barely three months old, theMorris Entrepreneurship Centre is alreadymaking a difference in the lives of aspiringyoung business owners and operators, withcourses on business planning, financialmanagement and more. And it’s provingonce again that when it comes to givingback and supporting deserving causes,nobody does it better than today’sindependent business entrepreneurs!
Staff Promotions at is.groupA round of applause is in order for CharlesForman, director of dealer businessdevelopment, and Janet Eshenour,marketing manager, at is.group. Bothrecently received promotions, Forman to vicepresident and Eshenour to director ofmarketing.
See WINNERS’ CIRCLE page 4
FEBRUARY 2007 INDEPENDENT DEALER PAGE 2
THE
WINNERS’Circle Good things are happening for independents all across thecountry! Here’s a look at some of the special awards, expansionmoves and more that have come dealers’ way recently.
My Ten Cents:Keep Those Cards and Letters Coming!
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CONTINUED FROM PAGE 2
Ohio Dealer Finds New GrowthOpportunities on eBay
Youngstown, Ohio may not have been one ofthe country’s most dynamic markets inrecent years, but that hasn’t kept Bill Crossand his team at Modern Office Productsfrom posting some solid growth.
Starting this month, Cross and his team willbe pursuing a new revenue stream that hesees offering major potential as thedealership launches its own eBay ListingCenter, making it possible for Modern OfficeProducts customers to use the dealership tosell product on eBay.
“Most of the focus with eBay so far has beenon the general consumer market, but there’shuge potential with commercial businesses,”Cross contends. “We all have customers withsurplus or unneeded products and oursalespeople—who are calling on themanyway—can now offer a way to takemerchandise or equipment that’s no longerneeded and turn it into cash.”
In addition to the eBay initiative, Modernrecently opened a new Business ServicesCenter at its distribution center, offering abroad range of printing capabilities as wellas shipping and packing services. The centeris only two months old and too new to bemaking any kind of significant contributionto sales. Eventually, though, Cross expectsthe combination of printing, mailing andeBay to account for up to 15 percent ofoverall sales.
“Even in a soft economy, the business is outthere—we just have to go out and get it, onecustomer at a time,” says Cross. Spoken likea true independent!
San Franciso Dealer CelebratesNew Store OpeningIf San Francisco’s Patrick & Co. isn’t theoldest independent in the country, therecan’t be too many more with a longerheritage. Founded in 1873, the dealership isstill going strong and recently celebrated the
grand opening of its seventh store.
Located in downtown Oakland, the store is acompact 2,600 sq. ft. and, says Jamie Patrick,the latest member of the Patrick familyinvolved in running the business, is intendedto showcase the more creative side of theindustry.
“Our product mix focuses on the standardcommodity items, but we’re looking topresent products with a little more flair andbreadth of offering,” he explains. The storealso is an outlet for the local transit system’smonthly passes and that, says Patrick, helpsbring in a steady stream of foot traffic.
Remodeling Jump Starts RetailSales for Louisiana Dealer In Alexandria, Louisiana, Kenny Sayes andhis team at Sayes Office Supply are alsoseeing good things in retail, following a storeremodeling at the end of last year.
Working with store planning consultant DonLarson, Sayes brought in new shelving and abrand new merchandising programdesigned to generate a lot more impulsebuying.
One of the primary goals, he explains, is totarget home office buyers more effectively.“We’ve put in some of the older printercartridges—home office users tend to bringhome the printers from work that getreplaced by newer models—and some newhome office furniture,” Sayes reports.
So far, business at the new look store is upsignificantly and with an in-store copy centerdue to open shortly, Sayes is looking for a“huge increase” in retail in the coming year.
Phoenix Dealer Earns Hot Growth Honors from LocalBusiness MagazineCongratulations go to Herman Miller dealerGoodmans Interior Structures. The Phoenix-based business was recently selected by
bizAZ magazine as one of its Five HotGrowth Companies for 2007.
Goodmans won the award, said bizAZ, for itscommitment to innovation and willingness toperfect its product and services. And weliked what Goodmans president AdamGoodman had to say about how he runs thedealership: “I don’t have any revenue goals.That to me is the wrong thing to go chasing.It’s all about zeroing in on making a betterexperience for our customers and how wedo that.”
Indy Dealer Profiled in Local NewspaperCongratulations also go to Jerry Jones andhis team at Indianapolis-based Cannon IVfor garnering an in-depth company profile inthe Indianapolis Star, the city’s leadingnewspaper.
The article reported on how the dealership,which was founded in 1974 by Jerry and hisfather Richard, has evolved over the yearsfrom a printing and computer supply houseto a more solutions-oriented reseller ofprinting and imaging hardware and services.
It also highlighted the family-owned andoperated aspect of the business. In additionto president Jerry Jones, his three brothers,Jeff, John and Jim, are also active in thecompany. "It was my dad's idea to have all ofhis boys in the business," Jerry Jones toldthe Star’s business reporters. "That's whereCannon IV comes from. So I recruited all ofmy brothers."
While the company has worked off and onwith a local PR firm for the past five years,Jones points to several recent honors,including Indiana Chamber of CommerceSmall Business of the Year and a city-wideaward for business ethics as the mainreason for the story. "One of the reasons forthe awards is that we are doing things theright way and not instinctively pulling thetrigger," Jones told the Star. "We base ournumber one priority on core values andbusiness ethics.”
FEBRUARY 2007 INDEPENDENT DEALER PAGE 4
THE
WINNERS’Circle Good things are happening for independents all across thecountry! Here’s a look at some of the special awards, expansionmoves and more that have come dealers’ way recently.
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THERE ISNO RISK!!
By Jim Rapp
ROSI Office Products|Salt Lake CityBecky Harlin|President/Owner� Supplies, furniture dealership� Just under $6 million sales in 2006� 15 full-time/5 part-time employees� Partners: TriMega, AOPD, United Stationers� In business since 1995� www.rosiop.com
Becky Harlin Believes� Be 100% honest with everyone –
every day
� Promise only what you can deliver
� Share your profits with your people
� Help your people learn
� Sell to top management first
� Independents can compete with
the giants and make money
� Find your niche and build on it.
“I thought any customer was a goodcustomer, and I thought that for years,” admitsBecky Harlin, founder and sole owner of ROSIOffice Products in Salt Lake City. “Collectingcustomers was my thing but eventually, it really
hurt our profits,” she says bluntly. After several years of expansion, Harlin got
an ugly wake-up. “Business was booming, wewere adding more and more employees and allof a sudden, expenses in relation to sales wereway out of line.”
Forced to take a look at her total operation,Harlin was shocked to learn that less than halfof all ROSI’s customers were profitable. Clearly,action was needed.
“The situation we faced back then wasn’t justabout prices and margins,” she recalls. “Wetook a hard look at the loyalty of our customersand the cost of doing business with them. Weexamined order size, their returns ratio and howmuch they were single-sourcing with us, as wellas margins,” she explains. “And we asked, whatcould we do to make them a better customerand how could we create a win-win situation forROSI and for them?”
Sometimes there just wasn’t a good answerto that question. “We kept the true customerswho really valued our services and dropped theaccounts who would shop us around and buyjust on price,” Harlin explains.
It wasn’t an easy time for anyone at thedealership but the change in approach led tomajor gains, both for ROSI and its customers.“Because of our decision we were able toprovide lower prices to our loyal existingcustomers, offer a higher level of service and
put in some new rebate programs,” Harlinreports.
At the same time, the dealership picked upmore medium and large-sized customers andincreased its average order size, lines per orderand number of SKUs sold. And its percentageof online orders soared by 72 percent.
It’s hard to say goodbye
“Saying goodbye to accounts that wouldnever be profitable was one of the most difficultthings I’ve ever done,” says Harlin. “But notnearly as hard as terminating loyal employeeswho we no longer needed.”
Rosi went from a high of ten salespeopledown to four, though she’s added two moresince. She also trimmed other departments.
Over the past several years, the dealershiphas reduced its customer count to about 500,from a one-time high of slightly more than3,000. At the same time, ROSI has brought innew customers—all profitable accounts.
In spite of the many dropped customers,ROSI grew sales in 2006 by slightly more thansix percent. “We’ll be in the double digits in2007,” Harlin says, “and profitable!”
She’s excited about the future. “We recentlyopened a furniture showroom and now offercomplete space planning services. Best of allwe have a team here that is just great.”
FEBRUARY 2007 INDEPENDENT DEALER PAGE 6
NOPA, OFDA Announce New BoardsThe National Office Products Alliance (NOPA)and the Office Furniture Dealers Alliance(OFDA) have announced their governingboards for the coming year.For NOPA, Juanita Strickland(pictured) of VIP Office Furnitureand Supply, Hinesville, GA, willserve as 2007 chair. JoiningStrickland on the NOPA boardthis year are:� John Curtin (past chair)
MyOfficeProductsHuntersville, North Carolina
� Joe Garrigan (vice chair)Garrigan's Office PlusSpringfield, Ohio
� Marisa StevensonBulldog Office ProductsPittsburgh
� Karen BogartConvenience Office SupplyAustin, Texas
� Wayne StillwagonMiller’s Office ProductsSpringfield, Virginia
� Addison JonesTSR, Inc.Ashland, Virginia
� Kim LeazerForms and SupplyCharlotte, North Carolina
� Lisa Keeney McCarthyKeeney’s Office PlusRedmond, Washington
Also serving on the NOPA board arerepresentatives from TriMega PurchasingAssociation, is.group, ActionEmco, S.P. RichardsCompany, United Stationers and AOPD.
Serving as OFDA chair in 2007will be Bob Kelly (pictured)Office Environments of NewEngland (OENE) in Boston.Other OFDA board membersinclude:
� Carl Bergauer (past chair)Tusa Expo Holdings, Inc, Carrollton, Texas
� Mark Eley, (vice chair)ID&A, Louisville, Kentucky
� Jack KingElements IV InteriorsDayton, Ohio
� Rick Naber, Loth, Inc.Cincinnati
� Leonard AlvaradoContract Office GroupMilpitas, California
� Dennis BowmanFlorida Business Interiors, Inc., Lake Mary, Florida
� Ray ThompsonSupply Source Inc.Williamsport, Pennsylvania
� Mark VignolesService WestOakland, California
� Barry CoyleBEC, Inc.Ojai, California
Also on the OFDA board are representativesfrom Global Industries, The HON Company,Haworth, Herman Miller, Kimball Office, Knolland Steelcase.
TriMega Announces 2007 Regional Meetings“Converge 2007” is the theme for the TriMegaPurchasing Association’s series of regionalmeetings for the upcoming year. Each ofTriMega’s five membership regions will host ameeting, with each one featuring one-on-onemeetings with invited suppliers, as well as aneducational seminar, a dealer roundtablediscussion and regional membership meeting.The schedule for TriMega’s Regional Meetings“Converge 2007” is as follows:� WESTERN
Reno, CA . . . . . . . . . . . . . March 8-9
� SOUTH EASTCharleston, SC . . . . . . March 22-23
� SOUTH CENTRALHouston, TX . . . . . . . . . . April 12-13
� NORTH EASTAtlantic City, NJ . . . . . . . . . May 3-4
� NORTH CENTRALChicago, IL . . . . . . . . . . . . . June 7-8
For more details, visit www.trimega.org.
ActionEmco Announces 2008 Dealer Incentive Trip DetailsWholesaler ActionEmco has announceddetails of its 2008 Independent DealerIncentive Trip. Titled “Paradise on thePeninsula,” the trip will treat qualifyingdealers to a 6-day, 5-night stay at theelegant Vallarta Palace resort on Mexico’sPacific Coast, overlooking the Bahia deBanderas beaches. Participants will enjoy ahost of leisure activities, as well aseducational seminars and special eveningactivities and entertainment. For moreinformation call 800-968-5200, or talk toyour ActionEmco account executive.
New Version of TEAM-DESIGN! ReleasedTeam-Systems has released the latest version,Version 13, of its TEAM-DESIGN! dealermanagement solution for office furnituredealerships and installation companies. Team-Systems said the new release is the fastestversion of the program to date and features aredesigned user interface that puts more dataonscreen at one time, icon-driven tools bars,and pop-up calendar windows.
Other enhancements include the ability tomake configuration changes at anytime andthe option to open multiple TEAM-DESIGN!functions in separate windows. Also new is theability through a new Private Supply Network(PSN) to create and transmit purchase ordersto participating manufacturers and retrieveelectronic acknowledgments without leavingTEAM-DESIGN! or using any additionalsoftware. Kimball Office and National OfficeFurniture are the first manufacturers to takeadvantage of this new capability.
S.P. Richards Releases Enhanced E-content, Announces Sales DataAggregation Goals S.P. Richards Company has released its newEnhanced E-content for the industry,featuring an expanded product imagedatabase, quicker and more intuitive productsearches, cross sell and up sell suggestionsand enhanced side-by-side item com-parisons. In addition, the wholesaler said itwill seek to develop an aggregated productsales database that identifies purchasetrends and patterns by customerdemographics including geography, size, andindustry type. “Understanding what products are purchasedmost frequently by certain end user customersegments, and what items are bought inrelation to each other, will help us to developmore effective and targeted marketingvehicles,” said Jim O’Brien, S.P. Richardssenior vice president of marketing.
FEBRUARY 2007 INDEPENDENT DEALER PAGE 7
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HEALTHCAREagainst well-known competitors, including,of course, the national contract and bigbox players.
Dealers who are successfully selling tothe healthcare market generally agree that:� Getting the first order is difficult.
It may take a while.� Service is very important to this
segment.� Price is not always a key
consideration.� Buying decisions are made by
many people.� Understanding each facility’s
specific needs is critical tosuccess.
� Limiting your offerings totraditional supplies can hold youback.
Know the TerritoryKnowing the healthcare territory is
critical to success,” says Ian Wist, WistOffice Products, Tempe, Arizona.
“Walking in the door and telling thebuyer how great you are in the officeproducts or office furniture businesswon’t get you very far,” he points out.
Wist says their approach is to go in toa prospect with lots of questions abouttheir needs, problems they may behaving, etc., and not, “I’m here to tell youabout our fine office products andwonderful service.”
Wist and other successful dealers Italked with say that it’s better to presentyourself as someone who understandstheir needs and can provide the itemsthey use every day, including anti-microbial products, medical charts,exam room supplies, restroom andcleaning supplies, shredders, and so on.
Of particular importance to thesecustomers is compliance with HIPAAregulations—patient privacy laws. Everyrep contacting these accounts shouldhave a good understanding of theseregulations and how they affect theproducts used, Wist says. He also pointsout success with one facility will get you
into others. “It’s a small community and all the
buyers know one another,” he explains.“For example,” he said, “we picked upthe business from a small hospitalseveral years ago. The buyer thenmoved to a larger hospital. Then thathospital opened two more facilities.Now we have all that business.”
But They Don’t Buy Enough!“We’re in a rural area here, so we have
no large medical facilities to sell to,” saysCharles C. Rhodes, Reidsville Office City,Reidsville, North Carolina. “We are reallyworking hard to increase order size withthe many doctors, clinics, andchiropractors in our area. We recentlystarted using the 156-page UnitedStationers Office Remedies catalog.Customers like it—they can relate to itmuch better than the big book.”
Rhodes’ order size problem is sharedby many other dealers I talked with, andnot just those in small towns.
See HEALTHCARE page 10
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CONTINUED FROM PAGE 8
HEALTHCARE“We have always sold traditional officesupplies first, then mentioned otherproducts later,” said Skip Ireland, COSBusiness Products and Interiors,Chattanooga, Tennessee, “but in the lastyear or so we have been leading with otherproducts, such as clothing or any item thatwe know from our research has been aproblem for that particular medical facility.”
“For example, we make it easy for themto buy the uniforms and other clothingthey need, with their names, logos, etc.,on each garment. We work throughmanufacturers and vendors associatedwith ASI—the Ad Specialty Institute.”
Ireland says this is not only foundbusiness, but has added customers whomight never have bought office suppliesor furniture from them otherwise.
“For many of these facilities, officesupplies represent their smallestpurchase category,” says Ireland, “so ifyou don’t get the add-ons, you’ve got anunprofitable customer. But add medsupplies, a little jan/san, a little
breakroom supplies, and presto, they’rein the profit column.”
Know the Customer, Know theMarket
Not all successful dealers in themedical market have salespeople whospecialize, but it’s certainly helpful,
particularly if you’re going out after newcustomers. COS has one such person,who also helps train others.
“There’s an awful lot to learn,”contends Bruce Eaton of Eaton OfficeSupply, Amherst, New York. “While theproducts are the same or similar, thebuyers and the buying practices are not.“There are a lot of national and regionalpurchasing cooperatives that buy on bid.We recognized long ago that this was animportant market, so we concentratedon hospitals and have been able to buildthis business over time.”
Eaton is the first to admit that it is notan easy market. “It’s typically low margin,high service and constantly shopped,”he says, “and to make matters worse, ittends to be slow pay.”“Why is Eaton Office Supply so suc-cessful then?” The response: “First, youtry to sell every possible product that youcan be competitive on. Get the customerto open up the books and let you look atthe whole picture—both traditional andnon-traditional items—jan/san, breakroomsupplies, furniture, and so on.”
See HEALTHCARE page 12
YOU CAN SELL� Office supplies and furniture� Food and beverage service� Break room equipment
and supplies� Janitorial supplies� Medical supplies and equipment� Medical clothing� Medical disposables� Advertising specialties� Medical filing systems
and supplies� Equipment: copiers, faxes,
computers, printers, shredders,telephones
� Furnishings—Design, layout, installation, maintenance, and so on
� Specialty Furnishings -- bariatric, etc.
� Printing
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HEALTHCARE“Second, constantly work on order size.
Small frequent deliveries can kill you. Weoffer an incentive for large orders.”
Beyond Waiting Room FurnitureInstitutional furnishings have come a
long way in recent years and are stillevolving. Traditional office furnituremanufacturers that we’re all familiar withnow offer a number of specializedproducts for this market.
Even the so-called “desk and chair”dealers can get some of this business if theychoose. Wholesalers have a large selectionavailable, as do some buying groups.
Contract dealers are in a unique positionto go after this market, because they havethe basic infrastructure needed—design,installation, warehousing, and maintenance.
In recent discussions with furnituremanufacturers, distributors and consul-tants, I’ve learned that not a greatnumber of dealers have really gone afterthis particular market segment, yet theones that have are quite successful.
There are some real misconceptionsabout the make up of the healthcaremarket and they can stop dealerstapping into the opportunity, arguesBrian McLaughlin, an industry consultantand former Lay-Z-Boy national salesmanager. Some dealers, says McLaughlin,think the market is mostly hospitals, andhospital business (they believe) is not profitable.
“Not true,” he says. “Hospitalsrepresent less than 40 percent of totalhealthcare billings,” he said, “and thebalance is divided among the specialties—medical office buildings, clinics, surgerycenters, outpatient facilities, nursinghomes, extended stay facilities, and soon. It’s reached a point where it’s almostsegmented by disease.”
“Examples of special needs are higherseating chairs for orthopedic andgeriatric clinics, special chairs foroncology and dialysis patients andbariatric furniture for larger patients.”
Adds McLaughlin, “It’s about morethan just knowing what products fit eachspecific need. To be successful in the
long term, you must be a student of thehealthcare industry. When you call on afacility, find out the end result they’retrying to achieve—what’s their mission, ordesired outcome, then work backwardsto the products and services that willbest accomplish that.”
Healthcare is EverywhereThe heath care market goes well
beyond hospitals and medical officesthese days—beyond treating sick people.The stay-healthy business is growingeven faster, with everything from fitnesscenters to spas and assisted-livingfacilities—all buying and using thousandsof products and services thatindependents provide.
The most successful independents inthe burgeoning healthcare opportunityappear to be those that spend some timefinding out what each customer needsand wants, and then give it to them onthe terms and under the conditions theyprefer. But, you gotta know the territory.
Back to page 1
FEBRUARY 2007 INDEPENDENT DEALER PAGE 13
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There’s new leadership in both chambers ofCongress and the small business community istrying to figure out what it all means for them. The smart
money says not to expect monumental changes, but I do believe smallbusinesses will have an enthusiastic champion in their corner in Rep. Nydia
Velazquez (D-NY), new chairman of the House Small Business Committee.
FEBRUARY 2007 INDEPENDENT DEALER PAGE 14
What’s in Storefor Small Business
in Washington?
The make up of the newCongress means small businesswill have to be realistic aboutwhat can be accomplished. TheDemocrats have a 32-seat
margin in the House and a one-seat margin in the Senate.
That means bipartisan negotiationswill be mandatory on some of the critical
issues facing small business or else they willfall by the wayside and become grist for the 2008election-year rhetoric mill.
I’m optimistic about what can be accomplished inthe session. As I see it, the small businesscommunity needs immediate action from Congresson five key issues. The first is health insurancereform. Since 2000, insurance premiums for smallbusinesses have skyrocketed 80 percent, creatingincreasingly tough choices for small businesses.
If you run a small business today and are facingpremium hikes, do you cut benefits and risk losingtop employees? Do you push more of the cost ontoyour people with similar consequences? Or, as ratescontinue to escalate, will you be forced to eliminatebenefits all together?
One solution to the healthcare crisis for smallbusinesses is association health plans. This iscertainly not a new concept and it has receivedconsiderable attention in the last three Congresses.
Simply put, this legislation would allow smallbusinesses to band together through nationalassociations to purchase healthcare benefits. Thiskind of resource pooling would yield smallbusinesses anywhere from 8-20 percent savingseach year and finally bring an end to at least some ofthe pressure on benefit costs of the past few years.
Association health plans won’t solve all of ourhealthcare problems but they do represent animportant part of the solution. Small businesses havewaited too long not to see AHP legislation pass thisyear. We came close in 2006, when the bill came toa vote on the floor for the first time ever.Unfortunately it fell hostage to partisan election yearpolitics and failed. Let’shope this year will bedifferent.
The second issue I seeas critical to the smallbusiness community iscontracting relief. Congressneeds to begin changingFederal Acquisition Reg-ulations to be more smallbusiness-friendly.
Congress needs to holdagencies accountable fornot meeting their man-dated small businessgoals of 23 percent. Fortoo long agencies haveessentially ignored theirsmall business goals be-cause they came with nopenalties for not meeting them. There has to bepenalties and with the changes in Congress, now isthe time to do something about it.
It’s not hard. Why not tell agencies that their 2008budget will be based upon how well they meet theirsmall business goal? If they only meet 15 percent ofthe goal, then their budget will be reduced by 8percent, for example.
See SMALL BUSINESS page 15
Key Small Business Issues for Congress
� Healthcare reform andassociation health plans
� Getting agencies to takesmall business procurementgoals seriously
� Small business relief onminimum wage hikes
� Congressional oversight ofmentoring programs
� A real-world approach tosmall business size standards
CONTINUED FROM PAGE 14
SMALL BUSINESSThis may sound extreme and it certainly
won’t be popular among government
buyers and big business. But it will
quickly get the desired results and give
everyone an effective tool to measure
agencies.
The third area I see as problematic for
the small business community is
passage of the minimum wage bill. We
all support paying people a decent wage
that they can live on. The problem is that
the number of people being paid less
than minimum wage is not as great as
advocates make out.
Realistically, there are an estimated
500,000 people making below minimum
wage in this country and even experts
agree that a $2 increase over two years
will do little to help them in the long run.
I’m concerned for those small
businesses in rural America who will be
forced to pay this increase. These
companies are least able to withstand a
mandatory $2 increase and are more
likely instead to lay off employees.
Conclusion: If a minimum wage increase
is to have the impact Congress wants, it
will have to come with tax incentives and
exemptions to help for these employers.
More Oversight for Mentoring
Fourth, the small business community
needs Congress to provide real oversight
for so-called small business mentoring
programs. In theory, it all sounds
wonderful. The program gives a small
business the opportunity to team with a
large corporation to help them develop
as a company and learn more about how
to succeed on their own.
Like anything in Washington, however,
the devil is in the details. In all too many
cases, this program has abandoned its
original mission to become little more
than a way for large national players to
use a small business as a tool to gain
more federal business.
Instead of helping, mentoring pro-
grams as they operate today are costing
legitimate small businesses millions in
lost revenue that go instead to much
larger competitors positioned as “small
business partners.” This is an abuse of
what was initially a good program for
small business and Congress needs to
investigate.
Finally, small businesses need better
support from the Small Business
Administration (SBA) and that starts
with throwing out the current size
standards and starting over.
SBA has proposed creating a one size
fits all standard for what constitutes a
small business and that makes very little
sense. In the office supply industry, for
example, any company generating
revenues in excess of $6 million would be
considered a big business. Yet even a $50
million dealership is miniscule compared
to multi-billion-dollar companies like
Corporate Express and Staples.
Once again, Congress needs to step in
and flex its muscle. Creating size
standards unique to various industries will
not be an easy task, but it will be essential
if SBA is going to fulfill its mission. A one
size fits all approach across all industries
would hurt more small businesses than it
helps. It’s that simple.
The bottom line for the small business
community in Washington is this: There
are plenty of hurdles to negotiate in
order to get much-needed support and
relief from this Congress, but there is
also cause for optimism. We have some
key people in positions of power now
who are aware of the big issues and
willing to fight tirelessly to do something
about them. The big question is, Will
their leadership listen to them?
Paul Miller is a founding partner in Miller/WenholdCapitol Strategies, LLC, providers of direct andgrassroots lobbying, legislative and regulatory tracking,advocacy planning and implementation and relatedservices. Before setting up Miller/Wenhold, Millerserved as government affairs director for the NationalOffice Products Alliance and the Office FurnitureDealers Alliance (NOPA/OFDA). In addition to hislobbying and regulatory monitoring activities, Paul alsoprovides consulting services to businesses on selling tothe federal, state and local government markets.
Back to page 14
FEBRUARY 2007 INDEPENDENT DEALER PAGE 15
Increases in Employer Health Plan Premiums Compared to Increases in Overall Inflation and Workers’ Earnings, 1988-2005
In 2005, premiums for family coverage increased 9.2%. This was the first year of single digitincreases since 2000. This was the second consecutive year that premium increases wereless than they were in the previous year. While lower than in recent years, the 9.2% increasein the cost of coverage exceeds the overall rate of inflation by nearly 6 percentage pointsand the increase in workers’ earnings by over 6 percentage points. Since 2000, the cost ofpremiums for family coverage has increased by 73%.
Source: Kaiser Family Foundation
To get you thinking about yourown marketplace and the
challenges you face, here are some ideas that
might refresh your approach togreat customer service:
� At your weekly company meetings, askeach employee to share an example ofhow they serviced a customer well in theprevious week. Learning from others anddiscussing what the company values willincrease everyone’s attention to service.
� Encourage your frontline people tocontribute ideas on how they can betterserve your customers. Listen to them andbonus great ideas.
� Train and continuously coach your staff.Great “people skills” will service yourcustomers (and you) better.
� Embrace diversity. Your staff should mirroryour customer base in gender, race and age,putting you in a better position to identifywith your customers and their needs.
� As an owner, meet regularly with yourtop 10-20 clients. In addition to showingyour appreciation for their business, theycan be your greatest teachers for areas ofincreased value.
� Interview new customers. Understand theirexpectations and get fresh perspectives onwhat these customers value.
� Know your percentage of lost customers.If you lost 10% of your revenue to theft,swift action would take place. How do youtreat a 10% customer loss?
� Get a reality check on your assumptions.Make sure your customer feedbackcontains information your customers wantto share with you, not just short answers toyour questions. Better yet, have anindependent market assessment done tosee if your customers perceive yourbusiness the same way you do.
� Create a customer advisory board tohelp you define and create extraordinarycustomer service.
� Host regular “lunch-and-learns” whereyour customers lunch and you learn.
These are just a few ideas to make yourcompany name synonymous with service.Learning more about your customers’ needsand desires will allow you to better connect, winand retain your customers through superior,extraordinary customer service.
Trish Brock is a well-known industry consultant,with over 25 years of “real world” sales, marketingand management experience. Her cross-functionalconsulting group, Trish Brock & Associates,specializes in helping dealer principals and theirmanagement teams solve identity, branding, salessupport materials and web site challenges. For moreinformation, contact her at 720.277.3035 [email protected].
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FEBRUARY 2007 INDEPENDENT DEALER PAGE 16
How is great customer service defined inyour company? And how do you know ifthat is what you are giving yourcustomers? How do you measure yourservice? And how is this informationshared with your team?
How tuned-in are you to your clients?Are you giving them what they want oronly what you think they want? Sure, youor your staff talk with them regularly, butare the conversations usually about theircurrent order or resolving a problem? Doyou dictate solutions or ask customerswhat they really want?
How are customer problems orcomplaints handled? Are your frontlinepeople trained to handle variouspersonalities? Can your customer servicepeople make decisions and resolveissues quickly?
What is your process for gauging yourcustomers’ level of happiness? Are youasking the right questions? And is yourcompany listening, or are thereexplanations (excuses!) when informationis shared that is less than favorable? Howdo you leverage the good news and howdo you identify opportunities forimprovement?
If great customer service is a priority, doyou have all of the tools, mechanismsand most importantly, the right attitudesin place to deliver it? How are yourpeople hired and trained? Do you havethe right technology? How do youmotivate and reward your staff? How welldo you communicate internally as well aswith your customers?
CustomerS E R V I C E
By Trish Brock
Ask most dealers about customer service and chances are they’ll tell you it’s a top priority. They never offerany less than “the best,” you’ll hear, particularly when compared to their larger competition.
But every time I hear a dealer talking about their wonderful service levels, I wonder what those claims arebased on. Are they genuinely customer-driven or are they little more than bragging during the salesprocess?
Various reasons contribute to the gap between how companies perceive their offered services and how theircustomers experience them.
Where is the Disssccconnect?
Consider:
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FEBRUARY 2007 INDEPENDENT DEALER PAGE 18
“The E-Myth Revisited: Why Most SmallBusinesses Don't Workand What to Do About It”by Michael E. Gerber.
By Joe Garrigan, PresidentGarrigan's Office Plus, Springfield, OH
I got this book years ago after someonerecommended it to me at a DDMS meetingand I’m currently re-reading it. It’s a great
book for any small business owner and itcomes full of useful ideas and managementconcepts.
The “E-myth” in the title stands for“Entrepreneurial Myth.” Gerber argues thatmost small business owners think and worklike technicians. They are typically skilled atdoing something—sales, for example—andthat’s where they put most of their energy andeffort. Unfortunately, though, they tend toignore the big picture aspects of running abusiness and get into trouble as a result.
The solution, Gerber says, is for businessowners to balance their personalities. Everybusiness owner, he argues, needs to be an
entrepreneur and a manager, as well as atechnician.
The technician produces the product ormakes the sale. The manager keepsoperations and finances running smoothlyand consistently. And the entrepreneur setsthe goals and keeps the business on courseto reach those goals.
This book may very well be the guiding lightto take the independent dealer to the nextlevel. The eye opener for me was hisdiscussion of the need for business owners tospend their time working ON their businessand not IN their business.
Gerber drives home the need to plan and tohave “systems” in your business, to spendless time focusing on the work of thebusiness, and more on learning how to run itas a business. It’s a must read!
IIff yyoouu’’vvee ggoott aa ffaavvoorriittee bbooookk yyoouu’’dd lliikkee ttoo sshhaarreewwiitthh yyoouurr ffeellllooww ddeeaalleerrss,, pplleeaassee lleett uuss kknnooww..JJuusstt ddrroopp uuss aann ee--mmaaiill aanndd wwee’’llll ttaakkee iitt ffrroommtthheerree!!
Our make believe salesperson Al hasan appointment with Lisa, his contact ata real estate firm he has worked with foryears. He recently attended an officeproducts show and is bringing with himsamples of new products he wants todiscuss with Lisa.
Two appointments later, Al meets withEric, a customer who is looking for filecabinets for his accounting department.Al notices the dry marker board in theconference room is badly stained andchipped and in need of being replacedor, at the very least, properly cleaned.
He makes a note to mention it and givethe client some suggestions for cleaningthe board and even replacing it.
Later that afternoon, Al calls on Marie,the owner of a small accounting firm. Heis bringing her information on a couple ofpaper shredders she is considering andthought this might also be a good time totalk about upgrading their old black andwhite copier to a new color model.
Marie had mentioned some monthsearlier she would like to convert to colorbut has been waiting for the budget to beavailable. Al believes he has a leasingspecial that might work well for her.
Never stop looking
Al never stops looking for business. Hedoes not see himself as an accountmaintainer, but rather an account manager.What’s the difference between the two?One is reactive and the other is proactive.
Al believes managing an accountmeans becoming a resource forcustomers, not just an order taker or
customer service rep. He further believesthat the best way to keep an account isto know it, own it and grow it.
When was the last time yoursalespeople actively looked for businesswithin their existing accounts? How oftenare they walking by sales and choosinginstead to wait for the customer to makethe first move?
One of two things will happen when Alapproaches his customers with hisproduct suggestions: Either he will notmake a sale or he will make a sale andtiming is everything.
What if Al had chosen to be reactiveinstead of proactive? If he says nothing,what’s to stop Lisa from purchasingsome of the new products he wanted to present later when she sees them in abig box sale flyer? Maybe Eric ends upordering from a mail order catalog to replace his marker board and Mariebuys a new color copier from a copier repwho just “popped in” one day and told her about a very affordable way tolease equipment.
What’s the worse thing that
can happen when salespeople
proactively look for business
within existing accounts?
They don’t make a sale.
However, when you go actively looking forbusiness, you will find occasions when younot only get a sale, but also earn a “Thankyou” from the customer for anticipating theirneeds and finding ways for them to workmore efficiently or cost effectively.
Managers and owners: Suggest to yoursalespeople that they carry a legal padwith them for the next two weeks anddocument every potential sellingopportunity they can find. They don’t haveto go for the sale, just get them in thehabit of seeing what they are walking byon a daily basis. Then challenge them togo back to those customers and go for thebusiness. Have a contest and make it fun.
Whether it’s introducing a new product,suggesting alternative brands that willsave money or noticing that somethingneeds to be replaced, updated orrepaired, suggest they learn to be nosyand look actively for potential business.
Wherever they go, they should be onthe lookout for sales opportunities thatwill benefit the customer and theircompany. Just think about what it coulddo for the salesperson’s income andcompany profits if only 20 percent ofthose opportunities resulted in a sale!
And by the way, this is all part of thevalue added service we talk about andshould be bringing to our customers.
Make the term “account maintaining”obsolete. Make “leaving businessbehind” unacceptable. Encourage yourreps to be creative and make sureknowing, growing and owning existingaccounts is the norm in your dealershiprather than the exception.
Winnie Ary is a nationally recognized consultant, author,trainer and professional speaker who has helped literallyhundreds of independent dealers improve their sales,sales management, customer service and leadershipcapabilities. For more information, visit her website atwww.AryGroup.com or contact Winnie by e-mail [email protected].
FEBRUARY 2007 INDEPENDENT DEALER PAGE 19
WHAT BusinessARE YOULeaving Behind?
In last month’s issue, I discussed how toassess your growth opportunities for 2007.
Now it’s time to cover the risk side of the equation, so that you can carefully balance and manage both opportunity and risk.
FEBRUARY 2007 INDEPENDENT DEALER PAGE 21
2007What could really hurt your business?Have you identified what those factors are andwhat their impact could be on your company?
Based upon observations of current dealersituations, I’ve identified eight general risk factorsfor 2007. The first four factors are external, primarilydriven by the economy and market conditions orunforeseen natural or man-made disasters.
The last four are internal dealer conditions,important because internal issues typicallyprove to be a source of greater risk thanexternal ones.
1. Economic and/or local market volatility2. Increased competition3. Pricing pressures and declining margins4. Unforeseen natural or man-made disasters5. Inability to solidify customer relationships6. Operational effectiveness7. People/cultural issues8. Financial constraintsI have found it useful to develop risk analysis
worksheets as a tool to quantify risk. You mustidentify your dealership’s particular risk factorsand rank probability and impact as theworksheet describes.
Caution: A low probability doesn’t mean therisk factor can be ignored. Low as a probabilitymight be, if the impact is rated a 5 (high),precautionary measures must be taken toprevent a high impact potential crisis.
The following dealer example of a riskanalysis worksheet includes many possiblerisks, along with a hypothetical ranking of theprobability and impact of each potential risk(actual rankings are dependent upon a specific
dealer’s situation).Once you have identified and ranked your keyrisk factors, prioritize the factors, integrating themost important ones into your 2007 businessplan. Prepare strategies and programs to preventand manage any high probability or high impactcrisis, and act promptly.
This year should provide some exceptionalopportunities for dealers (see JanuaryIndependent Dealer), but not without risk.Success in 2007 will occur when your bestopportunities are exploited and greatestpotential risks are identified and mitigated.
MANAGINGYOUR RISK IN
Bill Kuhn, principal of William E. Kuhn & Associates, is a noted industry consultant, writer, and speaker with over 35 yearsof industry experience. He consults with dealer principals and their management teams in areas of strategic planning,leadership and organizational development, marketing, financial management, valuation and merger/ acquisition. For moreinformation, contact Bill by phone 303-322-8233, fax 303-331-9032, or e-mail: [email protected].
RISK ANALYSIS(Ranking: 1 = LOW 3 = MODERATE 5 = HIGH)
PROBABILITY IMPACTRISKS SCALE 1-5 SCALE 1-5� Recession 3 3
� Unfavorable economic factors affecting ability to 2 4obtain loans
� Hurricane or possible terrorist attack 1 4
� Local market downturn 3 4
� Potential merger of other independent dealers in 3 4the market
� Pricing pressures and resulting lower margins 4 3
�Major bad debt 3 5
� Loss of key customer 1 3
� Loss of distinctive added-value from customer 3 4perspective
� Unacceptable customer service 2 4
� Behind competitors in terms of operational 2 4effectiveness and technology
� Operational or informational breakdown 2 4
� Infrastructure problems with growth 3 4
� Loss of key sales or management personnel 3 5
� Inability to find sales talent 4 4
� Cultural issues lowering morale 2 3
� Lack of leadership and strategic thinking 2 5
� Inability to take advantage of a key opportunity 3 5
� Excessive costs 2 3
� Illiquidity (cash problems and excessive leverage) 2 4INT
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FEBRUARY 2007 INDEPENDENT DEALER PAGE 22
??ASK THE
Expert
Answering this question requires a bit ofwork to define the type of sales person thatwill fit into your organization. Let’s start withthe profile. Some sales organizations havesalespeople who work both inside andoutside. Others, like yours seems to be, haveseparate work forces. This is typically moresuccessful, as the two types of sales peopletend to have different profiles…literally.
When we give candidates a personality andsales profile (an important part of the pre-employment process), we see that they tendto have very different skill sets andpersonalities. This isn’t good or bad; it justindicates in which area the candidate willhave greater success.
An important first step is to define theposition. Besides reaching the sales andgross profit objectives you will set together, inwhich tasks do you expect the salesperson tobe involved? Review the job description. Whatare their basic responsibilities andaccountabilities? What are your expecta-tions? The activities and expectations areslightly different for each position.
Other areas you may need to review aretraining and sales support. While producttraining will generally be the same for bothtypes of salespeople, training for the twotypes of salespeople requires differentapproaches, starting with cold-calling andmaking appointments; neither of which istypically needed by retail salespeople.
Top producing inside salespeople can usesupport, but outside salespeople, if they aretruly doing their job, may need some
additional sales support if they are in the fieldselling all day.
Another key ingredient is yourcompensation plan. Inside people tend to likemore security, so a higher base (salary ordraw) with a lower commission rate is usuallyacceptable. Outside salespeople take largerrisks so they tend to want a commission ratethat rewards that risk. The top salespeopleget into outside sales because they like theidea of unlimited income, not just receivingtheir base salary.
Once you have clearlydelineated your inside sales-people from the outside team,you will need to determine whoare account managers and whoare new business developers.They too have different profiles.Too often dealers make themistake of hiring accountmanagers when what they reallyneeded was someone to generatenew business. It is critical to askcandidates where and how they will developbusiness and identify the source of theirprevious accounts.
The first part of your question, findingsalespeople, is a bit more difficult. Everyone islooking for new salespeople and the supplyseems to be getting smaller.
Part of your annual business planning andbudget should be dedicated to recruiting.Recruiting requires a blend of resources. Thebest candidates may become available whenyou aren’t looking, so you may want to have a
process that tells you when their résumé hasbeen posted.
While somewhat expensive, online siteshave modules that alert you to newcandidates that meet your job profile. The“shotgun” approach, using newspaper oronline recruiting ads, can be effective, butthey tend to be very costly. Industrynewsletters are more cost effective and mayfind people with experience. Recruiters areone source, but usually a very expensive one.
Asking your own employees andmanufacturer reps for referrals can be one ofthe best, most cost effective sources. Lastly,don’t forget to have an “employmentopportunities” area on your own web site.
Whatever method(s) you employ, make it aregular part of the job. Effective recruitingtakes practice.
Jim Heilborn is an independent business consultantspecializing in the office furniture industry. For moreinformation please visit www.jheilbornassociates.com.He can also be reached directly at 916-434-.9811 or bye-mail at [email protected].
If you’ve got a question about running your business,send it along and we’ll try and find an answer for you.
Doug Parsley at Williams Office Products in Dallas is looking for some hiring tips in a very tough job market.
“We have been trying for several months to hire an inside and outside salesperson but have met with very littlesuccess when it comes to finding acceptable applicants. Perhaps we need to adjust our profile or look in differentplaces. Would appreciate any suggestions on finding new salespersons, and what their profiles should look like.”
Consultant Jim Heilborn had this to say:
Former Dallas Cowboysrunning back Emmitt Smithmay have waltzed off with firstprize in the Dancing With the Stars TV show, but he’s
certainly not the only onestrutting his stuff.
Chuck Fetta, currently president andco-owner of the Office FurnitureWarehouse (OFW) in Islandia, New York,has found plenty of success of his ownon the dance floor, during a profes-sional career that spans over 25 years.
“I got hooked on dancing back incollege during the late 1970s,” Fettarecalls. He turned professional just sixmonths after graduating and joinedthe national competition circuitalmost at once, winning honors asMid United States Dance Championand earning a spot on the popular TVdance show "Dance Fever."
But much as he loves dancing,Fetta says it was hard to make aliving at it. After several years, he put
his professional career on hold for the business world and in 1986, opened up his own office furniture dealership on Long Island.
Since then, the Office Furniture Warehouse has grown into a thriving operation with a veteran staff and a growing customer base.Sales last year were up 15 percent and, Fetta reports, if January activity offers any indication, 2007 should bring more of the same.
Over the past twenty years, Fetta has brought the same level of commitment to selling office furniture that he gave to dancing. Inaddition to running his own business, he has been active in leadership positions with the WorkPlace Furnishings dealer group, servingas its chairman for two years in the 1990s.
But while Fetta points with pride to his own company’s growth and clearly enjoys his wider industry involvement through WorkPlaceFurnishings, he admits the dancing bug never really left him. Recently, Fetta launched his own web site at www.dancin.com and laterthis year, he will be featured as a Principal Dancer in a new dance-themed movie from Disney called "Enchanted," starring PatrickDempsey and Susan Sarandon.
“When you do it right, dancing just feels good,” Fetta explains. “It’s a lot of fun, great exercise and a very effective stress reliever—though as a dealer,” he adds with a smile, “I can’t say that’s anything I’ve ever really needed!”
FEBRUARY 2007 INDEPENDENT DEALER PAGE 23
T H E O T H E R S I D E O F
Chuck Fetta of the Office Furniture Warehouse
Chuck Fetta (Right) with partner Donamarie Portelli and Patrick
Dempsey from the movie "Enchanted."
Chuck Fetta and partner Peggy Heeney took part innational dance competitions for three years.
Long Island Dealergoes from
BallroomtoShowroomAND
Back!
FEBRUARY 2007 INDEPENDENT DEALER PAGE 24
In Los Angeles, for example, TriMega member OfficeSolutions lost out on a 100% small business set asidecontract for Jet Propulsion Labs in Pasadena, California toFaison Office Products Company, an Aurora, Colorado-baseddealership that, like Office Solutions, presented itself as asmall business.
Faison, however, is not your typical small business and itsalliance with Corporate Express is far more than merely“strategic. For example:� Corporate Express owns 45% of Faison stock.� Faison and Corporate Express share six
common locations. � The President of Corporate Express sits on
Faison’s corporate Advisory Board.� Corporate Express was responsible for generating
an approximate average of seventy percent ofFaison’s revenue over the past five years.
Office Solutions has appealed the award to Faison and itsappeal is currently working its way through the legal system.
Almost every dealer I talk to can come up with exampleslike this in their markets. And it’s not just the dealers who arelosing out. Wholesalers suffer because they aren’t gettingthe dealer’s orders to fulfill the contract. So do
manufacturers, as the national players shift more and moreof their mix to their own private label merchandise.
NOPA has taken up the torch on this issue. However, theassociation can only do so much without more support—both financial and through more intensive lobbying, letterwriting and phone calls on the part of independents andtheir business partners.
Our opposition is strong and well-funded. And there aresome in Congress who are reluctant to take up this issue outof concern that it will jeopardize the SBA 8(a) program thatseeks to funnel business to small, disadvantagedbusinesses. They need to be convinced that the regulationscan be stiffened without jeopardizing the program itself.
Such an effort will take time, money and a stronggrassroots communications effort. But it needs to be done ifthe independent dealer community and their wholesaler andmanufacturer partners are to avoid being shut out stillfurther from the government market.
Will you help by contacting your own elected officials toenlist their support in addressing this issue?
Please contact NOPA’s new Government Affairs Director,Mike Ochs with any intelligence pertaining to similar casesin your markets. He can be reached at (800) 542 6672.
BY
Dick DodgeT.H.E. Office City, Inc.Redwood City, California
THELastWord
It’s Time to Put an End toSmall Business Fronts
ANDPass-Throughs
IN THE Government MarketIn 2003, according to the Small Business Administration, over $2 billion in contracts listed as goingto small business actually went to large, national corporations that set up so-called “strategicalliances” to create operations that are little more than fronts or pass-throughs to funnel businesstheir way.
