Operations


Friday, December 9th, 2011

Are You Covered?

The holidays are fast approaching and the last thing on your mind is business insurance. We all know that we need to insure our buildings and property from loss, and we buy an annual policy to do that, but are we covered?

The answer is maybe! Most property policies have a coinsurance clause. The coinsurance clause allows you to insure your buildings and contents at 80 percent, 90 percent, or 100 percent of replacement cost of the property. If you elect 80 percent coinsurance, you are self insuring 20 percent of your property in the event of a total loss. The insurance companies require that policy holders insure their property to value. So what happens if you don’t comply? Nothing, until you have a loss and you want the policy to respond. Let’s take a look at a couple of examples.

An insured has a $100,000 loss to their building. The coinsurance clause purchased was 80 percent and the amount of insurance carried on the building was $500,000. At the time of loss it was determined that it would cost $600,000 to completely replace the building. The insured in this case was complying with the insurance carrier as 80 percent of $600,000 is $480,000, which is less than the $500,000 they are carrying. In this case the $100,000 loss will be covered in full less the deductible.

An insured has a $100,000 loss to their building. The coinsurance purchased was 100 percent and the amount of insurance carried on the building was $500,000. At the time of loss it was determined that it would cost $600,000 to replace the building. The insured in this case was not complying with the insurance carrier. They were insuring the building at $500,000 and should have been carrying $600,000. They were insured at 83 percent of value ($500,000/$600,000). The 83 percent will now be multiplied by their loss of $100,000. The insurance carrier in this case will pay $83,000, less the deductible, to repair the building. The insured will be responsible for $17,000, plus the deductible.

The cost of being insured to value is usually very minimal, so why do insured’s not do it? There are a variety of reasons, from not knowing the true replacement cost of their property, to thinking that they will not have a total loss or not understanding that coinsurance will apply to a partial loss. They also may not understand that they can buy 80 percent coinsurance or they are trying to save money by carrying lower limits of insurance. Insured’s should review their coinsurance options and replacement cost values annually with their broker. Don’t let an insurable loss put your business out of business!

Receive a free insurance quote through WHFA’s new insurance broker, James G. Parker, and make sure your business is fully covered. Call (800) 422-3778 today.


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Friday, July 8th, 2011

5 Simple Ideas to Improve Your Bottom Line

When the economy began to slide in late 2008, Banner Marketing began to see more and more retailers become distressed about the lack of customers walking through their door. While some had individual concerns about how to drum up business in a slow market – many were simply frustrated by the fact that the advertising program they’d used for years was not generating the sales spikes they once experienced.

We advised retailers to take a hard look at their overall marketing strategy. When the market changed, retailers were hesitant to change with it, which resulted in less than stellar sales. While the economy is showing signs of improvement, it’s certainly not back to the glory days. But all is not lost in a down economy, below are five tips for getting customers in the door and improving your bottom line.

1. Watch who walks through your door. This means more than just casual observances – pay attention to the details and create a profile of the customers visiting your store. When they enter your establishment, which direction do customers go first? What types of items draw their attention? What do they purchase? Are they coming back multiple times to make a decision? Do they bring others with them to assist with decision making? An important note here is that females make the vast majority of purchasing decisions when it comes to home décor. Keep this in mind when establishing your customer profile, and cater to the women who enter your store.

After you’ve identified your target customers, make sure that your price points and product mix are meeting the needs of your target audience, and that the most sought after items are in stock.

2. Rank your best sellers. It may seem obvious, but it’s extremely important to know what items are drawing in your target customers. Focus advertising promotions and showroom displays on your best-selling categories. As the economy improves, customer preference will shift from needs to wants, and you want to make sure that those customers are coming to you when they are ready to purchase.

3. Don’t just sell products, solve problems. Many customers may very well want to make a purchase when they enter your store, but if something is holding them back, it’s important to help them find a solution. On the logistical side, it may be creative financing, a bundling of products to provide greater value, or offering a service that people need to stretch their budget. But it’s also important to tap into the emotional side of the often female buyer. Help her visualize the piece of furniture in her home, engaging in activities that make her happy. Help her choose the colors that best fit her home. Does she need her old furniture removed? Does she need a delivery made same day? Anticipate his or her problem and help find a solution. In short – train your sales staff to help make the customer’s life easier.

4. Make them offers they can’t refuse. When the market is slow, customers are looking for greater value, savings, service, warranty and guarantee protection – and overall more incentives to justify parting with their money. Use traditional advertising and time-sensitive offers to entice them and direct interested customers online to download the offer. This allows you to collect information about your target customers. In your next promotion, connect with them directly by mail or email to send an offer or personal invitation to your sale.

5. Continue to advertise in good times and bad (and integrate your advertising!) Advertising is about reaching your target audience with consistent messaging, and eliciting an emotional response from the recipient. A structured advertising plan enhances buyer confidence, top of mind awareness and identifies brand preferences. An integrated program repeats the messages across mediums – an absolute must when trying to reach hard-to-get customers.

Shirley Griffiths, the vice president of sales, is one of Banner Marketing’s longest tenured employees with 11 years of experience with the integrated marketing company.  Griffiths is responsible for overseeing Banner’s sales, creative and operations departments. She can be reached at shirleyg@bannerretail.com or (800) 843-9271.

Banner Marketing helps businesses grow through integrated marketing; a combination of digital and traditional marketing strategies that reach a company’s key consumers and inspire them to buy.  In business since 1983 and based in Spokane, Wash., Banner develops creative content to support its client’s brands – from traditional circulars to cutting edge Web sites – keeps that content up-to-date, tracks program results, and provides reporting to refine and adjust strategies for even greater success.

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Friday, June 24th, 2011

Enforcement: How to Effectively Prepare for a Cal/OSHA Visit

The current administration in Washington, D.C., has promised increased regulatory enforcement against employers. Additionally, Cal/OSHA knows that employers are trying to do more with less these days, so Cal/OSHA is operating under the assumption that illegal safety shortcuts are being taken.

The bottom line? You’re now more likely than ever to get a knock on the door from a federal or Cal/OSHA inspector. If you want to avoid the potential of hefty fines and litigation costs, now is the time to get prepared.

Current Cal/OSHA inspection priorities:

  • High hazard industries — SIC Codes 20 – 39
  • X-Modifications of 125 or greater
  • Outdoor workforces — exposure to heat illness

How to best prepare for a visit:

  • Conduct a hazard assessment
  • Review your Injury Illness Prevention Plan (ILPP) to ensure compliance
  • Review your documentation — training; quarterly inspections, accident reports; OSHA 300 log; workers’ compensation records

How the enforcement actions and the new penalty calculations affect you:

  • General violation fine up to $7,000
  • Serious violation fine up to $25,000
  • Willful violation fine up to $70,000
  • Repeat violation fine up to $70,000
  • Failure to correct fine, $15,000 per day

Effective strategies to greet Cal/OSHA Inspectors:

  • Request identification and phone Cal/OSHA District Office to verify
  • Require specific purpose of visit
  • Restrict access to only areas specified in complaint or search warrant
  • Refuse any request to reconstruct or perform any action not otherwise occurring as part of your on-going business activity
  • Say or ask as little as possible and volunteer nothing
  • Duplicate the actions of the inspector

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Thursday, June 23rd, 2011

Warehouse Safety

Warehouses range from product distribution centers to popular retailers that sell oversize and bulk products. Whether it is an industrial, commercial or retail facility, warehouse workers should follow safety guidelines for loading docks, conveyor systems, forklifts and pallet jacks, material storage and handling and good housekeeping.

Products enter and exit warehouses through truck and loading dock systems that are usually at a height above the ground. When loading and unloading materials, workers should pay special attention to avoid falls from elevated docks and ramps; yellow striping can draw attention to edges. Trucks delivering goods should be treated cautiously while they are parked at the loading dock. The area between the dock and truck is hazardous because a rolling truck can cause a crush injury; truck wheels should be chocked while unloading.

Forklifts and pallet jacks help move products from the shipping area into and around the warehouse. Forklifts are powered industrial trucks; forklift operators require training and certification while pallet jack operators require training only. Loads should be properly lifted on forks and stabilized, then slowly and deliberately taken to their assigned location. Forklifts and pallet jacks should never be used as rides or man lifts.

When large, awkward, and/or heavy items are warehoused, they become a challenge to store in a safe manner. Storage shelving and rack systems should be sturdy, braced, and spacious enough to allow people and equipment to move freely. When goods are shelved, they require slow and careful placement to avoid disturbing or pushing products off the facing aisle on to co-workers below. Products should be stored flat and inside the shelving units with aisle ways kept clear.

Pallets used for stacking products should be sturdy and in good condition; damaged or unstable pallet items should be restacked on a new one. Where possible, palleted products should be shrink-wrapped or baled for stability.

Workers can protect themselves on the job with personal protective equipment (PPE) such as steel-toed shoes, gloves and hard hats or bump caps. Proper lifting techniques protect backs. Safe lifting also prevents loads from shifting, falling, and crushing fingers, hands and toes.

Good housekeeping in a warehouse requires keeping dirt, oil and debris off the docks and floors. Floors should be non-slippery and free from pits and dents. Excess garbage, boxes, baling materials, and other recyclables should be removed and stored properly. Training on the hazards and attention to procedures will make sure warehouse workers stay safe.

Eric Martin, MBA, is a Senior Vice President at The American Consulting Group, Mission Viejo, CA, which assists organizations on a broad range of human resources, employee relations, and employer safety compliance issues. A Senior Consultant with the company’s HR and Safety Advisory Group, he has also helped hundreds of small and medium-size companies in wage and hour auditing, supervisory / management training, and complaint response, among other areas. He can be reached at (949) 452-1840 ext. 237

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