NARMS Adopts Code of Ethics

The NARMS Board of Directors has adopted a broad statement of business practice beliefs captured in a NARMS Code of Ethics. The statement was developed for NARMS members incorporating all segments of our industry with the goal of improving the quality and high performance standards for our customers. With the establishment of this Code of Ethics, all NARMS members are expected to adhere to these principles in good faith.

The unabridged version of the Code of Ethics is a list of statements having to do with Integrity, Confidentiality, Conflict of Interest, Competition, Performance of Contracts/Agreements, Influences and Commitments to the Employees and Service Representatives. The complete NARMS Code of Ethics is listed on page 16 of this newsletter and is also readily available at www.narms.com.

Donna Stevenson is Vice President of The Stevenson Group, Canton, CT.

Sphere: Related Content

The Nexus Connection

Sales tax seems to be everywhere these days. It used to be that you would order something from a catalog and there would be no tax. Now, even internet retailers are charging tax.

Not much has actually changed in the laws. The states are just becoming much stricter about the collection of tax by out of state retailers. The states have been scrutinizing retailers to make sure that the right taxes are getting collected. A retailer is required to collect tax in the delivery state if it has established nexus in that state.

What is Nexus?
Nexus is a connection between the state and a company. When a company has nexus in a state, the state may impose taxes on the company. Nexus is defined by most states as keeping any sort of office, warehouse or place of business in the state as well as activities by individuals such as having a representative, agent, salesman or solicitor operating in the state under the authority of the retailerÐeven if the individual isn’t an employee. These activities can create nexus even if performed in the state on a short-term temporary basis. In the modern technological environment, states are even trying to look for ways to establish nexus through the Internet and electronic commerce.

If your company has nexus in a state under their guidelines, you will be required to register to collect and remit taxes. It is important to pay close attention to where you have nexus because even if you are not aware of the connection, you are still responsible for any liabilities. Failure to pay these taxes could result in financial and criminal penalties.

There are several factors that may contribute to state interest in your company. If your company is conducting frequent business in the state, or participating in high-visibility activities like trade shows, you will be more likely to attract attention. Also, if your company conducts business with state and local agencies, this will certainly draw the attention of the department of revenue.

What Solutions Are Available?
If you find that you have nexus and are not registered, you should start evaluating your options. At the very least, you should begin obtaining exemption certificates from any exempt customers. You should also approach your customers to find out if they self accrued the use tax. These actions will limit your liability.

Most taxing authorities do not have a statute of limitations if the taxpayer has not filed returns. This means that the state can hold a taxpayer responsible for every transaction since nexus was established. Some companies, upon learning of their liability, may contact a third party who will facilitate a voluntary disclosure agreement. This agreement occurs when a company comes forward, before any sort of contact is made by the state, and offers to come into compliance. This agreement usually limits the number of years a taxing authority will go back. Penalty and interest concessions are also common in this sort of agreement. States also periodically offer amnesty programs. Indiana offered one earlier this fall and Ohio has one staged from January 1, 2006 to February 15, 2006. Amnesty also became available under the Streamlined Sales Tax agreement with participating states starting this fall.

Any company making retail sales or providing taxable services needs to be careful in this modern environment. Researching a company’s nexus can be as easy as an auditor looking at their website. It’s very important to make sure that you’re square on your sales tax.

Sphere: Related Content

Creating your future

Recently I had lunch with a friend who started, and now operates his own software company. During his description of the pressures on him while trying to squeak out a margin in what is a very difficult and competitive market, he just stopped and declared: “My customers want more than they are willing to pay for, the industry is changing so fast, and I just feel like I am trying to manage in chaos.”

Wow, I thought, what a perfect lead in to talk about the event staffing business. Software and product promotion do not have much in common, but we were able to swap many stories about the demands of the marketplace, the lack of desire to pay for those demands, and the constant state of near chaos created by the rapid pace of change.

We concluded that these conditions are probably not only inherent in our businesses, but more likely a general condition of American business today. We also concluded that it is very easy to feel overwhelmed and, in a sense, “freeze”Ðstopping your company’s movement forward because you believe that you have very little control over your own destiny. Too often, this is the default position for most companiesÐhunker down and hope that things will get better, and that your company will be standing in the end. The problem with that course of action is that: “hope” is not a strategy and, secondly, it is a fallacy to think that there ever is an end.

If most companies just sit back and hope to ride out the storm, that market condition opens up tremendous opportunities for the bolder companies that take inventory of their value in the marketplace, create a strategy, and then embark on executing that strategy.

There is no question that the event staffing marketplace is changing, that the various players in the industry are testing new methods, and the margin for success and error are both small, but the very fact that you are reading this article is a testament to you not being one of the many businesses that have decided to close their doors after their “strategy” of hope failed to deliver. You have successfully navigated your company through the rough waters of this industry before, and now (yes, I know it is tiring), it is time to step up and do it again.

Invest in your technology, expand into new markets, acquire a complementary company, stop taking on the wrong kind of business, but do not just “hope” because you may just surprise yourself on the progress that you can make.

Alright…enough…

The 2006 NARMS Annual Conference at the Amelia Island Plantation, Florida from April 1-4, 2006 still seems far off, but I would like to commend the efforts of Jeanne Scott and her subcommittee of Judy Bell, Julie Nichols, and Sadie McGoodwin. They are already working hard to put together a nice docket of speakers for all of us. Already confirmed is Kelly Ann Conway, the president of the polling company (www.pollingcompany.com). Many of you may know Kelly as she has appeared on national television and cable programming. Her insights into consumer behavior are always unique and enlightening, as is her new book: What Women Really Want. Additionally, former Wal-Mart Vice Chairman Don Soderquist will address the general session on Monday, April 3rd. Don will speak on “Ethical Leadership in a Rapidly Changing Society”. Invitations to other industry notables have been extended and we hope to have more news to report soon.

It would not be a newsletter article without asking for money right? At least Dan would second that thought. The Event Marketing division has responded well to the various sponsorship opportunities. Thank you. Funny thing, we still need more. Even if you are not able to sponsor a meal, speaker, or event, please consider a $100 “friend of NARMS” donation by emailing Dan at dborschke@narms.com. Dan assures me that all funds will be put to very good use.

Finally, keep your eyes peeled for the six NARMS advertisements to appear in Supermarket News. The first ad, in the November 7th edition of the magazine focused on awareness of NARMS’ members and their capabilities. Ironically that might help you work out the whole “strategy” thing that I mentioned above. Create your future; do not rely on “hope”.

Todd Taranto is President of
Decision Tree, Wheaton, Illinois.

Sphere: Related Content

Is it too early to thing Spring?

Like me, you’re probably not really ready for the Holidays quite yet; much less thinking and planning for the NARMS Spring 2006 conference at beautiful Amelia Island Plantation in Florida. But plan we must and I believe if you’ve reviewed the materials about the conference that were recently circulated, you already know that another great program is in store and I sincerely hope you’ll take the time to submit your reservation to attend.

I would also like to take a moment to say thanks to all of the NARMS board, the members, their staff, and various customers and retailers for reaching out to help the displaced families in and around the states affected by the recent hurricanes. For most of our members in the southern states, Mother Nature has touched them in some way or another during this past year. Let’s all hope for a better weather in 2006!

Your MSO division committee has taken your suggestions and tried to position another educational agenda. With the success of the Super Session last year, the MSO committee suggested we involve all members in a NARMS SUPER SESSION with panel members from all service sectors within NARMS taking part. The success of the MSO Super Session brought about great dialog between manufacturer members, retailers, and of course NARMS members.

We again are calling on Mark Hunter to moderate this important session, with questions to be provided by members prior to the session. Please watch for your opportunity to offer up those questions you’ve always wanted to ask, but may have felt hesitant in an open session environment.

We would like to thank our fellow committee members for the consideration and faith they exhibited in supporting a combined Super Session.

If you’ve missed attending a closing event dinner in the past; this is the one you won’t want to miss……..did I say BEACH PARTY! Please plan to stay and unwind with your fellow NARMS members! On behalf of my fellow MSO committee members, here’s wishing the happiest of holidays to you, your family and friends. Be safe! I hope to see you in April.

Tom Caddell is Senior Vice President, Merchandising Advantage Plus, Westminster, Colorado

Sphere: Related Content

PICS Are Looking Ahead to 2006

As we all start thinking about another year coming to a close, it’s also time for planning our New Year strategies.

Hopefully everyone has had a good prosperous year in 2005. Our retail business this time of year usually sees a slowdown as retailers are reluctant to have us in their stores during the busy holiday season. While it is a good time to take a deep breath, reflect but then figure out where we are going and how we are going to get there.

During the past year we have all seen continuing changes in retail; some of which we’d call good and some bad. We see smaller companies being bought out or merged into larger operations and see larger retailers being managed by Investment Companies.

At any rate, it has become increasingly competitive. Sometimes the best company for the job may not be the one who ends up with the job. Like everyone else in an effort to hold costs down, retailers have become more aggressive with their Reverse Auctions, project managers’ giving out our numbers hurts us all, and makes us be on our toes.

NARMS can help us all grow. Education and Information. That’s what it’s all about. We hope to help our PIC member companies by being well informed and have tried again to put a line up of speakers in place at the NARMS Spring Conference that will answer those questions we all have. That knowledge lets us all make those more informed decisions that in turn can make us more successful.

We look forward to participation in the 2006 PIC track program. Considered an expert in his field by the Association of General Contractors, Chuck Marceaux heads up the licensing department of the State of Louisiana and has graciously agreed to host our workshop on State Licensing.

I hope you’ll consider attending the 2006 NARMS Spring Conference. A strong program and excellent networking opportunities await you. You won’t be sorry!

Have a Safe and Happy Holiday Season! See you in 2006!

Sphere: Related Content

Manufacturers Plan Ahead

The NARMS Manufacturers’ Advisory Board held its meeting on October 4 - 5 in Las Vegas with a primary focus to finalize our plans for the upcoming NARMS Spring Conference and Exhibition. Dan Borschke started the meeting off with an update on NARMS, the Spring Conference and variety of other topics. Bob Stoik provided the manufacturers with a NARMS Board of Director’s update which we found very informative.

After some great discussion, we accomplished our main objective in working out all the details and sessions for the Spring Conference. We have scheduled our Advisory Board Meeting for Saturday, April 1st from 6:00 - 8:00 p.m. We are also having a Manufacturer Member Session open to all Manufacturers on Sunday, April 2nd from 3:30 - 6:30 p.m. I am pleased to announce that we will again host Bryan Gildenberg from Management Ventures, Inc. as a presenter, taking what we heard last year to another level. Specifics on this presentation are being worked on.

On Monday, April 3 from 7:00 - 8:45 a.m., we will have a Manufacturer’s Breakfast Session for networking and on Tuesday, April 4th a joint breakfast session with MSO/Manufacturers. We’ll have a closing session for all NARMS Manufacturer members on Tuesday, April 4th from 4 - 5:00 p.m. These will all be outlined in the final Spring Conference agenda.

The balance of our meeting was spent on shared group discussion topics. Those attending shared their own retail organizational structure and it was agreed that we will develop a Manufacturer Profile on retail capturing some of this data. We also discussed scorecards and how we individually measure retail performance. As a very diverse group, the scorecard examples some shared proved to be extremely interesting for all.

Additionally for this meeting, everyone was asked to bring along a Success Story or a “Best Practice” to share with the group. Other topics included customer penetration at the headquarters or field operations level, customer preferred vendor programs, overall retail execution and several others. Overall, I’m sure that everyone at the meeting took away something that could benefit their own organization, making this volunteer service opportunity beneficial.

Since this will be the last newsletter in 2005, I want to take this time to thank all Manufacturers’ Advisory Board Members for their support and involvement this past year. I also want to wish everyone a very Happy Holiday Season. We look forward to the 2006 NARMS Annual Spring Conference at Amelia Island Plantation and hope our contributions help in making this meeting a huge success.

Happy Holidays!

Dieter Gobbelet is National Retail Manager, Bayer HealthCare, Basking Ridge, NJ.

Sphere: Related Content

NFRA Provides Networking Opportunity

Over 100 guests attended the NARMS-IFBA sponsored reception at the National Frozen and Refrigerated Foods Convention (NFRA) in San Francisco in October. This event gave added exposure and networking opportunity to IFBA members attending on the eve of the NFRA show.
NARMS member companies that stepped up to become active sponsors of the reception event for NFRA attendees included Alliance Sales & Marketing; All Seasons Brokerage Company; Co-Sales Company; DeCredico & Associates; Douglas & Associates; Eastern Sales & Marketing (Great Lakes, Metro and New England Regions); Johnson O’Hare Company; KCBS-Cincinnati; SellEthics Marketing Group, Inc.; Star Brokerage; Team Northwest Sales & Marketing and The Performance Group.

The IFBA Division of NARMS ran its final full-page advertisement of 2005 in the December 12 edition of Supermarket News. This issue included SN’s Strategic Planner, 25 key initiatives and an industry trade show calendar for 2006; giving additional shelf life to the information shared within, including the IFBA ad.

Program planning continues for IFBA’s third annual Top to Top Executive Conference slated for the Wyndham Hotel, Chicago, IL on May 4-6, just prior to FMI’s annual conclave held at McCormick Place. The series of receptions and joint meal functions give manufacturers and food brokers extra interaction as the majority of food industry players gather for the FMI event.

Chip O’Hare is President of Johnson O’Hare Company, Inc., Billerica, MA.

Sphere: Related Content

NARMS Background Screening Program

Now more than ever, it is essential to hire trusted employees/independent contractors to protect your company as well as the clients with whom you work. Protect and defend your business from theft, workplace violence and fraud by screening your applicants prior to hire.

In order to provide you with the best products available in the background screening industry, NARMS has partnered with USIS to provide a variety of services to its members. USIS is one of the largest providers of background screening services in the nation and offers the following products to NARMS members:
Widescreen National Criminal Search
Social Security Search
Sex Offender Search
Wanted Persons Screen
Terrorist Watch List
Retail Theft Database Screen
You may recall NARMS leadership engaged a program with USIS in late spring to assist members in meeting their background screening needs for a nominal fee of $8.00 per screening. USIS is a premier provider of background screening services, as well as the partner you need to ensure you are making wise hiring decisions and building a quality workforce. In USIS you have a NARMS member and conference exhibitor that is a proven, reliable and adaptable data company ready to help meet your background screening needs.

Although none of the elements in the NARMS screening package are useful in Canada, USIS can offer Canadian Criminal records searches if member companies need such access in that market area. For more information about the NARMS screening package, please contact Stephen Sorbara, National Account Manager, U.S. Investigations Services, at 800-993-8762 or e-mail stephen.sorbara@usis.com.

Sphere: Related Content

NARMS Announces Aussie Chapter

After months of development, NARMS is proud to announce the establishment of a new chapter of our organization “down under” in Australia. Several of our Australian members attended last year’s spring conference and have since proposed a plan to formalize a NARMS-Australia, giving current and potential NARMS member companies in that part of the world a gathering place to network and improve their retail support businesses and a shared voice on industry issues.

The arrangement is also of value to the current membership in North America and organizational structure. “This gives our North American members a global partnership,” says NARMS Board Chairman, Tom Dennis of Prism Retail Services, Itasca, IL. “We can expect this is a first step in a developing global rollout of NARMS. With current members also identified in Greece, the UK and Japan, we anticipate this newfound energy towards retail services in Australia will ultimately lead to growth in areas of Asia as well.”

“In some ways our Australian retail industry is an infant by comparison to North American companies,” says Peter Tully, principal instigator of the NARMS-Australia chapter founding and executive chairman, The Marketing Department Group, specialists in retail brand health, with offices in Sydney, Melbourne, Auckland and Kuala Lumpur. “We intend to use the U.S. model to develop the retail services industry and look forward to working with and learning from other NARMS member companies.”
Of particular value to the Aussies is the ability to jump-start involvement in job position and profile listings to traffic retail employment on www.narms.com. As the parent organization, NARMS is working with webmanager Gerard McLean to offer specific linked web services to the new chapter as expeditiously as possible.

The funding arrangement outlined in the contract proposal offered up by a core group of Australian active NARMS members will provide NARMS-Australia operational working capital from a shared membership dues structure. Parent-group NARMS will benefit from the web-based income at www.narms.com from company recruitment/placements in The Recruiter and employee/independent contractor listings in JobBank making it a positive arrangement to all parties.

Sphere: Related Content

With humble thanks

Fresh off a Thanksgiving feast and looking forward to a great Holiday Season with special get-togethers of family and friends, it only seems appropriate to reflect a bit as the year 2005 winds down. Certainly this time of the year gives me reason to be thankful for the many blessings in my life, including family and friends and working with and for good people. My family and I just enjoyed Thanksgiving “back home on the farm” which has been probably the most “constant” of anything that’s ever been a part of my life.

This year for the 61st consecutive year, my Mom and Dad hosted Thanksgiving at our small farm in southwestern Wisconsin where I grew up. In some ways that seems a remarkable accomplishment in a chaotic world and modern society where basic family values seem challenged at every turn.

No, for those wondering how old I am; I wasn’t there for the first one! But, since my elderly parents are each tending to some health ailments at advancing age and are less able to do everything they once could; Thanksgiving has become a shared family effort. As we share in the planning, extra cleaning, preparation and of course the feast itself, perhaps each of us gains an appreciation in our enjoyment that for way too many years was taken for granted. The efforts by my four sisters and one brother, their spouses and families create a common loving shared experience that I can only hope is making a lasting and meaningful impression on my children and the next generation in a positive way.

We’ve taken turns over the years in hosting other family gatherings at holidays, birthdays and other special event times, but the one constant has been Thanksgiving Day at the farm. In an agricultural family that seems appropriate considering the true meaning of Thanksgiving relates back to the autumn harvest in both a symbolic and real sense from the days when the native people of North America gave thanks for the successful harvest.

As we count our Thanksgiving blessings and look towards a festive holiday season, let me also take a moment to express my appreciation of NARMS, its members and employees and everything it is attempting to do for its members. In my first months here with the NARMS staff, Dan has encouraged me to visit with NARMS member companies as I have participated in other industry meetings or events around the country plus taken the opportunity to get to know other key contacts of member companies.

The warm reception by all those folks during these visits to date in places like the Twin Cities, Chicago, San Francisco and Toronto area has been a great blessing to me. As I recently told the rest of the staff; the efforts by NARMS founding father, Gary Ebben, past staff and continuance by Dan Borschke and current staff members: Sue Witkowski, Paulette Blaskey and Tami Kubowski are efforts that preceded me in generating respect and appreciation for what NARMS stands for.

NARMS is a unique organization, with a diverse membership among divisions that each supports the retail process. Yet, despite the literal differences in the day-to-day activities each member company has, the feeling of being a part of something that is like family is consistent widely across the membership. And feeling like family in the association business is what it’s all about! Happy Holidays!

Sphere: Related Content

Next Page »