August 2008 - Retail Association of Nevada

AUGUST 2008
ENJOY THE REST OF YOUR SUMMER!
LOOKING OUT FOR BUSINESS
410 South Minnesota Street • Carson City, NV 89703-4272
775-882-1700 • www.rannv.org
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NEVADA NEWS
Prescription Drug Abuse in Nevada
I
n the movie “Terms of
Endearment” there’s a scene
in a hospital when Debra
Winger is dying of cancer
and her mother, played by Shirley
McClain, knows she is in dreadful
pain. McClain screams to the nurse,
“Give her the shot! Give her the shot!
Give her the shot!”
That scene in the 1983 movie
exemplified what was going on
in America then. Due to fear of
addiction, many people in pain were
forced to suffer.
Oh how the pendulum has
swung! For the past 20 years, the
treatment of pain has increased as
doctors were less concerned with
addiction than with relieving pain,
particularly pain caused by cancer. So
today we have a different problem.
Abuse of prescribed pain killers is
causing a conundrum for doctors
— treat the pain or worry about
addiction?
The most alarming abuse
of prescription drugs involves
substances classified under the
Controlled Substance Act as
Schedule II or III drugs. This can
include Vicodin, given by many
dentists for pain following tooth
extraction. These classes of drugs, by
definition, have a higher potential for
abuse but also serve an important
use in pain management. To
simply ban such substances would
undermine the legitimate purpose
of these drugs and increase the
By Liz MacMenamin
suffering of many patients. The
challenge is to somehow reduce
the abuse of these drugs without
infringing unnecessarily on the
legitimate use of these drugs in a
medical practice.
Nevada pharmacists have in
many ways been ahead of the curve
on this problem with the creation
of the Controlled Substance Abuse
Prevention Task Force. This program,
implemented in 1995, was designed
to identify and obtain help for those
who have a problem with substance
abuse.
Here’s how it works: Your doctor
gives you a prescription for a pain
killer. You take it to your pharmacist
who fills the prescription but he
also downloads the prescription
information to the Task Force, which
then uses the data to identify “doctor
shoppers” or those who have had
too many pain killers prescribed by
a variety of doctors. The Task Force
maintains a confidential Web site that
contains the names of those who
appear to abuse prescriptions.
Once an “abuser” has been
identified, the Task Force then sends
out letters to the patient’s doctor and
pharmacy requesting they intervene
either by refusing the prescription
or by referring the patient to the
appropriate treatment organization
or for counseling.
This process has the added
benefit of encouraging both the
physicians and the pharmacies
to recognize the potential abuser
and encourages them to review
the patients’ drug history, and
subsequently request reports instead
of waiting to be contacted by the
Task Force. The number of inquiries
has increased yearly since formation
of the Web site.
The Task Force also has the ability
to identify a practitioner who may be
prescribing in an unhealthy manner
and will also send an unsolicited
report to them regarding their
prescribing habits if it appears they
may be over-prescribing.
According to Dr. Larry Pinson,
Executive Secretary of the Nevada
State Board of Pharmacy, this tool is
only available to law enforcement for
investigation of an on-going case.
Through the efforts of the Task Force,
Continued on page 5
inside
Federal Victory for
Patients and Pharmacies....................2
Political Profile:
Sean Fellows...........................................3
Pharmacy Owners:
We’re in Trouble.....................................4
Election Year Updates..........................5
VONS and Elected Officials
Launch Fundraising
Campaign for MDA...............................7
Wage Boost to Pinch
Small-Business Owners.......................9
USDA Will List Retail Stores
Receiving Recalled Meat
and Poultry........................................... 11
Retail Association of Nevada • www.rannv.org
National News
Back-to-school will
challenge retailers
From an Associated Press story
Consumers, armed
with government rebate
checks, still have eyes only for
heavily discounted items and
necessities, and the critical backto-school season is looking like
another difficult period for the
nation’s retailers.
U.S. retailers reported
better-than-expected June
sales results, providing some
relief to merchants, particularly
discounters. In fact, Wal-Mart
raised its earnings outlook
based on robust results. But
even the extra cash from the
government’s stimulus checks
failed to spur major splurges,
leaving experts to predict a
return to overall sluggish sales.
Parents are expected to
stick to the basics like notebooks
and jeans. That may mean no
$100 suede backpacks, fewer
new tops for the kids and $2
pens might seem like too big a
splurge. More children may have
to wear hand-me downs passed
down from their older siblings.
Retailers are responding
with enticements to try to
grab limited dollars, such as
aggressive discounts on backto-school products. ◆
U.S. weekly food intake
has increased since 1970
From GMA SmartBrief
The average American’s
food consumption per week
has jumped from 16.4 pounds
in 1970 to 18.2 pounds in 2006.
Americans also consume an
additional extra quarter pound
of fat every week over 1970, and
dairy consumption has dropped.
AAP revises children’s
cholesterol guidelines
From GMA SmartBrief
The American Academy
of Pediatrics has altered its
cholesterol guidelines for
children and now recommends
that high-risk children as young
as 2 have their cholesterol
tested. The new guidelines also
say children can be considered
for cholesterol drugs at age 8
because some cholesterol issues
can’t be tackled with just diet
and exercise alone. ◆
FDA staffers to be
assigned overseas
by end of 2009
From FMI
The FDA is set to station
employees in China, India,
Europe and Latin America
by the end of 2009 to boost
the safety of food and drugs
imported to the U.S., said Murray
Lumpkin, the agency’s deputy
commissioner of international
and special programs. The
agency, which also intends to
set up offices in the Middle
East, awaits final approval from
China to permanently assign
personnel in the country. ◆
Life isn’t about
waiting for
the storm
to pass... It’s
about learning
to dance in
the rain!
Author Unknown
Federal Victory for Patients and Pharmacies
T
he National
Association of Chain
Drug Stores (NACDS)
was successful
in enacting pro-pharmacy
legislation that will promote
patient access and improve
health care. The House and
Senate voted overwhelmingly
to override President Bush’s veto
of H.R. 6331. The most critical
component of this legislation is
the delay of the implementation
of the Medicaid pharmacy
reimbursement cuts until
2
◆
By Liz MacMenamin
September 2009.
This delay will provide
more time to enact a longterm solution to the average
manufacturer price (AMP)
reimbursement model, which
would have reimbursed
pharmacies below their cost for
Medicaid prescriptions.
This bill also contained
several other pieces of
legislation that were needed
to continue to provide quality
health care to patients such as:
• Encourage electronic
prescribing in Medicare to
greatly improve efficiencies and
reduce medical errors.
• Delays implementation
of the competitive bidding
program for durable medical
equipment, thus insuring
that Medicare beneficiaries
understand the program and
that there are sufficient suppliers
to insure access to equipment.
• Ensure prompt payment
to pharmacies in the Medicare
Part D program because delays
in Medicare payments create a
cash flow problem for smaller
members thereby making it
difficult to serve the Medicare
beneficiaries as well as other
patients.
Our thanks to NACDS for
the hard work they have done
on the federal level to insure
that pharmacies in Nevada
can continue to provide the
level of service that is needed
to the Medicare and Medicaid
recipients. We will continue to
monitor this issue closely in
Nevada. ◆
www.rannv.org • Retail Association of Nevada
Political Profile:
Sean Fellows
REPUBLICAN CANDIDATE FOR ASSEMBLY DISTRICT 29
Assembly District 29 is an open seat, formerly held by Susan Gerhardt
By Bryan Wachter
Was there a certain event or
circumstance that made you
want to run for office?
My parents instilled in me the
belief that there is no higher
honor than serving my fellow
citizens. This conviction led to
my Active Duty service in the
United States Air Force. It is with
this same passion for service
that I seek the opportunity to
serve in the Nevada Assembly.
What do you do for a living
and how do you think that
experience will help you be a
better lawmaker?
Following my active duty
service, I worked as a
commercial real estate agent in
Clark County. This allowed me
the opportunity to see firsthand
how office, industrial, retail
and residential development
affects our community. Last
summer, I answered the call
and returned to a more fulltime Reserve status with the Air
Force. I currently serve as an
Intelligence Officer at Nellis AFB.
My military training has taught
me the leadership and critical
thinking skills required to make
the tough decisions. Also, I must
ensure that the experts in the
given field are consulted before
and during the decision-making
process.
If elected, what issues
do you intend to
pursue in the 2009
session?
I will work to improve
the quality of education
for all Nevadans and
increase the amount
of accountability and
fiscal responsibility
in government. I will
fight to keep Nevada
a business-friendly
environment by
opposing burdensome
regulations, and I will
fight efforts to raise
taxes on businesses.
We will not improve
our economy by imposing new
taxes on our businesses. Small
business is the engine that
drives the Nevada economy and
they deserve an advocate who
will ensure their interests are
protected.
Why are you the best
candidate for Assembly
District 29?
I have a proven track-record of
leadership. I will stand firmly
in support of policies that
encourage economic growth
and development. I believe that
state government does not have
a revenue problem, but it has
a spending problem. And I will
Facts/ Trivia
In 2005, Canada was the
single-largest trading
partner with the United
States. China was second
and Mexico was third.
Hershey’s Kisses are
called that because the
machine that makes them
looks like it’s kissing the
conveyor belt.
In 1975, Social Security,
Medicare and Medicaid
in the US consumed 25%
of all federal spending.
Today, the three
account to 43%.
fight everyday for government
to live within its means. We all
set spending priorities in our
own lives and businesses —
government should as well.
Mexico and Iceland
have the highest per
capita consumption
of Coca-Cola.
Is there anything you would
like to say to our members?
I welcome the opportunity to
speak with you directly to learn
more about your issues and how
the Nevada Legislature can best
serve you. You can find all of my
contact information at www.
seanfellows.com. Please don’t
hesitate to contact me. ◆
A lump of pure gold the
size of a matchbook can
be flattened into a sheet
the size of a tennis court.
Less than 10% of grocery
executives are women,
and 67% of store
managers are men.
◆3
Retail Association of Nevada • www.rannv.org
Pharmacy Owners: We’re In Trouble
PRESCRIPTION DRUG ACCESS MAY BE AT RISK
By Steve Flamisch of CBS Channel 6 in Albany, NY
P
harmacies
rely largely on
reimbursements
from two programs:
Medicaid and Medicare.
Many independent
pharmacy owners complain
Medicaid reimburses them too
little and Medicare reimburses
too slowly. Those combined
factors may force small drug
stores to close, possibly resulting
in fewer options and higher
costs for patients, some
owners said.
Pharmacists Society of the State
of New York, said other drug
stores may be forced to close
altogether, leaving patients
— especially the elderly, poor,
disabled, and those in rural areas
— with few options.
“You will see an increase in
emergency room visits, hospital
admissions, possible nursing
home admissions because
people aren’t able to take care of
themselves,” Corman said.
as quickly as it does national
chains, such as CVS and Rite Aid.
At present, national
chains get their money in 14
days, while small pharmacy
owners wait up to 90 days for
reimbursement, he said.
“That is back-breaking,”
Schumer said. “What’s happened
is lots of our local pharmacists
have had to actually take out
loans from banks and pay
interest because Medicare is not
paying them on time.”
Schumer’s bill was bundled
with another piece of legislation
concerning doctor and hospital
reimbursements. This bill passed
the last week of August. See
the article on Federal Victory in
this issue. ◆
E
L
B
U
O
R
T
MEDICAID
A state budget cut took
effect Tuesday, dropping the
Medicaid reimbursement rate
by 2.25%. The budget office told
CBS 6 the cut brings New York in
line with other states and with
the private sector, but pharmacy
owners fear it will result in
reduced services and closures.
“A lot of my customers
have come to us because of
the fact that we are able to ship
the medication to their homes
at no charge,” said Frank Reiss,
who owns Town Total Health in
Albany. “When it comes down to
the cuts, we may end up having
to initiate some type of service
fee to be able to do that. In
many cases, these recipients
are not able to afford it to
begin with.”
Reiss said he may also be
forced to slash store hours as
a result of the reduced profit
margin.
Selig Corman, from the
MEDICARE
U.S. Senator Chuck Schumer
(D-NY) stopped at Marra’s
Pharmacy in Cohoes Tuesday to
address the separate Medicare
issue, touting a bill that would
require Medicare to reimburse
mom-and-pop pharmacies
State Board of Pharmacy Update
T
he last meeting
of the board was
held in Las Vegas on
July 16th and 17th.
The following regulations were
heard at the public hearing:
1. LCB File No. R114-08:
Changes to the fees charged
to the providers of medical
products, authorized warehouse,
or medical product wholesalers
from $300.00 to $500.00 for the
investigation required for the
issuance of a business license,
and the same increase for the
licensing. Passed
4
◆
By Liz MacMenamin
2. LCB File No. R121-08:
This regulation added the ICPT
training for pharmaceutical
technicians as acceptable to
meet the requirements for
registration and renewal for the
techs. Passed
3. LCB File No. R115-08:
This regulation will allow the
pharmacists to administer
immunizations for all ages with
written protocols or prescription
orders from a physician. This
also requires reporting of
these immunizations to the
Immunization Information
System established by the
Department of Health and
Human Services. Passed with
a few cleanup changes to the
language
4. LCB File No. R116-08:
This regulation sets out clear
standards regarding the duties
of a pharmacist employed
or contracted with a surgical
center for ambulatory patients
by revising previous reporting
mechanisms and creating
policies and procedures that
are to be established by the
pharmacist. Passed
The board had a lengthy
discussion regarding patient
counseling in Nevada. Most of
the discussion related to the
fining mechanism now in place
for counseling. Some board
members felt that there was a
discrepancy between the fine
for this and the fine already in
place for mis-fills. Louis Ling
stated that he and Larry Pinson
will take a look at the fines and
present this at the next board
meeting. The president, Barry
Boudreaux, also discussed that
there is a need to look at what
constitutes acceptance or denial
of counseling. ◆
www.rannv.org • Retail Association of Nevada
Election Year Updates
RAN Walks for Raggio
T
By Bryan Wachter
he RAN team met with many supporters of the Bill Raggio re-election campaigned and helped the Senator
canvas his district with a get out the vote message. RAN,
along with 30 other volunteers, helped educate voters on
the importance of returning Senator Raggio to the state Senate and
why he is good not just for his district but for business too.
We are happy to report that Raggio won his primary by 550
votes, which shows us the importance of voting! ◆
Property Tax Cap
Petition Qualifies
for Ballot
A
By Randi Thompson
“Prop 13” style
the person who circulated the
tax initiative had
petitions failed to notarize the
enough raw
affidavits correctly.
signatures of
There is only one remaining
registered voters in all 17
statewide initiative, which
counties to qualify for the
addresses eminent domain, but
November ballot, the secretary
the legislature passed a bill last
By Bryan Wachter
of state’s office reported, even
session that renders the ballot
n a unanimous decision following weeks of deliberation,
the Nevada Supreme Court ruled that term limits were
constitutional—for some.
The Justices ruled that those whose terms began after
November 27th, 1996 are ineligible for re-election if they have served
for 12 or more years. Since the term of a state legislator begins the
day after the election the 1996 legislative term began before
November 27th and therefore those who were elected at that
time can run again.
The decision has been met with mixed results, mostly from
candidates who are now removed from the race as they feel that they
should have been warned that the Secretary of State was going to try
and remove them during this cycle.
The confusion stems from an older Attorney General’s opinion,
by then AG Del Papa, that stated that the term limit clock did not
begin until 1998. The decision came one day before early voting
began which means those who are ineligible will still appear on the
primary ballot but will not appear on the general ballot. ◆
though the amendment faced
question moot. However, there
a challenge from the state
are ballot questions at the local
teachers union who aimed to
and county level that could
keep it off the ballot.
raise taxes for roads and school
The initiative would limit
construction.
annual property tax increases
The highly publicized
to 2% per year on all property.
question to raise the room tax
Current law is 3% on residential
to go toward teacher’s salaries
and 8% on commercial property.
will only be on the ballot in
The teachers union challenged
Clark and Washoe Counties, as
the petition saying it had
all other county commissions
many of the same defects that
voted against placing the
disqualified three other petitions
question on the ballot in
earlier this year, specifically that
their county. ◆
Supreme Court Rules Some
Ineligible for Re-Election
I
there were instances where
Prescription Drug Abuse in Nevada Continued from page 1
addicts have been helped and
lives saved by their intervention.
All of us have a role in
this fight against addiction or
abuse of prescription drugs.
Too often, we get prescriptions
filled, do not finish them
and leave them sitting in the
bathroom medicine cabinet.
There, the drug is available to
children, visitors, and even other
family members, to borrow,
share or use. It’s necessary
that you dispose of any and
all prescriptions that you do
not finish. If you regularly use
prescription drugs, you must
ensure they are kept secure.
Children have been known to
experiment with many drugs,
including their mother’s birth
control pills! ◆
“A lot has been said
about politics; some of
it complimentary, but
most of it accurate.”
Eric Idle
◆5
Retail Association of Nevada • www.rannv.org
Around the State
Nevada Ranks 6th in
Business Climate
Nevada has the sixth-best
business climate in the nation,
according to a survey of U.S.
corporate executives released
this week.
In a three-year survey
conducted by Development
Counsellors International of
New York, Nevada was praised
for its low tax structure, strong
labor market and pro-business
climate. ◆
Governor Allows
for Tax Amnesty
By: Bryan Wachter
Governor Gibbons and
the Nevada Tax Commission
have put into place a one-time
penalty and interest tax amnesty
program that began on July 1,
2008 and ends on September
30, 2008.
The program only
encompasses sales/use tax,
the modified business tax and
the state business licensee fee.
The program is for persons
and businesses that have a tax
liability which was due and
payable on or before July 1,
2008. In order to qualify for the
amnesty program the taxes and/
or fees must be paid in full.
To take advantage of the
program mail your payment to
the tax department’s Carson City
office and write Amnesty on
the envelope as well as on the
payment record. DO NOT SEND
6
◆
PAYMENTS TO THE PROCESSEING
PROVIDER IN ARIZONA. If you
have any further questions
please contact the RAN office. ◆
US Immigration
Violations Enforced
in Nevada
By Tracey Woods
The U.S. Attorney in
Nevada recently prosecuted a
local owner of 11 McDonald’s
restaurants, levying a
$1 million fine on the owner
for immigration violations.
The company executives
pleaded guilty to charges of
“encouraging illegal immigrants
to remain in the U.S.” The US
Immigration office conducted
raids on the restaurants last
fall, arresting 58 McDonald’s
employees for suspected
immigration violations. The
federal government is clearly
sending a message that its
immigration laws will be
enforced. Through its lawyer,
the McDonald’s franchisee says
it has put it place policies to
prevent future violations from
occurring. ◆
Update on Electronic
Tax Payments
By: Lea Lipscomb
Effective July 1, 2008, the
Nevada Legislature requires
that “all payments of money
owed to a state agency for
taxes, interest, penalties or
any other obligations that,
in the aggregate, amount to
$10,000 or more must be made
by any method of electronic
transfer of money allowed by
the state agency.” Currently,
the Nevada Department of
Taxation only accepts ACH
debit through NevadaTax, their
online payment center at www.
nevadatax.nv.gov/web/.
Unfortunately, the Department
does not accept payment via
ACH credit. They are working
to incorporate this payment
type into their system. In the
meantime, taxpayers who are
required to pay taxes online
but do not have ACH debit
capabilities may continue to
remit their payments by check,
without penalty, until ACH credit
becomes an option. For more
information, please visit: http://
tax.state.nv.us/electronic_
payment.htm ◆
Food Bank Opens
New Energy Efficient
Warehouse
By Lea Lipscomb
Last month, the Food Bank
of Northern Nevada held the
grand opening for the new
Donald W. Reynolds Regional
Food Distribution Center. The
Food Bank’s mission “is to end
hunger through direct services,
advocacy, outreach and
education.” Their new facility
is almost 60,000 square feet,
triple their previous location,
and will double the amount of
food that the Food Bank could
previously acquire and distribute
by increasing room for storing,
packing and processing.
Their refrigeration and
freezer capacity has quadrupled,
which will allow for more fresh
fruits, vegetables and dairy
items, and the state-of-the-art
HVAC and glycol systems will
help store the food in a much
more energy efficient manner.
The Food Bank’s new location
will allow them to provide an
additional 2–4 million meals
each year.
The Food Bank is located
in the Tahoe-Reno Industrial
Park, east of Reno, and next to
the new Wal Mart distribution
center, which is helpful when
Wal Mart receives damaged
pallets of product. Broken
pallets are rejected en masse,
but the product is welcomed
at the Food Bank, which is a
member of the Second Harvest
Network.
In addition to Walmart,
many of our members have
partnered with the Food Bank
to donate food and provide
program funding. We would
like to thank J.C. Penney,
K-Mart, Macy’s, Model Dairy,
Raley’s, Safeway, Save Mart
Supermarkets, Scolari’s Food
and Drug Company, Smith’s
Food and Drug, Wal-Mart and
many other local retailers for the
support they provide the Food
Bank of Northern Nevada. ◆
www.rannv.org • Retail Association of Nevada
VONS and Elected Officials Launch
Fundraising Campaign for MDA
M
ore than
a decade
ago, Safeway
partnered
with the Muscular Dystrophy
Association (MDA) to use their
daily contact with the public to
gain support for the mission of
helping people with disabilities.
VONS, a division of Safeway,
kicked off its upcoming MDA
fundraising in Clark County
with State Senator Bob Beers,
Assemblyman John Oceguera
and Mayor Oscar Goodman.
The elected officials were
teamed with MDA kids for a
Store Sweepstakes.
“Through this remarkable
campaign, Vons has
positioned itself as one of the
transformational corporate
funders of neuromuscular
disease research,” said Senator
Bob Beers. “These extraordinary
results demonstrate the
dedication of Vons employees,
and the generosity of their
By Tracey Woods
customers, who consistently
come together for a common
cause.”
In 2007, Vons raised $1.2
million, one customer at a time.
Funds raised through the Vons
tear-pad campaign support
local and national services,
including medical clinics staffed
with specialists in muscle
disease and accessible summer
camp for kids. The local clinic
benefiting from the Vons tear
pad campaign is the University
Medical Center Enterprise Quick
Care. Local summer camp is
held at Nevada 4H Camp, “Camp
Without Boundaries.”
“Raising funds for MDA has
become an important latesummer tradition in Las Vegas,
as it has for Vons,” said Assembly
Member John Oceguera. “For
years, members of the North
Las Vegas Fire Department
have raised thousands of
dollars through our Fill the Boot
Campaign to support MDA,
Senator Bob Beers and Daymond Rice with VONS
making us their largest donor in
the State of Nevada
These funds also help
finance MDA’s worldwide
research program seeking
treatments for diseases such as
Duchenne muscular dystrophy
and amyotrophic lateral sclerosis
(ALS, or Lou Gehrig’s disease).
Up-to-date information about
MDA services and research can
be found at www.als-mda.org.
More than 200,000 Safeway
employees will take part in this
year’s campaign. Ask them how
Hayden Leavins
you can help between August 1
and September 2. ◆
JUST FOR LAUGHS!
“Barack Obama is now denying that he is email
pals with the beautiful actress, Scarlett Johansson.
Remember that story? They were saying that
Scarlett Johansson and Barack Obama were
emailing each other. He says no, it’s not true.
In fact his exact words were “I did not have
textual relations with that woman.’”
Back Left to Right: Assemblyman Oceguera, Firefighters from engine 43, Daymond Rice
Front Left to Right: Kristina Forzano, District Director for MDA and Robert Schwartz
Jay Leno
◆7
Retail Association of Nevada • www.rannv.org
The Path to Preference
RESEARCHER MEASURES A NEW WAY TO IMPROVE PRODUCT PERCEPTION
T
here is a moment
in the forming of a
preference when
the initial choice
is made. For example, when
a customer faces a grocery
display of ketchup brands and
settles on one brand to examine
more closely; when a student
walks into an athletic footwear
retailer and picks out a shoe
and hands it to a clerk; when
a new renter thumbs through
the yellow pages looking for a
nearby eatery and his eyes stop
on one ad. This moment is your
big chance, say your supporters.
Don’t blow it, so that’s where
all the energy, all the attention,
and all the investment goes. But
how to get that chance, how
to influence that moment of
choice . . .
Aparna Labroo, from the
University of Chicago, studies
perception in the formation of
preferences, and he noted that
past research has established
an important role for ease of
perception in the formation
of preferences. That is, when
a consumer faces a choice
task like the ones described
above, labels that are easy to
understand will attract enough
attention to win that battle
that begins and ends in less
than a second and is repeated
countless times in choice
situations every day: which one
to select first.
“That ad just jumped out
at me, right off the page.” “That
packaging and that label stood
out to me. I don’t know why. I
noticed it first and picked it up.”
Marketing experts know
that prior experience is the key,
and business owners spend
8
◆
By James Larsen, Ph.D.
huge amounts of money to
Bottles with animals pictured on
create it. Consider the example
their labels were selected first if
of the Nike shoe brand. Their
the corresponding animal had
television commercials typically
been primed in the word task
end with a brief, full-frame view
he had assigned to them earlier.
of their logo, the Nike arrow or
The difference was significant,
“swoosh.” This becomes a prior
and it helps explain the 600
experience, and in a choice
million dollars of yearly sales
situation, products displaying
such “critter wines” enjoy today.
it will be noticed first because
His second experiment
customers have an easier time
involved watches. He
perceiving the product. This
duplicated the effect of creating
advantage is valuable and is
preferences by priming his
considered part of the equity
subjects with common words
of a brand. But is this the only
associated with watches, such
way to create
as clock, dial,
a perceptual
and time, and
“Nearly a fifth of all table
prior
he also tested
wine brands introduced in a new kind of
experience,
to buy it with
the last three years feature prime, one that
advertising?
involved the
a prominent figure of an
Professor
appearance
Labroo thinks
animal on the label, e.g. a of the target
not. He noted
product. This
frog, a hippo, a penguin.”
the striking
second kind
success of a
of priming
new trend in labeling of table
word also worked, and the
wines, and it led him to conduct
combination of both offered the
a series of experiments that
strongest preference for specific
revealed a new pathway to
watches in the choice part of
creating prior experience.
the experiment.
Nearly a fifth of all table
Labroo’s final experiment
wine brands introduced in
involved dog shampoo.
the last three years feature a
Subjects were primed with
prominent figure of an animal
words associated with dogs and
on the label, e.g. a frog, a hippo,
then asked to choose between
a penguin. These figures explain
brands. Products that featured
nothing about the product,
a picture of a dog on the label
but people do have prior
were preferred. They were
experiences with these familiar
selected 33% more often than
animals – think Kermit the
identical products with the dog
frog. Labroo’s first experiment
picture deleted. For subjects
explored this process.
who had been primed with dog
Labroo “primed” his subjects
words, it was the picture that
by asking them to visualize
made the difference.
specific words, such as frog,
All of Labroo’s subjects were
hippo, and so on. Next, he
deliberately primed with words
presented them with a choice
that made the target labels
task involving the table wines.
easier to perceive, and it was this
ease of perception that caused
his subjects to select the target
brands more frequently.
Conventional marketing
practice directs business owners
to pay for this priming through
advertising and to use words
and images that relate to the
product, but Labroo has another
view.
Customers are being
primed with words, images, and
ideas all the time. Labroo thinks
we should take advantage of
this by placing unique images
on our labels and packaging,
in our signage, and in our
advertising. For example, the
word “highway” is primed for
many weary travelers, and the
Highway Diner brand takes
advantage of it. The green
background of Interstate
highway signs is used by
Freeway Muffler Shops. These
are unique visual identifiers
that are relevant for the target
market of these businesses, and
neither has anything to do with
the product the businesses offer.
What are important aspects
of your customers’ lives? What
images could you put in the
space you present to potential
customers that will trigger
these familiar images? Solve
this problem, and you could
give your retail business a little
head start in the race for new
customers. It would be like
starting ten yards down the
track in a 100-yard dash. ◆
Reference: Labroo, Aparna, Ravi Dhar, and
Norbert Schwarz (2008)
Of Frog Wines and Frowning Watches:
Semantic Priming, Perceptual Fluency, and
Brand Evaluation.
Journal of Consumer Research, 34
(April), 819-832. www.businesspsych.org
© 2008 Management Resources
www.rannv.org • Retail Association of Nevada
Wage Boost to Pinch
Small-Business Owners
By Ray Hagar, Reno Gazette Journal; Reprinted with permission from the Reno Gazette Journal
T
he federal
minimum wage
went up to $6.55 an
hour Thursday and
Jeanine Morgan considered it
just one more way to stick it to
small-business owners.
The rate increase could also
hurt employment opportunities
for youths and those seeking
part-time and temporary work,
employment experts said.
“This is enormous for a
small mom-and-pop business,”
said Morgan, owner of Big Apple
Pizza & Subs in Sparks. “It is just
one thing after another. It is the
rising cost of food. And now,
every vendor that brings us food
has something like a $5 or $15
surcharge. So we are getting at
all over. It is always something.”
More than 57,000 people
in Nevada work minimum wage
jobs, according to Nevada’s
Department of Employment,
Training and Rehabilitation. Yet
less than 10 percent of Nevada’s
1.3 million employees make less
than $7.78 an hour, according to
state statistics.
Not all who make minimum
wage in Nevada will be
affected by the federal law, said
Michael Tanchek, Nevada labor
commissioner.
Workers without insurance
benefits already make $6.85
an hour in Nevada and won’t
be affected by the new federal
standard, Tanchek said.
Workers with health
insurance and make the
minimum of $5.85 will see a
70-cent-per-hour raise in
their pay.
“That is the only group that
this will really affect,” Tanchek
said.
Many businesses already
pay more than the minimum
wage as a way to attract better
workers, said Len Stevens,
executive director of the Sparks
Chamber of Commerce.
“The bottom line is that it
costs more to train and then
lose somebody that goes
elsewhere and then re-train
someone else,” Stevens said.
“You might as well pay a little bit
more to keep your employees.”
Those trying to break into
the work force could be hurt by
the boost, experts said.
“One thing the minimum
wage does impact, and it shows
up in our statistics is youth
employment,” said Mary Lau,
president and CEO of the Retail
Association of Nevada. “So the
younger people trying to get a
summer job or work in between
school, there will be less of those
jobs available.”
Gaming industry workers,
and others whose tips make up
a majority of their income, will
benefit, Tanchek said.
“The other place where I
see it having an impact is in
commission/sales, where they
have the base money and the
commissions,” Tancheck said.
“The real money there is in the
commissions, it is not in the
base rate, but the base rate is
there to cover the employers.”
Tom Cargill, economist at
the University of Nevada, Reno,
said the boost in the minimum
wage will hurt all facets of
business.
“Some workers will benefit,
but some will lose their jobs,”
he said. “Everybody’s going to
pay higher prices, especially
restaurant food.”
And the timing of the raise
as the nation’s economy sours
couldn’t be worse, Cargill said.
“You have a large increase in
business costs while they’re
having to deal with rising costs
like gas,” he said. “Everyone’s
going to be hurt. It will be
especially hard on small
businesses and those who rely
on lower-skilled workers.” ◆
Federal Minimum Wage Increases
E
ffective on July
24, 2008, the federal
minimum wage
rate increased to
$6.55. This is the second of
three federal increases. The
next increase will take effect
in July 2009. In Nevada, for
employees to whom qualifying
health benefits have been made
By Lea Lipscomb
available by the employer, the
new minimum wage rate will be
no less than $6.55 per hour. For
all other employees, the rate will
be no less than $6.85 per hour.
This increase will also affect
Nevada’s daily overtime rates.
Employers must pay 1½ times
an employee’s regular wage rate
whenever an employee who
is paid less than 1½ times the
applicable minimum wage rate
works more than 40 hours in any
workweek or more than 8 hours
in any workday, unless otherwise
exempted. For employees to
whom qualifying health benefits
have been made available by
the employer, daily overtime is
required if the employee is paid
less than $9.825 per hour. For all
other employees, daily overtime
is required if the employee is
paid less than $10.275 per hour.
For additional information, you
may access the Office of the
Labor Commissioner’s website
at www.laborcommissioner.
com. ◆
◆9
Retail Association of Nevada • www.rannv.org
Important Information for
SIG Members
The NRS governing self insured groups requires notifying members of
all new members to the Nevada Retail Network Self Insured Group. New
members for NRNSIG from July 1, 2008 to July 31, 2008 are listed below.
A & J Global Enterprises
Abowd & Rose Financial Group
Access to Healthcare Network
Carniceria Dos Amigos 5
Century Landscapes
DeBug Computer
Gaston Wilkerson Assoc Services
Hot August Nights
Kids R Kids
Kietzke Furniture
Looking Glass Window Cleaning
Luxury Electronics
National Championship Air Races
Nevada Powersport Dealers Assoc
Nevada West Cycles II
Network Insurance Services
Northern Nevada
Title Company
Precision Metal Fabrication
Quality Glass & Window
Installation
Richard L Reich, DDS
Shadow Hills Master Assoc
Silver Lining Construction
Southwest Veterinary Hospital
Watch Trendz
Zocalos
NRNSIG members who wish to register a negative vote
on a new group member, please write NRNSIG at
575 S. Saliman Road, Carson City, NV 89701,
indicating which member and the reason(s) for the negative vote.
TAKE CONTROL OF YOUR WORKERS’ COMP COST
Be Part of…
The Nevada Retail Network
Certificate #5004
l Greater management control that cuts overhead costs
l Pre-employment screening at a small co-pay for NRN members only
l Team Safety/Loss Control Program for all members
l Investigation and defense of claims
l Direct savings that give members greater incentive to control losses
Take Control Today…
Call Mike Olson
800-859-3177
• Self Insured Group •
• Membership in RAN Required •
Sponsored by:
The Retail Association of Nevada
410 South Minnesota Street
Carson City, NV 89703-4272
Membership Information: Find out more about RAN’s self insured group.
Call Mike Olson, 800-859-3177,
or the RAN office at 775-882-1700 (toll free in Nevada 800-690-5959).
Don’t forget to check out our website, www.RANNV.org.
10
◆
www.rannv.org • Retail Association of Nevada
USDA Will List Retail Stores
Receiving Recalled Meat and Poultry
B
From the US Department of Agriculture
eginning in
August, the
USDA will begin
listing retail
stores receiving meat and
poultry products involved in
Class I recalls - those of the
most serious
concern to
public health.
For some
recalls, specific
product
information
useful to
consumers is
not available
to help identify
recalled
products that
may still be in
their home.
“The identity of retail
stores with recalled meat and
poultry from their suppliers has
always been a missing piece
of information for the public
during a recall,” said Schafer.
“People want to know if they
need to be on the lookout
for recalled meat and poultry
from their local store and by
providing lists of retail outlets
during recalls, USDA’s Food
Safety Inspection Service
will improve public health
protection by better informing
consumers.”
USDA’s Food Safety
Inspection Service (FSIS) will
post on its Web site a list
stores, convenience stores,
meat markets, wholesale clubs
and supercenters. FSIS will not
identify distribution centers,
institutions or restaurants, since
they prepare food for immediate
consumption without
packaging that
is identifiable
or available to
consumers.
During the
recall process,
FSIS personnel
verify that
the recalling
firm has been
diligent and
successful in
notifying its
customers of
the need to
retrieve and control recalled
products and that the
customers have responded
accordingly. During the recall
effectiveness checks, FSIS
compiles a list of subsequent
recipients as the recalled
products are traced through
each level of distribution to
the retail level. The list of retail
stores and locations compiled
by FSIS personnel during this
“Recall announcements from FSIS
always include the name of the
establishment recalling the meat or
poultry, the reason for the recall, a
description of the recalled product, any
identifying product codes, the recall
classification and contact information at
FSIS and the company involved.”
of retail stores that receive
products subject to Class I
recalls, the highest risk category,
generally within three to ten
business days of issuing the
recall release. A Class I recall is
one that involves a reasonable
probability of serious health
consequences or death for
those with weakened immune
systems. Retail stores include
supermarkets or other grocery
process will be posted on the
FSIS Web site www.fsis.usda.gov
and shared with State and local
public health officials where the
retail stores are located.
Recall announcements from
FSIS always include the name
of the establishment recalling
the meat or poultry, the reason
for the recall, a description
of the recalled product, any
identifying product codes,
the recall classification and
contact information at FSIS
and the company involved.
The additional information
releasing the names of retail
stores receiving recalled meat
and poultry will improve the
consumers’ ability to identify and
discard or return the products
they may have purchased and
may still have in their home by
checking the list of stores and
locations.
On July 17 the final rule
“Availability of Lists of Retail
Consignees during Meat
or Poultry Product Recalls”
published in the Federal
Register, and will be effective on
August 18, 2008.
Learn more at www.fsis.
usda.gov ◆
Upcoming Events
The Shop.org 2008 Annual Summit
Bringing together a diverse group of online and multi-channel professionals, featuring inspiring keynote addresses, tactical and
strategic afternoon breakout sessions, themed roundtable discussions, individual website tutorials, and plenty of networking
opportunities. Content is designed to meet the needs of our changing and growing membership base, and to provide you with
concrete action items and best practices to help you become more successful with meeting your business goals.
Sept 15 - 17, 2008 • Mandalay Bay Resort & Casino, Las Vegas • Visit www.shop.org/summit08
◆ 11
CAPITOL WATCH
Crime Bills Introduced in House and Senate
Senator Dick Durbin (D-IL) and Rep. Bobby Scott (D-VA) introduced bills in both the House and the Senate to help fight organized retail
crime in retail settings.
The Combating Organized Retail Crime Act of 2008 was introduced in the Senate, while in the House the E-Fencing Enforcement Act of
2008 is the bill’s title.
The legislation is intended to stem the growing problem of organized retail crime by providing much needed clarity within the U.S.
criminal code to prosecute such criminal behavior as a federal felony, including the facilitation of such illegal activities. Organized retail crime is
responsible for over $30 billion in losses annually, resulting in increased costs for merchants, higher prices for consumers, and lost tax revenue for
state and local governments.
Congress sends product-safety legislation to White House
From NRF SmartBrief
Congress sent legislation to the White House that would increase funding for the Consumer Product Safety Commission, broaden the
agency’s power and set new standards for lead and other chemicals in children’s products. NRF believes the bill is an improvement over earlier
versions, but still has concerns about how it will be implemented, the tight time frame for implementation and the overall cost.
ORC Legislation Introduced in House
By Lea Lipscomb
In addition to the bills listed above, the Organized Retail Crime Act of 2008 (H.R. 6491) was introduced in July by Representatives Brad
Ellsworth (D-IN) and Jim Jordan (R-OH). This bill would define organized retail crime to include the theft, transportation and resale of stolen
goods and make it a federal crime. This measure would also require operators of online marketplaces to monitor high-volume sellers and to help
investigate complaints regarding the sale of suspected stolen items.
“These thieves steal more than $30 billion in merchandise a year. They endanger public health by adulterating products such as infant
formula and medicines and selling them to unsuspecting consumers often through illegitimate retail outlets. Numerous stolen goods are fenced
on Internet auction sites,” said John J. Motley III, FMI senior vice president of government and public affairs.
Joseph LaRocca, NRF vice president for loss prevention, added, “The introduction of this bill shows that Congress realizes organized
retail crime is more than just shoplifting. This legislation will make organized retail crime part of our federal criminal statutes, and give law
enforcement officers and prosecutors the tools they need to put these criminals behind bars.”
Nevada News
Nevada News is published by the Retail Association of
Nevada, a nonpartisan, nonprofit corporation
founded in 1969 representing the Retail Community,
the Chain Drug Council and the Grocery Industry Council.
Mary F. Lau
President/CEO
Tracey Woods
Vice President of Government Affairs
Elizabeth MacMenamin
Director of Government Affairs
Lea Lipscomb
Director of Government Affairs
Bryan Wachter
Strategic Affairs Coordinator
Mike Olson
Account Executive / Workers’ Comp
Randi Thompson
Newsletter Editor
Sue Arzillo
Newsletter Design & Layout
Retail Association of Nevada
410 South Minnesota Street
Carson City, Nevada 89703-4272
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STANDARD
U.S. POSTAGE PAID
CARSON CITY, NV
PERMIT NO. 98