August 2008 - Retail Association of Nevada
Transcription
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 l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l 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 PRESORTED STANDARD U.S. POSTAGE PAID CARSON CITY, NV PERMIT NO. 98