MLA LINE

Vol. 4, No. 16 – August 1, 2005 

Upcoming Opportunities to Reduce Your Company's Risk 

Are you taking advantage of all the resources on risk management available to you from NLBMDA? 

September 29, 2005 - Attend the NLBMDA Risk Management Meeting in Vancouver, BC. Breakout sessions will be devoted to sharing information and best practices on safety, contract negotiation and insurance coverage.

September 30, 2005 - Attend the first ever “LIVE” Training Without Travel Teleconference on “How to Handle an OSHA Inspection.” As part of the 2005 NLBMDA/ProSales Industry Summit, attendees will be able to learn and participate in person and, as usual, participants will be on the phone from around the country. Presented by safety expert Ron Koons of Rosako Safety, Inc. who has more than 30 years of management experience and regularly consults with lumber dealers to improve safety and comply with OSHA regulations. Don’t miss this chance to learn what you can do when OSHA comes knocking. To register for the Industry Summit go to www.dealer.org. 

Also, check out the resources available on the web at www.dealer.org under Regulatory Affairs, Risk Management and the latest collaboration with OSHA at www.osha.gov/SLTC/nlbmda/index.html. More information is available by calling NLBMDA at 800-634-8645.

 TEN Things Your Customers Won't Tell You
(But We Will!)

By Nancy Friedman, Telephone Doctor 

Most business owners know that customers will take their business elsewhere if they're not treated as they'd like to be. But how does a business owner find out what the customer really likes or dislikes? Your customers have told us what they are unlikely to tell you directly. Here are TEN things only a friend will tell you: 

     I'm not a person to be confrontational and cause a scene. However, there are several things that bother me when I call or walk into an establishment. If you pass this on to management, it couldn't hurt and probably would help. Thank you.

 Dear Owner/Manager:  

2.   Your sales staff looked tired. Yeah, they did. Otherwise why wouldn't they greet me with a big smile and some enthusiasm? It didn't look like they even wanted me in the place.

3.   I bought a lot. I couldn't believe no one said, “Thank you.” No one told me to enjoy my purchase. I did get a lukewarm “Have a nice day.” But it was said so perfunctorily, it didn't mean anything to me.

4.   When I phoned for some information, my call was treated as an annoyance. I sensed very little desire to be of any real help. Know what I did then? I called a few more places until I found one who sounded as though they wanted me to come visit them right now.

5.   Whoever answered your phone never identified themselves. I happen to like to know who I'm talking with and when I don't, it hurts any trust I might give your company.

6.   During the phone call, your staff's voice sounded aggressive and challenging. I didn't feel very welcomed.

7.   By the way, all your employees were talking and laughing amongst themselves and ignored me until I was ready to pay for my merchandise.

8.   There was no management around. Remember the old saying, “When the boss is away, the mice will play.” Guess what? They do!

9.   When I told your staff about my problem, which was important to me, no one sympathized with me. It was ‘business as usual’ for them.

10.  Everyone looked angry. No one was smiling. Remember, sometimes it’s the things you ‘don't do’ that make me want to go elsewhere.

 Thanks for listening.

Signed,

Your customer  

We all know these are basic common sense topics, but we also know that basic common sense isn't too common. 

Nancy Friedman is president of Telephone Doctor, a customer service training company in St. Louis, Mo. You can contact her at 314-291-1012.

NLBMDA Announces Lumber Dealers Political Action Committee (LuDPAC) Additions 

Clay will represent Region Three, which includes Iowa, Indiana, Illinois, Michigan, Minnesota, North Dakota, Nebraska, Ohio, South Dakota and Wisconsin. In addition, Yenrick joined as a representative of Region Four, covering the states of Alabama, Florida, Georgia, Kentucky, North Carolina, South Carolina, Tennessee, Virginia and West Virginia.  As LuDPAC Trustees, Clay and Yenrick will work with fellow Board members to promote LuDPAC to their fellow dealers and solicit feedback to guide LuDPAC’s candidate selection process. 

LuDPAC’s mission is to engage lumber and building material dealers in the political process and promote the building material industry’s legislative agenda by electing industry-friendly, pro-business candidates to federal office. LuDPAC helped elect five new members of Congress during the last election cycle, and plans to increase the industry’s level of support for our champions in Congress in the coming year.   

Additionally, the Board is responsible for setting fundraising goals and overseeing fundraising activities. The Board’s goal for the 2005-2006 election cycle is to raise $120,000, of which more than $40,000 or 34 percent has been successfully raised to date.   

Along with LuDPAC Chair Jesse Brand (Brands Inc., Indiana) and fellow LuDPAC Board members Seth Arluck (New Hampton Lumber Co., Inc., New York), Dan Welty (Jones-Berry Lumber Co., Illinois), Scott Yates (Denver Lumber Co., Colorado), Harold Baalmann (B&B Lumber Co., Kansas) and Kip Coleman (Hamilton Supply Co., New Jersey), Clay and Yenrick look forward to working with the state and regional associations and fellow dealers to increase political involvement within the lumber and building material industry. 

 Good Faith Pays 

Are you making a “good faith” effort? It can really pay off in a big way. Concerning an OSHA inspection, did you know you can often get 25 percent credit for having a written safety and health program in place? Your program must reflect appropriate management commitment and employee involvement. In addition, your program should identify:

·         Hazard preventions;

·         Measures to control hazards;

·         Safety training; and

·         Any deficiencies found must only be incidental. 

According to Section 8 of OSHA’s Field Inspection Reference Manual CPL 2.103, a company can expect a full 25 percent credit for “good faith” if: 

1.   A written safety and health program is in place.

2.   There is appropriate management commitment and employee involvement.

3.   Worksite analysis has been done for the purpose of hazard identification.

4.   Hazard prevention and control measures are in place; and

5.   The company provides safety and health training. 

A reduction of 15 percent will normally be given if the employer has a documentable and effective safety and health program, but with some deficiencies. 

No reduction shall be given to an employer who has no safety and health program or where a willful violation is found. 

Where young workers less than 18 years old are employed, the OSHA inspector’s evaluation must consider whether the employer’s safety and health program appropriately addresses the particular needs of such workers with regard to the types of work they perform and the hazards to which they are exposed. 

A reduction of 10 percent will be given to employers who have not been cited by OSHA for any serious, willful, or repeated violations in the past three years. The total reduction will normally be the sum of the reductions for each adjustment factor. 

Source: The Safety Sentinel, Vol. 9, Issue 2, published by Regulatory Consultants, Inc. MLA endorses RCI to assist you in complying with federal regulations. Contact them at 1-800-888-9596 or visit their web site at www.rci-safety.com 

LUMBER NEWS – QUICK GLIMPSES 

 Source: Colleen Levine, NLBMDA Government Affairs Update, July 18, 2005 

Source: Colleen Levine, NLBMDA Government Affairs Update, July 18, 2005

Source: Colleen Levine, NLBMDA Government Affairs Update, July 18, 2005

 Source: Bob Losyk’s Tips You Requested, Vol. 7, No. 5, July 2005 (Bob Losyk, MEd., M.B.A., C.S.P. is a Certified Speaking Professional, master trainer, author, and President & CEO of Innovative Training Solutions, a Greensboro, NC consulting firm.  For more information on Bob’s keynotes, seminars, best practices facilitation, panel discussion leader, and products, please visit his websites at www.boblosyk.com and www.getagriponstress.com or call 1-800-995-0344.) 

Similarly, International Paper may soon begin the selling of Texas properties, after announcing its intention to concentrate on its ‘uncoated papers’ and industrial and consumer packaging sections. 

Rick Ouellette, IP’s spokesman, explained, “Right now it’s early in the process. It’s strategy options that we’re looking at that could possibly be the sale of segments of our forest lands or potentially all the 6.8 million acres we own.”

 Source: LBM Daily, July 22, 2005 

Other approaches include the Housing America’s Workforce Act (S 1330) to create a tax credit for businesses that offer housing assistance programs to low- to moderate-income employees and the Community Restoration & Revitalization Act (HR 3159) to expand existing tax credits for historic rehabilitation and low-income housing. 

Source: Ellen Hackney, North American Retail Hardware Association, July 25, 2005 

After Latest Round of Talks, U.S/ Won't Budge on Duties Issue… Sticking to their positions, the United States and Canada concluded the latest round of negotiations regarding America’s imposition of duties on Canadian lumber companies.

Carlos Gutierrez, the U.S. Secretary of Commerce, indicated that the U.S. intends to stand firm on its controversial decision not to refund the estimated $6 million in duties collected over a period of years.  

When questioned about the decision’s implication for the future, Gutierrez stated, “We are talking about prospective duties as opposed to retroactive.”

 Source: LBM Daily, July 25, 2005 

Source: Ellen Hackney, North American Retail Hardware Association, July 25, 2005

Doug Duncan, Mortgage Bankers Association's chief economist, expressed little surprise at the good news: “This is very consistent with our application data. It’s been saying that applications for home purchases have been running very near record levels and this is actually a record level so I’m not surprised...Interest rates are still very good. There’s lots of demand out there.”

 Source: LBM Daily, July 28, 2005 

John Snow, the U.S. Treasury Secretary, praised the legislation, stating, “The legislation strikes a proper and prudent balance in ensuring that the activities undertaken by these entities do not engender systemic risk while providing broad access to housing finance.”  

Meanwhile, the National Association of Home Builders seemed disappointed in the Committee’s approval, commenting: “The bill...represents a missed opportunity to achieve a meaningful regulatory framework that strengthens and safeguards the financial health of the GSEs while preserving their vital housing mission.”  

Source: LBM Daily, July 29, 2005 

 Strategies to Face Today’s Risks 

Business owners purchase insurance to protect them from the risks that could cause the most damage to their businesses. In past decades, those potential catastrophic risks were fire, storms and accidents. Today, these risks still exist, and a host of others have been added: the threat of terrorism, environmental exposures from mold, asbestos and other contaminants, exorbitant liability lawsuits, and increased costs from medical inflation. Many of these emerging risks are beyond the control of insurers or any one industry, but there are steps that business owners can take to help alleviate the worry.  

Today, it’s more important than ever to pay attention to safety and security. And, the best way you can control costs is by investing in loss prevention strategies and taking measures to reduce or eliminate the possibility for loss. It is also critical that you assume more control of your insurance program. These steps will help you get on the right track: First, select a stable insurance company; second, obtain your loss history from your current and past insurers; and third, assign a “designated risk manager.” 

Choose your insurer carefully 

In today’s environment, financial stability and corporate accountability is paramount. Choose a company rated A or better by the leading insurance industry analyst, the A. M. Best Company, and rated highly by others as well. Also, look for risk management assistance from your insurer that will help you develop good business practices that prevent losses and save profits. It is equally important to work with an insurance company experienced in insuring your industry.

Assign a “designated risk manager”

 Companies that have an individual specifically assigned to prevent and reduce losses are the most successful at controlling them. Top management must support the designated risk manager. This person is responsible and accountable for identifying loss exposures and implementing risk management solutions. The goal is to change ineffective business practices that often lead to losses that can adversely affect your bottom line. 

Tips to obtain affordable insurance 

Start your insurance renewal process early, three to six months before your policy’s expiration date, even sooner if you have several locations. Find out what types of records are needed and organize all information before meeting with your insurance representative. Present your loss information and financial statements early in the quoting process and make sure all information is complete. Also provide other critical information about your business such as your safety program, driving standards and motor vehicle report (MVR) procedures, hiring practices, unique risks, etc. If you need to contact several insurance companies to gather your loss information, start early. Many companies require key information to be submitted two to three months before your renewal.  

The best advice is to establish or improve upon sound risk management practices that will help you remain profitable and provide some peace of mind during worrisome times.