3
Buy Nearby Makes News
Local retailers and city officials praise the Buy Nearby campaign at news conferences in Detroit and Grand Rapids. Page 3
5
Processing Expert to Consult
Although stepping back from full-time work, payments expert John Mayleben will serve MRA as a year-round consultant. Page 5
9
It’s the Law
An employer can successfully challenge a former employee’s eligibility to collect unemployment benefits. Page 9
® August 2016 Vol. 41 No. 4
Costly changes to federal overtime rules take effect December 1 for business Reprinted with permission of the Michigan Lodging and Tourism Association and Jodi Schafer of HRM Services. In May of this year the U.S. Department of Labor (DOL) announced a big update to the nation’s overtime rules. By raising the salary threshold under which white-collar salaried workers qualify for overtime pay to $47,476 per year, more than 4.2 million workers will get overtime protections or see an increase in their salary above that threshold. Think about that for a minute. How many employees do you currently have on payroll who are salaried (exempt), but earning less than $47,476? Effective December 1, 2016, all of those employees will qualify for overtime pay unless you increase their base salary above this new amount. While this rule change does not affect all employers, it will affect many in the retail and lodging and tourism industries. Who’s Covered Covered entities that have over $500,000 in annual sales and/or have employees engaged in interstate commerce (i.e.: accepting/processing credit card payments, receiving goods/services from out-of-state vendors, making or receiving interstate phone calls, etc.) must all comply with the Fair Labor Standards Act (FSLA), including these new provisions. For more information on whether your business is subject to the new overtime rules, visit www.milodging.org. These most recent updates to FSLA align the salary threshold more closely with current compensation Continued on page 9
The official publication of Michigan Retailers Association
www.retailers.com
Retail hardware group joins MRA The Michigan Retail Hardware Association (MRHA) became a division of Michigan Retailers Association on July 1, a move strengthening both long-time membership organizations. MRHA was established as a trade
association in 1895 and brings some 300 business members and their nearly 400 hardware, home center and lumberyard locations into MRA. Those members now become full MRA members as well as retain their
group identity as a hardware division within the larger association, said James P. Hallan, MRA president and CEO, and Patrick Harrington, who served as MRHA president and CEO. “It’s a great fit, because our two Michigan-born-and-based organizations share the same goal: to help retail businesses be successful and grow in Michigan,” the two CEOs said in a statement announcing the new arrangement. MRA began in 1940 and has become the largest state retail association in the nation. With the addition of the MRHA members, the Association now represents more than 5,000 mainstore members and their more than 15,000 stores and websites. Many of the MRHA members also Continued on page 7
36 students receiving Retailers scholarships
Price Competitive Ayers served as chairman of the
MRA’s annual scholarship competition is awarding 36 scholarships totaling $33,000 for the 2016-17 academic year. The awards are funded by the Michigan Retailers Foundation from earnings on contributions from MRA members and other donors. There are 30 $1,000 scholar ships and six $500 awards this year. The $1,000 awards go to students attending four-year colleges and universities, and the $500 awards go to students at community colleges or approved institutes. The program’s totals have now reached $467,500 awarded to 501 recipients since 1999, when the current program format began. This year’s awards include the first to a student who will be attending the Gemological Institute of America (GIA), in Carlsbad, California. GIA provides valuable education and training for current and future jewelers. She is Rachel Dery, of Pleasant Ridge, whose father, Roger Dery, owns Spectral Gems, Inc., in Royal Oak. Judging by third-party administrator International Scholarship and Tuition
Continued on page 7
Continued on page 6
Michigan hardware industry leader Chad Ayers of Allendale True Value. Photo by David Trumpie
Hardware stores continue improving level of service by Doug Henze Independent hardware retailers traditionally have relied on top-notch, personalized customer service as the great equalizer against larger competitors. The best ones have built reputations for dispensing home- and marriage-saving tips on a broad range of building and fix-it projects, as well as going to great lengths to locate just the right tool or a single nut or bolt to fit the need.
In today’s hyper-competitive marketplace, paying attention to the needs of individual consumers is more important than ever, says Chad Ayers, a leader of Michigan’s hardware industry. That’s because the stores’ larger competitors have been working hard to close the service gap. “I think the largest retailers have stepped up their game,” said Ayers, owner and general manager of Allendale True Value in Allendale, west of Grand Rapids. “Customers expect us to have a high level of service, and as the big retailers raise theirs, we need to continue to raise ours.”
2
Michigan Retailer
Hardware affiliation strengthens retail’s voice by James P. Hallan, MRA President and Chief Executive Officer Summer musings … In 1895 a forward-thinking group of hardware retailers formed the Michigan Retail Hardware Association. On July 1 of this year, that nearly 300-member group (representing 400 locations) formally affiliated with Michigan Retailers as the Michigan Retail Hardware Association, a division of Michigan Retailers Association. In so doing, we welcome into our membership hundreds of neighbors and friends who own stores such as True Value, Ace or Do It Best. The affiliation makes MRA’s and hardware’s retail voice stronger. Our agendas are similar: helping retailers prosper through less government regulation and the offering of cost-saving membership programs and services. As part of the affiliation, I’m also pleased to report, three experienced MRHA employees have joined Michigan Retailers to ensure a seamless transition and add value to our growing entity. Collectively, Pat Harrington, Jodi Barber and Linda Pierce have decades of association experience, and we’re delighted to have them join our team. Retailers Insurance Company In addition to the affiliation, nearly 200 hardware stores have become new policyholders in Retailers Insurance Company. Andrew Gemmen, Gemmen’s Home and Hardware in Hudsonville, will be joining the Retailers Insurance Company Board of Directors, and Chad Ayers, Allendale True Value, will become a member of the Michigan Retailers Services Board of Directors. We look forward to their insights and contributions. Merchant Processing June set an all-time record for Michigan Retailers in the terms of monthly processing volume – $109.3 million. This is a strong indicator that the Michigan economy is rebounding. Unemployment is solid at 4.6 percent, and our monthly Michigan Retail Index numbers are improving. Promotions A number of well-deserved employee promotions are mentioned in this issue. We have a very talented, energetic team in Lansing that is dedicated to serving our membership.
Buy Nearby By the time you read this, we will have hit the road to hold news conferences promoting I Buy Nearby Weekend, October 1 & 2. We’re excited about expanding the annual celebration of the Buy Nearby campaign to an entire weekend and renaming the event to give shoppers a more personal commitment to keeping their money in the Mitten. Every time I’m out on the road with the Buy Nearby Guy mascot I’m thrilled by public reaction to the big shopping bag in the shape of Michigan. I’m also amazed at how much the program has grown. Everybody loves Buy Nearby Guy. British Open For golfers, the shootout at Royal Troon between Phil Mickelson and winner Henrik Stenson was an absolute classic. I particularly en-
joyed watching, because 19 years ago, my son and I were at Royal Troon watching Justin Leonard win the claret jug, the trip courtesy of a winning ticket that young Bill drew out of a fishbowl during a national contest. Now that was a memory! Dog Days The dog days are upon us, at least according to our Border Terrier pup, which we share with our youngest daughter and her husband. Sadie seems to be enjoying them with more naps and considerably less energy as the summer heat rolls in, but she always has a watchful eye for squirrels. As we know, her real mission in life is squirrel patrol. And whether it’s golf, beaches, boating or national politics, I hope you are all enjoying this Pure Michigan summer.
www.retailers.com
Board of Directors: Dan Marshall
Chair Marshall Music Company, Lansing
James P. Hallan
President and CEO Michigan Retailers Association
Orin Mazzoni, Jr.
Vice Chair Orin Jewelers, Garden City
Peter R. Sobelton Treasurer Birmingham
William J. Hallan
Secretary Michigan Retailers Association
Thomas Ungrodt
Past Chair Ideation, Ann Arbor
Brian Ducharme AT&T Mobility
Becky Beauchine Kulka
Becky Beauchine Kulka Diamonds and Fine Jewelry, Okemos
Joseph McCurry
Credit Card Group
Larry Mullins
Brandon Tire & Auto Service Center, Ortonville
R.D. (Dan) Musser III
Grand Hotel, Mackinac Island
Barb Stein
Great Northern Trading Co., Rockford
MRA promotes three, hires three Three employees have received promotions and three former Michigan Retail Hardware Association (MRHA) employees have been added to Michigan Retailers’ professional management team. All changes took effect July 1, the start of the new fiscal year.
Barber
Harrington
Baynai
Pierce
She joined MRA as legislative coordinator in 2012 and was promoted to manager of government affairs in 2013 and director in 2015. A University of Michigan graduate, she previously was legislative director for then-State Rep. Sharon Tyler.
Drumm
• Mark Baynai was promoted to corporate accountant for Retailers Insurance C o m p a n y. B a y n a i joined MRA in 2013 as Retailers Insurance staff accountant after graduating from Michigan State University with degrees in accounting and criminal justice. He previously held jobs in the Michigan Department of Human Services and as a tax preparer and assistant manager for H&R Block.
Schilling
• Amy Drumm was promoted to vice president of government affairs. She previously was director of government affairs and is responsible for day-today advocacy in the state Capitol, as well as analysis and monitoring of all legislation and public policy.
• Laura Schilling was promoted to manager of underwriting for Retailers Insurance. She had been associate underwriter since December 2012. She began at MRA as a college intern in data entry in 2006. After Continued on page 11
Joe Swanson Target Corp.
James Walsh
Meijer, Inc., Grand Rapids
D. Larry Sherman
Board Member Emeritus
Michigan Retailers Services, Inc. Board of Directors: Bo Brines Little Forks Outfitters, Midland
Bill Golden
Golden Shoes, Traverse City
Emily Matthews
Potent Potables Project, Lansing
James P. Hallan Thomas B. Scott Publisher
Editor
Pat Kerwin
Design Manager
Publication Office: 603 South Washington Avenue Lansing, MI 48933 517.372.5656 or 800.366.3699 Fax: 517.372.1303 www.Retailers.com www.RetailersInsurance.com www.BuyNearbyMI.com
Subscriptions:
Michigan Retailer (USPS 345-780, ISSN 0889-0439) is published in February, April, June, August, October and December for $20 per year by Michigan Retailers Association, 603 South Washington Ave., Lansing, MI 48933. Subscription fees are automatically included in the Michigan Retailers Asociation membership dues. Periodical postage paid at Lansing, Michigan. POSTMASTER: Send address changes to 603 South Washington Ave., Lansing, MI 48933. The Michigan Retailer may be recycled with other white office paper.
August 2016
3
MICHIGAN RETAIL INDEX
Sales, forecasts slow in June but remain positive down from 65.1 in May. A year ago June the performance index stood at 63.9. The 100-point index gauges the performance of the state’s overall retail industry, based on monthly surveys conducted by MRA and the Federal Reserve Bank of Chicago’s Detroit branch. Index values above 50 generally indicate positive activity; the higher the number, the stronger the activity.
Current
Performance Index
Looking forward, 61 percent of retailers expect sales during July– September to increase over the same period last year, while 11 percent project a decrease and 28 percent no change. That puts the seasonally adjusted outlook index at 71.6, down from 74.6 in May. A year ago June, the outlook index stood at 74.4. State sales tax receipts totaled
3-Month
15 -16 14 -15
80
70
70
60
60
50
50
40
40
30
30
$645.1 million in June, a 0.6 percent increase from 2015. Year-to-date sales tax collections are 0.4 percent above the 2015 level. Complete results of this month’s Michigan Retail Index—including data on sales, inventory, prices, promotions and hiring—are available at www. retailers.com/mra/news/michigan-retail-index.html. The website includes figures dating back to July 1994.
Michigan Sales Tax Collections
15 -16
Outlook Index
80
14 -15
2015
2016
700 600 574
593
500
641 645 568
592
400 300
APR
MAR FEB
JAN
DEC
NOV
SEP
OCT
AUG
JUL
JUN
MAY
APR
MAR
FEB
JAN
DEC
NOV
OCT
AUG
SEP
JUL
JUN
MAY
Michigan retail sales slowed in June from their strong spring showing but remained in positive territory for the fifth consecutive month, according to the Michigan Retail Index, a joint project of Michigan Retailers Association and the Federal Reserve Bank of Chicago. “Consumers continue to demonstrate their willingness to spend on themselves and their homes and push the economy forward,” said MRA President and CEO James P. Hallan. “Most retailers expect their sales to continue growing throughout the summer, especially because of declining unemployment and gasoline prices.” Retail sales increased across the U.S. Excluding autos and gasoline, sales climbed 0.7 percent in June, according to the U.S. Commerce Department. The June Michigan Retail Index survey found 51 percent of Michigan retailers increased sales over the same month last year, while 34 percent recorded declines and 15 percent reported no change. The results create a seasonally adjusted performance index of 53.9,
Seasonally adjusted diffusion index, calculated by adding the percent of respondents indicating increased sales and half the percent indicating no change, and then seasonally adjusting the result using the U.S. Census Bureau’s X-11 Seasonal Adjustment procedure. Index values above 50 generally indicate an increase in activity, while values below 50 indicate a decrease.
200 (millions)
Apr
May
Jun
Be sure to complete your online survey each month!
Community retailers embracing Buy Nearby campaign Where residents spend their shopping dollars matters a great deal to the economic health of Michigan’s retail businesses and their communities. That was the message from local business owners and city officials in
our communities,” said Hallan. “It’s why we created the Buy Nearby campaign as an important reminder to shoppers to think before simply pressing the button and sending their dollars out of the state to online companies that haven’t invested in Michigan.” The news conferences were held at House of Pure Vin, a stylish, new wine shop located along Woodward Avenue in downtown Detroit, and MercuryHead Gallery, an established gallery and framing shop in trendy Uptown Grand Rapids.
Woodward Retail Regina Gaines, co-owner of House of Pure Vin, opened her store last November as part of her vision to get retail back on Woodward. She said continued Regina Gaines, co-owner of House of Pure Vin community support is vital to her store’s ability to create jobs for in Detroit. Photo by David Trumpie residents and offer unique experiences for customers. Detroit and Grand Rapids who joined “We are a community-based Michigan Retailers Association Presibusiness. We can’t put energy back dent and CEO James P. Hallan at late into the community if we don’t July news conferences to discuss have the support of the commuMRA’s Buy Nearby campaign. nity,” she said. “We know that retail purchases She pointed out that House of Pure made right here in Michigan have a Vin is part of two important commumonumental impact on our state and
nities – the Woodward corridor in Greater Detroit and Michigan’s winemaking industry, the latter because her inventory includes quality Michigan wines. “We’re not only part of the Woodward movement, we’re also part of the Michigan wine community and support the more than 100 wineries in this state,” she said. Lifeblood Richard Rinvelt, a member of the Michigan Grape & Wine Industry Council, said Michigan produces 2.3
million gallons of wine annually, making it the fifth largest wine and grape state in the country. He called local retailers such as House of Pure Vin the lifeblood of the industry and said it’s important for consumers to support the industry by buying nearby. “Their purchases support Michigan wineries, Michigan retailers and the Michigan economy, which is a winwin for everyone,” Rinvelt said. Jill Ford, special advisor to Detroit Mayor Mike Duggan, praised Gaines Continued on page 8
I Buy Nearby Weekend celebration Oct. 1 & 2
Remember, the annual celebration of the Buy Nearby campaign is now called “I Buy Nearby Weekend.” It’s been expanded to two days, October 1 and 2 this year. It’s the weekend retailers offer special merchandise and promotions to attract nearby residents and visitors to their stores. It’s the weekend for shoppers to explore the great shopping nearby with family and friends and post
photos on social media showing themselves supporting their communities and Michigan’s economy by buying nearby. Also new this year, one shopper will win a $500 gift card if her photo of buying nearby is selected at random from those posted with the hashtag #ibuynearby. Find all the latest I Buy Nearby Weekend news, tips and materials at www.BuyNearbyMI.com.
46
Michigan Retailer
www.retailers.com
Time to develop alternative to oil pipeline under Straits by R.D. Musser III
The Great Lakes are an essential part of Michigan’s identity. Four of the five lakes touch our b o rd e r s . Wi t h more than 3,200 miles of shoreline, we have the longest fresh water shoreline in the nation. The Great Lakes hold 20 percent of the world’s total supply of surface freshwater, making them the largest source of surface freshwater in the world. They provide drinking water to 40 million U.S. and Canadian citizens. They are a crucial factor in our quality of life and in our tourism and hospitality industry. It’s no wonder that we call ourselves “the Great Lakes State.” Because of the crucial role the Great Lakes play in our lives as Michigan residents, any potential threat to those lakes must be taken very seriously. If anything were to happen to despoil them, it would have a devastating, long-lasting impact on the entire state. That is why the current debate re-
garding Enbridge Inc.’s Line 5 pipeline – two 20-inch pipelines that run parallel to the Mackinac Bridge across the Straits of Mackinac and that carry almost 23 million gallons a day of light crude oil and natural gas liquids – is so important. Historic Spill The two pipelines were put in place in 1953 – 63 years ago – and basically forgotten by the public. But people became aware of their existence in the aftermath of July 2010, when another Enbridge pipeline broke open and spilled more than one million gallons into the Kalamazoo River in the largest inland oil spill in U.S. history. A similar spill in the Straits of Mackinac would be catastrophic to Michigan’s quality of life, for residents and visitors as well as fish and wildlife. A study conducted by the University of Michigan Water Center concluded that within 20 days of a spill in the Straits of Mackinac, oil would spread as far west as Beaver Island in Lake Michigan, a distance of about 35 miles, and as far southeast as Rogers City in Lake Huron, a distance of about 50 miles.
U-M hydrodynamics expert David Schwab concluded, “If you were to pick the worst possible place for an oil spill in the Great Lakes, this would be it. The currents are powerful and change direction frequently. In the event of an oil spill, these factors
would lead to a big mess that would be very difficult to contain.” Should such a spill occur in the winter, when the straits are covered with ice, the challenge of cleaning up an oil spill would be even more daunting.
be overwhelming in favor of protecting this priceless resource. Knowing that, it is time for the State of Michigan and Enbridge to develop and implement an alternative for the Line 5 pipeline. I recognize that the pipeline has been in place for 63 years with no incidents. But I also know that nothing lasts forever. We simply cannot sit by to wait for something to go terribly wrong before we act to protect one of our state’s most valuable assets at its most vulnerable point. “Maybe nothing will happen,” is neither a wise nor an effective strategy. We need to move now, with all deliberate speed, to develop an alternative to Line 5 and put it in place. If we do not move to protect the Great Lakes – and, more specifically, the Straits of Mackinac – while we can, and something goes wrong, future generations will never forgive us.
Public Outcry It is safe to assume that any application today to locate a new oil pipeline in the Straits of Mackinac would never be approved. The public outcry would
Michigan Retailers Association board member R.D. Musser III is president of the of the Grand Hotel on Mackinac Island and a member of the Mackinac Bridge Authority.
August 2016
5
Processing 31 years of career and memories by Doug Henze
When John Mayleben began his career with Michigan Retailers Association, its young credit card processing program was all about shipping out “knucklebusters” – those early card imprinters that could tear up retailers’ hands as well as the carbon paper sales slips – and waiting for the postal carrier to bring merchants’ receipts. Fast forward 31 years and Mayleben, who has become a nationally recognized expert in the increasingly complex electronic payments industry, spends most of his time heading off cybercrooks who want to steal shoppers’ sensitive card data from retailers. “We used to get canvas bags in our building filled with mail, because the retailers would mail the receipts to us in order to get paid,” recalled Mayleben, senior vice president of technology and product development. “The only thing you had to worry about was the mail getting delivered.” That’s just one of the vivid memories Mayleben takes with him into early retirement that begins in late October. Although he’s stepping back from full-time work, he will continue to serve MRA and its membership as a year-round consultant. “John thrives on technology and data and has helped MRA become one of the nation’s leading processing organizations,” said MRA President and CEO James P. Hallan. “I can’t say enough good things about John and what he has done for this Association. We wish him a great retirement, but we also plan to tap his more than three decades of expertise and share that knowledge with our members and employees.” Biggest Change Looking back, Mayleben says the biggest and most obvious change in his field came with the conversion from paper to electronic transactions. He remembers installing MRA’s first credit card terminals in the mid-1980s. Rivaling that change is the current switch from magnetic-stripe cards to more secure “smart cards” (also known as EMV cards and chip cards) that have an embedded computer chip. Both changes underline the fact that data security has become the biggest issue on Mayleben’s plate. “Anybody who has read the news knows there have been data breaches,” Mayleben said. “One of the major changes is the different ways the bad guys can steal using credit cards.” In the past, criminals committed credit card fraud by stealing wallets or mail, or by dumpster diving for carelessly discarded carbons. Now,
it’s done by data mining from the comfort of a computer terminal. “The majority of my time now is spent having conversations with businesses about ways to protect their systems and to limit the number of things stored on their systems,” Mayleben said. Dramatic Growth In addition to handling security concerns, Mayleben must keep in front of the ever-changing technology in the credit card processing industry.
dles $1.25 billion in transactions from customers in all 50 states. National Expert It’s the nature of the work that has kept Mayleben, who held several sales positions leading up to his current job, tuned in for three decades. He became the first person in Michigan and among the first group of experts in the nation to be designated as a Certified Payments Professional by the Electronic Transactions Association, a national organization that
and a half ago, Mayleben lost his wife of nearly 30 years, Linda, to cancer. “I refer to it as staring mortality in the face,” said Mayleben, 52. “At the end, nobody says, ‘I should have worked more.’ Life is short and my priorities have changed a bit.” Mayleben plans to take on the quest he and Linda had planned for retirement – seeing the country from behind the wheel of an RV. That will include visits to daughters Lauren, 26, and Allison, 23, in the Dallas area and possibly to a college friend in
John Mayleben’s career at MRA spans credit card processing technolgy ranging from “knucklebusters” to mobile internet devices. Photo by David Trumpie
“You can walk into a retail store in Macomb County or Ingham County or Marquette County and use one of those gray boxes to swipe your card or swipe it with your I-phone,” he said. Consumers also can go on the Internet and have a package delivered to their door or, most recently, set up recurring charges to pay for a monthly service. “Think of Netflix, where you pay $9.99 every month, or an insurance company, where premiums are divided into equal payments,” he said. MRA does business with several large insurance companies, which send over thousands of transactions representing customers paying premiums. The volume of business has increased dramatically, as well. When Mayleben started at MRA, the Association processed Michigan credit card transactions totaling $30 million. Today, the association han-
serves as clearinghouse for industry information. “I like the ability to discover a retailer or business owner that has a problem and solve that problem,” he said. Mayleben gives the example of an RV driving school client that was unable to increase its business because it booked everything manually, and hiring additional staff was too expensive. Mayleben helped develop a system in which the school’s customers could sign up for classes and pay online. “Because of that, he has been able to grow his business significantly in the past two years,” Mayleben said. New Perspective While such success stories continue to give Mayleben job satisfaction, it’s a new perspective on life that’s causing him to leave the only employer he’s known since graduating from Western Michigan University. A year
Alaska. There’ll be a bit of bartering along the way, as Mayleben plans to trade time and knowledge for RV parking spots. “There are a number of lighthouses on the Pacific coast looking for a history docent,” he said. “I like sharing knowledge. I like to educate.” Mayleben looks back on his career with wonder. “Who would have thought my first job out of college would have turned into a career?” he asks. “I jokingly say, ‘I never needed to update my resume.’ “But seriously, Michigan Retailers has been a wonderful place to work. I consider all my MRA members and co-workers as my family.” Doug Henze is a freelance writer and former business reporter for the Oakland Press in Pontiac.
6
Michigan Retailer
www.retailers.com
36 students receive Retailers 2016 -17 scholarships Continued from page 1
Services was held in early May. To be eligible, recipients must be an employee of an MRA member business or the dependent of an owner or employee of a member business. Students apply between January and April 1 each year for the scholarships. New Award One new legacy scholarship was
Scholarship; Mieras Family Shoes, Grand Rapids; University of Michigan, Fine Arts, Sophomore; Calvin Christian High School.
Tulani Pryor, Detroit: Helen McCurry Legacy Scholarship; Tulani Rose, Detroit; Kalamazoo College, Graphic Design, Junior; University Prep. Academy High.
Erin Dr ylie, Warren: Raymond A. and Mildred C. Sobelton Legacy Scholarship; Meijer, Sterling Heights; Wayne State University, Nursing, Junior; Warren Cousino Senior High School.
Jacob Duckworth, Holland: James P. Hallan President and CEO Scholarship; Cunningham Dalman, P.C., Holland; Michigan State University, Biomedical Engineering, Sophomore; West Ottawa High School.
Angela Mulka, Midland: Target Scholarship; Midland County Council on Aging; Michigan State University, Liberal Arts, Freshman; H.H. Dow High School. Megan Nylund, Midland: Target Scholarship; Powell Fabrication & Manufacturing, St. Louis; Michigan State University, Communication Sciences, Freshman; Midland High School.
Top Row (left to right): Bacigal, Beaupre, Braganza, Chokkaram, Dery, Drylie. Middle Row: Duckworth, Evett, Flickinger, Gautam, Horn, Johnson, Jones, Lardie, Leach, LiCavoli, Lynch. Bottom Row: Marsh, Momany, Moser, Nylund, Outman, Pedler, Peterson, Thrall, Vanderberg, Varney, Walters.
awarded this year: the Kenneth A. and Margaret Schwark Legacy Scholarship. It was created by former MRA board member Jim Schwark and his brothers, Tom and Mike, in honor of their parents. Their late father was a Macomb County furniture retailer and businessman. Their mother passed away on July 14 at age 93. The scholarship brings the number of annual legacy awards to 20. Donors can earn legacy awards, which are named in their honor or someone they choose, by contributing $10,000 or more over their lifetime to the Foundation. The 2016-17 recipients are: Legacy Scholarships ‌ Brooke Bacigal, of Ada, who receives the D. Larry Sherman Legacy Scholarship. She and her mother are employees of the Grand Rapids Public Museum, an MRA member organization. She will be a freshman at the University of Michigan in the fall and plans to study International Relations. She is a graduate of Forest Hills Central High School. Anna Vanderberg, Grand Rapids: Fred and Lillian Sherman Legacy
Rebecca Pedler, Walker: Raymond A. and Mildred C. Sobelton Legacy Scholarship; Meijer, Grand Rapids; Northern Michigan University, Physical Therapy, Junior; Catholic Central High School.
Ceheira Johnson, Grand Rapids: Walsh Family Legacy Scholarship; Meijer, Grand Rapids; University of Minnesota, Communications, Junior; Kenowa Hills High School.
The awards are funded by the Michigan Retailers Foundation from earnings on tax-deductible contributions from MRA members and other donors. Sabrina Thrall, South Lyon: Joseph Swanson Legacy Scholarship; Synergy Environmental, Brighton; Michigan State University, Accounting, Sophomore; South Lyon High School. Brandon Lopez, Waterford: Joseph Swanson Legacy Scholarship; Art Van, Warren; Saginaw Valley State University, Business Management, Senior; Waterford Kettering High School. Ashley Moser, Rockford: Barb Stein Legacy Scholarship; Northpointe Bank, Grand Rapids; Arizona State University, Business Management, Junior; Hamilton High School.
High School.
Clare Evett, Ann Arbor: N a t h a n Rosenfeld Legacy Scholarship; Internet2/UCAID, Ann Arbor; Eastern Michigan University, Music Performance, Junior; Pioneer
Alyssa Forsthoefel, Lansing: Target Scholarship; DBI, Lansing; Michigan State University, Pre-law, Freshman; East Lansing High School. Perry Outman, Davisburg: Target Scholarship; Target, Auburn Hills; Western Michigan University, Mechanical Engineering, Freshman; Notre Dame Prep. School & Marist Academy. Kaitlin Horn, Mt. Pleasant: Michigan Retailers Services Scholarship; Rogers City Home Furnishings, Rogers City; Central Michigan University, Public Relations, Senior; Rogers City High School.
Charlotte Cullip, Harbor Springs: Mark Schrag Scholarship; Three Pines Studio, Cross Village; Occidental College, undecided major, Sophomore; Harbor Springs High School.
Breanna Kingsley, Ypsilanti: Retailers Insurance Scholarship; Happy Home Gift Shop, Ann Arbor; Eastern Michigan University, Political Science, Senior; Early College Alliance.
Rosemarie LiCavoli, Macomb: Kenneth A. and Margaret Schwark Legacy Scholarship; Kroger, Shelby Charter Twp.; Oakland University, Biology, Senior; Eisenhower High School.
MRA Scholarships ‌
Nicalas Broxholm, Dansville: Target Scholarship; DBI, Lansing; Michigan State University, Medicine, Junior; Dansville High School.
Rachel Dery, Pleasant Ridge; Spectral Gems, Inc., Royal Oak; Gemological Institute of America, Geology, Freshman; Ferndale High School. Jacob Lynch, Livonia; Art Van, Warren; Schoolcraft College, Business, Junior; Westland Christian Academy.
August 2016 Sarah Flickinger, Grand Rapids; Meijer, Walker; Franciscan University of Steubenville, Nursing, Senior; Homeschooled. Brandan Momany, Wixom; Kroger, Commerce Township; Oakland Community College, Business Administration, Sophomore; Lakeland High School. Joey Braganza, Macomb; Kroger-Cincinnati; Macomb Community College, Physical Therapy, Junior; Henry Ford II High School. Krishna Chokkaram, Ann Arbor; Kroger, Ann Arbor; Rosalind Franklin University of Medicine & Sciences, Medicine, Freshman; Huron High School. Christopher Marsh, Petoskey; North Central Michigan College, Petoskey; University of Michigan, Electrical Engineering, Sophomore; Petoskey High School. Richelle Varney, Caro; YMCA of Saginaw; Saginaw Valley State University, Social Work, Senior; Caro High School. Kaitlyn Jones, Mount Vernon, Ohio; Michigan Ground Water Association; University of Dayton, Applied Mathematics, Sophomore; Mount Vernon High School. Kyle Lardie, Portland; Meijer, Ionia; Lansing Community College, Dental Hygienist, Junior; Portland High School. Anudeeta Gautam, Grand Rapids; Meijer, Grand Rapids; University of Michigan, Biochemistry, Freshman; Forest Hills Eastern High School. Annika Beaupre, Duluth, Minnesota; TriMedia Environmental & Engineering, Marquette; University of Minnesota, Chemical Engineering, Junior; Proctor Senior High School. Kaitlyn Leach, Saginaw; The Home Depot, Saginaw; University of Michigan-Flint, Psychology, Freshman; Swan Valley High School. Jean Peterson, Lupton; Lovewells Corner Store, Lupton; Kirtland Community College, Liberal Arts Education, Sophomore; Homeschooled. Zachary Conley, Portage; Kalamazoo County; University of Michigan, Movement Science, Senior; Portage Central High School. Paige Walters, Kalamazoo; Physical Therapy One PC, Portage; University of Wisconsin-Madison, Genetics, Sophomore; Portage Central High School.
7
Hardware stores continue improving service Continued from page 1
board of directors of the Michigan Retail Hardware Association, which became a division of Michigan Retailers Association on July 1. He’s expected to be named to the Michigan Retailers Services, Inc., Board of Directors in August. He believes hardware stores such as his are faring well against the stepped-up competition. “We are certain that a large majority of our products are price competitive with the big-box stores,” Ayers said. “Where we used to lose was on their private label brands versus ours. As large stores started to develop the need for a higher level of service, however, they could only do that by boosting training and raising their prices.” At Allendale True Value, customers appreciate service and give Ayers a chance to price-match the competition, he said. “We feel like we’re winning.” Ayers teaches his employees to go the extra mile in finding products for customers. An associate who can’t locate an item consults multiple colleagues before turning a customer away. “We train our people to give their all,” Ayers said. “We hate to say ‘no’ to people.” He estimates his store typically writes 50 to 60 special orders a week – sometimes as many as 20 in a day. Family Business Ayers’ family learned the hardware business from the other side of the counter. Uncle Harley Sietsema, part of the local farming community, was doing so much business with the local hardware store in 1992 that he decided to buy it. Back then, it was a 4,000-squarefoot operation. “We got involved when we built our new location in 1998,” said Ayers, the operating partner in an ownership group that includes Father-In-Law Bob Sietsema and Rick Sietsema, a cousin of Ayers’ wife, Jodi. The “new” 20,000-square-foot store, which employs 34 to 40 people, depending on the season, carries about 40,000 products and is run by Ayers, Brother-In-Law Ross Sietsema and their team. In addition to mainline hardware items, the store stocks outdoor products ranging from pavers to mulches. “We are a True Value rental store, as well,” he said. Rentals include lawn and garden equipment, bobcats and tractors. “We also are in power equipment sales, with major brands like Toro, Stihl and Husqvarna,” he added. The majority of independent retail
hardware and home center businesses participate in either the True Value, ACE, or Do-It-Best co-ops, Ayers explained. “The business model is unique because the independent retailers own their wholesale supplier and are not franchisees,” he said. The arrangement enables the coop members to compete successfully against chain stores and gives them the flexibility to meet unique community needs. Filling that local niche has improved the community service aspects of all of the members.
Growth One of his top priorities for the store is keeping on top of growth in the town, which now has about 6,200 homes, he said. Construction of 300 to 500 homes is expected in the next couple of years. He is considering an expansion that will allow the store to meet the needs of a growing population. That may include moving an off-site repair shop onto the store’s five-acre location. “The next six to 18 months becomes, ‘What do we do differently
Sharing advice and product knowledge are part of Chad Ayers’ valuable customer service. Photo by David Trumpie
Customer Base Allendale True Value delivers products as far away as Traverse City and Detroit, but relies heavily on local business to survive. “We’re fully aware that without our community, we’re nothing,” Ayers said. That’s why the store connects with the community by sponsoring local soccer teams and school band programs, he said. The store also supports charity drives and participates in marketing programs with Grand Valley State University, which also is in Allendale. Personally, Ayers – who has four daughters ranging from 2 to 10 – coaches youth soccer and is a church deacon. “We’re a very tight community,” Ayers said.
at our current location?’” Ayers said. “Our second location is probably a two- to five-year period away.” Ayers said he expects becoming a division of MRA will enable the 300-member hardware group to continue and expand successful programs. The group has been the only state hardware association left in the nation, he said. “My hope is it keeps us engaged in what’s going on in Michigan,” he said. “The most important part of it is the resources we’re going to gain. I think that’s going to help us hardware stores grow as retailers.” Doug Henze is a freelance writer and former reporter for the Oakland Press in Pontiac.
Hardware group joins MRA Continued from page 1
have become workers’ compensation insurance policyholders of MRA’s Retail Insurance Company, Hallan noted. MRHA’s member service programs are enhanced by the additional MRA services, such as credit card processing, said Harrington. The new division also will take advantage of employee education and business owner resources available through the North American Retail Hardware Association (NRHA.org). Three MRHA employees, each with more than 30 years of association
member service experience, have joined the staff of MRA to help ensure continuity of services to the hardware retailers as well as assist in providing the added services available to MRA members. Pat Harrington becomes director, program development, Michigan Retail Hardware Division. Jodi Barber becomes group health/ life benefits administrator and Linda Pierce becomes underwriting assistant for Retailers Insurance Company.
8
Michigan Retailer
Embracing Buy Nearby campaign Continued from page 3
and hundreds of other retailers setting up shop in Detroit. “When we buy nearby, we do more than make a purchase – we invest in our communities,” she said. “When we buy nearby, we make an investment in our families and in our futures.”
economic development coordinator, said dedicated retailers and residents who buy nearby are key to a healthy neighborhood. “I’d like to offer the city’s endorsement and support for the Buy Nearby program,” he said. “The city has certain tools it can
Thumbs up at MercuryHead Gallery, from left: Ben Perrin and Laury Baker; Sherri Taylor and Al Maxim, Buy Nearby Guy, Jonathan Klooster, Sarah Wepman, Jim Hallan. Photo by David Trumpie
Trending Local use and we do everything we can to In Grand Rapids, MercuryHead support neighborhood businesses, Gallery owners Ben Perrin and Laury but the city doesn’t just make it hapBaker said the growth of local busipen. It’s people opening businesses nesses and number of shoppers in and putting their time and effort into their Uptown neighborhood has been what they do.” positive for all involved. He added that he is a resident of “We’ve been here since 1999, and the Uptown neighborhood. it has been a long road watching this “My child goes to school two blocks trend of local shopping grow,” said from here. That is a better school bePerrin. “We really value this trend, cause of the support you provide that and it’s programs like Buy Nearby school,” he said, referring to the local that we value and support.” retailers. Both Perrin and Baker said the community’s retailers not only provide extraordinary service to residents and visitors, they help each other in many ways, including referring customers to neighboring businesses. “We have developed great personal relationships with our customers. I can’t imagine working somewhere else after this,” Perrin said. City Antiques owner Al Maxim, who opened his shop in 2006, said the new mantra for the area is “Drink Ben Perrin and Laury Baker, owners of MercuryHead Local, Eat Local, Buy Local.” Gallery in Uptown Grand Rapids. Photo by David Trumpie Co-owner Sherri Taylor said she uses email and social meSarah Wepman, the area’s newest redia regularly to remind residents to tailer with her Early Bird coffee shop, check out their neighborhood busialso emphasized the unique relationnesses rather than making purchases ship they all share with customers. online from remote merchants. “It is the most fun part of being a retailer,” she said. “Interacting with people Community Support in your neighborhood in your business Jonathan Klooster, Grand Rapids is what makes it all worthwhile.”
www.retailers.com
RETAIL TECHNOLOGY NEWS
Remote access the culprit behind recent data breach John Mayleben CPP, is MRA senior vice president technology and new product development and a national expert on electronic payment processing. He is the first person in Michigan and among the first in the nation to receive the Certified Payments Professional designation from the national Electronic Transactions Association. A major fast food restaurant announced recently that a p re v i o u s l y re ported data breach was actually much larger than anticipated. The breach, it is being reported, was the result of a third-party vendor that had remote access permission to provide service to the restaurant’s systems. The vendor’s own system was hacked, and each time it connected to one of the restaurant’s locations its system “infected” the unsuspecting location. The infection was a malware program that captures shoppers’ card data at the time of the transactions and sends the information to the bad guys for their use. Typically, the bad guy only needs to be inside your system for about 60 seconds to successfully install such malware. This data breach illustrates a number of trends that are occurring in the marketplace right now.
illustrates is the need to adopt newest technologies to protect your data. In the case of this fast food restaurant, the data breach occurred during the credit card industry’s conversion to new chip card systems. It has not been reported whether this restaurant had chip card readers in place. If it had them at the time of the breach – and they were actually operating as chip card readers – the restaurant would have been able to limit its exposure. It is important to note that the operative word is “limit,” not eliminate. Chip card technology limits the time bad guys can use the card data they steal. If a data breach occurs on a system that has new chip card readers in place, the chip card data are only “good” until the cardholder uses the card at another chip card location. That’s because the “security code” that’s on the mag stripe, and never changes there, now changes on the chip every time someone uses his or her card. If it is stolen, the new code that was stolen is only good until the next transaction from the legitimate cardholder.
Remote Access First, the majority of the data breaches today are remote access issues. Whether it is your own need as the owner or manager of the business or one of your vendor’s needs to have remote access (with your knowledge and permission), you must make sure that you are allowing this access in a safe manner. “Safe” includes making sure the vendor has proper procedures in place to protect your systems. In addition, in case “bad things happen to good people,” you need to make sure that your vendor has the appropriate resources to cover the liability associated with a data breach. It’s an even better idea to always start with the questions, “Do I really need to provide remote access in this situation?” and if so, “Should I limit it in some fashion?” If remote access is needed, determine which systems or parts of your system they really need to access. If you don’t unlock and open the door, the bad guys can’t get in to install the malware.
Emerging Trends There are two other emerging trends this data breach helps identify. Point to Point Encryption (P2PE) is something we are seeing more terminal manufacturers developing. In a P2PE transaction, the card data are “encrypted” at the point that the card is dipped, tapped or swiped and then flow all the way through the systems of the merchant in a protected fashion. The data are decrypted at the processor and an authorization is obtained. This means that anyone lurking on the merchant’s POS system won’t be able to read (and steal) the data from that transaction. The other trend is designing a POS system so that it never sees the card data. In this case, a bad guy lurking in the POS system won’t have anything to steal. This type of integration with a POS system is a little more complex, but is almost always worth the hassle of redesigning the POS system. As always, if you have questions about this or any other merchant processing issue, please don’t hesitate to contact one of our customer service representatives.
Updated Technology The second trend this data breach
August 2016
9
IT’S THE LAW
Employers can choose to fight jobless claims by William J. Hallan, MRA Executive Vice President, COO and General Counsel Employee costs are one of the largest expenses for retailers. Salaries, insurance, taxes and benefits all comprise this critical line item. And as health insurance premiums increase and minimum-wage requirements balloon, retailers are feeling even more pressure to control expenses. While it’s difficult enough for retailers to shoulder these added costs for their own employees, employers also have the distinct “privilege” of paying for individuals they no longer employ, in the form of unemployment insurance. An employer’s unemployment insurance cost may increase when former employees claim unemployment benefits. Unemployment is a general welfare benefit designed to protect against the burdensome effects of involuntary unemployment. However, not everyone who is unemployed is entitled to unemployment benefits. In fact, there are several reasons why an individual may be disqualified from receiving benefits. An employer might choose to challenge eligibility in order to control costs where possible. Disqualification Section 421.29 of the Michigan Employment Security Act sets forth when an individual will be disqualified. Several reasons for disqualification are straightforward: • Incarceration. An individual convicted of a crime is disqualified from benefits. • Theft or Destruction of Property. An employee who steals from his or her place of employment or willfully destroys property is disqualified from benefits. • Assault and Battery. A discharge for assault and battery connected to the individual’s work disqualifies the individual from benefits. • Drugs and Alcohol. Intoxication at work disqualifies an individual from benefits. • Failure to Apply for/Refusal to Accept Available Suitable Work. If an individual fails to take action to find employment, either by failing to apply for work or failing to accept suitable work, the individual is disqualified from benefits.
More Reasons Other reasons for disqualification are less clear and require a closer look at the facts. • Voluntarily Leaving (quitting). An individual who leaves work voluntarily without good cause attributable to the employer is disqualified from receiving benefits. Assuming the resignation was voluntary (which could be another column in itself), the real question is whether there was good cause attributable to the employer. For example, courts have found that good cause exists if the employer’s actions would cause a reasonable and average person to give up employment. But merely leaving for personal reason, such as leaving employment to care for a loved one or because the employee did not like the neighborhood where the employer was located, does not constitute good cause. • Misconduct. In what is, perhaps, the grayest area, an employee discharged for conduct that constitutes a willful disregard of the employer’s interests is disqualified from benefits. Courts have found misconduct when an employee has accumulated a series of offenses and warnings and the violations were shown to be intentional. However, merely unsatisfactory performance, inefficiency or ordinary negligence does not meet the standard for misconduct. Decisions to Make Employers have many decisions to make when it comes to unemployment. Some employers may agree not to contest unemployment as part of a severance package in which the employee agrees not to sue the employer. On the other hand, an employer may want to contest an unemployment claim to control costs or to learn about an employee’s claims if the employer is worried the employee may file a lawsuit for wrongful discharge. Michigan has implemented an advocacy program that is designed to provide assistance to both employees and employers during the unemployment process. Advocates will consult with the employer regarding the facts of the case, and if the case has merit, the advocate will provide representation to the employer in a hearing before the Michigan Administrative Hearing System. Employers should call 800.638.3994 to receive advocacy assistance.
NEW MEMBERS Adam’s Plumbing & Mechanical LLC, Ann Arbor Capital Letter Marketing, Ann Arbor O’Boyle Trucking LLC, Avoca PRN Professional Placement LLC, Burton CGCCC Inc dba Caro Golf Club, Caro Coliseum Bar & Grill, Detroit Sanctuary Spirits, Grand Ledge Great Lakes Fluid Power, Grand Rapids R & S Automotive LLC, Grand Rapids Grosse Pointe Woods Presbyterian, Grosse Pointe Woods Countryside Snowplowing LLC, Holland Panterra Luxury Coach LLC, Holland Shekinah Revival Ministries Inc., Holland Nottingham Inn, Houghton Lake
Hands of Hope International, Hudsonville Performance Automotive NW Inc., Jackson Irving’s Market & Deli, Kalamazoo Picwood USA, Kalamazoo Lambert’s Auto Service Inc., L’Anse Ability Weavers LLC, Lowell Hamlin Marine LLC, Ludington My Sister’s Closet, Ludington Travon Inc. dba Table 14, Ludington Auto Armor Auto Spa, Marquette Go M.A.D. Fitness LLC, Monroe Lake Erie Transportation, Monroe Crooked Foot Upland Bird & Game Hunting, Owosso Energy Mill, Plainwell President Garfield’s Inn, Port Austin Community Foundation of St Clair County, Port Huron Triton Automation Group LLC, Port Huron
Overtime rules take effect Dec. 1 Continued from page 1
trends – something DOL hasn’t done in over a decade. The Obama Administration believes that increasing the salary threshold that employers must pay in order to classify someone as “exempt” will result in higher wages for workers and a more competitive marketplace. Many business owners aren’t so optimistic. Out of Date Regardless of which side of the debate you fall on, we can all agree that a lot has changed since 2004 when DOL first increased the salary threshold for exempt employees to its current level ($455/week). Earning rates have increased, as has the cost of living. So it stands to reason that the salary threshold would need to be adjusted to keep pace. The problem is, because DOL hasn’t adjusted these earning minimums in over 12 years, there is a lot of catching up to do – $23,816 to be exact. DOL first started looking at this issue in March 2014 as a result of a directive from President Obama. The department released proposed updates for public comment in 2015, and at that time it recommended raising the salary threshold from $455/ week ($23,660 annually) to $970/week ($50,440 annually). As you can imagine, a jump of this size would have had a significant financial impact on many employers, including those in the retail, hospitality and tourism industries. After reviewing more than 270,000 comments and meeting with more than 200 employer and employee organizations, DOL published the final Fair Labor Standards Act (FLSA) lan-
guage in May of this year. The new salary threshold was set at $913/ week ($47,476 annually), slightly lower than originally proposed, and now allows for up to 10 percent of this amount to consist of non-discretionary bonuses and incentive/ commission payments – provided these forms of compensation are paid at least quarterly. This increase will not be introduced gradually. Rather, on December 1 of this year, the minimum earning level of an exempt employee will more than double to $47,476. Automatic Updates To prevent FLSA compensation levels from becoming outdated in the future, DOL will automatically update the earning thresholds every three years (beginning in 2020) to coincide with the 40th percentile of full-time salary earnings in the lowest wage Census Region of the U.S – currently the southern region. We will dive deeper into the financial and cultural impact of these changes in upcoming articles, but suffice it to say that this issue isn’t going away. Just about the time you put a solution in place for the upcoming year, you will need to begin thinking about how future increases (beginning in 2020) will continue to affect you, your workforce and your bottom line. The Michigan Lodging and Tourism Association will be offering various articles, webinars and “ask the expert” panel discussions over the coming months to help you plan for this significant change. The information will be available to those who sign up by visiting www.milodging.org.
10
Michigan Retailer
www.retailers.com
Membership Services Corner by Ally Nemetz, Director, Customer Service and Data Administration Quick notes on key services. Call 800.563.5981 for credit card processing assistance or 800.366.3699 for other matters. We v a l u e your membership and trust. Let us know whenever we can help with your question or problem, no matter how large or small. Retailers Insurance Retailers Insurance Company policyholders should return their payroll verification forms at least 30 days prior to their policy renewal date. Payroll verification forms are used to estimate premiums for the upcoming policy period and are mailed to policyholders approximately 60 days prior to the renewal date. Questions about the forms can be directed to Judy Schafer at 800.366.3699 ext. 331. Blue Cross Mobile App A new mobile app from Blue Cross Blue Shield of Michigan enables you to manage your health plan via smartphone or tablet. It allows you to manage your deductible and out-of-pocket maximum balances, claims activity and explanation of benefits statements. You also can find a doctor, obtain cost estimates for health care services, and much more. Search for Blue Cross Blue Shield of Michigan through Apple App Store or Google Play. It’s available for Android OS 5.0 or higher or iPhone iOS 7.1.2 or higher. You must first set up an online account at bcbsm.com before using the app. Dental Rates to Drop Retailers Insurance Company dental rates are going down on January 1, 2017, thanks to performance of the program. Those with one-person or two-person coverage should see decreases ranging from 6 percent to 20 percent, depending on the plan. Those with family coverage will see smaller decreases. Rates have been unchanged the past three years. Credit Card Processing • MasterCard is continuing to move toward issuing cards that start with a 2 instead of its usual 5. Those with an integrated solution should be working right now to determine if this change will impact
their current processing equipment processing capabilities. • Discover cards will begin issuing cards that may be as many as 19 digits long. Integrated merchants should enhance their system/software to make sure they can accept card numbers for all card types ranging from 13 to 19 digits in length. Both Visa and MasterCard have announced a similar change but have not yet announced a timeline. • If you haven’t upgraded your processing device to accept/ process Chip Cards, we strongly recommend you upgrade soon. • Be on alert for suspicious/ fraudulent transactions. Call 800.563.5981 option 4 and say “CODE 10” to speak to a specially trained operator in the event of: – Multiple card numbers provided for the purchase – Customer tries to distract or rush you during the sale – Numerous purchases in a short period of time – Customer purchases a lot of merchandise without regard to size, style, color or price – Several purchases on the website – Large purchases at open or close of business – Requests for merchandise to be shipped as “rush” or “overnight” – Customer asks you to wire money to the freight company. • Terminal functions that assist with fraud control: – Process with a Chip-Card-enabled terminal/device – Address Verification (AVS) requires the street number and zip code. If it doesn’t match the credit card, you will receive a mismatch response and be prompted to proceed – Security Code Verification (CVV) requires the 3-digit code on the back of the credit card. If it doesn’t match the credit card, you will receive a mismatch response and be prompted to proceed – Password Protection requires a password for all returns, reversals, force capture, store/forward, reports, etc. – Fraud Control, when enabled, will prompt for the last four digits of the credit card to be verified. If incorrect, the prompt will state invalid card number – Verify the credit card receipt to make sure the customer name and credit card number on the front of the card are identical to what’s on the printed credit card receipt. If not, call 800.563.5981 option 4 and say “CODE 10.”
August 2016
11
LOTTERY
Promotions, new games to round out strong year by M. Scott Bowen, Commissioner The Lottery and its retailers turned in an impressive financial performance last year. Together, we set records for sales, commissions earned by retailers, prizes paid to players, and contributions to the School Aid Fund. We carried that momentum into 2016 and we’re on track for another record year. The Lottery has several promotions and a new instant game on tap for the final months of the state’s fiscal year, which ends on Sept. 30. We expect these will interest players and result in increased store traffic and sales for retailers. They include: • Red Ball Double Draw – Beginning Aug.1, five white balls and one red ball will be loaded into a drum and a special “Double Draw” will be shown after the regular Daily 3 evening drawing. If a white ball is drawn, it will be removed from the drum, set aside, and another “Double Draw” will occur the next day. When the red ball is drawn, the Lottery will conduct a second Daily 3 evening drawing, giving players two chances to win. Once the red ball has been drawn, all balls are loaded back into the drum for the next Daily 3 evening drawing. The Red Ball Double Draw promotion applies to Daily 3 evening drawings Monday through Saturday. During the Red Ball Double Draw promotion, the Lottery will conduct at least eight Daily 3 evening drawings
each week rather than seven. The promotion is scheduled to end Aug. 31. Best of all, the promotion is easy for retailers because no additional action or cost is required for a player to take part in the Red Ball Double Draw promotion. • Deluxe 7’s Playbook – When it comes to instant games, one of the questions we hear most often from players is: “When will the Lottery offer another game book?” In August, the Lottery will launch the Deluxe 7’s Playbook. Each $20 game book will feature six pages of games with prizes ranging from $20 up to $1 million. The Deluxe 7’s Playbook will offer more than $44 million in total prizes. The game book format provides players with great value, and we expect a strong response from players when they have a chance to purchase a game book for the first time in six years. • Buy More, Get More – Beginning Aug. 8, Lottery players who purchase an online game card from Lottery retailers will receive bonus free play. The “Buy More, Get More” promotion rewards players who buy larger denomination online game cards with higher amount of bonus free play. Each $10 online game card will receive a $2 bonus, $20 online game cards will receive a $5 bonus, $50 online game cards will receive a $15 bonus, and $100 online game cards will receive a $35 bonus. Best of all, retailers will receive a commission on both the purchase price of the online game card and
MRA promotes three, hires three Continued from page 2
graduating from Michigan State University she was hired as communications assistant in 2007 and promoted to communications coordinator and associate underwriter in 2012. She earned her resident producer license for property and casualty insurance in 2014. • Pat Harrington is director, program development, for the new hardware division. He served as president and CEO of the 121-yearold MRHA prior to it becoming part of MRA on July 1. He started at MRHA in 1987 as plan administrator of the MRHA SIWCF workers’ comp fund and became involved in all the association’s insurance programs. Prior to that, he was a printer at MRA in the mid-1970s and a field representative from 1980–87. He earned an associate degree from Lansing Community College. He is an active member of the boards of four nonprofit organizations and a volunteer organizer and rider in the annual DALMAC Bike Tour event. He says his hobbies include chainsaws, home renovations and wilderness canoe trips.
annual rate renewal and information on how members can save money on their plan while maintaining adequate coverage. She held a similar position with MRHA during the past year and, before that, for more than 20 years at the Michigan Lumber and Building Materials Association. She is a Michigan licensed health/ life insurance producer and holds certifications to sell and assist small employer groups and individuals through the Michigan Federally Facilitated Marketplace – the arena for health insurance plans operated by the U.S. Department of Health and Human Services. She says her passions include visiting and sharing life with the elderly and “playing my guitar for my grandbabies.”
• Jodi Barber, who has been employed in the employer health insurance arena for more than 35 years, is group health/life benefits administrator. She provides health insurance benefit guidance to members, including enrollment assistance, processing of insurance premium payments, facilitating the group’s open enrollment, presentation of the group’s
• Linda Pierce becomes underwriting assistant for Retailers Insurance Company, primarily assisting hardware members during the transition. She has spent 29 years in workers’ compensation fund administration and performed the duties of underwriting, renewals, audits, billings, reviewing claims, setting up and attending board meetings and working with TPA, CPA and auditor vendors. She began her insurance career with Aetna Insurance. Co. in Grand Rapids and worked in personal lines for 10 years. Her retail experience also includes earlier jobs at The Dress Barn and The Country Shop in Lansing. She says she enjoys traveling, hiking, cross-country skiing and being at the beach.
bonus amount. • Doubler Days for Club Keno, Fantasy 5, and Lotto 47 – From Sept. 1 through Sept. 30, all Club Keno, Fantasy 5 and Lotto 47 tickets purchased at Lottery retailers are eligible for Doubler Days. The Doubler feature will be printed at random on tickets and will double
all eligible prizes, all without any additional cost to players. The Doubler feature also will apply to EZmatch prizes on Fantasy 5 and Lotto 47 tickets. This popular promotion has a strong track record of generating excitement among players and boosting sales for retailers.