Also in This Issue... ■■
Extended Warranties… Worthwhile or Not?
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Patriot’s Corner: Dean Rusk
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Tips to Get Ahead! Always late on completing projects?
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Your iPhone Could Help Save Your Life
What Happened to my Car Warranty?
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controversy has developed over fuel mixtures marketed by gasoline retailers across the country, and it could have a disastrous effect on the warranty covering your automobile. The root of the issue is the approval by the Environmental Protection Agency to allow gasoline stations to promote the sale of E-15, a 15% ethanol/85% traditional gasoline blend that may be harmful in vehicles produced prior to 2012. The battle lines are being drawn in this
dispute, with factions like the EPA and the Renewable Fuels Association (RFA) supporting E-15, and the American Automobile Association (AAA), the American Petroleum Institute (API) and others expressing serious concerns. The concerns deal with what auto industry trade groups like Alliance of Automobile Manufacturers (Auto Alliance) have described as potential adverse effects of fuel containing 15% ethanol, including “damaged valves and valve seats, which can lead to loss of compression and power, diminished vehicle performance, misfires, engine damage, as well as poor fuel economy and increased emissions.” On the flip side of this argument, EPA has reported test results indicating E-15 continued on pg. 4
Good Sense
News vol. 1 • issue 4
Understanding the Problems of Small Businesses - Where Do You Start?
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mall business, small problems? Not on your life! There is nothing small about the problems faced by small businesses, especially after what’s happened to the economy - in America and around the globe - over the past five years. And while it’s often easy for the news media to focus on the issues facing major corporations, the simple reality is that small businesses represent over 99% of all employer firms, pay 45 percent of total U.S. private payroll, and have generated 60 to 80 percent of net new jobs annually over the last decade. Small businesses are clearly the lifeblood of our country’s economic engine, employing half member of the small business workforce. The of all private sector workers. But what actually SBA itself, by the way, with its annual budget is a small business? Well, according to the U.S. appropriation of over nearly a billion dollars Small Business Administration (SBA), “a small and over 2,000 employees spread across 23 mabusiness concern is one that is independently jor departments, is clearly not in this category. owned and operated, is organized for profit, But, back to the problems. Despite their flexand is not dominant in ibility and the freedom its field.” Actual sizes that comes from operatvary by industry, with without the massive Sm a l l b u s i n e s s e s a re ing small manufacturing overhead that typically firms usually falling into clearly the lifeblood of our comes with big business, a range of 500 to 1500 small business owners employees, while whole- country’s economic engine, encounter just as many, if saling firms with 100 to not many more, problems 500 employees are usu- employing half of all private navigating the whitewaally categorized as “small ters of commerce. In fact, business.” Other indus- sector workers. their very lack of size oftries are categorized by ten makes problems like annual revenues (for excost increases more painample, services companies with annual receipts ful. And that is exactly what’s happening in the ranging from $2.5 to $21.5 million, retailers area of health insurance costs. In fact, the most with $5.0 to $21.0 million in receipts, etc. fall recent “Small Business Problems and Priorities” into the small business grouping). survey results published by the National FedAlthough the SBA’s classification system eration of Independent Business (NFIB) clearly seems pretty broad, it’s likely that unless you’re ranks the cost of health insurance as the most working for a Fortune 500 company, you’re a severe problem facing small businesses today. continued on pg.4
money
Extended Warranties…Worthwhile or Not?
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hether it’s a television, a home computer, or a car, you’ve no doubt had to deal with the “pressure” of a warranty decision at checkout time. It sounds so simple and reassuring when you’re faced with the question, but you really need to stop at that point and think it over. Despite what the
commission-driven sales person claims, it’s not always a good deal for you. Here are some things to think about next time you’re confronted with this situation. First, make sure you understand what protection you already have. Nearly all electronic items - like iPods, laptops, e-readers, and so on - come with
an automatic manufacturer’s warranty, usually higher than that would call for scrutiny. Along a full year. Not always, though, so it’s a good this same line, you should weigh the warranty idea to ask the question when you make the cost against the replacement cost, since items purchase. failing in a few years can be replaced at a cost Next, if like most people you use a credit card far less than their original purchase price. This to buy the item, know in advance if your card is particularly true in the electronics arena. carrier provides automatic protection. Many As in the case of just about all purchases, it do, and it’s at no extra cost to you. Even if the comes down to due diligence. Not all extended period covered is only a year, that should cover warranties are bad, especially considering the you for the time during way you intend to use which you’re most likely the item. Cell phones are As in the case of just about a good example, since to have a problem with the item. the likelihood of losing While you’re thinking all purchases, it comes or damaging one can be about it, take a look at the down to due diligence. Not fairly high as compared fine print. Many extended to, say, a stove or a washwarranty plans contain all extended warranties are ing machine. But here’s terms and conditions that tip: If you are bad, especially considering another restrict your ability to going to buy a warranty, benefit from a claim. For the way you intend to use see if you can buy it diexample, there may be a rectly from the manufacrelatively high deductible, the item. turer rather than through or an overly tight definia retailer. tion of “normal wear-andBottom line: Don’t let tear.” them pressure you for an instant decision. For Of course, one of the more obvious considthe retailer, it’s big business (Warranty Week, for erations is the cost of the plan itself. Industry example, reports that Apple generated roughly watchdog “Warranty Week” suggests that the $5.3 billion from its AppleCare service plan in price range for an extended warranty should be fiscal 2012). For you, it’s something you don’t 10% to 20% of the item’s cost, so any priced want to jump into without careful thought.
patriot’s corner
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t a time when our current politicians tend to apologize for our country's prior actions, it’s refreshing to look back on the style with which our former patriots handled negative comments about our country! Here’s a great example of elegance in action in the face of condescension about our nation’s military history: JFK'S Secretary of State, Dean Rusk, was in France in the early 60s when French President Charles de Gaulle decided to pull out of NATO. DeGaulle said he wanted all US military out of France as soon as possible. Rusk responded, "Does that include those who are buried here?" DeGaulle did not respond. You could have heard a pin drop.
health
Your iPhone Could Help Save Your Life!
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ou’re at the mall, it’s a hectic shopping trip, and suddenly you feel an uncomfortable pressure in the center of your chest, then pain in your arm or neck followed by shortness of breath. While looking for a place to sit, you break out in a sweat, becoming lightheaded and nauseated. These are the classic signs…you’re having a heart attack! These days, nearly everyone has a cell phone handy, and most likely someone will launch a 9-1-1 call to get medical help for you. But you know how serious this could be, and you’d really appreciate an immediate assessment. Enter the iPhone. Chances are that one of your fellow shoppers is an off-duty doctor, and chances are that that the doctor may have with him a device called the AliveCor Heart Monitor. With this device - a $199 iPhone plug-in attachment with accompanying mobile application (App) - the doctor could perform a cardiogram on the spot, and transmit the ECG records directly to the emergency room to launch a treatment plan while you’re in the ambulance! The AliveCor device is part of a wave of digital technology set to revolutionize the medical world. Called “digital medicine” or “digital health,” the concept refers to the use of an everexpanding digital infrastructure and electronic communication bandwidth to reshape the patient/doctor connection. Imagine a world where a visit to the doctor becomes a sit-down in your recliner and an internet connection, or where you receive an emergency phone message from your doctor’s office telling you that a monitor you’re wearing has diagnosed a developing problem. Sounds a bit out of this world perhaps, but it’s really not that far away! In the words of one of this technology’s prime advocates, Eric Topol, M.D., “The ability to get an ECG on a Smartphone is remarkably transformative—an icon of how medicine of the future will be radically rebooted.” Dr. Topol, an American cardiologist, geneticist, and researcher, currently serves as Director of the Scripps Translational Science Institute, and is an advocate of wireless technology for the
medical community. AliveCor’s Heart Monitor received FDA clearance late last year, and is currently available only to physicians. But don’t despair. AliveCor is projecting that clearance for over-the-counter sales may be obtained later in 2013. In the interim, the vendor will be encouraging medical professionals to make the device available to heart patients via prescriptions earlier in 2013, potentially at a pricepoint of $99. “Our goal is to make health care cheaper, easier and more readily available without losing quality of care,” said AliveCor President and CEO Judy Wade. “Our aspirations are significant; we’re out to make a real difference.” And the real difference is beginning to happen, as more and more digital health products emerge. “From connected scales that track weight, heart rate, and air quality to app-driven wristbands that monitor activity, blood-pressure and sleep patterns, dozens of new digital health and wellness products are coming to market in 2013…” reports Dealerscope.com, a website dedicated to Products & Strategies for Consumer Technology Retailing. We’re heading from novelty to necessity in the world of the gadgets we have at our disposal. The devices we not too long ago thought were just nice to have are rapidly becoming key ingredients in our shift to a more efficient and effective doctor/patient relationship. What makes all this so achievable is that we’re marrying what previously was daunting science with technology that is comfortable and commonplace. We’re paving the way to better health!
Enter the iPhone. Chances are that one of your fellow shoppers is an off-duty doctor, and chances are that that the doctor may have with him a device called the AliveCor Heart Monitor. With this device - a $199 iPhone plug-in attachment with accompanying mobile application (App) - the doctor could perform a cardiogram on the spot, and transmit the ECG records directly to the emergency room to launch a treatment plan while you’re in the ambulance!
heard at the water cooler
Understanding the Problems of Small Businesses - Where Do You Start?
Tips to Get Ahead!
continued from pg. 1
Always late on completing projects “I don’t understand it. I am always late with my assignments. The office is too busy. I am constantly interrupted. How can I get more done to meet the deadline?” Yes, the day is very busy with many tasks and interruptions. It seems that there is not enough
own internal deadline. That way, the boss is pleasantly surprised when you get it done “early.” If the boss wants it done yesterday (again, not a definitive answer), negotiate a firm deadline that you know you can meet. It is important that you both know when the project is due. That way, the boss doesn’t come back and say it’s late since he wanted it yesterday. • Plan The Work: Plan the project by breaking it down into manageable “chunks” with time estimates. Make those time estimates “set in stone” so you will keep to your schedule. If you are in the habit of giving yourself “wiggle room,” don’t. Work expands to the time allotted to it, including “wiggle room.” • Work The Plan And Let Others Know Your Schedule: Communication to others around you will hold you accountable and you will tend to stick to the time allotment. Reward yourself to reinforce the habit to work within the time allotted. Whenever you are tempted to expand the time to do the work, remember Parkinson’s Law! This is not new. It is good sense!
time during the day to get anything done. We don’t have all the answers but maybe you should consider Parkinson’s Law to help you. Parkinson’s Law: Work expands according to the time allotted to it. The key to time management is to decide how much time you need to finish a project. Then plan your work accordingly. Stay focused and don’t procrastinate. If time is not specifically defined, the work will drag on and on. Do not allow extra time, because the work will expand accordingly. Tips to utilize Parkinson’s Law: • Set Deadlines: When assigned a new project, ask what the deadline is for completion. If the answer is “sometime in the next two weeks” (some bosses are too nice), then suggest a time beyond your
More than half of the nearly 4,000 businesses surveyed by NFIB said that rising health care costs is their number one problem, with a majority of them calling it a critical issue. The report puts this in clear perspective with this comment: “Rising health insurance costs have proved unaffordable for many small-business owners resulting in some owners terminating their employer-sponsored health insurance program …” And the severity of the problem is not likely to diminish in the years ahead, despite the Patient Protection and Affordable Care Act (“Obamacare”), which the report suggests “failed to address the fundamental causes of rising healthcare costs while opting to focus on coverage.” The health care cost issue is one predicament facing small businesses, but there are certainly others. Future newsletter articles will explore these, as we try to decipher the causes of a continued low rate of optimism on the part of business owners. NFIB noted in its January 2013 “Small Business Economic Trends” report that “the current pulse of business is still hovering at a recession-level reading, only slightly improved…from its “Great Recession” levels of 2008.” Our hope with these articles is to stimulate awareness of what’s ahead so that we can help make a difference through understanding.
What Happened to my Car Warranty? continued from pg. 1
“won’t harm 2001 and newer vehicles,” while hedging on the potential for damage when the blend is used in pre-2001 automobiles and various types of power equipment. The U.S. Department of Energy, too, appears to be leaning toward support of biofuels, recently announcing intent to award more than $10 million to products designed to speed up technology related to converting biomass to fuel.” In the middle of the controversy are auto makers, who are clearly being cautious when it comes to the use of gasoline/ethanol blends (dubbed “gasohol”), especially in the case of E-15. According to an AAA press release, BMW, Chrysler, Nissan, Toyota, VW, Ford, Honda, Kia, Mercedes-Benz, and Volvo have warned their car owners that use of gasohol with more
than 10% ethanol may result in the rejection of warranty claims in the event of damage attributed to E-15. In fact, only 5% of the nation’s 240 million cars, trucks, and SUVs have been approved for E-15 according to AAA, although Flex-fuel vehicles, 2012 and newer General Motors vehicles, 2013 Fords and 2001 and later model Porsches are the exceptions. In any event, the issue bears watching over the coming months, especially if the distribution of E-15 at retail locations continues to expand. At year-end 2012, the fuel was only sold in Kansas, Iowa, and Nebraska, but with an EPA endorsement, it is possible that E-15’s availability may expand quickly. A word to the wise…pay close attention to the labeling on the pumps!
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