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Buy Nearby’s Mobile Billboard
The Buy Nearby mascot van now sports large, colorful graphics to drive home the campaign’s message. Page 3
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Mole Hole of Marshall Thriving
Consistently good marketing, creativity and customer service enable this small-town gift store to draw customers from larger markets. Page 5
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It’s the Law
A gap in banking law means businesses do not have the same online protection as individuals. Here’s how to protect your business. Page 9
® June 2016 Vol. 41 No. 3
Learning retail lessons from airlines’ automated check-in of customers by Lee Peterson Reprinted with permission In 2004 more than 80 percent of airline passengers walked up to the ticket counter and talked to an actual human being before boarding a plane, according to the International Air Transportation Association. Although the industry had been experimenting with self-check-in, such as kiosks, and smart phone check-in since the late 1990s, less than onefifth of passengers used such options only a little over a decade ago. Fast-forward to today, and the diminishment of human contact with customers because of automation within an industry notorious for bad customer service has been staggering. Only about 20 percent of passengers are checked-in by a human agent today, according to some industry estimates. The rest, or about 80 percent of airline passengers, use some form of self-service check-in. In other words, the ratio of automation to human check-in agents has been completely flipped. This massive shift in process is not without its upsides. It has likely saved the airlines millions in labor costs. (One study estimates it costs the airlines $3.86 to check-in a passenger with a service employee, opposed to $0.16 with the use of self-service kiosks.) It has also led to a significant reduction in personal contact between employees and customers, making this unprecedented experiment in large-scale automation an important case study for retailers, on the verge of ushering in a similar revolution in check-out. Continued on page 8
The official publication of Michigan Retailers Association
www.retailers.com
Senate supporting ‘choice’ on bags The Michigan Senate is siding with retailers’ and customers’ freedom to choose the types of customer shopping bags and other containers they use. The Senate on May 10 approved Senate Bill 853 to prevent local gov-
ernments from prohibiting or taxing the use of plastic bags and other types of containers. The measure was approved on a 25-12 vote. “Preventing local governments
from banning or taxing certain types of bags and containers does two important things,” said MRA’s James P. Hallan, president and CEO. “It preserves retailer and consumer choice and it prevents a confusing and costly hodge-podge of regulations on businesses across the state.” The measure is currently before the House Commerce and Trade Committee. “We applaud the action of the Senate and urge the House to follow its lead,” said Hallan. Containers The legislation would prevent a county, city, township or village from adopting ordinances banning the use, sale, or requiring a fee on certain types of containers designed for Continued on page 7
Bill would discourage assessment appeals
drinking water has made it tough for businesses to survive. Hoping to create a neighborhood gathering place, partners Luke Leffel and Chris Szumowicz decided to go full steam ahead with their coffee shop startup, which opened in February. Fledgling businesses face long odds under normal circumstances. They’re far longer for Flint establishments battling public fears that their goods may not be safe because of the water. “It’s one of those situations where you don’t know what to do,” Szumowicz said about opening the business. “Going ahead was almost like our try to do something good.” The shopowners’ faith and positive actions also reflect the
What good is a property tax assessment appeal process if it’s too costly for most businesses to mount an appeal? That’s what Michigan Retailers is asking in the wake of action by the House Tax Policy Committee to change how the Michigan Tax Tribunal considers assessment appeals. “We’re disappointed that lawmakers failed to take into consideration the concerns expressed by taxpayers and went ahead and reported out a deeply flawed bill that would turn the appeals process on its head and drive up taxes,” said Amy Drumm, MRA director of government affairs. “House Bill 5578’s changes to the Michigan Tax Tribunal Act are nothing less than a backhanded attempt to increase taxes by discouraging taxpayers from challenging the value placed on their property by local government.” The committee approved HB 5578 on May 18 and sent it to the full House for consideration. House leaders have not indicated whether the measure will come up for a vote.
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Continued on page 10
Entrepreneurs Luke Leffel (left) and Chris Szumowicz opened a coffee shop in Flint to “try to do something good” for the hard-hit city. Photo by Patrick Kerwin
Flint businesses working to put lead crisis in past by Doug Henze
On a sunny, mid-May afternoon, customers stream in and out of Wildroot Coffee. Clutching cups and baked goods, some head immediately back to their cars. Others study or talk while background music plays over the shop’s speakers. It could be a coffee shop scene anywhere in America. But this one’s in Flint, where the long shadow cast by lead in the city’s