Small Business Marketing News Update - Auto Salvage Industry Hit By Lack Of Rain And Clunkers

With the lack of rain and the implementation of the Cash-for-Clunkers program, inventory for the auto salvage industry is down substantially, according to Bob Eubanks, president and owner of Rusty Acres, Inc., of one of the most successful auto reclamation centers in Florida.

Eubanks, whose business serves the Northeast Florida and Southeast Georgia markets, says the industry has been hit by two major issues. First, the federal government’s Cash-for-Clunkers program diminished a natural and large source (over 690,000 running vehicles) of late model vehicles that would normally be picked and sold as salvage. “The clunkers were taken off the market and the engines were filled with a substance like cement, “ Eubanks explained. “So each vehicle was worthless as far as salvage.”

Another side effect of removing the clunkers is the shortage of used vehicles at auto dealerships. With the economy as sluggish as it is, used vehicles are more popular than ever. But with the shortage, the price of used cars has increased, defeating the main motivation for people buying used.

The second hit to the industry has been the lack of rain, not only in North Florida but also around the South. “If it doesn’t rain, you don’t have as many auto accidents,” Eubanks said. “Not that wrecks are good, but it does help supply the salvage industry.”

Rain was minimal in North Florida and South Georgia during the first half of the year, which affected the local market. But Eubanks’ operation utilizes a national network system, where he can locate and deliver parts anywhere throughout the country, including the Southeast. So with a major drought in Texas, his business was also affected by the lack of rain in that market.

“We have been doing a very brisk business in our industry, even during the recession,” Eubanks explained. “But we would be doing even better if we had the inventory.”

In addition to owning Rusty Acres, Eubanks is also the past president of the Florida Auto Dismantlers And Recyclers Association (FADRA).

Raafordparts.com

Small Business Marketing Update - While Big Banks Seek New Fees, 121 Financial Credit Union Eliminates Charges

Due to its financial strength and its commitment to its members to provide banking services at the lowest possible costs, 121 Financial Credit Union has eliminated its $5 monthly maintenance fee for member accounts, effective November 1, 2011, announced William Braddock, CEO of 121 Financial Credit Union.

“To our knowledge, we are now the only financial institution in the Northeast Florida market with absolutely no maintenance fee,” reported Braddock.

Sending a message that 121 Financial is a member/consumer advocate institution that is less concerned about generating profits than its banking competitors, particularly the big banks, 121 management is seeking ways to eliminate members’ banking expenses.

“Maintenance fees in financial institutions are generally charged on small dollar account relationships to “level the playing field” for those who use (or only qualify for) very limited services,” Braddock explained. “In other words, the Credit Union is unable to generate revenue on these accounts, so the fee was imposed as a matter of fairness to those who use more of the Credit Union’s services. For that reason, our maintenance fee was originally established nearly a decade ago.

“But in reviewing the current environment where institutions have been adding fees, such as $5 per month debit card fees, and then having to back down due to customer anger, we felt we needed to be proactive. Our goal is to always pass on savings to our members whenever and wherever possible,” Braddock said. “For example, we have never charged a fee on our debit card use. Our members are our “shareholders” and they reap the benefits. We answer to them not to stockholders who are just looking at the bottom line.”

121fcu.org

Small Business Marketing Update - Metro Newspapers Are Becoming A Dying Breed

With the latest round of employee layoffs at the Florida Times Union, there is much speculation as to how long will the metro paper remain in the Northeast Florida market in its current form.

Even with the paper's reduced the size and number of sections, the newspaper is still edging up its subscripion rates in order to help stop the financial bleeding. But if subscribers are unhappy with the changes or questioning the paper's future, how many are resubscribing, at best, for the shortest 13-week rate in anticipation of the paper's end?

The newspaper industry as a whole has been hemorrhaging and no one seems to know how to stop it. At a recent symposium in San Franciso, keynote speaker Jeffrey Cole, director of the Center for the Digital Future at the USC Annenberg School, reported some startlingly revelations about the future of metro papers.

After decades of study, Cole has precedicted that metro papers have about 5 years of existence left. He believes there will be four to five American newspapers left standing, including The New York Times, The Wall Street Journal and The Washington Post.

Cole told John Obrecht, the editor of BtoB magazine in a featured article, that "instead of counting down the two-newspaper towns (in 1900 there were 600 U.S cities with two newspapers, there are now six), we're now counting down the no-newspaper towns."

Cole said in the article "30 years ago teenagers didn't read newspapers but started to when they got into their 20"s and 30"s. Today they don't read the newspapers and evidence is clear they never will.

"The sad truth is that everytime a newspaper reader dies, he or she is not being replaced by a new reader."

As one elderly Jacksonville subscriber commented "if the newspaper goes away, where will we go to check the obituaries?"

Small Business Marketing News Update - Snap2 Succeeds Through Recession With A Unique Combination of Services

Utilizing a unique combination of mailing/shipping services with eBay consignment, along with selected business support services, a six-year old Jacksonville, Florida company, known as Snap2, has found a successful formula for retail success in an unstable economy.

The company, owned by Brian Frazier and Dennis Moats, began by offering traditional mailing and shipping services, including fax, copies, mailboxes, notary and passport photos and limited eBay consignment sales. Then the owners spent the past two years expanding their services, first by developing proprietary software that provides a built-in operational method for eBay listings and consignment. At the same time they added additional services that include printing, direct mail capabilities and marketing services geared to small and start-up companies.

“The economy has shown us several things as our strategy is concerned,” Frazier reported. “First, businesses are outsourcing more in order to reduce costs. Secondly, because many businesses have laid off upper management personnel, and with the lack of jobs, there are more people starting up or buying into their own businesses, many being home-based businesses.

“Unlike many of the typical mailing/shipping retailers, we have positioned our business to take advantage of today’s economic issues. We are able to offer services at low rates that can help small businesses or entrepreneurs compete in the marketplace,” Frazier explained.

“With us they can have a business address that is not their home. They can have a shipping department without the costs of personnel or materials. Through our online sales, we can help them move inventory or provide them with a new sales channel. And we can even assist them in their marketing through strategic planning, graphics and direct mail services,” Moats added.

Along with business services, Snap2 provides an array of mailing/shipping services to everyday walk-in customers. “We have many people who use us as their neighborhood post office, plus we provide even more services, whether it’s notarizing documents or selling their valuables on eBay,” Frazier added.

Sales have been consistent over the five years of the business’ existence with either same year’s sales or slight increases during the recession years. “We have had a solid business during the recession because of our service mix,” Frazier said. “And with our added support services, we believe we are building an even stronger business.”

Over the past two years, the company has created a new brand under the Snap2 name with a new store floor layout, new interior look, new signage, new marketing tools and a new web presence.

Snap2.com

Small Business Marketing Update - Does Northeast Florida Pay Its Fair Share In Taxes?

When critics speak of people and businesses not paying their fair share, consider the various types of taxes that face Northeast Florida.

Accounts Receivable Tax

Building Permit Tax

CDL License Tax

Cigarette Tax

Corporate Income Tax

Dog License Tax

Excise Tax

Federal Income Tax

Federal Unemployment Tax

Fishing License Tax

Food License Tax

Fuel Permit Tax

Gasoline Tax

Gross Receipts Tax

Hunting License Tax

Inheritance Tax

Inventory Tax

IRS Interest Charges

Liquor Tax

Luxury Tax

Marriage License Tax

Medicare Tax

Personal Property Tax

Property Tax

Real Estate Tax

Service Charge Tax

Social Security Tax

Recreational Vehicle Tax

Sales Tax

School Tax

State Unemployment Tax

Telephone Federal Excise Tax

Telephone Federal Universal Service Fee Tax

Telephone Federal, State and Local Surcharge Tax

Telephone Recurring and Nonrecurring Charges Tax

Telephone State and Local Tax

Telephone Usage Charge Tax

Utility Taxes:

- Jacksonville Electric Authority (JEA) City of Jacksonville Franchise Fee Tax

- JEA Gross Receipts Tax

- JEA Sewer Public Service Tax

- JEA Sewer Environmental Charge (prorated 17 day) Tax

- JEA Sewer Environmental Charge (prorated 12 day) Tax

- JEA Sewer City of Jacksonville Franchise Fee Tax

- JEA Water Environmental Charge (prorated 17 day) Tax

- JEA Water Environmental Charge (prorated 12 day) Tax

- JEA Water City of Jacksonville Franchise Fee Tax

- JEA Water City of Jacksonville Public Service Tax

Vehicle License Registration Tax

Vehicle License Renewal Tax

Vehicle Sales Tax

Watercraft Registration Tax

Well Permit Tax

Workers Compensation Tax