Shaw® & Mohawk® to invest $280 million in Northwest Georgia

Shaw plans to spend $85 million on a carpet tile manufacturing plant in Adairsville that will employee 500 people. The company also plans to upgrade its distribution system with an additional 535,000 square feet of warehouse space in Dalton. Over the next five years, Shaw said it expects to add 110 employees in Northwest Georgia.

Mohawk is spending 180 million that will add 500 more jobs. They're also into a new ad campaign titled, "License to Spill." If ever an ad campaign suggested the need for professional cleaning service this is it. Mohawk is promoting their SmartStrand® brand by pouring chocolate, fondue and chili dog sauce on a sample carpet and then cleaning it with just plain water.

Recognize the script? It reminds me of Amoco's big roll-out for Marquesa Lana in the '90s. Don Barrett, who was in charge, went far beyond what Mohawk dared to do. He poured bowl cleaner, battery acid, shoe polish, hair dye, mustard, ketchup, red wine and anything else the audience wanted to bring on the sample carpet before it was cleaned by a Bane-Clene® operator. More than a hundred of you were involved in these shows nationwide and prospered.

The demos were intended to show that the carpet didn't need a professional to clean it, but just calling attention to the mess brought instant business to most of you who did those demonstrations. Carpet still needs to be cleaned and so will the new miracle fibers. And Beaulieu® has been advertising their Bliss Brand heavily. These are all signs that the carpet industry is on the rebound and we wish them well. The health and welfare of the cleaning business is directly related to that of the carpet industry. Pent up demand definitely means more business in 2014.

Better be ready!

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Inflation only 2%

The Fed says we shouldn't worry about hyper-inflation. Yeah...Right! Here are some "real inflation" increases forecast for next year that contradict everything the Fed says:

• Rent 3%
• On-line ads 3%
• Travel 4%
• Overnight mail 5%
• Natural gas 5%
• Freight cost 5%
• Hotels 5%
• Car rental 5%
• Healthcare 6%
• Prescriptions 6%
• Postal cost 7%
• Insurance 10%
• Floodplain insurance 25%

The payroll tax base will be increased $2,700.00. Gas & Diesel will range from $3.45 to $4.10. Electricity will go up about 10¢ per KWH. And on top of all of that, I've talked to some folks around the country who say their health insurance has already gone up 30% to 40%.

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The Fed is 100 this month

They were authorized by Congress in 1913 and they're among the smartest people in the world. But there is another layer of intellectual gelatin above them calling the shots. Take " Quantitative Easing" for an example. "QE" was supposed to taper off when the economy started to pick up. Just the other day I heard the president say that he's creating lots of jobs and the economy is getting better. Then why doesn't the Fed back off on "QE?"

They keep up "QE" because of their big money interests. The Council on Foreign Relations, World Bank, World Trade Organization and other world trade enthusiasts haven't extracted enough of our savings yet to bring up living standards in 3rd world nations. This elite group smells massive sales of all the stuff that people would use if they just had some money. The problem is right now they don't have any money.....and we have so much!

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"QE"

"Quantitative Easing" was the con game that saved big investment banks and insurance companies five years ago. The Federal Reserve has been making noises about bringing the speed of the printing presses down a notch or tapering off for months. "QE" really means they've been easing money out of the pockets and bank accounts of anyone who tries to save money and pay their bills on time. Predictions are that it will lead to hyper-inflation.

Does anyone besides me remember the double digit inflation and turmoil of the Carter years? Price lists were obsolete before the ink was dry. I fear we're heading into another of those periods, hastened by such debacles as tax refunds for those who don't pay taxes. Have you noticed derivatives are gaining in popularity again? Shrill TV commercials say that if you owe $300,000 and your house is worth only $150,000 you can refinance it. Isn't this how we got into the financial mess of '07?

The Fed has been pumping $85 Billion a month into investment banks and Wall Street to buy worthless bonds. Brokers love the commissions. Last week Bernanke and Co., decided to keep up the "Artificial Insemination." The stock market went silly over the news. In fact "AI" may better describe the activity than "QE." Mr. Bernanke said the Fed has two goals. The first is to create employment for the middle and lower classes and the second is to keep inflation in check. I don't know how you score his success, but I give him an F in both.

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Hurry, hurry, hurry

Everything is fast today. Car commercials show speed and quick handling. Moms race their kids to school. Cadillac started it a few years ago with their "controlled aggression" ads. Now cars race down Manhattan streets at very high speed. Only cabbies can do that in New York. The erratic driving on our streets and highways reflects this car commercial mentality.

AT&T commercials show fast as being better. They contend that it's important for every friend to know instantly of our choice of a restaurant for dinner or other mundane bits of useless information. Have you noticed people looking at their hand a lot lately? Must be some kind of illness. Reminds me of an old schoolboy joke from the 1930s.

At my golf club, a new Pro put a clock at each Tee so players could see if they were on pace to play a four-hour round. The PGA has TV commercials promoting fast play for all of us amateurs. Never mind that Pros take five hours to play eighteen holes. Did anyone ever think that Pros might be better because they take a little longer?

Baseball is a unique game with no clock, yet there is talk about speeding it up. Next season we'll have the replay option, as in football, which may make it even slower. Getting rid of batting gloves and all the Velcro stuff would speed up play if they were really serious. On the other hand, why is everybody in such a hurry?

In the cleaning industry fast is conceived to be better. "Get the job done quicker and make more money" is the mantra of instructors peddling products throughout the industry that clean faster. Here's some advice! Spend a little more time on each job, give it your undivided attention and your customers will appreciate it and become valid third-party advocates.

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Thoughtful e-mail

Subject: The Clene-Times® commentary

I love receiving the Clene-Times publication and appreciate the quality of product and service we have received from Bane-Clene® over the years. I truly respect Bill Bane and the ‘person’ he is, sadly a fading breed of gentle person who conducts themselves in a way we could all be proud to emulate. But I just have to make a comment on the most recent September issue I received. In his column “Noise, energy dependence and pollution” ...he says, “Let them know we are environmentally friendly. Bane-Clene systems use electricity and not fossil fuels to power our cleaning systems. This puts us out front in the fight against air pollution and our nation’s dependence upon foreign oil that we buy from governments that really hate us.”

I believe this is wrong because electric plants are a MAJOR polluter of our environment, most being coal powered. And, even those that are converting to natural gas could be considered polluters if you consider the fracking issues in this country that produce natural gas. So I don’t think I would be using this argument to persuade clients that electricity is environmentally friendly. I don’t think it is any more or less friendly than anything else used to create energy. It seems that even wind power has issues in other ways damaging to the environment.

I don’t know why this struck me but it did so thought I would share my thought. I do appreciate the quality company you run and hope you are there for many years to come.

Sincerely,

Dianne Humphrey

Hi Diane,

I can't tell you how much I appreciate the fact that you read what I write and that you take your valuable time to comment. And you're right! As I wrote that article I thought about the things you're saying and about including a mention of coal and oil fired energy plant pollution but decided to keep it on an equipment to equipment comparison. After all, we do sell against that competition and I guess I could blame the economic devil for making me do it.

In defense, we do eliminate a great deal of air and noise pollution at each customer location and that is really what I intended to point out. Thanks again for your very thoughtful and respectful comments.

Bill

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New products enhance Seal of Approval logo

"The Carpet and Rug Institute's Seal of Approval testing and certification program for carpet cleaning supplies and equipment welcomes a group of new products and participants. With both newcomers and some familiar names represented in the group, the SOA program now stands at 376 solutions, 444 vacuums, 94 deep cleaning extractors and 104 systems for a total 1018."

This announcement was meant to demonstrate the importance of being part of the CRI/SOA program. But why are so very few CRI approved products advertised by their manufacturers or distributors as having the Seal? Sears® is using the Seal, but it's advertising for in-home carpet cleaning service. Very few professional cleaning companies advertise the SOA.

In our own service company ads, we use the limited space where it will do the most good. For example, we don't feature the SOA because of its lack of consumer recognition We use Angie's List and Better Business Bureau Logos because many millions of consumers recognize them as a symbol of high quality.

The SOA program began in 1996 but didn't come on line until 2002. It took ten more years for CRI to sign up 1,000 Certified Service Providers (CSPs). A look at their web site now shows that number has shrunk from 1,000 to 822. Many carpet cleaners see little value and are not renewing their annual membership. The other note of interest is that CRI touts 1,018 products approved for use on carpets. Ironically, CRI has more approved products than it does CSPs to use them.

Vacuum cleaner Infomercials are another story. The thing they all have in common is that they demonstrate how much dust and dirty air are spewed from their competitors' machines. This has been going on for years and the overriding message to consumers is that carpet is the source of filthy, germ-laden dust particles that are blown into the air we breath from a simple chore like running the household vacuum cleaner.

CRI's own technical spokesman, Dr. Michael Berry, described carpet as a "sink" or a collection place for filth. Cleaning industry teachers (many with no credentials) travel the land and espouse the message "Clean that Sink" in an effort to sell their miracle cleaning stuff. Well-meaning carpet cleaners parrot this information in their advertising and the public is inundated with the idea that carpet is the source of dirt, dust and grime.

Watch those Informercials and especially those for rental extraction machines that have the highest CRI rating and advertise the SOA. Consumer appetites are guaranteed to suffer if they watch these poorly produced shows during meal-time. The brains in the carpet industry haven't figured this out yet as they scratch their heads and wonder why sales suffer.

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Advertising Tip

Do you want to commit advertising suicide? Then try telephone solicitation, computer dialing devices, e-mail blasting, door-to-door canvassing, and flyers on windshields at church and mall parking lots, door knob hangers or junk fax as a way to reach prospects! Most consumers say they consider these an obnoxious intrusion into their private lives or surroundings and you will offend rather than impress them. Don't take the chance!

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Remembering 9/11/01

Some say that a majority of Americans were unhappy that President Bush, a Republican, took us into war in Iraq and Afghanistan. Critics say neither country had attacked the USA and anti-war zealots point out that more than 4,000 Americans died in combat. I'm not one of George Bush's most ardent fans, but his first year in office saw a cowardly attack by Islamic terrorists that killed nearly 3,000 innocent people in NYC on this day in 2001.

The assault debilitated our economy and usurped many of our freedoms. Our travel and our privacy will never be the same because of these pusillanimous idiots. With election rhetoric already in full swing for 2014 and even 2016, take a hard look at a century of war and under whose watch the wars took place:

• President Wilson, a Democrat who ran as an anti-war candidate, led us into World War I in 1917. Germany had not attacked us and even took out ads in the NY Times warning of shipping explosives and armament to England. The Lusitania was loaded with contraband and sunk by a U-boat in what most think was a planned event to turn American public opinion in favor of going to war. 117,000 Americans were killed in less than two years.
• President Roosevelt, a Democrat, skillfully guided us into World War II and asked Congress to declare war on Germany which had not attacked us. Japan did attack us and there is evidence that politicians who wanted us in the European war delayed critical warnings that could have prevented Pearl Harbor which turned public opinion in favor of war. From 1941 to 1945, 450,000 American lives were lost.
• President Truman, a Democrat, took us into the Korean War. North Korea had not attacked us. Drastic budget cuts after WWII resulted in troops in the brutal Korean winter of '50 -'51 not even having foul weather gear. Most only had field jackets. From 1950 to 1953, 55,000 American lives were lost. Political interference with military leaders and collaboration with the United Nations caused the shameful loss of that war.
• President Kennedy, a Democrat, put 12,000 "advisory" troops into Vietnam in 1962 kicking off that war. North Vietnam had not attacked us. He also approved the invasion of Cuba, which did not attack us, and it failed when he withdrew support for the Bay of Pigs fiasco. This resulted in the death of many thousands of Cuban patriots.
• President Johnson, a Democrat, turned the Vietnam war into a quagmire of political interference. From 1965 to 1975, 58,000 American lives were lost. The entertainment industry with programs like M*A*S*H 4077 (actually it was about Korea but was openly anti-war) joined a biased media in swaying public opinion against the war. The nightly news, Hollywood and people like "Hanoi Jane" Fonda shared in the responsibility for humiliating defeat in that war.
• President Carter, a Democrat, allowed 52 U. S. Citizens to be held hostage for 444 days in our Embassy in Tehran, Iran. His anti-war administration also made serious cuts to military budgets. Then his ill-equipped and under-funded military failed in his futile and politically motivated attempt to rescue them. In recent years, Carter has been traveling around the world telling everyone who will listen about America's failings, a subject in which he is an expert.
• President Clinton, a Democrat, went to war in Bosnia. Bosnia never attacked us. After the first attack on the World Trade Center in '93, Clinton was offered Osama bin Laden three times by Sudan and did nothing. He sent military to Somalia that never attacked us. Remember Black Hawk Down? Clinton is famous for bombing a pharmaceutical plant in retaliation. Osama bin Laden got even on 9/11/01.

Do you see a trend here? The current mess in the Middle East is ripe for an anti-war Democratic president to get us into a war that may eventually result in the use of nuclear weapons. The only thing we have going in our favor is that this president is usually late for everything. He may miss the opportunity.

Wars solve all kinds of financial crises and we certainly have a big one right now. For example, the Cruise Missiles cost a million dollars each and they're talking about two or three hundred of them. Whoever makes those things has got to be loving it.

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Vehicle liability

A company vehicle driven by the owner or an employee puts the company at potential liability risk should an accident occur. Employers are responsible for exercising reasonable care to ensure that conditions are met to minimize the potential of accidents. Businesses are often seen as having "deep pockets." When litigation results from an accident that is the fault of a company driver, employers should have policies in place to minimize potential liability.

Here are a few ideas to protect your company. Perform motor vehicle record checks on every employee before hiring them and continue to do so routinely during their time of employment. Remember, an employee may lose their license and continue to drive without reporting it to their employer. Company vehicles should be properly maintained and regularly inspected and complete maintenance and repair records kept.

Most auto accidents are the result of driver inattention, disregard for signs and signals or a failure to yield the right of way. Provide drivers with a check list of steps to take if an accident occurs. Make certain that accidents are reported accurately and promptly. Insurance coverage can be jeopardized if an accident report is delinquent. Insurance companies provide booklets, posters and other literature to help educate and remind drivers of safe driving practices.

Be careful establishing company safety policies that have penalties or create employee fear of losing their jobs. This attitude may discourage an employee from being honest or may even keep them from reporting an accident. Accidents and vehicle damage claims should be handled by trained professionals. Your insurance agent is one and most agents will gladly help establish safety policies for a company if they are asked.

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More on going bananas

The expression "going bananas" is from the effects of bananas on the brain. Bananas contain three natural sugars sucrose, fructose and glucose combined with fiber. A banana gives an instant, sustained and substantial boost of energy and can help us keep fit. It can also help overcome or prevent illnesses and conditions such as:
Ulcers: The banana is used as the dietary food against intestinal disorders because of its soft texture and smoothness. It is the only raw fruit that can be eaten without distress in over-chronicler cases. It also neutralizes over acidity and reduces irritation by coating the lining of the stomach.

A banana is a natural remedy for many ills. When you compare it to an apple, it has four times the protein, twice the carbohydrate, three times the phosphorus, five times the vitamin A and iron, and twice the other vitamins and minerals. It is also rich in potassium and is one of the best value foods around. Bananas might be the reason monkeys are so happy all the time!

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Confusion and stagnation

p>Every week I get a bulletin from a well-respected law firm with warnings about things that can affect a business today. These are the headlines from a recent one that had a lengthy article attached to each one:

• State AGs Express Concerns Over Criminal Background Check Suits
• Using Social Media to Post About New Job Could Cause Legal Issues
• NLRB Rulings in Limbo as High Court Reviews Recess Appointments
• Some Small Businesses Consider Cutting Family Insurance Coverage
• Employers Deal with Injured Workers' Use of Opioid Prescriptions
• Smokers Cost Employers Extra $5,816 Per Year than Nonsmokers
• Employers Helping Immigrants Work Toward Citizenship
• More Tech Startups Doing Away with Management
• Companies Urged to Focus on Better Employee Manuals

This is just one week's worth. Some are much longer and worse. Multiply that by fifty two. Is it any wonder that small businesses without the advantage of having attorneys on staff or on retainer are in such a state of confusion and stagnation?

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Thoughts on trip charges

Once in a while I look at complaints in other industries to see how they're doing. A service call to repair a hot tub contained an add-on $50 trip charge. This infuriated the customer and caused a torrid complaint. Of course the hot tub company answered by explaining the reasons for the added charge such as the high cost of gasoline and insurance.

With all the chatter in the cleaning industry about trip charges on each invoice to cover increased gasoline prices, take time to think how customers will react. Most people realize that prices are going up regardless of what the official inflation rate is supposed to be. But they don't like having it crammed down their throats like a big pill in the form of a trip charge.

Raise your square footage or other pricing structure* a slight amount periodically to cover increased insurance and fuel costs, but don't wait until it becomes a burden on you or one of those obnoxious incidents for your customer. On written and phone quotes state the final full price with no break-out for any type of surcharges.

*This does not apply to bait and switch operators.

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