By now you may have heard several different stories about the upcoming light bulb ban.  Although a complete ban was put on hold http://money.cnn.com/2011/12/16/news/economy/light_bulb_ban/index.htm, it is inevitable.  Incandescent bulbs are basically unchanged since Thomas Edison brought them to light..lol.  Times are changing and countries all over the world began to ban incandescent bulbs years ago.  http://en.wikipedia.org/wiki/Phase-out_of_incandescent_light_bulbs.

Although a complete ban in the US has been put off for now you will notice that by July T12 fluorescent tubes will be banned along with 100 watt incandescents.  New energy standards prevent at least these bulbs from being manufactured in the future.  Two years ago the magnetic ballast that was required for T12 operation was discontinued.  If you have been putting off that replacement, you’d better stock up on bulbs right away.

The replacement bulbs that meet the new standards are already on the shelves.  Whether you choose the risk of mercury poisoning from compact fluorescents or the higher cost LED bulbs, you’ll be making changes in the near future.  The out of pocket could get out of hand.  Give us a call and we’ll point you in the right direction.

Jeff Tieger

Business Advanatge Group

(888) 377-3331

Wholesale prices on natural gas have taken solid declines and that means lower electricity prices!  Since much of the electricity we use is produced using natural gas driven generators, there is a direct relationship between gas pricing and electricity pricing.  Take a look at our Energy Advantage web site http://energyadvantageonline.com/energy-trends.php to see how gas prices have been trending.

You can expect to see a decrease in electricty pricing by up to 4% over the next month.  If you have a contract with an ESCO expiring soon, or you have been waiting for the time to make a move on your energy bills…now is the time.  Since we all know the market is volitile, we are always hesitating to pull the trigger because tomorrow might be better, prices might go down next week or next month.

True…however that type of hesitiation is why an overwhelming percentage of energy customers in deregulated states are still overpaying through JCP&L, PSE&G, Con Edison, National Grid, or any other public utility.  My point??? Take the volitility of the market out of the equation.  First figure out how much you paid for energy supply over the past year.  Then calcualte your average rate during that time.  Now all you have to do is find a fixed rate that is less than your average rate from last year and you are guaranteed (YES I SAID GUARANTEED) to save money.  Just do the math.

Now that you have effectively cut your energy bill, locked in your rate, and you know you will save money…whether the market goes up or down makes no difference.  Could you hvae done better?  Perhaps.  The point here is that you have saved money and that’s all that matters.  Not to mention that since you have a fixed rate, you can actually budget for your energy expense.

Feel free to call us with any additionl questions.  (888) 377-3331 ext 2.

Jeff Tieger

Business Advantage Group

Energy Advantage

Business owners have already had the right to suggest that their customers use a form of payment different from a credit card. Have you ever seen the handwritten sign “$10 minimum on credit cards” or notice the cash price vs. credit price at the gas station?

A recent judgement by the Department of Justice gives business owners the right to also suggest or encourage their customers to use a different type of card.

In case you haven’t been brought up to speed, “rewards” cards cost you more to accept. Hey, someone needs to pay for the cost of the rewards programs. There are over 200 cost categories, each more expensive than the next. This recent judgement gives you the right to suggest that your customer use a card with a lower cost.  You can suggest a non-rewards card, or Visa instead of MasterCard…or vice versa. You can even suggest a debit card, or American Express or Discover. Here is how it can be done:

• Offer a discount or rebate
• Offer a free or discounted product
• Offer an incentive or benefit
• Express a preference for a particular brand of general purpose card
• Promote a particular brand of general purpose card
• Communicate to the customer that the cost of the card they wish to use is higher than other cards

Credit card processing rates have gotten out of hand, but now with a little understanding on your part, you have even more control over what you pay.

You can see the actual DOJ judgement here www.justice.gov/atr/cases/f273100/273170.pdf.  You can also see the text of Visa’s rules here http://usa.visa.com/merchants/operations/op_regulations.html.  I assume you can also find MasterCard’s rules on their web site, although I have not yet seen a link.

 As always, if you have any questions just ask.

Jeff Tieger

President

Business Advantage Group

jeff@BizAdvantageGroup.com

(888) 377-3331 ext 3

Times are tough…no surprise there.  This is an economic situation like no other in history.  In order to stay ahead or get back ahead, you’ll need to try some strategies you’ve never tried before. 

 Here is a unique opportunity to particpate in a seminar that joins strategies in revenue building as well as  expense reduction.  Action Coach and Business Advanatge Group have teamed up to give you some new ideas about how to increase your profits.

Join us October 19th at 5:30 pm.  70 Wood Ave South Iselin, NJ.

All NY employers should be aware that the Wage Theft Prevention Act, that was signed into law on 12/13/10,  is going into effect on 4/12/11.  Please take a few moments to read the details below and make sure you are in compliance.  The fees are pretty steep.  This information comes to us from Ace Payroll Services.  Thank you Alan and staff.

The main provisions of the act that employers must adhere to are as follows:

 Notice Requirement – Upon hire of a new employee and by February 1 of each subsequent year for all employees, the employer is required to provide the employee in writing their rate of pay and how it is paid (hourly, weekly, commission, etc.); allowances claimed against minimum wage (e.g., tip, meal or lodging credits); the employer’s regular pay day, the employer’s name and any “doing business as” names; the address of the employer’s main office or principal place of business and mailing address if different; the employer’s telephone number, plus any other information the Commissioner of Labor deems “material and necessary”. Employers are also required to notify employees of changes to the information seven days in advance, unless the employer reflects the changes in the information to be required with every wage payment. This information must be signed and acknowledged by the employee each time it is received. It must be provided in English and, if the employee’s primary language is not English, in the employee’s primary language. The Labor Commissioner has been directed to prepare templates in English and languages they deem necessary.

 Wage Statements – In addition to the above, employers must provide with every wage payment dates of work covered; employer’s address and telephone number; the rate of pay and the manner in which it is paid (hourly, salary, commission, etc.); gross wages, net wages; deductions; allowances against minimum wage; and for non-exempt employees, the regular rate of pay, overtime rate of pay and the number of regular and overtime hours worked. These records must be maintained for six years.

 Penalties For Non-Compliance – Failure to provide the notice within ten business days of an employee’s hire date subjects the employer to a penalty of $50 per work week to a maximum of $2500 plus costs and attorney fees. Failure to provide employees with the wage information in each payroll statement subjects the employer to a penalty of $100 per work week to a maximum of $2500 plus costs and attorney fees.

 Increased Penalties for Wage Violations – The act increases from 25 percent of unpaid wages to 100 percent of unpaid wages, the amount of liquidated damages the Commissioner of Labor may seek.

 Anti-Retaliation Provision – The act stiffens penalties against employers for retaliation against employees who make complaints regarding conduct the employee believes in a violation of the wage payment laws. In addition to reinstatement and back pay, retaliation victims can also collect liquidated damages up to $10,000. In addition, the employer is required to post notice in the work place, in a visible area, of the violation.

Today’s businesses are running leaner than ever.  Most of the recent cut backs have been in payroll, but expenses still need to be cut.  The only problem is, there are now fewer people to spend the time it takes.

The current craze is to outsource cost containment.   Find a company to cut costs for you, while you focus your time and energy on increasing revenue.

You may wonder, “How can an outside company better reduce my expenses than I can?”  Simple.  Expense reduction firms close the gaps between buyer and seller.  Those gaps are mainly knowledge of true cost, and time to research the best buying situation.  These firms, like Business Advantage Group, are made up of individuals each with their own specialty.  When those specialties are combined, they can cover most of your monthly expenses.

For example, let’s say you are looking at cutting telecommunication costs. Would you prefer your CFO spend the time (and your money) researching what our telecom consultant with 30 years telecom experience already knows? 

Business Advantage Group has saved its clients millions of dollars and countless amounts of time.  What are you waiting for?

Jeff Tieger

jeff@BizAdvantageGroup.com

(888) 377-3331 ext 3

We have heard many times that the government was going to get involved in credit card processing regulations.  Let’s hope this is the start.  Yesterday it was announced that the Federal Government is going to impose a $0.12 cap on debit card processing fees.  You will articles about this  on CNN, MSNBC, Daily News, NY Times.  Read them all as they all tell a great story.

The major argument against it is that Visa and MasterCard will take a hit (they already have as shares DROPPED after the announcement), as well as the banks. Finally the government seems to be on the side of American SMB’s.  Kudos!  The cap reduces the current average fee ($1.15) by 90%. 

There are currently 2 ways for a merchant to process a debit transaction.  The first is signature based, where the card holder signs for the transaction which is processed through the same Visa and MasterCard interchange as credit cards (with a lower cost).  The second is pin based, where the card holder enters a secret pin number for the transaction which is processed through the debit networks. 

The better choice depends on the size of the transaction.  Signature based debit transaction fees are more about the percentage of the sale, where pin based tansaction fees are based more on “cents per transaction”.  A cap already existing on the debit networks (MAC, NYCE, STAR, etc), which is on average $0.65.  Generally speaking, if your transaction is $50 or less you would want your sutomer to sign.  If the sale is more than $50 give them the pin pad.

Any questions?  Contact me at any time.

http://money.cnn.com/2010/12/16/news/companies/debit_card_fee_rule/index.htm

http://www.msnbc.msn.com/id/40706796/ns/business-us_business/

Jeff Tieger

Business Advantage Group

jeff@BizAdvantageGroup.com

How many phone calls have you received regarding energy savings?  It is no secret that the cost of energy has dropped dramatically.  Finding an alternative to the public utility is easy, but finding the right one is the hard part.  Considering all of your options can easily create enough confusion to stop the process altogether, but doing nothing is the biggest mistake you can make.

For years, Business Advantage Group has been saving its clients a lot of money in many different ways.  In response to our clients’ requests to clear up the confusion surrounding energy costs, we developed Energy Advantage, a unique three pronged approach to energy savings.

First – Rate reduction.  With our direct connections to ALL energy suppliers that service deregulated states, we can do the shopping for you in order to find the best rate available

Second – Consumption reduction.  Our certified efficiency experts will evaluate your facility and show you  how to reduce the amount of energy you use.  We will also complete and submit any necessary paperwork for the state incentives for which you qualify.

Third – Overpayment recovery.  We will go back in time in an attempt to find and recover any overpayments or billing errors that may have occurred over the past 6 years.

Energy Advantage can not only reduce your expense by more than 50%, but can actually put money back in your pocket. 

Don’t waste YOUR energy trying to find the right alternative.  Contact us today.

Energy Advantage video intro

Jeff Tieger

Business Advantage Group

jeff@BizAdvantageGroup.com

(888) 377-3331 ext 3

Ms. Ransom,

I had the pleasure of reading your article today.  You have successfully illustrated the small business “pains” in accepting plastic – which is a necessary part of business today.  Not only does everyone want their “Airline Miles”, but even medical offices are forced to accept credit cards due to our pre-tax flexible spending accounts.  Those funds are deposited into bank accounts and participants are issued debit and credit cards to access the funds. Of course, you cannot ignore the fact that a family of four now costs well more than $25 at McDonald’s.   There are many reason that credit card usage has increased.

In addition to the increased usage, you have all the new and wild ways the credit card associations come up with for banks to make money so they will keep issuing cards.  The most popular was the April ’05 separating of rewards cards.  Post April ’05 interchange increased either 11 basis points or 36 basis points (visa) depending on the type of business you own.  The biggest issue that Merchants face is NOT the stupid infinitesimal fees that keep coming up, it is how the processors take advantage of how to charge for those fees.

My name is Jeff Tieger, President of Business Advantage Group.  I have many years experience in the Merchant Services World.  I left the business to use my knowledge of interchange to negotiate FOR my clients as opposed to against them.  It is no less than amazing to see the blatant misuse of knowledge in the credit card processing world.  I have clients that previously paid 5%, 7%, up to 14% to accept credit cards.  Credit Card Processing negotiation is only one of the contingency based services we provide, but since your article is specific and this is my expertise, I will stay focused here as well.

In keeping with my 5 year old example, which still costs business owners way too much, allow me to illustrate how the end user gets taken for a ride.  In most cases the pricing structure consists of a base rate (or teaser rate) plus a surcharge for downgrades.  A transaction will downgrade for any of countless reasons.  In most cases the surcharge for a mid-qualified transaction is  50 to 100 basis points and 75 to 200 for non-qualified.  A rewards card can be placed in either of the categories depending on what the processor wants to do…fair right?  Theoretically a merchant will pay an additional 50 to 200 basis points for a rewards transaction when it should only cost no more than 36 basis points.  How many credit cards out there today are not tied to some type of rewards program?

In your article you cited the example of coffee and a muffin.  Both Visa and MasterCard have rates designed for “small ticket” items.  The interchange percentage is 10 basis points higher but the flat transaction fee goes from $0.10 to $0.04.  The $0.06 is much more important than the 10 basis points (or $0.015 on a $15 transaction).  These are just 2 of a million examples of how the processors are a much bigger problem than the associations. 

American Express has highly discounted rates for specific industries and it is always suggested that a merchant goes through Amex directly and NOT through their processor.  If you do not fall into one of the verticals that Amex offers discounts to, there is not too much you can do.  Although some processors are beginning to process Amex now and offer discounted rates to do so.  Many processors have been processing Discover transactions for quite some time so those rates have become more controlled as well.

I strongly disagree with one point made in your article.  Small business is not left out in the cold to pay higher rates, while the aggressive rates are saved for the Wal Marts of the world.  Although that was true as recent as 5 years ago, today you simply need to know what to look for and more importantly, what to ask for.  The most immediate opportunity for business owners to control their credit card processing costs, is to understand how it works and negotiate with their processor.  Since that is a tall order, there are companies like mine that do the negotiations for them on a contingency basis.  Our service will never cost them a dime.

Thank you for taking the time to read my e-mail.  Have a great day.

Read the article I commented on.  http://online.wsj.com/article/SB10001424052748704094304575029091882451812.html

Jeff Tieger

President

Business Advantage Group

jeff@BizAdvantageGroup.com

When you actually consider what it costs to make a dollar in today’s world, it is amazing that anyone can actually stay in business.

First of all you have to have a home base.  Even though many business owners can actually work from home and have a completely virtual operation, the overhead can still be significant.  Computer networks, back-up and data storage, and telecom all add up.  Now you need to create a fantastic impression with a tremendous web site and marketing materials.  A worth while investment (especially considering, if done properly, your web site will be a 24/7 sales rep with no goegraphic restrictions), however potentially expensive.  What about advertising?  There are low cost / high impact options (internet videos that can be e-mailed give you an opportunity to “talk” to your prospects with out being there), but they still have a price tag.  Then of course we have to think about staff…both revenue generating and non-revenue generating.  Salaries, commissions, benefits, vacation time…it makes you want to do it all alone.

Point??? Business Advantage Group will analyze your monthly expenses, identify hidden fees overcharges and more efficient pricing structures, negotiate with your current vendor, use our buying power to your benefit with our preferred vendors, AND manage all of these relationships for you so you don’t ever have to spend time on hold waiting for customer service.  All of this costs you nothing.  We simply earn a percentage of what we SAVE for you.

That is what cost reduction and cost containment are all about.  Small Business, Big Business…does not matter.  Take advantage of  the knowledge of our team (each analyst has a a specialty in one of our areas of concentration) to do the research for you, while your team can now be more efficient working on their other tasks.

Now, about that proverbial penny…

For more information please contact me anytime

Jeff Tieger

President

888-377-3331

jeff@bizadvantagegroup.com