Issuu

Free Webinars

Free member webinars in September and October will focus on social media tricks and tips and loss prevention tools and equipment. Page 2

Index Turns 20

The Michigan Retail Index, the state’s only monthly gauge of how Michigan’s retail businesses are faring, turns 20 this summer. Page 6

Buy Nearby News

Read the latest Buy Nearby ebulletin, a brief collection of news and tips to help you prepare for Get Caught Blue-Handed Day on October 4. Page 12

® June 2014 Vol. 39 No. 3

Voters get opportunity to eliminate Michigan personal property tax A large coalition that includes MRA and other leading business groups, state officials and local communities is urging voters to approve an August 5 statewide ballot proposal to get rid of the personal property tax. Proposal 1 would eliminate the tax immediately for small businesses (those with $80,000 or less in personal property) and phase it out over nine years for larger businesses. The proposal guarantees that 100 percent of the money a community “loses” from elimination of the personal property tax would be replaced using the more stable state use tax. The legislature already adopted the elimination and replacement plan, but dedicating use tax funds to the communities requires approval by voters. “This proposal solves two problems at once without a tax increase on anyone,” said William J. Hallan, MRA’s senior vice president and general counsel. “It supports small business by reforming the personal property tax and it stabilizes local communities by providing dedicated funding to services such as police, fire protection, schools, ambulances, jails, roads and libraries.” More Jobs Backers point to an economic study that projects passage of Proposal 1 would lead to the creation of 15,000 Michigan jobs and increase business investment by $450 million. The personal property tax is paid by all businesses every year on every piece of equipment they own. The tax is unique to Michigan and puts the state at a disadvantage with other states Continued on page 7

The official publication of the Michigan Retailers Association

www.retailers.com

Policyholders to vote on growth plan Policyholders of Retailers Mutual Insurance Company will vote at the August 19 Annual Meeting on a plan designed to help the insurer grow

more rapidly, increase its financial strength and provide greater benefits to policyholders in the future. The proposal to change the com-

(Proposed)

(2006)

(1981)

Leader of Pure Michigan to receive Legacy Award

pany’s corporate structure has the unanimous support of the Retailers Mutual Board of Directors and company management. State regulators have approved the move, subject to several conditions, including policyholder ratification. The plan calls for Retailers Mutual to change from a mutual insurance company to a mutual insurance holding company. The change would provide the insurer with greater structural, financial and strategic flexibility to respond quickly and decisively to changes in the marketplace. “On one hand, mutual insurance companies have some important characteristics, such as the ability to put policyholders’ interests first. On the other hand, the structure is inflexible and a company is limited on how it can grow and raise capital for reinvestment,” said James P. Hallan, president and CEO of Retailers Mutual and Michigan Retailers Association. “A mutual holding company structure offers the best of both worlds: it is still controlled by the policyholders, but its structure allows for the infusion of additional capital, which could be used to upgrade technology and operational efficiencies, improve claims management or develop new product lines.” Continued on page 8

The recently retired leader of the the park’s 2014 Legacy Award durstate’s wildly successful ing the Legacy Gala, the Pure Michigan campaign attraction’s signature and the rest of his team fundraising event. will be honored on Au“What better time to gust 16 at the Michigan celebrate George ZimmerLegacy Art Park at Crysmann’s leadership and the tal Mountain resort in work of the talented staff Thompsonville. at Travel Michigan,” said George Zimmermann, Renee Hintz, executive diwho retired in April from rector of Michigan Legacy his post as vice president Zimmerman Art Park. of Travel Michigan, will receive “The creative efforts of the advertising team at McCann Erickson, the Travel Commission and the dedicated leaders throughout the Michigan travel industry have not only boosted tourism in our state, residents have rediscovered their Michigan pride.”

Legislators hike minimum wage

Continued on page 5

Continued on page 8

Despite strong opposition from the state’s business community, state lawmakers under the gun from a likely ballot proposal increased Michigan’s minimum wage to $9.25 by 2018 and provided for future annual raises tied to the cost of living. Governor Rick Snyder signed the legislation into law on May 27, shortly after the bipartisan measure received legislative approval. It took only three hours for Senate Bill 934 to sail through the House and Senate and make its way to the governor. The new law raises the state’s minimum wage from its current $7.40

Michigan Retailer

‘Yes’ on two key August votes

Board of Directors: Thomas Ungrodt Chair Ideation, Ann Arbor

by James P. Hallan, MRA President and Chief Executive Officer 2014 is a big election year in Michigan, which tends to make us all focus on November. The contests for governor, U.S. Senate, Congress, attorney general, Michigan House and Senate – and more – will be decided at the polls in November. But let’s not get ahead of ourselves by skipping over August. I’d like to draw your attention to two important votes coming up in August – one political, affecting the entire state, and one closer to home, affecting the future of our Retailers Mutual Insurance Company. Let’s take them in order. On August 5, during Michigan’s political primaries (which are important because they determine which candidates get to November), there is a statewide ballot proposal that offers voters the chance to improve our state’s retail business climate and overall business environment. It does it by getting rid of a business tax that’s unique to Michigan and puts us at a competitive disadvantage. Proposal 1 would eliminate the personal property tax immediately for small businesses and phase it out over nine years for larger businesses. It would enable companies to invest more in growth and jobs. And our

state needs more jobs! The legislature already has adopted the reform plan, which does not increase any taxes. But because a share of the replacement revenue for local communities – which collect and spend the current tax – will come from dedicating par t of the state use tax, the legislation must go to voters for approval. The proposal is supported by virtually every business and governmental organization in the state. A defeat at the polls would leave the current unfair, unstable and expensive system in place. Michigan Retailers is part of the large and diverse coalition of businesses, local governments and others urging a yes vote on Proposal 1. Please make sure you show up on August 5 and do your part to eliminate the personal property tax.

Eligible for Healthy Michigan Plan? Thousands of people who work at Michigan restaurants, retail establishments, grocery stores, tourism businesses and in many other industries qualify for a new, affordable, high-quality health insurance plan called the Healthy Michigan Plan. The plan was created by Governor Rick Snyder and the Michigan Legislature with strong support from state business organizations, nurses, doctors and hospitals. It is estimated that about 470,000 lower-income Michigan working men and women will qualify. Workers can apply for the Healthy Michigan Plan online at www.HealthyMichiganPlan.org. Enrollment began April 1, 2014. As of mid-May, more than 260,000 eligible Michigan workers had already enrolled. Workers can visit www.Healthy-

January 21, 2014), it is of great importance to the future of the insurance company and MRA. As you can read on Page 1, a yes vote on the company’s plan to change its corporate structure will enable the insurer to grow more rapidly and pro-

“Please make sure you vote on August 5 and do your part to eliminate the personal property tax.”

The other vote takes place on August 19 at Retailers Mutual’s Annual Meeting here in Lansing. Although it involves a far smaller group of voters (you must have held a policy with Retailers Mutual on

MichiganPlan.org to learn about the plan, to find out if they qualify and to enroll in the plan. Because there is no deadline for enrolling, workers may apply any time they believe they may be eligible. Good Insurance “The Healthy Michigan Plan is good insurance that will benefit Michigan employers by keeping thousands of workers healthier,” Gov. Snyder said.

“From an economic perspective, we know that healthier workers are more productive workers and far less likely to miss work due to illness. We are Continued on page 5

www.retailers.com

vide greater benefits to policyholders in the future. The company’s board of directors, MRA’s board of directors, management, other insurance experts and attorneys have put together the plan and believe it is the best way for Retailers Mutual to move forward. If you are an eligible voter, please vote yes for the future of Retailers Mutual.

Loss prevention, social media tips focus of webinars Free member webinars in September and October will focus on using social media to market your business and loss prevention tools and equipment to protect it. The online sessions are free to MRA members and are put on by the national Council of State Retail Associations’ Retail University. On September 23, social media expert Paul Gillin will review the basics of social m e d i a m a r k e tPaul Gillin ing plus provide m o re i n - d e p t h tips and tricks to leverage your own subject matter expertise in social channels. Gillin is a writer, speaker, online marketing consulKevin Plante tant and social media coach for the firm Profitecture. He has worked with companies of all sizes and published more than 200 Continued on page 5

James P. Hallan

President and CEO Michigan Retailers Association

Dan Marshall

Vice Chair Marshall Music Company, Lansing

Peter R. Sobelton Treasurer Birmingham

Jean Sarasin

Secretary Michigan Retailers Association

Barb Stein

Past Chair Great Northern Trading Co., Rockford

Brian Ducharme AT&T

Becky Beauchine Kulka

Becky Beauchine Kulka Diamonds and Fine Jewelry, Okemos

Orin Mazzoni, Jr.

Orin Jewelers, Garden City

Joseph McCurry

Credit Card Group

Larry Mullins

Brandon Tire & Battery, Ortonville

R.D. (Dan) Musser III

Grand Hotel, Mackinac Island

Joe Swanson Target Corp.

James Walsh

Meijer, Inc., Grand Rapids

D. Larry Sherman

Board Member Emeritus

Michigan Retailers Services, Inc. Board of Directors: Bo Brines Little Forks Outfitters, Midland

Bill Golden

Golden Shoes, Traverse City

Lisa McCalpine-Wittenmyer Walgreens

James P. Hallan Thomas B. Scott Publisher

Editor

Pat Kerwin

Design Manager

Publication Office: 603 South Washington Avenue Lansing, MI 48933 517.372.5656 or 800.366.3699 Fax: 517.372.1303 www.retailers.com www.retailersmutual.com

Subscriptions:

Michigan Retailer (USPS 345-780, ISSN 0889-0439) is published in February, April, June, August, October and December for $20 per year by Michigan Retailers Association, 603 South Washington Ave., Lansing, MI 48933. Subscription fees are automatically included in the Michigan Retailers Asociation membership dues. Periodical postage paid at Lansing, Michigan. POSTMASTER: Send address changes to 603 South Washington Ave., Lansing, MI 48933. The Michigan Retailer may be recycled with other white office paper.

June 2014

MICHIGAN RETAIL INDEX

Forecasts climb after April sales finally jump up creased sales over the same month last year, while 37 percent recorded declines and 20 percent reported no change. The results create a seasonally adjusted performance index of 51.1, up from 44.8 in March. A year ago April the Index stood at 54. The 100-point Index gauges the performance of the state’s overall retail industry, based on monthly surveys conducted by MRA and the Federal Re-

Current

serve. Index values above 50 generally indicate positive activity; the higher the number, the stronger the activity. Looking forward, 65 percent of retailers expect sales during May– July to increase over the same period last year, while 10 percent project a decrease and 25 percent no change. That puts the seasonally adjusted outlook index at 73.9, up from 63.3 in March. A year ago April

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Celebrate Michigan and the great local shopping across the state.

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Seasonally adjusted diffusion index, calculated by adding the percent of respondents indicating increased sales and half the percent indicating no change, and then seasonally adjusting the result using the U.S. Census Bureau’s X-11 Seasonal Adjustment procedure. Index values above 50 generally indicate an increase in activity, while values below 50 indicate a decrease.

Get Ready For Buy Nearby

the Index stood at 68.1. April sales tax revenues totaled $605 million, down 0.8 percent from last year. Complete results of this month’s Michigan Retail Index—including data on sales, inventory, prices, promotions and hiring—are available at www. retailers.com/mra/news/michiganretail-index.html. The website includes figures dating back to July 1994.

13-14

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MAY

Michigan retailers welcomed a long-awaited rise in sales during April with a burst of optimism about sales for the rest of spring and early summer, according to the Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago. Their 90-day sales forecasts shot up nearly 11 points, the biggest monthto-month jump since January 2013. April also marked the first month since October that more retailers reported year-over-year sales increases than decreases. “The end of the seemingly endless winter was the tonic that consumers and retailers needed,” said Tom Scott, MRA senior vice president, communications and marketing. “Sales rose along with the temperatures and boosted retailers’ outlook for the immediate future.” In fact, when retailers were asked to choose the factor most responsible for poor sales during the previous three months, 55 percent pointed to the weather, while only 25 percent chose “low consumer confidence” and 5 percent “high unemployment.” The April survey of MRA members showed 43 percent of retailers in-

200 (millions)

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Be sure to complete your online survey each month!

Michigan Retailer

www.retailers.com

2 0 1 4

MRA Legislative Reception Sponsored by Michigan’s retail industry Lawmakers and representatives of Michigan’s retail industry turned out in full force for MRA’s Legislative Reception on April 30 in Lansing. The annual event helps state officials learn more about the importance of retail to the state’s economy and the industry’s top issues. Photos by David Trumpie. Walmart’s Erik Hingst and Rep. Margaret O’Brien

Sen. Jim Marleau, Matt Miner of Capitol Strategies Group and Rep. Andy Schor

Rep. Roger Victory, Amy Frankmann of Michigan Nursery and Landscape Association and Amway’s Dirk Bloemendaal

Reps. Joe Graves and Ben Glardon David Palsrok of the Dykema law firm and Best Buy’s Sean Rahn

MRA Board member Barb Stein of Great Northern Trading Co., Rep. Wayne Schmidt, Board member Bill Golden of Golden Shoes, President and CEO James P. Hallan MRA board members James Walsh of Meijer and Joseph McCurry of Credit Card Group with Rep. Ray Franz

June 2014

RETAIL TECHNOLOGY NEWS

Quest for data security – ‘journey, not destination’ John Mayleben CPP, is MRA senior vice president technology and new product development and a national expert on electronic payment processing. He is the first person in Michigan and among the first in the nation to receive the Certified Payments Professional designation from the national Electronic Transactions Association. On this journey called “data s e c u r i t y, ” t h e learning cur ve and evolution of the standards are a never-ending process. Wi t h t h a t i n mind, the PCI-DSS council, the organization that maintains and updates the security rules, has announced PCI 3.0. These new rules will come into play immediately, and businesses and organizations that handle card transactions must start applying these standards to their business practices. One change merchants will see as they upgrade their stand-alone credit card terminals is the requirement that those terminals be locked. This requirement is for both the software and hardware. When you connect a terminal to a merchant processing vendor, the vendor downloads into that terminal some software that handles the transaction. Each processor’s software is different. The new standards will require that the software be locked to prevent a bad guy from sneaking his own version of software into your machine and then stealing data from it. This locking of the terminal will be invisible to you unless you allow another vendor access to your terminal.

(or the new company) to download its software into the terminal. Physical Security The other side of this requirement is the physical security of the device. You will need to start making sure the device is “locked” to the countertop and can’t be removed without a key. Obviously, some of the older devices were never designed to be physically locked to the counter. This security requirement could create a “new” industry: how to secure the device in an attractive yet inexpensive way.

“The new standards will require that the software be locked to prevent a bad guy from sneaking his own version of software into your machine and then stealing data from it.”

Gift Cards As an example, if you decide to use your terminal for gift cards and the software company that provides the gift card solution wants to load the program onto your credit card terminal, you will need to contact your credit card vendor to “unlock” the terminal so that the new software can be loaded. After you are done loading the software, you must re-lock the terminal with the credit card vendor. Another example of when this could impact your use of the machine is if you want to switch processors. The current processor will need to unlock the device and then allow you

As we in this expert processing organization travel the journey of data security, we will keep our eyes on the road and hands on the wheel so that you can focus on running your business. If you have any questions, please don’t hesitate to contact our customer services representatives at 800.563.5981 option 2.

Fall webinars

Continued from page 2

articles and books on new media. He blogs at paulgillin.com and Newspaper Death Watch. On October 22, security consultant Kevin Plante will review categories of tools and equipment you can use to prevent loss in your retail store. He also will provide insight into factoring in risk, acceptable loss and customer perception in making decisions about buying physical security items. Plante is a leader in the loss prevention industry and owner of KMP Security Consulting. He has chaired the Retailers Association of Massachusetts Loss Prevention Committee since 2004. Both sessions begin at 10:30 a.m. EDT and run one hour. To register for one or both of the free webinars, please contact MRA’s Laura Schilling at lschilling@retailers.com or 800.366.3699 ext. 313.

Leader to receive Legacy Award Continued from page 1

The award recognizes not only Zimmermann’s leadership in the launch and expansion of the Pure Michigan campaign, but also “the significant positive impact” the campaign has had on the state. The campaign shares with the world the story of Michigan – its arts, history, culture and natural beauty. Zimmermann will accept the award on behalf of the entire team that made the Pure Michigan campaign a reality. Partnership The campaign was created in partnership with McCann Erickson advertising agency in Birmingham and launched in 2006. It originally aired in three advertising regions outside Michigan. By 2009 the Pure Michigan campaign aired nationally and was recognized by Forbes magazine as one of the top 10 tourism campaigns on record. In 2013 alone, Pure Michigan attracted four million out-of-state visitors who spent $1.2 billion at Michigan businesses. Zimmermann was named “One of the Top 25 Extraordinary Minds in Hospitality Sales and Marketing” by the Hospitality Sales & Marketing Association International

(HSMAI) in 2012. In 2011 he was named State Tourism Director of the Year by his peers, the National Council of State Tourism Directors. Fundraiser The Legacy Gala begins with a re-

ception and silent auction, followed by dinner, keynote address, presentation of the Legacy Award and a tribute video about the honoree. The annual event is the main fundraiser for Michigan Legacy Art Park – a place that attracts more than 10,000 visitors each year to discover more than 40 outdoor sculptures and 30 poetry stones along 1.6 miles of hiking trails. The Art Park’s education programs, summertime concerts and year-round events further inspire awareness, appreciation and passion for Michigan history, culture and environment. Ti c k e t s t o t h e 2 0 1 4 L e g a c y Gala are $75 per person and can b e p u rc h a s e d o n l i n e a t w w w. michiganlegacyartpark.org/events or by calling 231.378.4963. Sponsor tickets start at $250 and are partially tax deductible.

Eligible for Healthy Michigan Plan? Continued from page 2

grateful that so many Michigan business organizations helped us create the Healthy Michigan Plan, and I am asking all Michigan employers to join with us in making their workers aware of the plan by directing them to the HealthyMichiganPlan.org website and to watch the enrollment video.” The Healthy Michigan Plan is good, quality insurance that covers many essential medical services including: • Doctor visits • Hospital stays • Prevention and wellness services, including annual checkups • Emergency and urgent care • Immunizations • Mental health services • Substance abuse treatment • Surgeries • Dental care • Mammograms • Hearing check-ups and eye exams • Ambulance services • Prescription medications • Maternity and newborn care • Much more. $2 Doctor Visits The plan is designed to be

affordable for lower-income Michigan workers. For example, it will cost just $2 for visits to the doctor or urgent care. In addition, there are limits on how much a worker will pay for any medical service or treatment, based on the worker’s income. Generally speaking, workers will be eligible for the Healthy Michigan Plan if they are between the ages of 19-64, not currently eligible for Medicaid, not eligible for or enrolled in Medicare, and earning up to 133 percent of the federal poverty level (about $16,000 for a single person and $33,000 for a family of four). It is believed that most eligible workers are employed in one or more minimum wage, lower-wage or part-time jobs. Most are likely employed at restaurants and drinking establishments: bars and pubs; retail shops and stores; grocery stores and convenience food stores; lodging, resort and other tourism and entertainment businesses; certain health care and agricultural facilities; gasoline/ service stations; and more.

Michigan Retailer

www.retailers.com

Michigan Retail Index marking 20th anniversary The Michigan Retail Index, the state’s only monthly gauge of how Michigan’s retail businesses are faring, turns 20 this summer. Michigan Retailers Association created and launched the Michigan Retail Index in August 1994 (the first one collected data for July 1994) with the Federal Reserve Bank of Chicago as partner. The answer to why Chicago instead of Detroit is that the Detroit branch is part of the Chicago bank in the national system. “Our partnership with the Fed was unique and valuable when it began 20 years ago and it has remained so to this day,” said MRA’s Tom Scott, senior vice president communications and marketing, who was part of the team that created the Index. “We’re not aware of any other state retail association teaming up with the Federal Reserve to provide retailers, economists and public policymakers with current information on the retail sector. It’s valuable

The Index reports both the raw percentages for each of the three groups (better, worse or the same) and a seasonally adjusted Index number as calculated by the Federal Reserve. The Index number is on a 100-point scale. Numbers above 50 generally indicate overall positive activity; the higher the number the greater the positive activity. “We always want the sales index number to be above 50, and we’re really happy when it gets close to 60 or higher.”

data, because retail sales are an extremely important piece of the state and national economies.” Overall Health The Index measures how well the overall retail industry is doing, rather than how much consumers are spending. While those two measurements are closely related, there is a difference, Scott explained. Monthly retail sales figures from the U.S. Department of Commerce focus on the amount that sales across the nation increased or decreased. The Michigan Retail Index focuses on the percentage of Michigan retailers doing better, worse or the same. “In theory, retail sales could be up 10 percent for the month, but only one or two retailers experienced all of those gains. Our Index gives us a better picture of whether there were gains and how they were spread throughout the industry,” Scott said.

Yearly Average Index Values for 3-Month Outlook: 1995-2013

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Quick and Painless The Index is actually two separate indices. Current Performance reports the most recent results. The 3-Month Outlook reports retailers’ forecasts for the next three months. Five areas are tracked: retail sales, inventory, prices, promotional efforts and hiring. All comparisons are against the same month or months a year earlier. “From the start, the survey was designed to be quick and painless for MRA members,” Scott said. Retailers simply check boxes on whether their results or forecasts were above, below or no change from the same month the previous year. The survey also asks for a specific percentage increase or decrease in sales and forecasts for the Christmas shopping season, the end of the year and beginning of the new year. It was originally a postcard survey, but was switched to online several years ago to save on the costs of postage and data processing. MRA members receive email bulletins every month that contain a link to the current online survey. The monthly data are used in a number of ways by economists and policy makers, including preparation of the Fed’s periodic “Beige Book” snapshot of the nation’s regional economies. Many retailers use the information to see how their business stacks up against the industry as a whole. All of the results, going back to 1994, are on the MRA website under the “News” tab on the homepage. The Index is included on the Federal Reserve Bank of Chicago’s website as part of its economic snapshot. Landmarks An analysis done by MRA intern Andrew Reed, an Albion College student, turned up the

following “bests and worsts” for the industry, as captured by the Index. Perhaps not surprisingly, the months with the worst sales performance also tended to have the lowest threemonth outlooks.

Participate!

Keep the Michigan Retail Index going strong. Fill out the quick online sur vey ever y month. If you are not receiving a monthly ebulletin with a link to the current survey, please contact MRA’s Laura Schilling at lschilling@retailers.com or 800.366.3699 ext. 313.

Performance Index (Sales) • Since the initial 63.0 figure in July 1994, only two Julys beat that figure: 67.4 in 1998 and 63.9 in 2013 • The highest index number recorded was 71.7 in December 1994 • The lowest number was 28.8 in November 2008 • The longest stretch of above-50 results was 51 months from January 1996 to March 2000 • The longest stretch below 50 was 27 months (during the Great Recession) from November 2007 to January 2010 • The best year was 1998, when the average monthly index number was 62.8 • The worst year was 2008, with a monthly average of 39.3 • January was the most positive month overall, averaging 52.7 • December was the worst, with an average of 49.1 • The past 12 months trail the first 12 months in 1994-95, 61.8 to 50.9. 3-Month Outlook (Forecasts) • Since the initial 78.8 figure in July 1994, only two Julys beat that figure: 81.2 in 1998 and 82.0 in 2013 • The highest index number recorded was 88.2 in October 2004 • The lowest number was 34.1 in November 2008 • The longest stretch below 50 was 7 months (during the Great Recession) from September 2008 to March 2009 • The best year was 1999, when the average monthly index number was 79.4 • The worst year was 2008, with a monthly average of 48.1 • February and April tied for the most positive month overall, averaging 72.4 • December was the worst, with an average of 66.8 • The past 12 months trail the first 12 months in 1994-95, 68.9 to 78.7.

June 2014

Opportunity to eliminate Michigan PPT Continued from page 1

when competing for new businesses. “Not only do small businesses pay the 6 percent sales tax when they purchase equipment, they also pay the personal property tax each year they own the equipment,” Hallan said. “Eliminating that taxation would free up businesses to invest in growth and new jobs.” Funding The reforms would be paid for in two ways. First, funding for special corporate tax breaks that the legislature already has voted to end would be used for the program. Second, a statewide Essential Services Assessment to be paid only by manufacturers receiving a personal property tax reduction would be established. That would leave a projected $126 million to come from the state’s general fund to reimburse communities. The state has the money available because of Michigan’s improved economy. Defeat of the ballot proposal would prevent the reforms from taking place. Small businesses would continue to pay the tax and funding for local services would remain unstable.

Frequently asked questions about the ballot proposal The following information is provided by the Strong and Safe Communities Coalition. Additional information is available on its website, StrongAndSafeCommunities.com. What is this proposal? This proposal – on the ballot August 5, 2014 – accomplishes two major goals for Michigan without raising taxes: • It provides an immediate tax cut for small businesses by ending the unfair double tax (the personal property tax) on personal property that businesses in many other states do not have to pay. • It creates a stable, reliable funding system for communities in Michigan to pay for police, fire, ambulances, jails, schools, libraries, roads and other community services. Why do we need to support this proposal? If this ballot proposal fails: • Small businesses would immediately go back to paying the unfair double tax on equipment that businesses in many other states don’t have to pay. • Community funding for police, fire, ambulances, schools, jails, libraries, roads and other community

services will continue to remain unstable, unpredictable and unreliable. How many jobs would this proposal create? Reforming the personal property tax would create up to 15,000 jobs and increase business investment by $450 million, according to the Anderson Economic Group. What is the personal property tax? Currently in Michigan, all businesses must pay a personal property tax on every piece of equipment they own – every year. So not only do small businesses pay the 6 percent sales tax when they purchase equipment, they also pay a personal property tax for every year that they own the equipment. The tax level on business personal property is unique to Michigan and has put the state at an economic disadvantage when competing for new businesses and jobs. This proposal would immediately eliminate the personal property tax on small businesses, and phase it out over nine years for larger businesses. Would this proposal raise taxes? No. This referendum is not a tax increase. How does this proposal protect local communities? This proposal creates a stable funding stream for communities in Michigan to pay for police, fire, ambulances, jails, schools, roads, libraries and other community services. 100 percent of the funding for community services will be returned directly to Michigan communities for these community services. This dedicated funding for community services is no longer subject to the uncertainty and instability of annual legislative appropriations or political gamesmanship in Lansing. Does this proposal amend the constitution? No. This is not a constitutional amendment. The state constitution requires that this bold effort to reduce taxes by eliminating double taxation on Michigan businesses and stabilizing local funding be approved by a vote of the people – or else the tax cut will be repealed. How will this proposal affect small businesses? The proposal provides an immediate tax cut for small businesses. Small businesses stopped paying the double tax on personal property effective January 2014. If the proposal fails, small businesses would immediately

IT’S THE LAW

Seeing MRA’s forest through all the trees by William J. Hallan, MRA Senior Vice President Operations and General Counsel I had a feeling that when you picked up this copy of Michigan Retailer you desperately wanted to learn about MRA’s organizational structure. Let’s be honest, nothing quite gets the blood flowing like reading about corporate entities! This article, though, is not about corporate structure; it’s about our identity. Our forest. When I tell people I work for Michigan Retailers Association, many think of my employer as a trade association that advocates for its members. That’s certainly true. MRA was established in 1940 to represent the retail industry as the legislature considered imposing a sales tax, and we’ve been advocating for our members for nearly 75 years. But MRA is much more than a trade association. In fact, we have four additional corporate entities that operate out of our headquarters in Lansing, including: • Retailers Mutual Insurance Company – a mutual insurance company that writes workers’ compensation and dental insurance. • Michigan Retailers Foundation – a charitable organization that provides financial scholarships to approximately 35 students of higher education each year. • Michigan Retailers Association Political Action Committee – a political committee that supports retail-friendly legislators through contributions from our members, directors and employees.

• Michigan Retailers Services, Inc. – a service corporation that processes credit card transactions in 49 states. While we’ve developed those entities to better serve our members, the Association is our forest. That comment probably seems strange. Let me explain. As I prepared to start law school, a wise mentor once told me to “see the forest through the trees.” In other words, don’t get lost in the weeds. Years later, the advice rings true. To understand Michigan Retailers Association is to see the forest. Although complex, MRA has maintained its identity by always focusing on our mission to represent the interests of the retail industry. The services we provide are our trees, and each is firmly rooted in the principles developed decades before my time. “It’s the law” probably isn’t a proper header for this article. Except for a few references to corporate entities, this wasn’t really a legal column. However, “they” always say to write about your passion, and my passion is the forest. In the coming months you’ll see an even greater amount of MRA activity guided, as always, by our core principles. As the August primaries and November elections draw near, we will identify retail-friendly candidates for your review. We’ll provide guidance on ballot initiatives. We will continue to carry the torch for Main Street Fairness. We will advocate against regulations that burden our industry. We will represent each and every retailer in the state of Michigan. We thank you for taking a walk in our forest and for climbing one or more of our many trees.

go back to paying the unfair double tax on equipment that businesses in many other states don’t have to pay. How will this proposal affect manufacturing? The proposal establishes a statewide Essential Services Assessment that is only paid for by manufacturers that receive a Personal Property Tax (PPT) reduction. Large and small manufacturing businesses will see the PPT phased out over time, beginning in 2016.

Services Assessment paid only by manufacturers receiving a personal property tax reduction. This proposal does not raise taxes for anybody.

How is this funded? It is paid for by eliminating special corporate tax breaks the legislature has already voted to end, and by establishing a statewide Essential

What happens if this proposal does not pass? If this ballot proposal fails: • Small businesses would immediately go back to paying the unfair double tax on equipment that businesses in many other states don’t have to pay. • Community funding for police, fire, ambulances, schools, jails, libraries, roads and other community services will continue to remain unstable, unpredictable and unreliable.

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Policyholders to vote on plan Legislators hike minimum wage Continued from page 1

Continued from page 1

Step Forward Peter Sobelton, chair of the RMIC board, called the move another important step forward for the company and policyholders. RMIC’s roots go back to 1981, when MRA established a self-insured fund to provide workers’ compensation insurance to member businesses and help them control their insurance costs. Retailers Fund was successful, but growth was limited by its structure as a highly regulated state fund. It was prevented from serving a large part of MRA’s expanding and more diverse business membership. To overcome those obstacles, MRA converted Retailers Fund to the current Retailers Mutual on January 1, 2006. Retailers Mutual also has been successful. It has increased surplus and is now consistently writing more than a million dollars in new premium each year – a feat it could have never dreamed possible as a fund. “It is Retailers Mutual’s success and growth potential that have led us to this next proposed change,” Sobelton said. Successful Companies The summary documents provided to policyholders state: “RMIC’s Board of Directors believes that, in the fu-

ture, the most successful insurance companies will be those that have the structural, financial and strategic flexibility to respond quickly and decisively to changes in the marketplace… “In its current structure as a mutual insurance company, RMIC has limited options to respond to change in the marketplace, to raise additional capital and to grow or solidify its business operations…” The documents continue, “As a mutual, RMIC has adopted a corporate culture and reputation as an entity that focuses on the interests and benefits of its current and future policyholders…RMIC wishes to preserve its ‘mutuality’ as much as possible while still being able to compete against its larger stock and/ or non-insurer competitors in the marketplace.” To be eligible to vote on the plan, a policyholder must have held a policy with Retailers Mutual on January 21, 2014. Votes may be cast in person or by mailed proxy. The Annual Meeting begins at noon on August 19 at MRA offices in downtown Lansing. Complete information and proxy forms were mailed to policyholders the first week of June.

hourly rate to: • $8.15 on Sept. 1 this year • $8.50 on Jan. 1, 2016 • $8.90 on Jan. 1, 2017 • $9.25 on Jan. 1, 2018. Beginning in January 2019, the state treasurer will adjust the wage based on the average annual percentage change in the Midwestern Region CPI for the most recent five-year period. New rates will be posted by February 1 and effective April 1 of that year. Annual increases cannot exceed 3.5 percent. There will not be a rate increase if unemployment in Michigan reaches 8.5 percent or higher. The tipped wage, paid mainly to restaurant employees, will rise to 38 percent of the new rates. That means the current minimum of $2.65 an hour will gradually increase to $3.52 by 2018. Opposed to COLA Michigan Retailers Association, like many business groups, strongly opposed any minimum wage legislation that included a COLA provision. “We’re extremely disappointed in the final version of the legislation,” said MRA’s William J. Hallan, senior vice president and general counsel. “While the revised bill does in-

clude some pieces to make it more palatable than the Senate’s original proposal, and it is more reasonable than the ballot proposal, it was not something MRA could support in light of the annual cost-of-living increases.” He added, “It will create great uncertainty for employers every year as they attempt to calculate the levels of employment their businesses can afford. The effect of a higher minimum wage boosting other wage levels will be a job destroyer as wages rise automatically, year after year.” Ballot Proposal Lawmakers believed their bipartisan deal on the minimum wage was the only way to defuse a popular ballot proposal that would have raised the minimum wage to $10.10 by 2017, eliminated the tipped wage and indexed the rate to the Detroit Consumer Price Index. The new law not only stole some of the wind from the sails of the ballot proposal, it apparently made it moot. The ballot proposal would amend the former law, but since lawmakers repealed that law when they raised the minimum wage, they left the proposal with no legal standing.

June 2014

RE: RETAILERS

Willer’s Shoes celebrates 80 years in business

Willer’s Shoes in Sturgis celebrated its 80th anniversary on April 11 and 12 with a band, refreshments and drawings to win $80 gift certificates. Opened in 1934 by Harry Willer, the store has had only two owners in its history. Current owner and operator Todd Maynard has been with the company since 1972. The store recently redecorated with fresh paint, new carpet, gaslights and a children’s “fort” housing the store’s original Buster Brown Carousel.

Therapy Center is a multi-disciplinary/interdisciplinary therapy center integrating physical, speech and nutritional therapies. The Center opened in September 2012. The Gibraltar Trade Center site in Taylor will close at the end of this year and is expected to become the site of a new Menards home improvement store, according to downriver The New-Herald. The News-Herald said trade center officials confirmed

Kenneth Schwark, founder of Schwark Furniture in Macomb County, died March 23 at his home in Rochester at the age of 89. T h e f i r s t S c h w a r k F u r n i t u re store opened in downtown Utica in 1962 and the company soon became a multi-store operation. Stores opened in St. Clair, Mount Clemens and Shelby Township. Mr. Schwark, whose son James served on the Michigan Retailers Association Board of Directors, also built the Shelby Square Shopping Center in 1972 and the Sycamore Hills Golf Club in 1989. He is survived by his wife, Margaret, three sons and nine grandchildren and three great grandchildren. Wi n s t o n C . D a n c e r , f o r m e r president of the 32-store Dancer’s Fashions clothing store chain headquartered in Mason, died on May 9 at the age of 97. He is survived by sons Douglas and Dennis, nine grandchildren, numerous great grandchildren and

one great-great grandchild. He was predeceased by his wife, Jean, and daughter, Sue. Doug Dancer is a former chairman of the MRA Board of Directors. Mr. Dancer moved to Mason in 1954 with his family and purchased Schmidt’s Department Store. He served as president of the family chain until 1986. He was also a director of Mason State Bank for 25 years and was active in his church and the Mason Kiwanis Club.

Mall pioneer Jerome Schostak died May 9 at the age of 80. A Franklin resident, he was CEO of Schostak Bros. & Co. in Livonia for 25 years until 1995, when two of his sons succeeded him. The company began in 1920. Mr. Schostak developed the Livonia and Macomb malls in 1962, and the company operated 10 regional malls through the late 1990s in Michigan and the Midwest. He received the Urban Land Institute of Michigan’s Lifetime Achievement Award in 2008.

Membership Services Corner Quick notes on key services. Call 800.366.3699 for details. by Penny Sierakowski, MRA Customer Service Department Manager

Owner Todd Maynard shows off Willer’s Shoes’ original carousel.

Some “long neglected” retail districts along East Jefferson Avenue, east of downtown Detroit, are banding together to attract attention and investment, according to a May 10 story in The Detroit News. The areas along a seven-mile stretch of Jefferson are calling themselves Jefferson East Inc., and the group is urging residents and business owners to “Go East” for the “live-work-play” lifestyle that’s making such Detroit hotspots as Midtown a magnet for residents and new businesses. “There’s just been a lot of energy,” Josh Elling, executive director of Jefferson East, told the paper. “I have not seen this level of interest, investment or optimism since I’ve been here.” Apogee Therapy Center in Grandville received the Grandville/Jenison Chamber of Commerce Small Business of the Year Award. Apogee

they are closing the Taylor location and consolidating operations at their Macomb County location. The Taylor center opened in 1982 and is home to about 200 temporary and permanent vendors. Menards did not say what its plans are, although city officials say a Menards is coming to their community. Art Van announced plans to open a franchised location in Gaylord at the end of May. Franchise owners are Julie and Bruce Dietz. The location previously was a Gaylord Sit ’n Sleep and, before that, it was Gaylord Home Furnishings, according to Furniture Today. The 18,000-square-foot store is the Warren furniture retailer’s seventh franchise location, following openings in Owosso, Alpena, Mt. Pleasant, Sault Ste. Marie, Marquette and Midland. It announced franchising plans in 2012.

We appreciate your membership. Let us know whenever we can help you with a question or a problem, no matter how large or small. Insurance Open enrollment in the dental, health and vision benefits plans is currently underway. The open enrollment period is the time to sign up for these membership services or add or delete members of a group. Members also can make any benefit changes. Members can contact MRA at 800.366.3699, ext. 681. for information or to make changes. Credit Card Processing • If you receive a letter from the IRS regarding your processing, please contact Customer Service at 800.563.5981 option 2 to verify the validity of the letter. • Card associations (Visa, MasterCard) require merchants to imprint all credit cards that will not swipe. Contact us if you need an imprinter or imprinter slips.

• You must notify us if there is a change in ownership or a change in Tax ID for your business. • If you are approached by someone claiming to be affiliated with Michigan Retailers, please ask to see a business card to verify the affiliation. You can also call Customer Service to verify. • Keep your customers happy and don’t lose potential sales. Contact us if you would like to accept American Express. • You must settle your credit card terminal before unplugging it, especially if you use the terminal infrequently. • For your protection, please notify us of any larger than normal sales or out-of-the-country sales. We may also contact you on occasion to verify large, keyed or duplicate transactions. • Don’t forget to notify Customer Service of any changes with the authorized signer on file (nonprofit organizations, government entities, etc.). • Data security compliance is mandatory. You must complete an annual PCI Self-Assessment Questionnaire to verify if your business is PCI compliant. Visit www. compliance101.com to begin the questionnaire.

Michigan Retailer

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NEW MEMBERS Armor Knight Security Inc., Adrian Xtreme Tanning Salon LLC, Algonac Zal Gaz Grotto Movper #34, Ann Arbor Hilltop Greenhouse & Farms LLC, Ann Arbor Music Go Round, Ann Arbor Once Upon A Child, Battle Creek Beson’s Market Inc., Bay City Krzysiak Family Meats Inc., Bay City EM Med PC, Bay City Laur Silicone Inc., Beaverton Jodi’s Tangled Antler, Beulah Van Beek’s Custom Wood Products Inc., Byron Center Rockin Cow LLC, Cadillac Agape Care Essential School LLC, Cadillac Boon Sports Management, Cadillac Women’s Fit & Tone Center, Cadillac Quality Home Entertainment, Canton Play It Again Sports, Canton Tassier Boat Works, Cedarville Muffler Shoppe, Charlevoix The Pines Restaurant, Cheboygan Great Lakes Tissue Company, Cheboygan Tri-Action Auto Repair Inc., Chesterfield Fashion Cents LLC, Chesterfield Motorcycle Express Lube, Chesterfield Twp Committee to Elect Dennis M. Ritter, Clarkston

Mitch’s Bar, Detroit USA Concerts Inc., Detroit 219 Company LLC, Detroit Kerry Bros Truck Repair, Detroit Gregory Boat Co., Detroit Coliseum Bar & Grill Inc., Detroit Dewitt Post 671, Dewitt Great Lakes Energy Service Inc., Dewitt Back Alley Pizza, Douglas HMCo, East Lansing Ladies Choice Fitness Center LLC, East Tawas The Owl’s Perch Gift Shop, Eaton Rapids B Nektar LLC, Ferndale Strida Hockey Inc., Flint Shop Heartfelt, Flint Johnson Pools & Supplies Inc., Flushing SAR Productions Main Street Tavern, Frankenmuth The Odyssey of Flint, Grand Blanc The Jewel of Grand Blanc, Grand Blanc Keystone Millbrook, Grand Ledge My Team Triumph, Grand Rapids Le Tour De Donut, Grand Rapids Jenison Triathlon, Grand Rapids RunGR, Grand Rapids The Bridge Run, Grand Rapids Trail Blazer 2014, Grand Rapids Tri Allegan 2014, Grand Rapids DKRRA, Grand Rapids Grand Ledge Area Youth Football, Grand Rapids

Muddy Patriot, Grand Rapids Emmanuel Hospice, Grand Rapids Evart July 4th 5K, Grand Rapids Grand Ledge Bridal Association, Grand Rapids Epic Race Timing, Grand Rapids Family Promise of Grand Rapids, Grand Rapids Westview Greenhouse Inc., Grandville Plato’s Closet, Grandville Rent Smart LLC, Grant Reno Bar, Greenville Montcalm County 4H Fair Association, Greenville Mecury Laboratories Inc., Greenville Pickles Hard Hat Bar, Hale A-1 Party Store, Hillman Pinos Pizzeria and Fun Park LLC, Hillsdale Reliable Ski Haus, Holland The Rental Co., Holland K & R Tire & Trailer LLC, Holland Edge Ice Arena LLC, Holland Beechwood Inn Inc., Holland Wagner Wood Products, Holland JJ’s Auto Body LLC, Holland Evergreen Commons, Holland Kan Rock Tire Inc., Holly Phil’s Auto & Truck Service Inc., Houghton Lake Benjamin J Steketee DC, Hudsonville Michigan Fire Juniors, Hudsonville Community Garage Inc., Hudsonville Zorn’s Service Inc., Ida Rocky Top Beer-BBQ, Jackson St. Johns UCC, Jackson Kalamazoo Loaves & Fishes Inc., Kalamazoo Bob Goodrich for Congress, Kentwood Omar’s of Lansing/Exchange, Lansing The Green Door Blues Bar & Grill LLC, Lansing Village Party Store, Lansing Ambiance Salon of Lansing LLC, Lansing Spare Time Entertainment, Lansing LorAnn Oils Inc., Lansing Hitch N Post, Lapeer James Street Station, Ludington Pierrot Hair Design, Ludington Love Ludington Rentals, Ludington Logger’s Landing, Luther The Village Tap LLC, Manchester Mike’s Place, Marshall

Jewelry Store For Sale or Lease Owner retiring after 35 years of profitable business in Houghton Lake. Business only or building with additional rentals.

Call Don Ressa

989.302.1029

J & S Rental Services LLC, Mason Smalleys Auto Service, Mason Silver Star Bar, Maybee Little Brown Jug, Maybee Val Du Lakes Bar & Grill, Mears Precision Torque Control Inc., Midland Michigan Grill LLC, Monroe Pete’s Garage LLC, Monroe Asiana Restaurant Inc., Monroe George’s Boot Barn, Montgomery Hunter Cabin Inc., Mount Pleasant Open MRI of Mt Pleasant, Mount Pleasant Sure Shots BBQ, Mount Pleasant JL Roadhouse LLC, Mulliken Wolf Lake Tavern Inc. dba Wolf Lake Tavern, Muskegon Z Supply LLC, Muskegon Alarm Engineering Services, New Baltimore Signal 88 Security of Detroit, New Hudson Vanco Steel Inc., North Branch Play It Again Sports of Novi, Novi Korner Pub, Owosso Tahquamenom Treasures LLC, Paradise Sisters Inc., Port Huron Evergreen Party Store Inc., Roscommon Sunny’s Auto Truck & Towing, Roseville Joe’s Super Pawn & Jewelry Inc., Roseville Corner Lounge, Saginaw Old Tyme Roadhouse, Saginaw Super-Flite Oil Co. Inc., Saginaw Complete Practice Management, Saint Clair Yellow Emerald Mining Co. LLC, Saint Clair Benelovent Protective Order of Elks 0552, Sault Ste Marie Long Ships Motel, Sault Ste Marie Jose Lake Store & Resort, South Branch Royal Motor Inn, South Lyon Begin Agains Boutique, Southfield Hungarian Rhapsody Inc., Southgate Print Metro, Sparta T’s Brickyard LLC, Stanton Buckhorn Inn Inc., Tawas City Jim Vetter Chevrolet Inc., Three Rivers Play It Again Sports, Traverse City Birch Lodge & Motel LLC, Trout Lake SSS Transport, Troy Professional Therapy Solutions LLC, Troy Beck Agency Inc., Utica Therapeutic Radiology of Yakima PLLC, WA Vibrant Life Senior Living, Waterford Fleet Services of West Michigan LLC, Wayland English Gardens, West Bloomfield M J Hick Inc., West Branch Serenity Home Health Care of NE MI, West Branch Facial Beauty Dental, Wixom Prush’s Bar, Wyandotte TPM Communications, Wyandotte Full Blown LLC, Wyoming

June 2014

LOTTERY

Retailers earn $179 million in Lottery commissions by M. Scott Bowen, Commissioner

The foundation of the Michigan Lottery’s success is the network of 11,000 retailers that serve as the lottery’s public face to millions of players each year. Since the Lottery began more than four decades ago, our retail partners have played an integral role in the continuing success of the Lottery. The Lottery team works diligently to develop new games that create player excitement and result in increased customer traffic for retailers. By working closely with retailers, the Lottery had record sales of nearly $2.5 billion in 2013, leading to the highest ever retailer commission total: $178.5 million. We appreciate the efforts put forth by each of our retail partners to make the Lottery a mutual success. I would like to thank our retailers for their hard work throughout the year. I also want to congratulate the retailers listed below that achieved exceptional success in 2013, each racking up $1 million or more in lottery sales. These retailers accounted for more than $65.6 million in lottery sales! We are grateful for their hard work, as well as the dedication of all our retail partners, and look forward

to continuing success in 2014. Congratulations to each of these Lottery retailers: A&L Market, Detroit Amoco-Detroit Donuts, Warren Athens Grocery Store, Detroit Beverage 1, Detroit Big J Market, Detroit Big Star Market, Flint Cherry Belt Party Store, Inkster Chicago Deli, Warren Cloverleaf Sunoco, Southfield Crown Drugs, Redford Danny’s Fine Wines, Oak Park David’s Mini-Mart, Sterling Heights Duffy’s of Flushing, Flushing Ewald Liquor, Detroit Five Star Liquor, Dearborn Glass Bottle Shoppe, Detroit Gratiot Fairmont Market, Detroit Greenfield Party Shoppe, Southfield Hadley Store, Hadley In N Out Store No. 31, Detroit Jamboozies Sports Bar and Grill, Sterling Heights Joe’s Liquor & Wine Shop, Detroit Kennedy Liquor Store III, Detroit KS Station, Inc., Southfield Le Cigar Emporium, Inc., Dearborn Liquor Basket Party Store, Saginaw Little Mack Beer & Wine, St. Clair Shores Luke’s Gift & Sweet Shop, Troy Luxor Market, Detroit

M C Petro, Inc., Detroit Mario’s Market, Lansing Meijer No. 65, Utica Meijer No. 145, Fraser Mike’s Mini Mart, New Baltimore New Northend Market, Oak Park Nick’s Party Store, Clinton Township Oak Liquor and Wine, Oak Park Oakland Liquor Party Shoppe, Southfield Palace Liquor, Dearborn Party Palace Liquor, Inc., Shelby Township Prince Liquor & Wine Shop, Southfield Ray’s Party Shoppe, Eastpointe Reda Group Gas & Food, Inc., Dearborn Rusty Keg Party Shoppe, Sterling Heights Sax Discount, Taylor Scotia Stop Food Store, Oak Park Seven Star Food Center, Detroit Stop N Shop II, Saginaw Sunny Mart, Muskegon Town & Country Liquor, Southfield United Party Shoppe II, Dearborn Variety Foods Mini Mart, Dearborn Vestal Inn, Belmont Wesco No. 26, Muskegon Whitt’s Party Store, Battle Creek Wine Castle, Livonia New Instants These tickets went on sale June 3:

“There is a reason why we have been helping retailers succeed for 100 years!” Judson Lynch, Co-CEO, Lynch Sales Company Since 1914, the family-owned Lynch Sales Company has delivered on our promise to help our retail clients succeed through Lynch promotional sales. I am particularly proud that many of those storeowners reward us with their repeat business, time and again. Contact us for details and receive a special, limited edition 100th anniversary commemorative as our gift. Plus, retailers who hold a Lynch ‘Sale of the Century’ during 2014 automatically become eligible for our Grand Prize of a trip for two to Ireland!

IG #678, Diamond 7’s, $10; IG #696, Cashword, $2 New Pull Tabs This ticket went on sale June 2: MI #534, Midnight 7’s, $2 Instant Tickets to Expire June 2: IG #488, $50,000,000 Cash Spectacular, $20; IG #624, Instant Riches, $5 Pull Tabs to Expire June 2, MI #599, Fire ‘N Dice, $2 June 4, MI #572, Pure Gold, $1; MI #581, Monkey Machine, $1 June 16, MI #575, Club Keno, $1 Ticket Activation Retailers are reminded to activate all game tickets before putting them on sale to ensure winning tickets can be redeemed by players. About 97 cents of every dollar spent on Lottery tickets is returned to the state in the form of contributions to the state School Aid Fund, prizes to players and commissions to retailers. In fiscal year 2013, the contribution to schools totaled $734.3 million. Since its inception in 1972, the Lottery has contributed over $18 billion to Michigan’s public education. For additional information, please visit the Lotter y’s website at www. michiganlottery.com.

BLUE-HANDED DAY

4 Months Until Get Caught Blue-Handed Day We’re only four months away from “Get Caught Blue-Handed Day” on October 4. How’s your planning coming along? Are you thinking about how you’re going to participate to the max, attract more shoppers and increase sales? (Sales increased last year throughout the state on Get Caught Blue-Handed Day.) How will you make it an extra fun and festive day? How are you going to communicate all this to your customers and their friends and relatives? If you’d like to share some of your plans or bounce ideas off others, post to the Buy Nearby Facebook page. Social Media Campaign Winning New Fans Buy Nearby kicked off a big social media campaign on May 1, including running ads on Facebook. The initial results are positive: Buy Nearby gained 2,265 new Facebook fans during the May. The Facebook push includes more-frequent postings, running four trivia contests during the month and featuring a new “merchant spotlight” each week. The schedule will continue at least through Get Caught Blue-Handed Day.

Winners of the trivia contests are chosen randomly and receive a gift card from one of their favorite local businesses. For example, Sharon Pruehs of Lake Orion won the contest asking how many cars cross the Mackinac Bridge every day (an average of 11,608) and chose a gift card to Zehnder’s in Frankenmuth. Be sure to “like” Buy Nearby on Facebook to take part in the weekly contests. If you would like your business featured in a merchant spotlight on the Buy Nearby Facebook page, simply email us pictures, a brief description of your business and a link to your business Facebook page. Please send to BuyNearbyMI@ retailers.com. We are happy to help promote all the great businesses in Michigan! Want Free Publicity for Your Business? In case you skipped over that last item, if you would like your business featured in a merchant spotlight on the Buy Nearby Facebook page, simply email us pictures, a brief description of your business and a link to your business Facebook page. Please send to BuyNearbyMI@retailers. com. We are happy to help promote all the great businesses in Michigan!