Keep Prices High, But Sell Successfully
Corrections or additions?
These articles were prepared for the November 22, 2000 edition of
U.S. 1 Newspaper. All rights reserved.
What’s New in Employee Handbooks & Manuals?
The workplace is rapidly changing, as is the nature
of work,” says John J. Sarno, president of the Employers
Association of New Jersey (EANJ). “Companies that have handbooks
and those that are creating them have to get a handle on how these
changes are driving policy.”
The New Jersey Department of Labor and the EANJ sponsor a seminar
entitled “Policy Manuals and Employee Handbooks” on Tuesday,
November 28, from 9 a.m. to 3 p.m. at the Gloucester County Library
in Mullica Hill. Sarno, who is the author of a book helping employers
stay out of court, “The New Employment Contract,” presents
the afternoon portion of the program. Cost $10. Call 609-984-3518.
An example of a major change is the burgeoning area of temporary
employees.
Sarno advises that companies define who is and who is not an employee.
“You need to be very clear about those classifications, because
employees will be entitled to benefits and temporary employees or
independent contractors are typically not eligible for benefits,”
says Sarno.
Sarno provided a couple of examples of how in recent years, the legal
landscape has changed regarding company policies:
The Family Medical Leave Act, enacted in 1993, requires that a company
with 50 or more employees publish a policy outlining how the
provisions
of the act will be administered. For instance, employers can require
workers to use their sick and/or vacation days before tapping into
the FMLA’s 12 weeks of unpaid leave. But they must plainly inform
workers of this policy. “Federal law permits the employer to
choose
that avenue,” says Sarno, “but you have to have that built
into the policy.” Other caveats apply.
Discrimination law requires that employers have policies that provide
an opportunity for employees to complain about harassment and
discrimination.
Employers also need to explain to employees that they have certain
rights and outline how the company will deal with employee complaints.
Not heeding these laws can have serious repercussions, according to
Sarno. In the case of discrimination and harassment, not having a
policy may be evidence of negligence, which can lead to legal
problems.
“Today a small business has basically the same employee
relationships
as a large business, and they certainly are not immune to
employment-related
litigation,” says Sarno.
On the question of how big your company needs to be before considering
whether to provide a handbook, there apparently are no hard and fast
rules. Sarno recommends that if a firm has 10 to 12 employees it is
a good idea to have a formal employee handbook. Companies with fewer
than 10 employees can handle policy issues through memos and other
similar documents. Members of EANJ have access to a template for an
employee handbook.
Areas that Sarno feels lead to the most disputes and litigation
include
disclaimers, harassment policies, grievance procedures, privacy
issues,
E-mail privacy policies, desk or locker searches, workplace violence,
and solicitation and distribution. The latter would cover attempts
by a trade union to distribute literature.
Some examples of bad or clumsily written handbooks:
Handbooks without disclaimers. In order to retain theright to hire and fire at will, the employer wants to maintain the”at will” relationship with the employee. Without adisclaimer,the handbook might constitute an contract for employment that wouldbe enforceable under contract principles.”If the at will status is not preserved,” says Sarno, “therelationship will be governed by contract law, which would placerestrictionson discharge and discipline.” He compares it to a trade union’scollective bargaining agreement, which sets out a rigid contractualrelationship with employees. “A handbook creates a contractunlessthere is a disclaimer.”Handbooks without a policy that preserves the employer’sdiscretion to make decisions outside the policy . “A sexharassmentpolicy typically says that the employer will take prompt action. Butif it doesn’t build in enough discretion to make decisions aboutactionsthat fall below harassment, it puts the employer in a box.”One disclaimer might be: “Even though we want to maintain zerotolerance, we still have the discretion to make whatever decisionwe think is necessary under the circumstances.”Handbook policies that are inconsistent with other documents.A common area of confusion is the number of hours part-timers canwork. If the handbook sets one standard, and the medical insurancepolicy has another, workers might be denied health benefitsunnecessarily.”The employers definition may be inconsistent with what the healthcare contract says,” says Sarno.Sarno, 44, received his undergraduate degree from Ramapo Collegeand a master’s in counseling and a law degree from Seton HallUniversity.He practiced law in Bergen County and had been an instructor at RamapoCollege.Established in 1916, EANJ is a non-profit organization providingdirectand immediate assistance, information, and advice to New Jerseyemployers(www.eanj.org.). The over 1,000-member employers enjoy servicessuch as a telephone help line, a Labor Law Compliance Manual, researchreports on human resource practices and benefits, salary survey data,and other publications.”Although there are legal issues involved, my advice is to notlet the legal tail wag the dog,” says Sarno, “A company shouldform a committee, debate and discuss the policies that make sensefor them, draft those policies, and then have them reviewed by alawyer.I would not let the lawyer write the handbook, because those are oftensteeped in legalese. The object is to write in a way that the averageemployee can understand. The company should decide what it wants todo and take the first shot drafting it and only then should it bereviewed by competent legal counsel.”— Jeff LippincottTop Of PageEqual Justice AwardsLegal Services of New Jersey (LSNJ) and the New JerseyState Bar Association (NJSBA) will honor two retiring New JerseySupremeCourt justices at the sixth annual Equal Justice Awards receptionon Tuesday, November 28, from 6 to 8:30 p.m. at the New Jersey LawCenter in New Brunswick. Marie L. Garibaldi and Daniel J.O’Hern will receive the Richard J. Hughes Career Public ServiceAward.Steven Kropf, a private attorney with the Old Bridge firm ofHeilbrunn Pape, will be honored for representing pro bono clients,taking difficult family law services, for Middlesex County LegalServicesfor nearly 20 years.Receiving Equal Justice Medals will be David Heins, directorof the division of family development of the Department of HumanServices;Barbara Price,, head of the New Jersey Coalition for BatteredWomen; Frank Askin who teaches law at Rutgers Newark; and AnnBartlett, immediate past president of the NJSBA.Three banks — First Union, Provident, and Ocean City HOme Bank— have changed account structure and rates so as to increaserevenuesfor funds for Legal Services programs, and will be so honored. LegalServices programs provide legal aid in civil matters to people whocould not otherwise afford lawyers.For a free invitation to the reception, call 732-572-9100.Top Of PageQualified DistributionsFamily businesses have enough hurdles to jump withoutrunning the risk of making mistakes in how they pay out benefits.That will be the topic for Stark & Stark attorney Allen M. Silk,who gives a workshop on Qualified Plan Distributions on Wednesday,November 29, at 4 p.m. at 993 Lenox Drive, Building 2.Silk majored in accounting at Penn State, Class of 1969, and has lawdegrees from Villanova and New York University. Among his manyprofessionalcredits are his service on the estate and gift tax committee onbusinessplan of the American Bar Association. He is a founding partner ofthe Rutgers Family Business Forum and chairman of the Mercer CountyEconomic Development Council. In representing family-owned businesses,he helps the owners choose a legal structure, plan for succession,and transfer business ownership to other parties. For freereservationsfor the workshop, call Nadine Dunn at 609-219-7413.Top Of PageChalk Talk For New ExportersIf your business has a product or service ready forexport, but doesn’t have trade experience, the Market Entry Programfor New Exporters can help by teaching how to enter the globalmarketplace,including Mexico, Canada, the Caribbean Basin, and the European Union.This free course starts in December at the Small BusinessAdministrationNew Jersey District Office, Two Gateway Center, in Newark. The firstof seven sessions begins Wednesday, December 6, at 10 a.m., and the14-week program concludes on Wednesday, March 7. While the classesare free, there is a $50 registration fee to cover weekly refreshmentsand operating costs. To qualify, you must have an operating business,an exportable product or service, and be able to attend all sevenclasses. Class size is limited to 15. To apply, call Dina Vulpis,U.S. Department of Commerce at 973-645-4682, or E-mail:dina.vulpis@mail.doc.gov.”Students can expect lots of good discussions with teachers, eachother, and with industry experts from both the United States andforeigncountries,” says instructor Roger S. Cohen, a consultantfor the New Jersey Small Business Development Centers (NJSBDC).”Lastyear we brought in a consultant from the Mexican Trade Commission.This year we’re hoping to bring in a representative from the DominicanRepublic.”Cohen will teach marketing, sales, and distribution. He will coverthe “how to” of creating a personal business plan.Participatingcompanies will learn how to identify geographical markets, customizeproducts for targeted consumers, and work the local distributionchannels.Cohen’s expertise comes not only from his bachelor’s degree inplanningand policy from Cornell University, Class of 1980, but also fromcareeraccomplishments. Between 1984 and 1987, he managed a complex financialand technological project that had been dormant for years. Theresults?Self-adhesive postage stamps. Cohen smiles whenever he enters a postoffice and thinks about the “millions of tongues that are nowbeing spared the aftertaste of glue.”He has worked at the Japanese trading house Nichimen; has representedthe Japanese Ministry of Finance to the U.S. Department of Treasury;managed factory construction for Coke, Pepsi, and 7-Up in Canada,and handled a mergers and acquisitions program for the JapanesemanufacturerKomori in the United States. Currently he is president of CohenInternationalbased in Cranford, acts as a consultant for the Technology Help Desk(800-432-1832), and is the lead international trade consultant forNJ SBDC.Referring to NJ SBDC’s Ten Keys to Export Success, Cohen shares someadvice:Don’t assume anything. Particularly, do not assume thata product or market technique that has succeeded in one country willautomatically succeed in other regions. What works in Japan couldfall flat in Saudi Arabia. You might have to modify products to meetregulations, cultural preferences, and local safety and securitycodes.Translate everything. When printing information aboutyour product, speak in locally understood languages. Although adistributor’stop managers may speak English, you can’t assume that all serviceand sales personnel will.Foster autonomy. Recognize that overseas distributorsneed to act more independently than their United States counterpartsbecause of communications and transportation issues.Share the goodies. Finally, the overseas marketing shouldbe treated equally with efforts within the United States. Don’t forgetto include your trade market in advertising campaigns, specialdiscounts,sales incentives, warranty offers, and so on.The Market Entry Program covers these topics in detail, saysCohen, “and students can get individual counseling from industryrepresentatives, free of charge. After last year’s course, studentsoften told me, `This is the first time I contacted a government bodyand spoke to a person who gave me one-on-one help’.”When asked if students are given take-home projects, Cohen respondedin a few words, “No. Our students have a business to run. That’stheir project.”Other course topics include finance and banking; legal aspects ofinternational trade; pricing; transportation and shipping; and trademissions. Taking part in a trade mission in another country isoptional,and there is a fee. Last year, Governor Christine Todd Whitmanaccompanied the mission visiting Japan, Korea, and Taiwan.In addition to the classroom program, there are several onlineoptions:YourBizPartner at www.yourbizpartner.com tells how to getfree counseling from the NJ SBDC. The first session could take placein person, or it could be conducted via E-mail. At this site you canalso link to a schedule of affordable business and technologytraining,and you can request a market research report specific to yourindustry.The NJ Small Business Development Center (www.nj.com/njsbdc)provides a link to international trade where you can sign up for theexport course on line, read the “Ten Keys to Export Success,”learn about the top ten countries that trade with the U.S., and more.Cohen has his own website, www.rogercohen.com. Here you canget information on doing business in Japan, NAFTA and Mexico, andgovernment contracting, as well as services that Cohen offers.About the Market Entry Program, Cohen notes that “there’sno other place where someone can get this kind of in-depth informationon exporting, and get it for free. Other states charge as much as$3,000 for a course like this. You can’t get this kind of expertiseon international trade from a community college. And you can’t earnan MBA in seven sessions at no charge.”— Lynn RobbinsTop Of PageKeep Prices High, But Sell SuccessfullyAny idiot can give stuff away by cutting the other guy’sprice,” says Lawrence L. Steinmetz of High Yield Management.”Selling occurs when your prices are higher, but you are stillable to close the deal. If you want to give stuff away, get a jobat the welfare department.””People have to realize that most price cutting is aself-inflictedwound,” says Steinmetz, who is based in Boulder, Colorado.”Mostsales reps are ill at ease talking about the price.” He givesan all-day seminar, “How to Sell at Prices Higher than YourCompetitors,”on Thursday, November 30, at 8:45 a.m. at the Sheraton Newark AirportHotel. Cost: $395. Call 800-323-2835 (www.pricingexpert.com).An alumnus of the University of Missouri, Class of 1959, Steinmetzearned a Ph.D. from the University of Michigan. He was a professorand chaired the department of management at the University of Coloradobut founded his own firm more than 30 years ago. Now he owns foursmall companies — a consulting firm, a rental property managementfirm, a publishing company, and a company that builds special interestcars — street rods and custom conversions.The workshop will cover how to know when a customer is not a pricebuyer, how to sell “commodity” products at prices higher thanyour competitors, how to determine when your higher price is actuallyto your advantage, how to test your prices without losing sales, howto ask for an order, how to purge yourself of unproductive salestactics,and how to avoid “giving away the farm.”Steinmetz uses the terms “wow” and “crack” to describehow salespeople sometimes bend to price-cutting pressure. “Salespeople `wow’ in innocent ways,” he says. One “wow” isto emphasize that the price is high, saying “Are you sittingdown?”or “Can you believe this price?”Another “wow” is to change the subject. “To avoid thesubject of price tells the smart buyer you are scared,” he says.”Customers will attack you on price — asking to know the price— because they want to hear you `wow,’” he says. “Whenyou start evading and avoiding, you show you are scared. They thinkyou aren’t telling the price because it is too high.”Confront the price, he advises. It is not going to go away. “Ifyou want to sell at a premium price, you have to face the fact yourprice is higher than the competitor. And then hang in there.”In other words, acknowledge the fact that the prices are higher butlet the customer know you expect to get the sale anyway — becauseof higher quality, or better service, or whatever.Salespeople “crack” when they actually tell their customersthey are willing to negotiate the price. “They crack underpressureand say something stupid.” He lists these “dumb things”to tell customers:You know I want to work with you on this.Tell me where I need to be.You know you are one of our most valuable customers.What do I need to do to get the business?If you want to sell at premium prices, you have to hang inthere,says Steinmetz. “When you start to negotiate your price, it isgoing to go south. The minute the customer senses that, he will starthammering you.”Next StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
