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FLORIDA’S VOICE IN ELECTRONICS "WATTS CURRENT" is the official newsletter of the Florida Electronics Sales & Service Association, Inc. and is published bi-monthly. EMAIL: fesa@fdn.com We Support NESDA Awarded Best State Publication 1993,1996 & 2000 |
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www.vancebaldwin.com |
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FESA or Watts Current neither endorses any company, product or service - nor guarantees the validity of statements made in any advertisement - appearing in any advertisement or article included in this publication. Watts Current is published bi- monthly. All articles to be published in "Watts Current" must be received by John Eubanks, Editor, 5323-3 Firestone Rd., Jacksonville, FL 32210 by the following dates: 2/15, 4/15, 6/15, 8/15, 10/15, and 12/15 in order to be printed in the next newsletter. Otherwise, they will be published in the following issue, as appropriate. Please send any inquires or comments to the Editor. Please excuse any grammar or punctuation errors you may find as this newsletter is entirely composed and published by association volunteers. |
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www.ptscorp.com |
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| President's Message Members and Friends, I hope that everyone enjoyed a safe and Joyous, Thanksgiving, Christmas, and New Year. I won’t be thinking of turkey for a bit because of our recent menus that contained enough to feed a small army. We enjoyed the FESA Jax Christmas party and thank Joe and Ken for all that they do to keep this event something we all look forward to. Remember our changes in publication of the Watts Current news letter, our next issue will not be published until the last week of March 2005 We are still looking at all means for improvement and possibly even making it available on CD for those who may desire an alternate format. This may further reduce our costs of publication. These steps became necessary to continue bringing the service industry perspective from the independent servicers of Florida to our industry. All your continued support and input is welcomed and greatly appreciated. We were saddened to learn of the health problems that Rudine MacDonald experienced and pray that she overcomes them and is well on her way to recovery. We all missed her upbeat happy presence at our FESA Christmas party this year. I also want to thank everyone for their prayers and kind consideration during the recent heart problems encountered by our daughter. Please continue to keep all of them in your prayers. We will soon begin preparing for our annual meeting this year which will be held at the Rosen Centre in Orlando in conjunction with NPSC 2005. We hope to soon go to Orlando and look into the possibility of using the same facilities for our Hospitality suite that we used in 2001. Will let you know how this works out. Sincerely, Pat Eubanks President FESA |
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| Lets Talk Turkey At this point you have not had the opportunity to consider anything beyond the title. Let me assure each reader there’s no delay included or intended after the word "Talk" in the title therefore there is no intended implication that any reader is a "Turkey" although this word will be examined both literally and figuratively later in this article. First lets examine it literally as it is normally related to the holiday season that we all most recently celebrated. A very good friend always gives away Butterball Turkeys to his close acquaintances for Christmas each year never suspecting that this could bring anything less than enjoyment. However he doesn’t want anyone to know the cost of his gift so he removes the price sticker. This wouldn’t be a problem for any male but it became a problem to one certain lady because usually found on the price sticker also lists the weight of the bird. The most important information to determine the amount of time it should be cooked. The very first thing she noticed after I took that bird home. No problem, put it on the bathroom scales and weigh it. Yes, problem because it rolls off and won’t register the weight correctly. Get a cardboard box to put it in after you weigh the box. We have no cardboard boxes they went out in the garbage today. Give me that @#**—– —— bird and I will get on the scale with it and tell you what it weighs. She quickly replied, " I don’t need you to do that for me" and away she went bird in arm. Shortly there arose such a clatter I ran to the bathroom to see what was the matter only to discover that birds weight remained unknown because she could not see the scale read out over the bird which she had clutched tight to her chest. Then unsuspectingly I committed one of those cardinal anti female sins that can only be exceeded if you leave the toilet seat up. I suggested that she get on the scale, holding that bird while I read the scale for her. "NO WAY" She shrieked returning me to reality. Later I observed her carry a plastic grocery bag into the bathroom then shortly emerge with bird in bag in a much better mood. I do not know if she scared the bird as badly as she scared me causing it to reveal its true weight or the real weight was determined from that "Woman’s Intuition thing?" I only know that bird got cooked to perfection and we enjoyed it very much. I also know that next year I will carry the Turkey to the butcher shop for a weigh in before it ever enters our home. Now lets look at it figuratively to see how it may apply to electronic service centers. A very prevalent problem existing over the years is the time it takes for a customer to pick up their unit after repair or timely returning the unit picked up for service back to the customer and receiving payment. If this ain’t your problem, then you should be writing this article rather than me. Obviously you have already found a solution that has eluded many others. Please inform us of your success. If most of us could move all our "Dust Turkeys", it would appear that our shops were suddenly emptied. Today in certain areas even selling these "Dust Turkeys" for repair costs has come to involve other problems. New fees recently levied on all products with CRT’s in California must now be collected. Over the past few years we have watched the prices erode on many of the products that we previously serviced falling below the point they are profitable for service. Isn’t it strange that the parts they contain never follow suit? As this is an ongoing process people continue to bring these units in. However once informed of our projected service cost they quickly depart with their newly discovered throw away product. Many even take offense when informed that replacement cost are less than repair cost for the items they are seeking to have serviced. On January 1, 2005 in an effort to avoid such problems we implemented a procedure to prevent lengthy discussions by electing to allow each customer to make their own decisions and also cover any incurred potential disposal costs. To accomplish this we decided to require larger fees up front to cover all items left for service. On all television products below 30" diagonally we require $75.00 while those larger require $100.00 fees when they are left for service. They are then informed, they will be called with an estimate for their approval. When the estimate is approved all funds will be applied toward the cost of that specific repair. If the estimate is declined then $40.00 or $50.00 respectively will be refunded at the time the product is picked up, providing it is done within 5 working days. This does not include plasma units. To date this has worked well for us. We have noticed that units left are now being picked up quicker and our new clutch of "Dust Turkeys" is no longer growing. Hopefully given time the only turkeys we see will be in turkey season and they will remain a palatable menu item, rather than another cost liability. Could be that many others have already crossed this bridge and we are just slow learners. At least we did learn! Article by Watts Current Editor |
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| LAS VEGAS--(BUSINESS WIRE) --Jan. 9, 2005--On day three of the 2005 International CES, congressional leaders and other top public policy and industry officials debated the key policy issues facing the consumer electronics industry during conference sessions, panel discussions and keynote speeches. The 2005 International CES runs January 6-9 in Las Vegas, Nevada. Hundreds of top executives representing the consumer technology, broadcasting, cable, entertainment and other industries joined more than 140 officials from international, federal and state governments to hear keynote speaker Mike Ramsay, TiVo co-founder, chairman and CEO, at the annual Leaders In Technology dinner held Friday night. Consumer Electronics Association President and CEO, Gary Shapiro opened the dinner thanking the government guests for understanding that digital technology is driving the economy and focusing on this year's show. Ramsay took the stage following dinner and emphasized the importance of preserving the entrepreneurial spirit exemplified by companies like TiVo. He suggested there is a specific and limited role for government to play in technology policy, focusing on two specific issues, in particular - intellectual property and separable security for digital cable ready products. Government generally must be cautious in legislating and regulating the technology industry, he said, since overly broad policies may have a chilling effect on innovation. Ramsay also urged the Federal Communications Commission (FCC) action to ensure competition exists in the market for digital cable ready devices. The third annual Green Saturday at the International CES was full of green gadgets and exciting announcements. The U.S. Environmental Protection Agency (EPA), represented by Assistant Administrator Tom Dunne, selected the 2005 International CES to announce new ENERGY STAR External Power Adapter guidelines. The new guidelines, which apply to power adapters for cell phones, PDAs, digital cameras, camcorders, MP3 players and routers, lay out the framework for developing product that can be labeled with the ENERGY STAR logo. In addition, the EPA recognized leaders in environmentally friendly products and CE product recycling with the E-Cycling Partnership Awards. Award winners included: Cingular, Dell, HP, Intel, JVC, Panasonic, Philips, Pioneer, Sharp and Sony; retailers, Best Buy, E-Bay, Good Guys, Office Depot, Staples and Target; and non-profits and governments, Collective Good Foundation, the City of Portland Oregon and King County Washington. A new initiative, The Electronics Green Covenant, chose the 2005 International CES to launch its program to show the progress and dedication to the environment by consumer electronics manufacturers. Department of Commerce Assistant Secretary for Technology Policy Benjamin Wu announced that in the next several weeks the department will issue a report outlining issues of concern on end-of-life for CE products. The report will call for coordination among manufacturers, retailers, and other stakeholders in the development of a solution for the environmentally friendly collection, recycling, reuse and disposal of consumer electronics products. At the Accessorize Now conference session, top level executives from companies including Best Buy, eBay, Kiosko, Jaguar/Land Rover and Superior Communications discussed best practices in customer-centric CE accessories retailing. The panelists argued that retailers need to understand the unique needs of every customer in order to make the most out of sales in the high margin accessories space. Accessories, they agreed, which can significantly enhance the end-user experience and decrease product returns, also give customers a unique opportunity to customize new devices based on their lifestyles. According to Bob Mann, accessory manager for Jaguar/Land Rover, "In order to be successful, we need to qualify the customer, find out what they do, then meet their needs." Dan Moe, senior vice president at Best Buy, agreed, and added, "Accessories are extremely important to a brand. It's critical to make sure customers get the right ones for the right product." During the super session "International Tech Policy: Who is Leading the Way," Shapiro moderated a panel of government executives which included: Alain Ducass, Chief, Digital Country Planning, Office of the Prime Minister, France…_Ambassador David Gross, U.S. Coordinator for International Communications and Information Policy, U.S. Department of State….Minister Tamotsu Yamamoto, Parliamentary Secretary, Minister of Internal Affairs and Communications, Japan Shapiro opened by stating, "This session is symbolic of what the CES is about - an international community." The discussion covered a range of digital topics including, broadband access and penetration, wireless developments, spectrum allocation, Internet governance, VoIP and digital rights management. Minister Yamamoto provided data describing how Japan has developed the world's least expensive and highest speed broadband service. He also emphasized that the country has success in these areas because of competition and an open network policy. Ambassador Gross highlighted two main themes that he saw from the International CES floor, broadband and wireless. Ambassador Gross also complimented his colleagues on the panel for how well their countries have worked together on many technology policy issues. Ducass compared the innovations he was seeing on the International CES floor to the motto of the French Republic, "Liberty, Equality, Fraternity." Innovations like VoIP, he said, are eliminating the digital divide and making international phone calls cost a fraction of their previous prices. Most importantly, many of the policy issues facing new technologies are international. This is creating a true need for fraternity on a global level, he concluded. The fate of many of the technologies and innovations seen on the floor of the 2005 International CES may be directly impacted by pressing policy issues. An esteemed panel of Members of Congress gave an insightful overview of some of the high-tech policy issues that will face the 109th Congress. Moderated by Michael Petricone, vice president, technology policy for CEA, the panel included Senator George Allen (R-VA), Congressman Joe Barton (R-TX), Congressman Steve Buyer (R-IN), Congressman Tom Davis (R-VA), Congressman Charles Gonzalez (D-TX), Congressman Jim Moran (D-VA) and Congressman Cliff Stearns (R-FL). The panelists agreed upcoming policies debated in the next Congressional session include: broadband access and the 1996 telecommunication act (whether it should be reformed), how to complete the transition to digital television, spyware, spam, copyright, and stock option issues. Petricone closed the panel by noting, "Technology is adherently disruptive; these people are defending our rights to innovate." The fate of many of the technologies and innovations seen on the floor of the 2005 International CES may be directly impacted by pressing policy issues. An esteemed panel of Members of Congress gave an insightful overview of some of the high-tech policy issues that will face the 109th Congress. Moderated by Michael Petricone, vice president, technology policy for CEA, the panel included Senator George Allen (R-VA), Congressman Joe Barton (R-TX), Congressman Steve Buyer (R-IN), Congressman Tom Davis (R-VA), Congressman Charles Gonzalez (D-TX), Congressman Jim Moran (D-VA) and Congressman Cliff Stearns (R-FL). The panelists agreed upcoming policies debated in the next Congressional session include: broadband access and the 1996 telecommunication act (whether it should be reformed), how to complete the transition to digital television, spyware, spam, copyright, and stock option issues. Petricone closed the panel by noting, "Technology is adherently disruptive; these people are defending our rights to innovate." Non-stop entertainment, energy and applause dominated The Last Gadget Standing - a Day Three SuperSession that embodied the spirit and enthusiasm of the 2005 International CES. Session MC's Robin Raskin, sole proprietor of The Internet Mom, and Michael Miller, editor-in-chief of PC Magazine, corralled the audience with a recap of the product selection and voting process, which began on Day One, for the fourth annual Last Gadget Standing contest. From 32 original products selected by the media, ten products representing four categories (home entertainment, PC and peripherals, personal devices and services and mobility) ended up on the slate after three days of online voting by consumers: Logitech Harmony universal remote, Kodak EasyShare printer dock, Palm One Treo 650, CarChip, Delphi XM2Go MyFi, Dell Axim Pocket PC, Epson PictureMate printer, Orb Networks Orb Media 1.0, Sonos Digital Music System and MobiTV. Dell Axim stood as the final winner as chosen by online voting, as well as SuperSession attendees' applause. Previous winners for Last Gadget Standing were TapWave in 2004, Roomba in 2003 and GM's OnStar in 2002. For more news on the 2005 International CES during and after the show, visit www.CESweb.org the interactive source for CES information. About CEA: The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 1,850 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $110 billion in annual sales. CEA's resources are available online at www.CE.org the definitive source for information about the consumer electronics industry. CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy. CEA/CES Press Release |
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| First Chinese cars to hit U.S. shores Malcolm Bricklin, the man behind the Yugo, to lead new import wave in 2007. By Bill Vlasic / The Detroit News NEW YORK -- A newlyformed company led by auto entrepreneur Malcolm Bricklin and the investment banking firm Allen & Co. has signed the first-ever deal to import cars made in China for sale in the United States. Bricklin, known best for bringing the ultra-cheap Yugo car to the U.S. market in the 1980s, is expected to announce the agreement today between New York-based Visionary Vehicles LLC and Chery Automobile Co., one of the fastest-growing players in the fledgling Chinese auto industry. The deal to import up to 250,000 Chinese-made cars annually beginning in 2007 was finalized Dec. 16 at Chery's corporate headquarters in Anhui Province in eastern China, Bricklin told The Detroit News in an interview. "We have an exclusive North American distribution agreement with Chery to bring in five brand-new models for delivery in 2006 to go on sale January of 2007," Bricklin told The News. "We are shooting for 250,000 vehicles the first year." The sale of the first Chinese vehicles to American consumers will be a watershed event both in the United States, where Asian automakers have been steadily taking market share from Detroit's Big Three, and in China, where hard-charging manufacturers like Chery are eager to expand globally. The deal marks a stunning return to the industry for the 65-year-old Bricklin, whose mercurial career includes importing Subaru mini-cars from Japan in the 1960s and going bankrupt building his own ill-fated Bricklin sports car in the 1970s. Bricklin said that privately held Visionary Vehicles has committed to invest $200 million in the new product program at Chery -- China's eighth-biggest automaker -- for the U.S. market. The funding will be raised by Allen & Co., a blue-chip Manhattan investment firm whose clients include Disney, Coca-Cola, Universal Studios and billionaire investor Warren Buffett. In addition, Bricklin said Visionary Vehicles is recruiting 250 U.S. auto dealers to invest in stand-alone showrooms for Chery's product line. The president of government-owned Chery said that the Chinese automaker is "looking forward" to its historic entry into the U.S. auto market. "The North American automobile market is complex, competitive and always changing," Chery President Yin Tongyao said in a prepared statement. "We are looking forward to working with Visionary Vehicles and taking advantage of Malcolm's expertise as we enter it." 'Opportunity is huge' Entering the hyper-competitive U.S. market would represent an enormous step forward for Chery, which was founded in 1997 and sold only about 90,000 vehicles in China last year. But the Chinese auto industry is expanding at a breakneck pace, with Chery among the so-called "young tigers" that are aggressively adding manufacturing capacity and setting their sights on overseas markets. Bricklin has had moments of both spectacular success and failure in the auto business over the years. But he has assembled an impressive group of backers in his bid to become the first major U.S. importer of Chinese vehicles. While Bricklin is chief executive officer of Visionary Vehicles, its management board is chaired by William vanden Heuvel, a senior advisor to Allen & Co. and former deputy U.S. representative to the United Nations. In a recent interview with The News, vanden Heuvel compared the potential of bringing Chinese cars to the United States to the entrance of Japanese automakers into the American market more than 30 years ago. "We think the opportunity is huge to be the first to go to market," vanden Heuvel said. "It's exactly the situation that Japan was in starting out." Other partners in Visionary Vehicles include Maurice Strong, a former senior adviser to U.N. Secretary General Kofi Annan; Norwegian shipping magnate Per Arneberg; and New York construction executive John Cavanaugh. Bricklin said that design work on five all-new Chery vehicles, including two sedans and a sport utility vehicle, has been under way since last year. He said the goal is to price the vehicles 30 percent below competing models in the U.S. market. Automaker's global plans But bringing 250,000 new cars to market in less than three years -- and passing U.S. regulations on safety and vehicle emissions in the process -- is virtually unprecedented. If successful, the new brand would be as big as General Motors Corp.'s Saturn division or Ford Motor Co.'s Mercury brand. The size of Chery's investment in the new product line has not been made public. But Bricklin said the Chinese company has recently completed a major expansion of its manufacturing complex in the remote city of Wuhu in Anhui, an inland province of more than 60 million people. "I have great confidence that they are going to be as innovative and productive as any automobile company in the world," Bricklin said. "They're ambitious like crazy. They want to be a major global player." But whether Chery can build vehicles to the standard of quality needed for the U.S. market remains to be seen. The company's top-selling vehicle in China, the QQ, is the subject of a bitter legal battle with GM, which charges that the small sedan is a direct copy of GM's Chevrolet Spark. Moreover, Chery is still considered a second-tier Chinese auto manufacturer behind Shanghai Automotive Industry Corp.'s joint ventures with industry giants GM and Volkswagen AG. "Their quality still isn't as good as that of the joint ventures, but it's improving," said Yale Zhang, the Shanghai-based head of forecasting for the research firm CSM Worldwide. Visionary Vehicles has hired Troy-based manufacturing expert Ron Harbour, publisher of the influential Harbour Report on auto productivity, to assess Chery's assembly processes and manufacturing operations. "It is inevitable that Chinese cars will be imported into this country within the next five years," Harbour said in an interview. "If it wasn't Malcolm doing it, it would be somebody else." Grand ambitions The fast-talking, charismatic Bricklin disappeared from the auto scene in 1992 when his last import company, Yugo America Inc., collapsed amid falling sales and production problems in war-torn Yugoslavia. But Bricklin isn't one to let past travails dampen his enthusiasm for the next big deal. "What I do best is import cars, and this is the most incredible opportunity in the car business," he said. "I'd like to look at it as being the next Toyota." Bricklin has always harbored grand ambitions in the auto industry. A University of Florida dropout who started a chain of hardware stores in the 1960s, Bricklin and a partner launched Subaru of America with a $75,000 investment in 1968. His first import, the tiny Subaru 360, initially sold well at the cut-rate price of $1,300, but tanked in the market after Consumer Reports magazine dubbed it "unacceptably hazardous." Bricklin moved on in 1972, founding his own auto manufacturing company with funding from the Canadian government and the province of New Brunswick. The Bricklin SV-1, a futuristic sports car with gull-wing doors, went into production at a Canadian plant in mid-1974. Within a year, the company was bankrupt, running up $32 million in debts after producing just 2,800 cars. "I wanted to build a car. It didn't go very well," Bricklin said. "It happened to be the safest car ever built at the time, but we had tremendous labor and production problems." A subsequent deal to import Italian-made sports cars went awry, and, in 1985, Bricklin began importing a bargain-basement, hatchback sedan into the United States from communist-led Yugoslavia. Priced at $3,995, the little Yugo was somewhat of a sensation at first -- a cheap, basic alternative to used American cars. But its quality left much to be desired. Consumer Reports called it "one of the worst cars (the magazine) has ever tested." Bricklin sold his stake in the New Jersey-based company in 1988, and Yugo America folded four years later after selling a total of 160,000 cars. By then, Bricklin had moved to Arizona and filed for personal bankruptcy. A subsequent venture building electric bicycles in California also went bust, leaving a trail of angry investors in its wake. "I wouldn't trust him as far as I could throw him," said Ron Tonkin, an Oregon auto dealer who lost more than $100,000 when the company was liquidated. But Bricklin -- a relentless promoter and self-described "visionary" -- resurfaced in 2002 with a plan to bring back the Yugo, then being made in small numbers by Serbian automaker Zastava Motor Works. "If you give up, that's when you're a failure," he told Forbes magazine at the time. The Serbian assembly plant, however, had been badly damaged by NATO bombers during the civil war that raged across the former nation of Yugoslavia in the 1990s. Rebuilding the plant would have been prohibitively expensive, and Bricklin took his search for a low-cost auto factory to Romania, Poland, England and India. In early 2004, he landed in China. "What I was really looking for was a factory to build my cars," he said. "And I found a factory that was about as impressive as any factory I'd ever seen." Low labor costs are key He met with Chery President Yin in Wuhu in April 2004. Talks continued throughout the year as Bricklin assembled his investment group and management team. Some of the key players, such as marketing executive Paul Lambert and product development chief Tony Ciminera, were veterans of Bricklin's Yugo days. The negotiations, however, picked up momentum when Allen & Co. came on board in the summer of 2004. Bricklin's business model -- using low-cost Chinese labor to hold down vehicle prices for entry-level U.S. models -- convinced Allen & Co. to back the effort. "What Malcolm is proposing to do for Chery is what he has been able to do time and time again with imported cars," said Juan Prado, an Allen & Co. executive. A consulting firm in China, Globe Capital Partners/Galaxaco, was brought in to facilitate talks with senior officials in the Anhui provincial government, which controls Chery through a series of investment companies. Final negotiations began in early December. Bricklin flew to China on Dec. 11, and five days later signed the deal with Yin at a brief ceremony at Chery's corporate offices. "We got everything we wanted in the contract," Bricklin said. "These people are looking to build cars for export, and they understand they need us to make it happen." Visionary Vehicles is expected to hold a press conference detailing its plans in Detroit during the 2005 North American International Auto Show, which opens for media previews Jan. 9. The company has significant hurdles ahead, not the least of which is overseeing the rapid-fire development of two sedans, a coupe, a crossover vehicle and an SUV that can be competitive in the U.S. market. Bricklin said that Chery has engaged the Italian design houses Pininfarina and Bertone to design its U.S. models, and has contracted with the Austrian engineering firm AVL to develop new engines. By most accounts out of China, Chery has considerable manufacturing capacity and well-equipped stamping, engine, transmission and assembly facilities. The company also seems to enjoy some favored status as an auto exporter by the Chinese central government in Beijing. But actual vehicle prototypes for the American market will face rigorous scrutiny by U.S. regulators to meet safety and emissions standards. The level of manufacturing expertise at Chery is unproven for the demanding U.S. market. And the goal of having 250 dealerships up and running in 24 months time seems wildly optimistic. Even the brand name that Chery cars will be sold under in the United States has yet to be decided upon. But Bricklin is characteristically confident that the 2007 timetable can be met. "In order to bring a car into this country and set up distribution correctly, it's a two-year process," he said. "But if I dreamt this up I couldn't have done it better. We have tied everything together." History-making attempt Investment banker William McGrail, who has known Bricklin for 20 years, cautioned against betting against him. "Malcolm is controversial, but his energy is incredible," McGrail said. "He can take more disappointment and heartache and keep coming back than any entrepreneur or businessman I've ever met." Bricklin expects the automotive world to be skeptical of Chinese imports in the United States, just as it was when he brought in Subarus and Yugos. But with the signing of the Chery agreement, the aging automotive impresario believes he can make history. "You know, if we don't make sure these cars are among the best in the world, we're going to get our ass handed to us," he said. "But if we do what we're supposed to do, this could be the deal that changes the industry." You can reach Bill Vlasic at (313) 222-2152 or bvlasic@detnews.com |
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Taxation Explained!!!
Let's put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for dinner. The bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this: * The first four men (the poorest) would pay nothing. * The fifth would pay $1. * The sixth would pay $3. * The seventh $7. * The eighth $12. * The ninth $18. * The tenth man (the richest) would pay $59. So, that's what they decided to do. The ten men ate dinner in the restaurant every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily meal by $20." So, now dinner for the ten only cost $80. The group still wanted to pay their bill the way we pay our taxes. So, the first four men were unaffected. They would still eat for free. But what about the other six, the paying customers? How could they divvy up the $20 windfall so that everyone would get his 'fair share'? The six men realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being 'PAID' to eat their meal. So, the restaurant owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. And so: * The fifth man, like the first four, now paid nothing (100% savings). * The sixth now paid $2 instead of $3 (33% savings). * The seventh now paid $5 instead of $7 (28% savings). * The eighth now paid $9 instead of $12 (25% savings). * The ninth now paid $14 instead of $18 (22% savings). * The tenth now paid $49 instead of $59 (16% savings). Each of the six was better off than before. And the first four continued to eat for free. But once outside the restaurant, the men began to compare their savings. "I only got a dollar out of the $20," declared the sixth man. He pointed to the tenth man "but he got $10!" "Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more than me!" "That's true!!" shouted the seventh man. "Why should he get $10 back when I got only $2? The wealthy get all the breaks!" "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!" The nine men surrounded the tenth and beat him up. The next night the tenth man didn't show up for dinner, so the nine sat down and ate without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill! And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore. There are lots of good restaurants in Europe and the Caribbean. Article by David R. Kamerschen, Ph.D. Distinguished Professor of Economics 536 Brooks Hall University of Georgia |
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| REQUEST FOR FESA MEMBERSHIP DATE_________ NAME_________________________________ COMPANY NAME________________________ ADDRESS_______________________________ CITY/STATE_________________ZIP_________ PHONE NO.______________________________ NO.OF EMPLOYEES_____________ Dues Per Year: 1 Person Service Center= $25.00/ 2/3 Person Service Center=$30.00/ 4/6 Person Service Center=$35.00/ 7/9 Person Service Center=$40.00/ 10 & up =$45.00. This rate schedule is for independent membership and may be affected by a chapter or affiliate in your region. Please include your dues with your completed application, this will constitute your agreement to abide by the Constitution and BY-Laws of FESA. Members will continue to receive Watts Current. For a Non Member Watts Current Subscription Only. Include your check for $12.00, write Watts Current subscription on this form and return it to: Billy F. Williams EHF 1409 Glendale Rd. W. Jacksonville, FL 32216 Phone: (904) 725-9789 |
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PTS ADDS DLP, Plasma, LCD Test Positions
Clean Room Technology PTS Electronics in Bloomington, Indiana, recently announced that they have Expanded their capability for mainboard repair and availability of inventory for late model television boards. David Melwid with PTS explained," Over the last 12 months we have added over 850 new test positions enabling us to increase our capacity to offer component level repair on the latest TV models." New test positions include Plasma, DLP, and LCD TV’s for several major manufacturers. PTS has also developed a separate area with "clean room technology" workstations. Melwid added, " Our clean room work stations enable PTS to repair tech products requiring a dust free environment, such as light engines." Since 1967 PTS has provided service support for independent servicers, retailers and manufacturers. With over 550 employees and 4 locations in Bloomington, Indiana, PTS provides component level repair for a diverse range of consumer products including televisions, cellular phones, audio and digital converters. For additional information you can call customer support at 1-800-844-7871 or visit their website at www.ptscorp.com |
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| Industry Updates LG Electronics to Sell Appliances at Home Depot Jan 13, 2005 LG Electronics U.S.A., Inc., announced a strategic alignment with home improvement retailer The Home Depot(R). LG home appliances, which include laundry systems, refrigerators, dishwashers, air-conditioners, and microwave ovens, will be available in late second-quarter 2005 in The Home Depot stores nationwide and online at www.homedepot.com January 13, 2005 Electronics "ARFs" Not Collectible on Internet Sales States that think they can place an advance recovery fee on electronics devices to pay for recycling may face a battle from regular retailers, according to the upcoming issue of State Recycling Laws Update. California's Board of Equalization has ruled that it cannot collect its new advance recovery fee (ARF) on cathode ray tube, LCDs and plasma devices from out-of-state sellers unless there is a "nexus" in the state. The state Board had estimated it would need 68 new employees to collect and audit the approximate $45 million in fees from up to 75,000 retail units. The electronics industry is divided on how to go about financing of electronics takeback in the U.S.: the majority want a national recovery organization and a visible fee, while major computer makers want to take back themselves. Background on the California law (SB 20), and full information on all e-waste legislation in the 50 states and 23 countries is detailed in the 2005 edition of "Electronics Recycling: What to Expect from Global Mandates," published this month by Raymond Communications. (See web site for details) The issue will be discussed at the electronics session of the Take it Back! Conference March 7-9, 2005 in Alexandria VA. The conference will feature speakers from around the world presenting on packaging and electronics waste regulation. Courtesy of Raymond Communications. Watts Current Effective January 1, 2005 Watts Current will become a quarterly publication rather than the bi-monthly schedule we have maintained for the past decade. This schedule allows us to fulfill all existing contractual obligations and notifies our sponsors of future changes we are compelled to institute. This is our last issue that will be published on the bi monthly schedule. Our next Issue will be published at the end of March 2005. We want to thank all our advertisers for standing with us and continuing to support our association and this newsletter. NESDA/ISCET Completes 2005 Winter Meetings. The NESDA/ISCET Executive Director with key staff members completed another mission to promote our national associations at the 2005 CES and conduct association business immediately following the show. Association meetings began with the Service Summit on Saturday Jan. 8, followed by the ISCET Board meeting on the 9th, NESDA Committee meetings on the 10th that concluded after the NESDA Board meetings on the 11th of Jan. Editor |
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www.tritronicsinc.com |
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| FESA SERVICE INVOICES PRICE LIST - MEMBERS ONLY INVOICES ARE CARBON FOUR PART WITH CLAIM AND HARD FILE COPY ZONES 4 & 5 #1 (SMALL) 1000 2000 3000 4000 5000 63.50 125.00 183.00 218.00 275.00 IMPRINT 1000 2000 3000 4000 5000 26.50 48.00 69.00 85.00 102.00 Sub Total 1000 2000 3000 4000 5000 90.00 173.00 252.00 303.00 377.00 S/C 1000 2000 3000 4000 5000 7.50 12.50 15.00 20.00 22.50 TOTAL 1000 2000 3000 4000 5000 102.50 190.50 272.00 328.00 404.50 UPS PREPAID FREIGHT COLLECT Please note: The price increase announced previously is now in effect. We delayed the increase until the forms previously contracted have been depleted. All form requests from this time forward will be at the posted prices, freight collect. We no longer have a supply of the LARGE invoices. We are in the process of locating new a source for our large invoices. Until we find a new source the FESA-Large invoices are NO Longer Available. NEW ORDERS TAKE 3 TO 4 WEEKS --- INCLUDE IMPRINT INFO WITH CHECK REPEAT ORDERS TAKE 2 TO 3 WEEKS RUSH ORDERS WILL NOT BE PLACED UNTIL I RECEIVE YOUR CHECK! MAKE CHECK PAYABLE TO F.E.S.A ALL SERVICE INVOICE ORDERS SHOULD BE MAILED WITH YOUR CHECK DIRECTLY TO THE FESA TREASURER: Mr. Billy F. Williams EHF 1409 Glendale Rd. W. Jacksonville, FL 32216 Phone & Fax: (904) 725-9789 NOTE: Small Invoices are 5:5/8"W X 9:1/8" H / You must be a Member of FESA to order forms from FESA. |
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| Industry Update Stewardship proponents seeking OEM to target...A nationwide alliance of environmental groups involved in electronics product stewardship initiatives want to replace Dell (Round Rock, Texas) as the targeted enemy. The Computer TakeBack Campaign says that the group's work over the past few years to push Dell to higher levels of responsibility for managing obsolete Dell products has resulted in a number of corporate actions. As a result, the Campaign is seeking nominations for the next OEM to be in the hot seat, urging activists and others to vote for the Largest E-Waste Promoter and Polluter. One CTBC candidate is Sony (New York). In mid-October, for example, the Campaign held a press conference in Minneapolis where representatives said that the cost to Minnesota taxpayers from properly collecting and recycling Sony's obsolete products from 2006 to 2011 is estimated at $6.2 million. Five other firms have been put on CTBC's watch list, consisting of Apple (Cupertino, California), IBM (Armonk, New York), Panasonic (Secaucus, New Jersey), Philips (Eindhoven, the Netherlands) and Sharp (Mahwah, New Jersey). Iowa CRT processor rules now in place&_Collectors and processors of CRTs in Iowa must now get a permit from the state environmental agency. As the result of a September 22nd rule adoption, collector and processors must seek a permit application by December 22nd. The state agency will have a year to perform a site visit, undertake an evaluation of the application and potentially issue a permit. The collector permit is fairly basic. However, the state rule bars the speculative accumulation of CRTs (more than 25 percent of annual collections). The processor permit application is more involved. The rules do not apply to firms or organizations that solely repair, refurbish and reuse televisions and monitors. China focuses on e-scrap&_Chinese federal officials are pushing to reduce the environmental effects of domestic e-scrap disposal and the importation of electronics from other countries. The government's National Development and Reform Commission, the country's top economic policy planning arm, has under consideration a regulation that bans e-scrap disposal by Chinese residents and businesses; requires retailers to take back obsolete products; and limits processors in the country to those that are certified. The regulation may be considered as soon as early 2005. In related news, published reports from Beijing say that the Chinese government has banned e-scrap imports. The new regulation includes a list of banned imports (mostly electronics) and tighter controls on imports that are permitted. The Ministry of Commerce, the environmental protection agency and the General Administration of Customs simultaneously undertook this action. Articles from e-scrap news |
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Industry Member Updates
Donald Henderson, Sr., 76, passed away Wednesday, December 15, 2004 at Hadlow Hospice Center. Donald was a member of F.E.S.A. Preceded in death by his brother, Bobby Henderson, he is survived by his wife of 55 years, Nel Henderson; son, Benny Henderson (Freda); daughter, Brenda Henderson; mother; Ethel Wigelsworth, brother, Gene Henderson; grandchildren, Joey, Donny, Kristin & Brandon and great grandchildren, Christina, Dalton & Benny. Funeral services were held 2:00 PM Monday at TOWN & COUNTRY FUNERAL HOME, 7242 Normandy Blvd with Rev. Don Cooley officiating. Burial at Riverside Memorial Park followed. It is with great regret that we again must bare the passing of another FESA member. We extend our deepest sympathy to his wife and family and pray that they receive comfort from the many fond memories Don left for us all….Personal Information from FL.Times Union. Rudine McDonald, of MCDonald’s TV in Brunswick, GA has recently undergone major surgery and will be receiving long term treatment for recovery. She and Dorman will no longer be able to host the Annual September event that they provided for us over the years until she is fully recovered. We are truly grateful for all the ones they hosted and enjoyed them very much. We are saddened to hear of this major health issue and will pray that they both are comforted and healed so that we may again enjoy their fellowship at our industry events. Cheryl Norman, wife of NESDA Past President Lane Norman continues her recovery after major surgery endured last year. She continues to undergo treatment with therapy making progress towards a full recovery. Our hearts and prayers are with them and for her full recovery. Lou Rymsza, Daughter of Pat & John Eubanks was admitted to Shand’s Hospital on Thursday January 6th for a heart decathoder procedure. After finding a 90% blockage in her left side in going artery stints were sucessfully inserted on Friday. She was released and returned home on Sunday, January 9, 2005 where she continues to recover. She and her entire family thank everyone for their prayers and condolences. Editor Watts Current |
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| Opinions Are A Whole Lot Like Elbows Our last issue created quite a stir over my article " One Man’s Opinion". Maybe it didn’t seem so radical to some but it was enough to generate this article. One individual even spoke of writing a letter to the Editor in rebuttal, if and when that is received it will be published. How can an Opinion be compared to ones Elbow you ask? Easy, just about everybody has a couple and both can be used for a subtle verbal "dig" then dismissed with "that’s just my opinion." Sort of like gouging someone with your elbow. This can usually be overlooked with a simple "please excuse me." In some circles "now days" the please is optional. Occasionally opinions can even be funny. Everyone knows human elbows come complete with "funny bones." Besides all these commonalities, elbows are much easier to openly discuss rather than the other component of the human anatomy opinions are more often equated. The only places elbows routinely become foul as I recall, happen to be on my Grandmothers Dinning table or in a basketball game. So that’s my story and I’m sticking to it. The portion of a previous opinion communicated most poorly seems to be my intended relationship of illegal alien employees with the exporting of technical jobs. It was never meant to suggest anyone was/is actively importing illegal aliens to hire as technicians, although it is certainly a possibility but with legal risk. I meant to represent the greater difference between production and service jobs in a global economy. We know production of consumer electronics can be exported, but technical service on products profitable to service, can not. should this be true, then the only means to get around such an obstacle is to import technicians which comes with a communications barrier as well as legal risk. My overall intention was to project encouragement to those Independents who are currently engaged in consumer electronic service based upon these obvious undeniable facts. The One Man’s Opinion article was also taken to task as being against the NSA project. Although I’m not against those involved and certainly supportive of everyone’s right to legally conduct business as, when and with whomever they wish, this model is a two time failure no matter the name it goes by. Of course the jury is still out on this third attempt. That’s the down side. The up side is mentored by an old adage, "if you don’t first succeed, try, try, again." I hope they are successful. Many are industry friends in spite of my opinions and knurly elbows. I know this. They will always give independent servicers more consideration than I could ever obtain from A&E, UPS or IBM. Sorta like an elbow, they ain’t pretty but they do what they're supposed to do. Editor Watts Current |
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