July 2009, Vol.7, No. 7
In This Issue Proceeds Benefit the SWA OSU Institute of Technology Technician Program
• FACTA Compliance Deadline
• On-Line Campus
• Insurance News Golf Classic
• Federal Legislative News
• Your Money - A Roth IRA lean those shoes, shine your clubs and mark Monday, Sept. 14 on your
• ...and more calendar to play in the SouthWestern Association Golf Classic at Prairie
Highlands Golf Course in Olathe, Kan. Proceeds from this exciting
event will benefit the SouthWestern Associa-
tion Technician Program at OSU-Institute of Technology.
The SouthWestern Association (SWA) Industrial and
Upcoming Events Farm Equipment Technician Program is a cooperative
two-year college level technician education program that
Dealers of Tomorrow - leads to an Associate in Applied Science degree with a
• Aug. 4-5, Manhattan, Kan. major in Industrial and Farm Equipment Technology.
• Oct. 13-14, San Antonio, Texas The Heavy Equipment and Vehicle Institute at OSU In-
stitute of Technology, working in close relationship with
Fall Area Meetings the sponsoring SWA members, administers the program
activities. The program is exclusively by and for SouthWestern Association mem-
• Oct. 26 - Tyler, Texas
• Oct. 27 - Austin, Texas
• Oct. 28 - Weslaco, Texas Tournament Schedule:
• Oct. 29 - Houston, Texas Registration - 9:30 a.m.
• Nov. 3 - Plainview, Texas Special Industry Update - 10:00 a.m.
• Nov. 4 - Irving, Texas Lunch - 11:30 a.m.
An area meeting schedule and reply Shotgun start - 12:30 p.m.
form is found on page 9 of this Awards - 5:00 p.m.
Take advantage of the early-bird pricing of $150 per player until Aug.15. After
Aug. 15 the cost is $175 per player. The price includes lunch, green fees, golf cart
Prairie Highlands, located at 14695 Inverness in Olathe, Kan., was rated the
number three Public Access Course in Kansas in 2009 by Golfweek Magazine. It
SouthWestern Association is also ranked 29th in the country in the Top 50 under $50 Category. The course
P.O. Box 419264
opened in 2001 and has been reaping honors ever since. Host to 2004’s Kansas City
Kansas City, MO 64141-6264
Cup Finals, Prairie Highlands also hosted the 2004-2006 Men’s NAIA National
Ph: 816-561-5323, 800-762-5616
Championship. Ron Whitten, Golf Digest’s Senior Golf Architecture Editor, has
recognized the course, whose name evolved from 182-acre plot of native grasses, as
“What Affordable Golf Should Be” in the September 2001 issue of Golf Digest. The
Is your dealership receiving e-mail
course is reached from I-35 by exiting at Old 56 Highway and proceeding 4.5 miles
from SouthWestern Association?
west to 151st Street and then west three quarters of a mile to St. Andrews Drive and
If not, send us your e-mail address.
into the course.
We will forward important
For more information and registration materials contact Olivia Holcombe at
Association correspondence to
SouthWestern Association - 1-800-762-5616.
your attention via e-mail. Please
Plan today to play in this exciting event at a great course and benefit the SWA
register your e-mail address at:
Technician Program at OSU-Institute of Technology.
FACTA Red Flag Rules Equipment Industry News
FACTA Compliance Mani Iyer Appointed
Deadline is August 1 President of Mahindra USA
Unless another extension is granted, the compliance dead-
Mahindra USA is proud to announce that Mani Iyer has
line for the FACTA Red Flag Rules is Aug. 1, 2009. Despite
been appointed President, Mahindra USA, Inc. (MUSA). Iyer
challenges to the rule, primarily to definitions of specific
will replace Anirban Ghosh, who has been president of
terms within the rule, the Federal Trade Commission (FTC) is
Mahindra USA since June 2007. Ghosh will assume new
poised to begin enforcement the first of next month.
responsibilities in the Mahindra Group.
For many organizations, the term “creditor” wasn’t clear.
“I am pleased to announce the appointment of Mani Iyer
However, the FTC recently clarified “creditor” to mean “all
as President of Mahindra USA, Inc. effective April 1, 2009.
entities that defer payments, even in the normal course of a
Mani joined M&M in July 1990 and was assigned to Ma-
traditional billing process... If a service provider... allows the
hindra USA in October 1998. For the last couple of years,
client or customer to defer payment of a bill, this deferral of
he has been responsible for Sales at Mahindra USA and in
a debt is credit... even though there is no finance charge or
May 2008 he was promoted to Vice President – Sales. Mani
agreement for payments in installments.”
is well-known and respected for his intimate knowledge of
Additionally, the FTC provided guidance on the term
the product, sales, and service and the business relationships
“credit” as “transactions where the consumer pays after receiv-
developed with our dealers and suppliers. His passion for the
ing the goods or services, such as doctor and hospital bills,
Mahindra brand, tractor business and Mahindra values will
bills from repair persons and other workers and even a local
enable him to provide leadership to Mahindra USA for grow-
store where a customer runs up a tab.”
ing the business,” Deepak Chibba, Executive Vice President
This latest information should help equipment dealers de-
International Operations, Farm Equipment Sector, M&M
termine if they have a legal obligation to put the FACTA Red
Ltd. Anirban Ghosh, returns to Mumbai, India to serve as
Flag Rules into practice to protect their customer’s personal
Vice President – Business Planning for the Farm Equipment
and private information. For additional information about le-
Sector, M&M Ltd.
gal compliance responsibilities, call Toolchex at 800-498-2256
or visit www.toolchex.com/idtoolchex.html.
This program is recommended by the SouthWestern Association
and endorsed by the North American Equipment Dealers Association.
Consult your tax advisor regarding the tax considerations with
respect to adopting or participating in the Toolchex Plan.
2 SouthWestern Association Flash • July 2009
Chest Ad Half Color V4.indd 1 5/4/09 8:19:51 PM
Not All Policies Are Created Equal
By Mike Pennington, Regional Marketing Manager, Federated Insurance
Does your dealership lease your building from One day, a customer slipped and fell in the showroom. The
a third party – or does your dealership lease customer sued the dealership for his medical expenses. The cus-
the building from YOU? tomer’s attorney decided to name all the parties he could think of
in the lawsuit: ABC Equipment Inc., John as the building owner,
It’s typical for many dealers to own the building and lease as well as the janitorial service. In this case, ABC Equipment’s in-
it back to the company, primarily for tax purposes. If your surance policy would provide no defense costs for John or coverage
dealership is set up this way, you may have a gap in insurance for any settlements he personally owes.
coverage. This gap – which is often overlooked – could result
in significant costs for which you’d be personally responsible. Your association’s recommended insurance carrier, Feder-
With proper programming, accompanied by an annual ated Insurance, can uncover many types of coverage gaps with
policy review, this gap can easily be fixed. Contact your Feder- a thorough policy audit for prospects and an Annual Client
ated® marketing representative to confirm if you have the ReviewSM for clients. Many forms/endorsements are avail-
added layer of protection needed if you happen to be named able that can affect your coverage. This particular “additional
in a lawsuit that is primarily against your dealership. insured” endorsement is just one example of why dealers need
to buy protection, not just go with the cheapest premium.
An Example If you’re worried about your current programming, be sure
John is the majority owner of ABC Equipment Inc. He to contact your local Federated® representative. Addressing
personally owns the building and leases it back to the business. these situations now with a simple endorsement may save you
The company has a basic ISO policy with no additional insured sizable sums of money and many hassles later.
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Agricultural Retail Division
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• Sales Bonuses – Paid directly to sales personnel
SouthWestern Association Flash • July 2009 3
Retailing Trends Workforce Development
Starting a New Business SouthWestern Association
Despite the economic doom and gloom that has been Online Campus
in the news for the past year, small business owners suggest
that 2009 might be the best time to start a new business. outhWestern Association has introduced a new program,
Thirty-four percent of small business owners surveyed in the The SouthWestern Association Online Campus. This
new Ace Hardware Entrepreneurship Study said they would program makes it possible for dealers to train their entire
advise someone to start a business in 2009. Plus, another 29 staff quickly and efficiently without ever leaving the dealer-
percent said they might recommend a business launch. Only ship.
nine percent said “absolutely not.” These findings may appear Programs can be used for training, coaching, refreshing
counter-intuitive in today’s climate,” says John Venhuizen, vice learning, performance support, promotion paths and meet-
president of business development for Ace Hardware, which ings. These courses are available on your computer 24 hours
represents more than 4,600 independents around the world. a day, seven days a week. Members purchase a subscription
“Yet, the small business owners who were surveyed – who to the SouthWestern Association Online Campus. (Pricing
happen to do most of the heavy lifting in the U.S. economy is based on the number of employees at all your locations.)
– have experienced first-hand how challenges beget opportu- Then, all your employees will have access to the campus
nity.” The personal rewards of owning their businesses also fuel materials. We’ll issue a unique password to each staff member.
this mindset. When asked to name their greatest reward, the SouthWestern Association will help you set up a curriculum
entrepreneurs ranked first in equal numbers independence (73 for new hires or specific positions.
percent) and flexibility of schedule (73 percent), with half (49 For more information about the Online Campus and other
percent) citing sense of fulfillment and/or achievement. workforce development opportunities through
SouthWestern Association, contact Nikki Bloemendaal,
Source: Home Center Institute, July 23, 2009 Director of Education at 1-800-762-5616 or e-mail nicole@
The SouthWestern Association recommends
the NAEDA Discount Freight Program
Save up to 24% on select FedEx services ®
with the NAEDA Discount Freight Program
Call PartnerShip at 800-599-2902 to take
advantage of these FREE discounts, or enroll
Your Shipping Connection
online today at PartnerShip.com/24NAEDA.
Helping Dealers Succeed
For eligible FedEx services and rates, contact your association or PartnerShip. All FedEx shipments are subject to the applicable FedEx Service Guide. FedEx service marks used by permission.
PartnerShip LLC, an independent transportation broker, produced this advertisement.
4 SouthWestern Association Flash • July 2009
Plan to Attend Free Summer Intern at
Online Campus Webinar Sydenstricker Farm & Lawn
As a manager, do you ever ask yourself any of these ques-
tions: “How am I going to keep my best employees?”, “How
can I train my employees without spending a fortune?” or
“How can I manage my workplace compliance liabilities?”
SouthWestern Association’s “Employee Advantage” program
has your solution.
Several SouthWestern Association members voiced their
need for customized training that is fun, short and engaging.
That’s when we launched the Online Campus. Today, mem-
bers have the ability to train ALL of their employees in-house
for less than it would cost to send a few employees to a train-
ing program outside the dealership.
The program is accessible 24/7. Class topics include: Work- Chase Young, a summer intern at Sydenstricker Farm &
place compliance/safety, customer service, sales, administrative Lawn, Macon, Mo., demonstrates a new baler to a customer.
and leadership. Classes are short and to the point – averaging Chase conducted several on-farm baler clinics as well as two
15 minutes each. Employees take a test after watching each combine clinics this summer as part of his internship respon-
class so you, as a manager, can document their progress. sibilities. Internship programs are a great way to showcase the
If you would like to learn more, join our free informative opportunities available in farm equipment dealerships, find
webinar on Aug. 21 at 9 a.m. Go to: www.telspan.com/express talented employees and tackle short-term assignments within
Conference Reference: 159876, Conference Code: 98350, your company. If you are interested in hosting an intern for
Dial: (800) 944-8766. next summer, please contact Nikki Bloemendaal for more
If you need more information contact Nikki at the information at 800-762-5616 or firstname.lastname@example.org.
Association office - 800-762-5616 or email@example.com.
When making equipment deals,
weak or old data costs you money - Period.
The Official Guides – Dealer Reporting Program supports the collection of
vital and actionable equipment sales information that can support increased
profitability for your dealership during all market conditions.
IRON Solutions is the leader in providing the best data for the most profitable
deals. From print, to electronic, to web-based data - nothing else compares.
Make every deal count as the best deal.
the gold standard in equipment data.
SouthWestern Association supports the Official Guides – Dealer Reporting Program.
Contact SouthWestern Association at 800-762-5616
SouthWestern Association Flash • July 2009 5
Federal Legislative Update
Looking for Lost Tax Revenues mandates and a public health plan; it must be combined
The Internal Revenue Service (IRS) thinks it has found with a Senate Finance Committee bill that contains funding
$50 billion or more in under-reported income. Where? From provisions. The HELP bill also has a small business exemption
subchapter S corporations. from the employer mandate for companies with 25 or fewer
The IRS reported that preliminary results from its 2003- employees. The House surtax worries many in the business
2004 National Research Program S Corporation Underreport- community because it could increase the tax liability of small
ing Study found that S corps under-reported $50 billion in business owners whose business income is taxed as personal
income in 2003 and $56 billion in 2004. Net misreporting income. Although an income surtax has not been ruled out in
percentages were 12 percent and 16 percent, while error rates the Senate, leaders continue to say they are looking at different
were 69 percent and 68 percent. Misreporting rates for S approaches to funding health care.
corps with assets of less than $200,000 were 26 percent and
Source: North American Retail Hardware Association, July 20, 2009
29 percent. One of the largest misre-
porting categories was “other deduc-
tions” which includes car and truck
use, travel, meals and entertainment,
miscellaneous expenses and tools and
SBA Offers Refinancing
The Small Business Administration
(SBA) is making available funding
required by the American Recovery
& Reinvestment Act for small busi-
nesses to refinance existing loans for
expansion projects. Under the plan,
small businesses (net worth of less than
$7.5 million and net after tax income
of $2.5 million or less) can use 504
loans to refinance up to 50 percent of
debt incurred to purchase land, real
estate or other fixed assets as part of an
Progress on Health Care
The House Ways & Means, Energy
& Commerce and Education & Labor
Committees released a health care bill
which includes individual and em-
ployer mandates and a public plan,
as well as funding provisions which
rely heavily on a surtax on incomes of
more than $350,000 a year. It includes
a small business exemption from the
employer mandate for companies with
annual payrolls of less than $250,000.
The Senate Health, Education,
Labor & Pensions (HELP) Commit-
tee wrapped up its work on a plan that
includes individual and employer
6 SouthWestern Association Flash • July 2009
Health Care Debate
he great debate in Washington right now is all • The other problematic provision in both the HELP
about health care reform. It doesn’t appear it’s go- Committee bill and in the House bill is the public plan, which
ing to be sorted out or anything resolved before would be an unfair competitor, ultimately shifting costs to the
the summer recess. Here’s some information about private sector as it becomes big enough to drive down reim-
the process and what’s happening. There are several different bursements to doctors and hospitals. Businesses and consum-
healthcare provisions being discussed in Washington. ers would then flock to the public plan because its premiums
For a side-by-side comparison of the various proposals, go would be cheaper, and ultimately no viable private plans
to: http://www.kff.org/healthreform/sidebyside.cfm would remain.
• Remind elected officials that businesses now insure 170
The Process million people.
The Senate Finance Committee has yet to produce a bill • Tort reform also comes up, but is not part of the HELP
that everyone hopes will be the “best thing since sliced bread.” Committee bill or HR 3200 or being considered by the Senate
No language has been made publicly available by the closed Finance Committee. Tort reform is subject to other commit-
door committee, so the Policy Options shown on the web site tee jurisdictions in both the house and senate so don’t look for
above were the starting point for the committee’s negotiations. changes here. But if a chance is given to mention it, please do
Right now, there are five different committees working so. There is a belief that there are a number of medical tests
on the legislation, three in the House and two in the Sen- and procedures done today just to protect doctors and hospi-
ate. The House bill (HR 3200) has run into some problems tals from lawsuits. If those tests and procedures were eliminat-
with the “Bluedogs” over the costs, a fact that was confirmed ed, billions could be saved in costs, legal bills, and insurance
by the OMB last week. Even the President had been saying premiums.
that a reform bill must be revenue neutral and this bill is not. There will almost certainly be health care reform of some
According to the U.S Chamber, HR 3200 is the worst bill for kind this year. We will keep an eye on where this is going and
businesses. That is why there is a lot of hope and pressure on let you know when it’s time to contact legislators.
the Senate Finance Committee to come out with a good bi-
partisan bill. Source: North American Equipment Dealers Association, July 2009
Having said that, any bill the Finance Committee comes
out with will have to go through the Senate first and then a
conference committee. It is during that process that support-
able measures could be amended to make certain provisions
unpalatable. Once we see what is ultimately passed, we will
issue a call to action for a letter-writing or call-in campaign to
Paycor is partnering
Discussion Points with the SouthWestern
Here are a few bullet points on all these bills that you can
Extending you a limited promotional offer
use to talk with your respective representatives and senators for payroll and tax filing.
while they are home during their upcoming August recess.
• NAEDA supports healthcare reform that will allow deal- $75 per payroll processing.
Promotion applies to any SWA member between 20-49 employees.
The cost includes Payroll, Direct Deposit, and Payroll tax filing. Call
ers the opportunity to pool themselves into marketable groups to discuss special pricing for members with less than 20 or more
than 50 employees.
to seek lower premiums. This can be done through association Tax filing service.
Local, State, and Federal Tax Filing service is included.
plans that can cross state lines, reduce different state regula- Price guarantee.
When signing up for this offer you receive a 2-year price guarantee.
tions and allow for catastrophic coverage of the group.
• NAEDA opposes the concept of a “Play or Pay” provi- Contact Dan Christians to discuss.
toll free 1. 800. 243. 2538 ext. 157
sion where one size fits all and a surtax is imposed on those direct 913. 236. 0157
that don’t provide coverage. The surtax in HR 3200 is set at 8
Find out why 2,600 companies switched to Paycor in 2008.
percent of the payroll. (Note: There are some exemptions built
into the bill, but they are not adequate.) Visit us online
SouthWestern Association Flash • July 2009 7
Your Association Web Site
Redesigned SouthWestern Association Web Site
For the past several months your Association has been re-
designing their web site. The “new” SouthWestern Association
is now live and we invite you to visit it at:
The redesigned site has improved graphics and is easier for
members and others to navigate. All SouthWestern programs
and services are listed on the site in an easy to follow arrange-
ment. In addition, all the SouthWestern Association partners
are outlined with their contact information. Important dealer
legislation is included on the site as well as full descriptions of
popular programs such as the Online Campus and the SWA
OSU Institute of Technology Technician Training Program.
Please take a minute to visit the site and let us know what
Sales Management Workshop
SWA held the popular Spader Sales Management in Kansas
City on July 14-15, featuring John Spader. The program filled
up fast and everyone agreed it was time well spent.
The next program is being planned for Jan. 28-29, 2010
in Austin, Texas. We will let you know when a venue is desig-
nated and we’re ready to accept registrations.
Employers should develop,
communicate, and enforce clearly
deﬁned policies that address driving
distractions while operating a
company vehicle. Your local Federated
representative can help! Call today.
The FEDERATED Insurance Companies * National Highway Trafﬁc Safety Administration Report,
Home Office: 121 East Park Square, “What Do Trafﬁc Crashes Cost” Total Cost to Employers
Owatonna, MN 55060 by State and Industry,” 1998-2000
(507) 455-5200 ● www.federatedinsurance.com
8 SouthWestern Association Flash • July 2009
SouthWestern Association Area Meetings
11 a.m. – 3 p.m.
October 26 – November 4, 2009
SCHEDULE & REPLY FORM
Please complete this form to let us know how many from your store and who is attending – and where! Lunch is
included for everyone who attends. It is important that we know your plans as we must guarantee a count to the
hotel for food, room set-up and other arrangements.
All programs (except Austin) begin at 11 a.m. and will conclude no later than 3:00 p.m. Thank you for your
Monday, October 26 Holiday Inn Express 866-642-0465
Tyler, Texas 2421 E. Southeast Loop 323
Tuesday, October 27 Hyatt Place Austin/Arboretum 512-231-8491
Austin, Texas 3612 Tudor Blvd. (78759)
PLEASE NOTE: This meeting starts at 9 a.m. and concludes with lunch at noon.
Wednesday, October 28 Best Western Palm Aire 956-969-2411
Weslaco, Texas 415 S. International Blvd. (78596)
Thursday, October 29 Courtyard by Marriott Houston Hobby 713-910-1700
Houston, Texas 9190 Gulf Freeway (77017)
Tuesday, November 3 Plainview Country Club 806-293-2445
Plainview, Texas 2902 W. 4th St.
Wednesday, November 4 Via Real Restaurant 972-650-9001
Irving, Texas 4020 N. MacArthur Blvd.
Please list name(s) of attendees:______________ ______________________________________________________
Dealership/Store name: ____________________________________________________________________
City, State & Zip: ______________________________ _____________________________________
If you need directions or additional address information, please call your association office at 816-561-5323.
PLEASE RETURN THIS FORM TO:FAX: 816-561-1249
P.O. BOX 419264
KANSAS CITY, MO 64141-6264
PLEASE REPLY TODAY OR NO LATER THAN OCTOBER 16!
SouthWestern Association Flash • July 2009 9