Multimedia Reporting (Noland-Volek)

Lately, everywhere the media shows the reports on the declining housing market, causing many to panic. Realtors in Lawrence, however, still have an optimistic view on the housing market.

The Lawrence housing market shows a slight decrease over the past two years, but it’s nothing that seems to worry Jeremy Taylor, a realtor from Realty Executives- Hedges.

“What’s happening in St. Louis, isn’t what’s happening in Lawrence. The market here is not doing what it’s doing nationally. It’s different everywhere,” Taylor said.

Taylor said homes in the price range around $100,000 to $250,000 are still being sold in Lawrence, and properties with reasonable pricing tend to still sell.

“Lawrence has never had a big run up, or a big downturn. Right now the market is just a soft, slow market,” the owner of Lawrence Realty John Bush said.

Bush said in 2006 the company sold a total of 1,220 residential homes, and in 2005 sold 1,362 homes. The decrease in sales is apparent, but not as bad as the national news makes it out to be. Bush said he’s not too worried about the number in sales, but is slightly concerned with the property values.

“This is the first time there has ever been a decrease in the property values. Homes have actually gone down in value,” Bush said.

The pricing of homes has turned the market into a buyer’s market. Bill Bowers, a sales associate from Re/Max, said the houses on the market stay on the market longer, which makes the market competitive and easier for a buyer to find a home. Sellers will need to become more aggressive and may even need to seek expert advice on how to get their house sold.

Taylor said that many sellers make the mistake of thinking they can set the price of their home at whatever they want in order to make a profit.

“Sellers have three factors to consider before selling. They need to find out what’s already been sold, what’s on contract, and what people are asking for. As long as they are reasonable in their price, it will sell,” Taylor said.

Even Doug Stephens, an owner and president of Stephens Real Estate Inc., said because of the national scare buyers are afraid to buy.

“Right now it is a buyer’s market. The market will bottom out, and people will get more confidence to buy homes,” Stephens said.

Stephens said that nationally, predictions say the market will go back up by 2008. However, he thinks it may take a little longer than this, but at least by 2009 the market will have restored itself.

For buyers in Lawrence, however, the choices include lots of resale homes or expensive new homes. New home construction in Lawrence has come to a halt because many people can’t afford a new home.

“New construction has been hit hard,” Stephens said.

Bowers said new construction homes aren’t being built because they are waiting for people to buy homes that were built last month. According to Re/Max statistics, in 2006, 140 new homes were built compared to 158 built in 2005. In 2006, 748 resale homes were sold, compared to 848 sold in 2005.

So is the housing market really in trouble? Many realtors in Lawrence seem to think the Lawrence market is doing okay for now. Bush said he hasn’t pushed any panic buttons yet, and has no plan for any major changes in his company. Even Stephens said their sales were down from last year, but he isn’t worried and believes the market will make a comeback.

Even though Lawrence has seen a slight decrease in the housing market, realtors are not concerned and are confident the market will bounce back soon.

It’s only September, and one of Kelsey Cline’s roommates has already moved out. Luckily, neither Cline nor her other roommate will be economically affected by his departure – Cline’s parents own the house where they live.

Cline’s parents bought the house to save money on living expenses when Kelsey’s sister, Kendall, was attending the University of Kansas. When Kendall graduated last semester and she and her fiancée moved out of the house, Kelsey, her boyfriend and a roommate moved in.

“My dad is a real estate agent and he saw this house for sale diagonal to Naismith hall,” she said. “They wanted to buy it because it was a good deal.”

Kelsey Cline, Lawrence junior, is one of many people, and students in general, in Lawrence who wants to live in or own property with-in walking distance of the University.

“Lots of people have a kid going to school and want to buy a one,” said Jeff Arensberg, broker-owner of Remax Professionals, 545 Columbia Dr. “Parents buy a house for their kid in college, the kid has a couple of roommates, and they charge $200 to $300 a room.”

Because of his profession, Cline’s father saw beyond the short-term benefits the investment opportunity presented.

“Even after I move out they are going to keep it,” she said. “If it wasn’t by campus and it didn’t have the price point that it did, they wouldn’t have bought it. My dad has always wanted to get something close to campus because the resale value is so high.”

Despite the University students’ reputation for being disruptive at night, houses within walking distance of campus tend to sell for 10 percent higher than comparable houses at other places in town.

“It’s all about location,” said Steve Jones, sales-associate at Coldwell Banker, 4100 W. 6th St. “Any time you get within walking distance or close to campus, the houses are more desirable because of convenience to the University.”

Jones also said that houses near campus spend less time on the market than other houses in Lawrence.

“It’s so dependant on the condition and what you have,” he said, “but houses around campus are usually on the market 90 days or less, while houses elsewhere in Lawrence are on the market anywhere from 90 to 120 days or more.”

Jerry Bailey, an associate professor of educational leadership and policy studies at the University, bought his house, 1638 Mississippi St., because of its location near campus.

“It’s a wonderful house and it’s close to work,” Bailey said. “My wife really liked it, and it was in a good location. We’ve lived there since the Halloween of 1981.”

Arensberg agreed that many faculty at the University buy houses near campus for convenience.

“I remodeled a house that sold for $850,000, and you know who bought it?” Arensburg said. “[Richard] Lariviere, the new provost. We were worried it wouldn’t sell, but it didn’t even make it to the market. He bought it because he wanted to be near campus.”

The house that Lariviere bought from Arensberg is located west of campus, which Arensberg said is a popular location.

“West Campus and North Oread neighborhood sell the best,” he said. “Oread and South campus sell well because the owner is an investor. West campus is for the most part owner occupied. The east side is mostly rentals.”

Students, faculty, and staff at the University are not the only people who want to live with-in walking distance of campus.

“Its just the character of those neighborhoods,” Arensberg said. “More people want a house that has character, whether it’s by campus or not. New construction houses are a dime a dozen – and most people don’t want that.”

Pampering yourself is trendy nowadays, according to Hai Tran, owner of Nail Expressions, 19th and Louisiana, in Lawrence. Although Nail Expressions is not a full-service salon, it does provide manicuring and pedicuring services. “Like fashion, we (the nail industry) provide the same service, but the product is just changing,” Tran said. These products are more advanced and more effective for the clients. A new product, pink and white nails, is guaranteed to not turn yellow when in the sun and look better for a longer period of time. In every industry, customers are looking for more advanced, technological products.

At his salon, there are five employees, one of which is his wife, making Nail Expressions a part family-owned business. His employees are diverse: one man, four women, two Caucasian and the other three of different ethnic backgrounds. These employees serve the needs of men and women who are on-the-go. Nail Expressions services its customers in speedy time so customers can be on their way and also so it can serve more clients.

According to Tran, on an average day his salon provides services for 50 people, male and female. Since the services are one-on-one, Tran and his fellow employees are continuously busy. The services provided range from a simple polish change to a full set of pink and white nails, costing customers everywhere from $8 to $45.

“With the student population coming and going, we send out flyers with discounts to gain back customers we have lost,” Tran said. This technique helps the salon stay busy and keep their profits increasing. These discount flyers apply to students, giving them a discount of two dollars. It may not seem like a lot, but when clients come back multiple times they are saving money. The discount flyers also help Nail Expressions by bringing in more customers. Meghan Watson, a student at the University of Kansas, enjoys Nail Expressions because of its’ prices. “The prices are really reasonable here, especially with the student discounts,” Watson said.

On the other hand, there are five other nail salons in the Lawrence area that are competing for the same clients. This causes problems when the store is busy with a long wait. Many customers will not want to wait, so they find another salon where they can get right in. Tran and his employees try to make the process go as quickly as possible so they get as many clients as they can.

The increase in competition for the college students living and going to school in the Lawrence area is a good thing for the industry as a whole, but can be bad for the individual salons. Abby Leo, a student at the University of Kansas, frequently gets her nails done at Nail Expressions. “I love getting my nails done here, they do a great job, the only downfall is when I have to wait for a long period of time,” Leo said.

The employees of Nail Expressions take great pride in their business and continue to do the best job since opening about five years ago. “Probably the fingernail part because it’s more of an art,” Tran said, referring to his favorite part about his job.

Another employee, Sally Uyen Nguyen, can always be seen smiling. She clearly loves her job. “I can’t pick a part, I love it all,” Nguyen said. “I like my clients a lot, we talk about everything, our families, everything.”

Source Information
Hai Tran, owner of Nail Expressions
(785) 843-3010
Meghan Watson, student at the University of Kansas
(913) 488-5128, megwat87@ku.edu
Abby Leo, student at the University of Kansas
(785) 259-0181, abbyleo@ku.edu
Sally Uyen Nguyen, employee at Nail Expressions
(785) 843-3010

Ranchers in Kansas may soon face a difficult decision about how to protect themselves from drought. The USDA Risk Management Agency (RMA) announced Sept. 6 it plans to include Kansas in the new Pasture, Rangeland, and Forage (PRF) program.

The PRF pilot program began in select regions in 2006. RMA designed the program to insure ranchers who suffer damage to their grazing land or hay because of drought. Kansas will use the vegetation index, which divides the state into 4.8 by 4.8 mile grids. Satellites take readings and compare them against past averages to determine the severity of the drought. Area ranchers will have the option of signing up for the policy for the first time in fall 2008.

“A program to cover risks associated with this business is needed,” said Rebecca Davis, director of the USDA-RMA regional office in Topeka. “And we are pleased that Kansas will be one of the new pilot states.”

Harvest 2007 is the first opportunity to see the pilot program in action. And some ranchers in one pilot area aren’t sure what they think.

Carl Jacobs is a rancher in Baker County of northeast Oregon. Baker County was included in the PRF pilot program, and Jacobs signed up for a policy knowing a drought was predicted for this fall.

And drought it did.

“My dad is 86,” Jacobs said. “He has been living here all his life. And he says this is the worst he has ever seen. I am in my fifties and this is definitely the worst I’ve seen.”

Jacobs’ land, which normally this time of year would be over 850 acres of green grazing land, is down to 250. If you looked at his land, he said, you could instantly tell they are having a drought.

But the next reading of the vegetation index to determine the severity of the drought won’t be taken until after September ends.

Policy buyers are given a choice of four three-month intervals when they purchase the policy. Jacobs chose July, August and September. Now he has to wait until after September to know if he will be getting an insurance payment or not.

“It’s kind of like you are just standing out there in the dark,” Jacobs said. “You don’t know where to go.” Jacobs said he would also have to wait another month after that to actually receive the check, assuming he gets one at all.

But Jacobs remains hopeful. He knows of others who received payments from the program. Those payments came quickly and were large enough to get the ranchers through the difficult time.

RMA officials in Topeka are also hopeful the pilot program will prove to be effective.
“If this program works the way it is supposed to,” Davis said. “It will do a much better job than what is available now.”

Ranchers affected by drought in the past have had to file for aid from the Noninsured Crop Disaster Assistance Program. Davis said payments under this program were very minimal and it isn’t offered everywhere. It also required producing records of past production levels – records many ranchers in Kansas don’t have. RMA designed the PRF program to fix this.

Richard Petrik of Ag Insurance in Baker City, Ore. said the trouble this year came when ranchers chose not to invest enough in their premium to effectively insure their land.

“At this point with what we’ve seen happen here,” Petrik said. “I would advise the Kansas ranchers if they are going to do it, do it to the max.”

Ranchers choose how much protection to purchase for their land through values ranging from 70 to 90 per cent of normal productivity. Petrik said some of the ranchers who purchased PRF insurance through him chose only to insure their land at 70 per cent of normal production to save on premium costs. They would only get a payout from the insurance policy if the land produced below 70 per cent of normal.
When vegetation index readings came in at above 70 per cent, these ranchers received nothing.

Mark and Brenna Wulfkuhle easily remember the last time drought-like conditions affected their grazing land and hay. It was 2006.

The Wulfkuhles own the Rocking H Ranch in western Douglas County. They said the lack of insurance programs for grazing land and hay leaves ranchers in the area to fend for themselves during times of drought.

“There are no options,” Brenna Wulfkuhle said.

Wulfkuhle said Kansas groups have always been good at lobbying for aid from the federal government when it is needed.

“But it is always a year behind or more,” she said. “It can sometimes take up to three years to release a payment program.”

Wulfkuhe said the deciding factor for them would be the cost of the insurance. But soon it will be another option.

Beauty school isn’t all about learning to cut hair and paint nails.

At least it’s not for the students at Z Hair Academy. The cosmetology academy just launched a new program entitled, “Nuts and Bolts: Business Training Solutions.” The program aims at encouraging cosmetology students to become better business leaders.

“I think people have a misconception about cosmetology,” said owner and instructor of Z Hair Academy, Judy McKenzie. “It’s not just about cutting and coloring hair. It’s about getting people in and securing clients.”

The program is divided into four sections. The first, “Embracing Change,” teaches students to use change to their advantage in the business world. In the second part, “The Complete Retail Experience,” students learn how the retail portion of the industry helps promote growth.

“You want to 'up service' clients by offering them products so they can do the style at home,” McKenzie said. “A lot of times people will go home and hate their haircut, and it’s only because they can’t copy the style.”

The third step in the program, “How to Build Your Business,” deals with the economics of the business and gives specific examples about how to build and drive a
business. McKenzie said that many of the students will eventually own and manage their own business. According to the U.S. Department of Labor Bureau of Labor and Statistics, about 48 percent of cosmetologists are self employed.

Last, “Planning and Customer WOW,” teaches students how important good customer service is in generating and keeping clients.

Student Malerie Pickerill said she thinks the program will be a great benefit to her in the future.

“The program has really inspired me. It gives you hope and a bit of an edge on the other students who aren't taking the course,” she said. “I think it is important because with this knowledge I will be less likely to fail in the industry.”

And failing in the industry is a likely possibility. Pickerill said that approximately 1 in 4 licensed cosmetologists never enter the field or quit within the first two years because they don’t have the business skills necessary to attract and keep clients.

“I believe that with this course, I will push past the stats and make more money than I would if I hadn't taken it,” she said.

According to the BLS, the middle 50 percent of cosmetologists earn from $15,480-26,600 annually. Cosmetologists at higher paying, more competitive salons can earn up to $50,000 per year or more.

Wende Daily, manager of Headmasters, 809 Vermont St., said she looked for several attributes in a stylist when making new hires.

“I mostly look at their education, the background they have, and their fit into the salon,” Daily said. “It’s important that they have good business skills because as with any other business, it’s good for both the owner and the individual. It’s important to keep up with the industry and represent the salon well.”

McKenzie believes that her students will be a step ahead of their competition after completing the program.

“I think if students have this training they’re going to be about three times more successful than those who also have their license but haven’t had the same business training,” she said.

As a business person herself, McKenzie knows what is necessary to successfully run and grow a business. Not only does she own and teach at the academy, but she also manages the Z Hair Academy salon. The full service salon offers hair cuts from $7 and up and coloring from $18 and up. The average costs for the services in Lawrence is about $30 for haircuts and $50 for coloring

The students work at the salon, but McKenzie doesn’t think it is difficult to manage the school and salon.

“We treat students like employees,” she said. “It’s more of a mentoring program. Every day they learn something new and apply it in a business setting.”

Though the salon charges for its services, students only keep tips. McKenzie says the profit goes back to the school and expanding the business. More importantly, students can practice the business skills they learn with clients in a real world setting.

Rosa Gonzalez, Melrose Park, Ill., junior, said business skills were an important factor when she considers what stylist to choose.

“I look for reputation and if other people have gone to them and like them,” she said. “It’s hard to find someone you like on your own. You want to have fun. If the stylist is mean or doesn’t know much I won’t want to go back to them.”

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Lawrence, Kan. – Business students graduating this fall and next spring will have new opportunities this year when searching for their career path for future jobs, and graduating senior Kim Rosen is banking on it.

Rosen, Lawrence senior in marketing, is one of approximately 1,200 KU students who will be attending the business career fair on Sept. 20. She and the other students will look at mare than 120 different companies from across the United States to help define their career paths.

“I went to the fair last year, which helped direct me to what jobs were out there,” Rosen said. “Now, since I’m graduating in December, I’m going to the fair with a good idea of who I want pursue for a job.”

Jennifer Jordan, director of business career services, said the companies are looking at more than just a good looking resume, dress and a degree when considering employment. She said companies that attend the fair look at factors such as compelling experience and internships. Other new opportunities, such as the business school’s new major, supply chain management (which will see its first graduates in spring 2009), will help some students with have more options when looking for the right employer.

“We take input from business students every year to determine a target list of employers,” Jordan said. “We want to represent a good cross-section of employers for almost all of our business graduates.”

Westar Energy is a company that sees a degree as the first foot in the door. Ruth Marstall, recruiter for Westar Energy, said that some of the first aspects she looks for are the student’s major, internships and programs they have participated in.

One program in particular that Marstall said is a good indicator for future employment is the Jayhawks on Wall Street Program. A group of selected business students visit Wall Street in New York City during the course of the program. The students have a high interest in investment banking and have the opportunity to meet contacts on Wall Street.

“That program incorporates exactly what we are looking for in employees here at the company,” Marstall said.

Marstall said Westar Energy is in growth mode, which is caused by more and more baby boomers retiring and causing more positions in almost all departments of the company to open up.

Westar Energy is planning the construction of a new power plant in Emporia, Marstall said. A new demand for a wider range of jobs is now present in the company.

“At the moment, with the new plant, engineering majors are going to be in high demand for Westar this year,” Marstall said.

Mimi Yang, field human resources manager for the Panda Restaurant Group, said that attending university career fairs is vital to seeking out qualified employees for the company. Yang’s company will open 150 to 170 new restaurants in the next year, including two more in the Kansas City, Mo., area.

More employees are needed to fill the jobs being created as the company grows, Yang said. Jobs in real estate, legal services and especially the position of restaurant general manager are becoming vital for her company. She said it is difficult to find individuals qualified for the general manager position even if he or she has a degree.

“As important as a degree is, it is more important to possess skills and characteristics such as being highly proactive, responsible, able to multi-task and stress management,” Yang said. “I mean, we are talking about a million-dollar business.”

Some fields in business, Yang said, are not as needed but very popular to encounter for the Panda Restaurant Group.

“We get a lot of interest from marketing-related students,” Yang said. “We feel, though, that the company can market itself if the product is good enough to have customers talking.”

Graduating business students are still not giving enough attention to some career paths, Jordan said, even though the companies offer employment opportunities on par, if not better, than the other companies at the career fair. Most of these companies are government and not-for-profit related.

Jordan said that these companies are very selective and their benefits and compensation packages sometimes rival most other companies.

“There seems to be preconceived notions about these kinds of jobs,” Jordan said. “They may not be as attractive as some other employers, but many students are missing out on one solid career path.”

A touch of European flair is coming to Lawrence in the form of a condominium project.

The Bella Sera at The Preserve condominium project, which began construction in May 2006 in west Lawrence, will open its doors to occupants in early November, according to one of the project’s leading developers.

Jes Santaularia, founder of Diversified Concepts LLC, and one the two head developers on the project, said the Barcelona building at the Bella Sera at The Preserve condominiums should be finished by the end of 2007. The original plans featured three buildings at the McGrew Nature Preserve at 4700 Bob Billings Parkway. Construction on the Barcelona building began in May 2006 and Santaularia said no construction is planned for the Monaco and Genoa buildings until the Barcelona building sells out. Santaularia said that the Barcelona building, which features 37 condominiums, is 25 percent sold.

“I would expect that we’ll have our first owners move into that building maybe the week or two before Thanksgiving,” Santaularia said.

The Bella Sera at the Preserve is the second project of its kind to open in Lawrence in the past two years, and the project is part of a growing trend of new loft and condo projects throughout the Kansas City, Mo., metro area.

The Hobbs Taylor Lofts at Eighth and New Hampshire streets opened in January 2006. And while similarities exist in the timing, style, and price of the projects, Eric Danielson, vice president of business for Harris Construction Co., the company that runs the Hobbs Taylor Lofts, sees differences as well.

“It’s a completely different product,” Danielson said.” Theirs is outside the downtown area, and we appeal to the crowd that’s more interested in an urban location.”
Danielson said that all 32 units at Hobbs Taylor Lofts are completely sold out.

“Almost all the people here have some sort of connection with the university,” Danielson said. “Either they are a professor, in administration, or just working in some department.”

Hobbs Taylor sold its units unfurnished at $250,000, while Bella Sera’s condos range from $300,000 to $1 million.

Santaularia said that in terms of style of living the comparison between the two projects is fair, but that he can’t find similarities after that.

Pat Brady, a senior mortgage consultant for Capital Federal Savings in Overland Park, has witnessed the growing trend of new condo projects in the Kansas City, Mo., metro area. Brady was the loan agent for the loft project inside the Western Auto building at 2107 Grand Blvd. in Kansas City, Mo. That project, completed in 2004, includes 93 units ranging in price from $109,000 to $311,000.

“With condos and lofts, you are basically targeting either young professionals or empty nesters,” Brady said. “There is an element with condos where you don’t have to worry about yard care or upkeep.”

Danielson said he thinks it’s all about the fact that more and more baby boomers are becoming empty-nesters.

“They don’t have a reason to have a three or four bedroom house,” Danielson said.
But while baby boomers are a large chunk of the buying demographic, Santaularia said that other elements unique to Lawrence will make Bella Sera successful.
“Lawrence has a very broad base of interest from around the country because of the university,” Santaularia said. “You have a lot of people who have ties to Lawrence that don’t live here anymore.”

Santaularia said about half of the Bella Sera owners are utilizing their condo as a second or third home. Many of the buyers either used to live in Lawrence and want to come back, or they live in Lawrence now but want to spend time traveling.
One problem that Bella Sera is facing is the decline in real-estate markets. Santaularia said that he’s sure that the decline in the real-estate markets has affected some of the sales numbers at Bella Sera, but he doesn’t expect the trend to last forever.

“I’m sure that our sales are softer based on what the economy is today,” Santaularia said. “But Lawrence is certainly not as soft as the rest of the country, because we don’t go through the ups and downs here.

As for the rest of Lawrence, at least one local business is excited about the prospect of 37 new neighbors. Megan McQuin works as a barista at Limerance, a coffeehouse at 1520 Wakarusa Drive, one block from the Bella Sera site. McQuin said that she thought the new condos were good for the neighborhood.

“Downtown is over-developed,” McQuin said. “It’s good that more and more things are moving out west.”

But a ceiling may exist on the amount of new real-estate projects that Lawrence can support. And while Santaularia said that he’s sure there is a limit, it might take some time to figure out what that ceiling is.

Lawrence Freenet Bring Competition

Sachiko Miyakawa

Shannon Sullivan, an Ottawa junior, used to spend $60 per month for the Internet service at her apartment. Sullivan and her new roommate pay only $25 each month after they switched Internet provider to Lawrence Freenet. The service guarantees unlimited use, so they never worry about an overage fee. Sullivan chose to subscribe to the service because Lawrence Freenet gives Internet access to her laptop outside her apartment.

“It’s cheaper,” Sullivan said. “Also I have a laptop. I like the ability to be able to move with it, that provides wireless service.”

Freenet has been changing the Internet market in Lawrence since launching the official Internet service in May. The number of the Freenet customers reached more than 1,000 this month. Freenet has brought a competition among Internet providers in Lawrence and introducing new kinds of services to the community.

Mobility of the service differentiates the product of Freenet from other companies, including Sunflower Broadband and AT&T. The city-wide wireless network allows customers to get online at most places in Lawrence.

Rachel Burton, a Topeka freshman, started subscribing the service last month. She said she takes advantage of the Freenet network in places on campus, where the University network is not available.

Joshua Montgomery founded the non-profit organization, Lawrence Freenet in April 2005. He no longer works directly for Freenet, but is now a president of Community Wireless Communications, the service provider of Freenet.

“Lawrence is one of the only cities in the world that has city wide wireless network,” Montgomery said. “So Lawrence is really at the cutting edge of technology.”

The lower cost to the service satisfied a customer like Sullivan. Freenet tries to maximize the benefit to the community even more. Freenet provides free Internet service to one low-income families for every 10 new subscribers. Freenet provides the free service to more than 100 low-income families in Lawrence.

“Our goal is to provide the broadband Internet for every resident in Lawrence,” Montgomery said.

Montgomery said Freenet has been adding 10 new customers a day on average. He aims to increase customers by 2,000 in 60 days.

Six newspaper boxes made their debuts downtown last Saturday to enhance the quality of the wireless network in the area. These boxes have a radio transmitter inside and send out the signals. The quality of the service needs to grow along with the increase of customers.

Burton said she has not had major concern about the service so far, but noticed the signals of the wireless network fluctuate depending on the location of her laptop.

“In between downtown and campus, it’s really hard to get connection,” Burton said. “They have really good downtown connection and really good campus connection. So maybe they can fill the gap a little bit.”

The organization’s network does not cover North Lawrence. Montgomery said the company would identify the area that needs improvement and install more than 500 radio transmitters in the next year and a half. He said it can make the speed of the service faster.

Patrick Knorr, the general manager of Sunflower Broadband, said Freenet can satisfy the need of people who do not need phone or cable but only Internet service. Knorr said the strength of Sunflower is that customers receive signal through a cable line. The shield of the cable protects signals from interference from other electric devices on the air and gives stability of the service.

“If mobility is more important than reliability, it could be a good choice,” Knorr said. “The wireline service, we think, is more reliable than the wireless service, with more stable and reliable connection.”

Katie Mika, customer service representative for Sunflower Broadband, interacted with customers who uses Lawrence Freenet. Mika said they complain about the poor connection. She said of those she talked to, more than 10 customers had switched the service to Sunflower Broadband in the past week.

Although Sunflower already has 25,000 customers, Knorr said the competition for the Internet market would be a challenge for the company.

“I think competition is good. It keeps making everybody sure that they provide customer service,” Knorr said. “As long as people have some choices, I think that will make people strive to be better.”

Pam Biemick worked for Chanel and Elizabeth Arden. She worked in beauty retail and assisted salon owners in seeing the potential in their businesses. And now, after 30 years in the beauty industry, Biemick opened her own studio last week, Amazing Skin and Make-up, 719 Massachusetts, in downtown Lawrence.
According to stylecareer.com, salon and beauty shops are a part of a $135 billion industry. As of 2005, there were 400,000 salons in the United States, employing 1.7 million beauty professionals.
There are nearly 75 salons, including hair salons, nail salons and spas, in Lawrence alone. Anything from a $200 head-to-toe session to a quick $7 trim is available in town, and since demand for personal upkeep is steady, salons and beauty shops in Lawrence continue to be successful.
Location can play a big part in the success of a business. Biemick said having a downtown location is great for her studio.
“I love networking with retail workers downtown,” she said. “I just love the diversity you can find.”
Although the high cost of rent can be a detriment to an independently run business downtown. Alex Fiori, aesthetician and co-owner of Salon Di Marco and Day Spa, 733 Massachusetts, feels that the expensive cost of location comes with the territory.
“The rent is terrible,” she said. “But it’s trendy to be downtown, so you pay the price.” But Fiori said having a shop directly on Mass. Street brings in a lot of walk-in business.
Having a salon or shop in a college town also has its advantages, since students make up a large part of salons’ business.
“We love our student clientele,” Fiori said.
Men also represent a large portion of salon clients. Fiori said that college-aged men make up one third of Salon Di Marco’s clientele, and many come in for regular facials, massages and manicures.
Kari Kemptar, co-owner of Trio Hair Studio, understands that men are an important part of her business.
“ I’ve had guys refer their girlfriends to us, instead of girls dragging their boyfriends in for a haircut,” Keptar said.

According to the Global Marketing Group, small companies can compete successfully through technical superiority or a favorable location. Many salons now consider themselves “full service” since they offer waxing, facials and manicures and pedicures, in addition to hair styling.
“Eyebrow waxing is a good add-on service for salons,” Biemick said. Biemick does custom facials, make-up application and facial waxing, specializing in eyebrow shaping, at her studio.
Salon Di Marco offers hair services, waxing, facials, body facials, massage therapy and manicures and pedicures. The salon also uses only organic products and sells them in-store. In 2002 Americans spent $5.5 billion on hair care products, according to stylecareer.com, so it’s no wonder that many salons carry lines of products in their shops.

A majority of the salons in Lawrence are non-franchise, independently run businesses. But even with all of that competition in town, businesses still manage to stay afloat. Biemick said it’s due to an understanding that all salons have with each other.
“There’s a respect in Lawrence,” she said.
Biemick also said that most stylists start at one of Lawrence’s oldest salons like Headmaster’s or Hair Experts, before branching off and opening their own shops.
With the help of the KU Small Business Development Center, Kari Kemptar left Headmasters to open up her own salon, Trio Hair Studio, 719 Massachusetts, with two friends in April.
“There’s a lot of support in Lawrence for small businesses,” Kemptar said.
Kemptar said that having connections with other shops in Lawrence is beneficial.
“We have a lot of friends that run small salons in Lawrence,” she said. “ We do a lot of salon referrals back and forth.”
Biemick agreed that ties to other businesses owners are important. She is a member of the Douglas County Connection, a group of local professionals that assist one another in the growth of their businesses.

A current trend in salons seems to be the idea of giving customers an “experience”, rather than just a haircut or eyebrow wax.
“ We distinguish ourselves based on how we treat our people,” Fiori said. “We let people relax.”
Salon Di Marco gives complimentary neck and scalp massages with every haircut.
“ You don’t just sit down at the shampoo bowl,” Fiori said.
Pam Biemick decided to open her own shop because she felt she had a lot to share with her customers.
“I’m here to serve,” she said.
Although Stephanie Rodman, stylist and salon manager of Great Clips, 530 W. 6th St., said that a franchise salon like Great Clips provides better service because of its flexibility.
“We’re walk-in only and I think that’s better customer service,” she said. “It’s easier for people on the go.”
Great Clips is also open seven days a week, while many independent salons are closed on Sundays and Mondays.
Even with the dozens of salons and beauty shops in Lawrence, ever-changing beauty trends shape the business.
“People are more aware of physical beauty,” Kemptar said.
This caused salons to expand their businesses to more than just a place to get a haircut in order to keep up.
But Biemick isn’t worried about the constant salon competition in Lawrence.
“There’s enough business for everyone,” she said.

For local retailers such as The Village Witch and Fun and Games the Halloween season is a time for boosts in sales. Next to Christmas, the National Retail Foundation says Halloween second in retail sales according to a 2006 press release.
The Village Witch earns approximately 40 percent of its yearly sales in the days preceding Samhain, which is the Celtic New Year celebrated on Oct 31. The Village Witch is a specialty store that carries handmade jewelry, stones, handmade bath and body supplies, books on Wicca and witchcraft and more.
The Owners Kacey Carllson and Kerry Johnson have seen an increase in business since their move to the N. Lawrence location in August 2006. Johnson said that since the move, she and Carllson want people to know what the store is about, instead of as a metaphysical store.
“We are a Wicca and pagan supply store,” Johnson said.
Wicca is a belief system that an individual has. Johnson said that almost everyone that ignores the remainder of the holydays, of Wicca, observes Samhain, which is one reason that sales increase during this season. She said other reasons are that there are no festivals going on so people are stocking up and the store is receiving new merchandise.
In addition to merchandise, The Village Witch offers classes to clients and anyone interested in learning about Wicca. Carllson offers the class Magicians Boot Camp and has taught the class for 20 years. Carllson said the class applies science, with theories and physics, to magic and Wicca. Basics to Wicca, the class taught by Johnson, is a first for the store and Johnson. Carllson talked Johnson into being the teacher of this class. Johnson proceeded to research all the materials needed for the class.
“Since the research is done now, it would not difficult to set up another class,” Johnson said.
Fun and Games earns approximately 75 percent of its yearly sales during September and October. Fun and Games primarily carries costumes and makeup, which targets towards theatre groups through the remainder of the year.
Gwen Billings, assistant manager and mother of the store’s owner Kyle Billings, said that the owners are hoping to see an increase in business because of the store’s new location at 1601 W 23 St. She said that customers had a difficult time finding the store’s downtown location, but the store is always open year-round.
“Halloween is our main season,” Gwen Billings said.
Kyle Billings said the store receives approximately 90 percent of its merchandise during the Halloween season and it lasts the store most of the year. He said that the top selling costumes seem to coincide with the popular movies of the year. Because of the variety of this year’s movies, he guessed at what this year’s top seller would be.
“The big thing seems to be pirates. Pirates always seem to be a big seller,” Kyle Billings said.
He said customers spend an approximate average of $35 to $40. Customer spending varies with people who come in to buy that last thing they need to complete their costume, or people that come in and spend $100 to buy everything they need in one trip.
Tammy Faries, Garnett Senior, enjoys Halloween and spends an average of $45-$50 each year on her costume. She said that she thinks there is a good selection of Halloween merchandise in Lawrence, even though she usually goes to Fun and Games for her Halloween needs. This year her and her friends are going out as gangsters. She said her favorite costume was the mermaid costume from last year, even though it was a little constrictive.

“Anytime just to have fun and be out of the normal, regular clothes is a good time,” Faries said. “I wish we could do Halloween four times a year.”

Lawrence – The nonprofit, microlending organization Kiva has experienced an overwhelming number of people providing funds for lending, thanks to former President Bill Clinton’s latest book, “Giving,” and The Oprah Winfrey Show. Clinton featured Kiva as a way for volunteers to help small businesses in developing countries through the Internet.
Kiva, founded in San Francisco in late 2004, allows lenders to select entrepreneurs on its Web site and use a credit card to loan them money. Kiva transfers funds to local partners, which are nongovernmental organization workers at microfinance institutions, who then disburse the loans to each qualified borrower. Kiva’s local partners collect repayments and e-mail updates to lenders about the progress of the businesses to which they loaned the funds. As the businesses succeed, funds are returned to lenders, who can then choose to re-loan to another business or withdraw the funds.
After Clinton and the founders of Kiva, Matt and Jessica Flannery, appeared on The Oprah Winfrey Show, on Sept. 4, Kiva’s Web site posted a message stating that this year, for the first time, every business that applied had been funded. Kiva has loaned more than $11 million, and 99.6 percent of the loans have been repaid. Its donor membership has grown from 75,000 in June to more than 113,000 today.
Stephanie Bryson, a KU project coordinator of children’s mental health for the School of Social Welfare, joined Kiva after seeing a PBS “Frontline” special in April about the organization.
“I’m happy to see the recent publicity,” Bryson said. “I hope this new demand will bring more microlending organizations out.”
Kiva allows donors to lend as little as $25 to a specific entrepreneur in a developing country. These microloans are then used by the small business owners to lift themselves out of poverty with their own business models.
People in Lawrence have joined the organization and have loaned thousands of dollars to businesses in countries such as Mexico, Togo and Cambodia.
“My husband and I narrow the choices down to three people,” said Cheryl Holmes, a KU project manager for the School of Social Welfare. “We then read each person’s story to our 6-year-old son, talking about the area of the world the person is from and what he or she wants to do with the loan. We then make a selection as a family.”
Kiva has funded 17,000 loans today compared with the seven it started with in March 2005.
Sam Snyder, a Motorola technician and 2006 KU graduate, has loaned to 703 people, totaling at least $17,575, since he joined in January 2006.
“I loan because I believe everyone in the world deserves the opportunity to succeed and improve their lives and their communities,” Snyder said.
Snyder has lent mostly to female borrowers after reading Nobel Peace Prize winner Muhammad Yunus’ book “Banker to the Poor.” Yunus, who developed the concept of microlending in the 1970s, said women are more likely than men to repay loans, save money and support their families.
Small business owners in poor countries need capital, but because of a lack of collateral and credit history they are unable to acquire loans from traditional or formal banking systems. Nongovernmental organizations and private institutions like Kiva supply microloans to these people in need.
“When a person lives in poverty due to either unemployment or under-employment, this person will search for opportunities to make a living,” said Rubana Mahjabeen, a KU economics lecturer. “Microcredit gives these people an opportunity to pursue that goal. So, these people will try to make the best use of this loan.”
Grace Ayaa, whose peanut butter business received a microloan through Kiva, lives in Uganda where most people work in a local rock quarry for $1 a day. Her loan allowed her to buy a refrigerator and packing material, increasing her peanut butter production.
Ayaa’s loan from Kiva benefits not only her and her family but others in her town. Other villagers have decided to start their own businesses with microloans from Kiva after seeing Ayaa’s success. Their business profiles are available on Kiva’s Web site, www.kiva.org.

When he comes home, Jake Meyer, Parkville, Mo., senior, wants nothing more than to just relax. While some might do this by simply watching television, Meyer prefers to be involved in his entertainment. A self-proclaimed “gamer” since the age of five, Meyer owns five game consoles including his most recent addition, a Nintendo Wii.

“The Wii is unlike anything else. It is changing the game industry with its new controller. This makes games you play much more interactive,” said Meyer, who averages 20 hours a week playing video games.

Meyer enjoys playing a variety of games, especially those with interesting storylines. He thinks it is important to keep up with the new games in the industry and enjoys renting games to test his interest in them. Although Meyer is aware of the increasing Guitar Hero trend, he has not been interested in the game until discovering recently that the game’s new version will be Wii compatible for the first time.

On October 28, Activision will release Guitar Hero III: Legends of Rock. The new game will be available for the PlayStation 2, PlayStation 3, Xbox 360, and Nintendo Wii consoles. A new wireless Gibson Les Paul guitar will also be available.

Best Buy has started a national presale for the upcoming release. Although Best Buy will not announce pre-sale numbers for Guitar Hero 3, but it can discuss its expectations for the game.

“Guitar Hero III: Legends of Rock is one of the more anticipated titles of the year. We think Guitar Hero will be one of the biggest video games that will launch this year,” said Best Buy spokesperson, Brian Lucas.

Local stores are preparing for the release as well. Game Stop, previously known as EB Games, is also conducting a presale for Guitar Hero III.

“We’ve already sold about 50 games. We’re expecting it to sell out quickly once we get our shipment in. The only way to ensure owning a game is to reserve a copy now,” said Nick Hodgkin, assistant manager.

Guitar Hero isn’t the only thing increasing Game Stop’s sales. Game Stop is consistently selling out of their shipments of the Nintendo Wii. Hodgkin said Game Stop receives 6 to 8 Wii’s each week and it is likely to only have one left after the first day. He thinks these sales will increase once Guitar Hero III is released.

“The Wii focuses on fun instead of graphics. Xbox 360 and PlayStation 3 went for better graphics, but Nintendo went for playability and fun. People associate Guitar Hero with fun, those will go together,” Hodgkin said.

If past Guitar Hero sales are any indication, Best Buy’s and Game Stop’s predictions will be correct. According to the NPD group, which tracks North American Video sales, Guitar Hero II sold 1.3 million in sales in 2006, making it the fifth best selling game in the U.S. last year. MarketWatch.com said Guitar Hero accounted for about 30 percent of Activision’s revenue in the recent quarter. These sales have increased Activision’s revenue more than 160 percent to $495.5 million from $188.1 million, according to MarketWatch analysts.

Students at KU are adding to the sales of Guitar Hero. Matt Green, St. Louis, Mo., senior, said one reason for the increase in sales is the close partnership with industries outside of video games.

“This game has partnered with the music industry. They had to get rights to the song, rights to the Gibson model of guitar. Within the game you can get new strings and get sponsored by different music affiliates. The entertainment industry has become more intertwined,” Green said.

Ben Whitsitt, Westwood Hills, sophomore, wasn’t initially excited about Guitar Hero, but now plays the game regularly. Whitsitt said he usually sticks to sports video games but after seeing a friend play Guitar Hero he thought it looked awesome.

“I bought the game on a whim and it turned out to be a great buy. Everyone now comes over to play it. The instant gratification you get from playing a really hard, awesome guitar song by just pressing a few buttons is great. It’s really cool to hear yourself,” Whitsitt said.

Green is looking forward to the release of Guitar Hero III and has been impressed with the diverse nature of the game so far. He said Guitar Hero is making games more appealing.

“I love the fact that my 50 year-old mom can play it and so can my little sister who’s 12. You get the whole spectrum of people. It’s much more feasible for everyone to play,” Green said. “It’s like the Simon Says game where you just press the button when it’s lit up. Guitar Hero is bringing back traditional style games while letting you rock.”

Escalating gas prices are affecting students who don’t drive due to increasing rates of local shuttle services.

In the last two months shuttle services that transport students to Kansas City International Airport have raised their prices. Jeff’s Shuttle, which services 25 cities in Kansas, has raised its rates twice in the last month.

“Due to the rise of gasoline and escalating interest costs, we have had to increase shuttle transportation costs in the last month by about 7 percent. This is the second time in a month that we have had to raise costs,” owner Jeff Pennington said.

A shuttle from Lawrence to KCI was $45.57 and is now $49. This rate is not including the 20 percent gratuity that Pennington recommends for the chauffeur.

“Drivers lease the vehicles from me. The drivers make most of their
living from their tips,” Pennington said.

Jeff’s shuttle operates from KCI airport. The clientele of Jeff’s Shuttle ranges from business professionals, families with small children and students.

Some KU students who use Jeff’s Shuttle are now carpooling because they can’t afford the difference.

“I don’t have a car at KU. I was using Jeff’s Shuttle to get to KCI. It’s ironic that I didn’t get a car because I can’t afford gas and now I can’t even afford a shuttle,”
said Betsy O’Brien, Lawrence junior.

According to the Natural Resources Defense Council, U.S. gasoline consumption accounts for 11 percent of world oil production, intensifying the nation’s economic and political vulnerability.

Harry G. Shaffer is a professor of economics at KU and author of the book “American Capitalism and The Changing Role of Government.”

Shaffer said, “Gas is an inelastic product because there is such a great demand for it. People will continue to pay high prices for gas because they have to. If there is availability of substitutes in the future, this may change.”

Ground Transportation Inc., 301 Maple St., is the only shuttle service in Lawrence. Owner Reynaldo Puentes has raised shuttle prices twice in the last month.

“Our business has really been affected by gas prices. We were charging $35 and we now charge $40. We have lost some clients, especially students. If business keeps slowing down we may have to shut down,” Puentes said.

Shuttle drivers at Ground Transportation are independent contractors. For each trip to KCI, shuttle drivers receive $25.

Drivers go to the airport every two hours, 10 times a day. In November, Puentes will cut back on gas by only going to the airport every two and a half hours everyday.
“Though the shuttle drivers rent the cars from me, I pay for all the gas. We use Midland Farm because we want to support local companies even though it’s more
expensive,” Puentes said.

Midland Farm is a local company that supplies farm equipment. They sell
Puentes gas for $2.93 a gallon.

Changes in shuttle rates are making some students rethink their means of
transportation. Out of state students like Nora Burt, Chicago sophomore, are relying on friends to drive them to the airport.

“Last year when I was going home for the holidays I had to find people to carpool with because the shuttle was too much money. With higher rates this year, I really can’t use a shuttle service,” Burt said.

Technology improvements that are expected to increase the efficiency of motor vehicles could change the high demand for gasoline.

“In the future I think the population may increase their use of smaller cars and hybrids. This will affect the amount of gasoline used. Until we find a way to use substitutes for gas, prices will continue to rise,” Shaffer said.