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March 14, 2007

Education key to promoting economic growth in Kansas

At age 25, graduate student Christina Spires is a CEO. She and three other students run Abacus LLC, a model business for data retrieval software. They are enrolled in a new venture creation course, which teaches students how to develop a business plan and market products created by University of Kansas faculty. This course is one of many new initiatives in entrepreneurship education at KU that may give students and the Kansas economy a boost in the business world.

Entrepreneurship education has grown considerably at KU in the past year. The School of Business recently added graduate and undergraduate degree programs in entrepreneurship. This addition placed KU in the top 50 business schools in the nation.


Wallace Meyer
Director of entrepreneurship programs
Director of entrepreneurship programs Wallace Meyer said there was significant student demand for courses in entrepreneurship. After just three semesters, the introduction to entrepreneurship class has 116 students, making it the largest elective offered in the School of Business.

Spires, who graduated from KU in 2002, said she wished entrepreneurship courses had been offered when she was an undergraduate student.

"If I went to work for a company, I would be able to assist with a business plan or do research for a new product. These programs will give undergraduates an edge going into the workplace," Spires said.

But that edge could help further more than students' careers. If Spires and her team do well, their business will go public, adding one more venture to the Kansas economy. Meyer said commercializing products is a primary goal of entrepreneurship education.

"Entrepreneurship education directly addresses startup companies and growth of small firms," Meyer said. "It better prepares anyone who attends KU to be able to participate in startups and small businesses and thereby contributes directly to the economic growth of Lawrence, Douglas County and the state of Kansas."

According to the Kansas Department of Commerce, 25 of every 100,000 adults in Kansas will start a new business every month. Caleb Asher, director of communications and marketing for the Kansas Department of Commerce, said educating students in entrepreneurial skills has a significant impact on the Kansas economy.

Asher said many students think they can't be successful as entrepreneurs if they stay in Kansas after graduation.

"We call it 'brain drain.' Not only do students not go back to their hometown, they don't even stay in the state," Asher said. "We need those students right out of college to find that there is a place for them here."

Senior Justin McAuley said he thought there was more opportunity for business on the coast. McAuley, who is minoring in entrepreneurship, started his own online company this year. He also started the Entrepreneurship Club, which helps students brainstorm to make their business ideas a reality.

McAuley said the club and other entrepreneurship education programs at KU would help the growth of businesses in Kansas.

"If we start stepping up and educating more people, maybe that will help keep the Midwest competitive," McAuley said.

Asher said encouraging entrepreneurship education has been a goal of the state since the Kansas Economic Growth Act was enacted in 2004. The act addressed economic needs of the state identified by business leaders and economic developers.

The act established the Kansas Center for Entrepreneurship to help connect entrepreneurs to available resources in Kansas. Director Steve Radley said the center supplies entrepreneurs with three basic tools: economic resources, expertise and education.

Radley said entrepreneurship education is important at a collegiate level, because it encourages students to think innovatively and adapt.


Data courtesy of the Wichita State University Center for Entrepreneurship
According to the book "Entrepreneurial Imperative" by Carl Schramm, over half of all university graduates will start a business over the course of their lives. Radley said this statistic proved that students needed entrepreneurship education in order to take control of their future.

"Entrepreneurship is job creation. It's the key to our competitiveness in the global market," Radley said. "I think entrepreneurship offers opportunities for people who want to stay in Kansas."

Meyer said he is working to open a similar center at KU, allowing students and faculty to connect with local resources.

"Our goal is to provide a steady flow of 'commercializable' properties from the University, Lawrence and the region that benefits the economic platform of the state of Kansas," Meyer said.

According to the US Small Business Association, small businesses and ventures represent more than 99.7 percent of all employers in the US. There are more than 240,000 small businesses in Kansas alone. Because it is likely that they will work for a small business, Meyer said that it is important for students of all majors to partake in entrepreneurship education.

The Kansas Economic Growth Act also addressed the importance of expanding entrepreneurship outreach beyond citizens already involved in business. The Kansas Technology Enterprise Corporation started KTEC Pipeline Innovators, a program to mentor budding entrepreneurs in Kansas who come don't come from business backgrounds.

One of these innovators is KU professor of mechanical engineering Lisa Friis. Friis said that entrepreneurial skills can be applied to any discipline and help students of all majors develop their ideas.

She is currently working with Meyer to begin a new product development course for engineering, business and industrial design students. The course would allow students from the three departments to collaborate their skills.

Friis said that developing entrepreneurship education programs at KU would encourage students to pursue business ventures and ultimately contribute to the state economy.

"We have a responsibility to serve our constituents, not just in education and research for students here, but I also believe we have a role in economic development," Friis said. "I think we're doing our state and the region a disservice if we don't promote that."

March 15, 2007

Drive-thru businesses take different roads to success

Grab your keys, open the garage door and hop into the car. You’re going for a ride.

Hungry? Need to run some errands?

Don’t worry; you’ll get everything done. Just make yourself comfortable. You’re not getting out of the car anytime soon.

From money and food to weddings and liquor, Americans receive all kinds of services from drive-thrus.

“Convenience is the most important thing,” said Phil Lempert, consumer trends correspondent for the “Today” show. “People also love their cars. They feel more protected. When you’re in your car, you have the power.”

Lawrence residents can’t buy alcohol or exchange vows in the car, but they can use drive-thrus at banks, laundry cleaners, drug stores and restaurants.


These businesses attract people to their drive-thrus with different strategies. Scotch Fabric Care Services, a Kansas laundry cleaning company, gets business because it has been around for more than 40 years. Fast-food restaurants explore new technology to keep their numbers up, and banks market to the young crowd to increase business at their drive-thrus.

The strategies have worked. Fast-food restaurants nationwide earn 70 percent of their profits from the drive-thru. Scotch Fabric Care Services gets 90 percent of its sales from the pull-up window, and bank customers across the country complete about 39 percent of their transactions in their cars.

Count Maggie Taylor as part of that last group. Taylor likes quickness. The 21-year old KU student text messages, e-mails and talks on her cell phone. Lempert said Taylor’s generation, which wants everything immediately and avoids personal confrontation, is partially responsible for the popularity of drive-thrus.

At ATM drive-thrus, customers pull up, deposit or withdraw, and drive away without having to get out of their car or deal with another person. Taylor uses a drive-thru ATM every other week.

“It’s faster and convenient,” she said.

Before people like Taylor encountered drive-thrus on every street corner, Lawrence citizens actually had to go inside to pick up laundry. Scotch Fabric Care Services changed that in 1964.

“Back then it was certainly a rarity,” said Scott Shmallberg, owner of Scotch Fabric Care Services. “It was for the post-World War II generation. Drive-in restaurants and theaters were catching on, and people were infatuated with their cars.”






That forward thinking helped Scotch grow. Now 14 of Scotch’s 21 locations in Topeka, Lawrence and Kansas City have them. On average, those with drive-thrus have 60 percent higher sales. Shmallberg said Scotch’s longtime presence has kept its profits up despite drive-thru competition from Pride Cleaners. Scotch has six Lawrence locations compared to Pride Cleaners’ two.

Owners of fast-food restaurants wish they only had one drive-thru competitor. Nearly every restaurant has a drive-thru, but the competition doesn’t make them less successful. Of the $142 billion made by the fast-food industry each year, $99 billion comes from the pull-up window.

You can find several fast-food chains all within a mile of each other on 23rd Street in Lawrence. The McDonald’s and Taco Bell on 23rd each get about 80 percent of their sales from the drive-thru, above the national average of 70 percent. Burger King and Wendy’s are slightly below that average at about 60 percent.


Drive-Thru revenue based on the 70% national average
Statistics from yum.com, mcdonalds.com, burgerking.com and wendys.com

To keep drive-thru traffic high, some McDonald’s and Wendy’s restaurants on the East Coast have started outsourcing drive-thru orders to a separate ordering center. With the new technology, no one at the restaurant takes the order. Instead, a person at an order center receives it and sends it back to the location the order came from. The system is supposed to increase drive-thru speed and decrease the number of workers.

“Call centers create a great opportunity because drive-thrus are staying open longer,” said Darren Tristano, managing director of Technomic Information Services, a Chicago-based company that consults the food industry. “Restaurants will tell you that it will make it faster, but it’s also about cutting cost.”

None of the fast-food chains in Lawrence outsource their orders, but Tristano said the practice should be more common in five or 10 years. New improvements at restaurants in Lawrence include a double drive-thru lane at the McDonald’s on Sixth Street and video screens that ensure order accuracy at all the Wendy’s and McDonald’s restaurants.

Banks, cleaners and restaurants use different ways to keep their drive-thrus popular. But as long as Americans desire convenience, drive-thru lines should stay long and profits should remain high.

“People don’t like to stand in line,” Shmallberg said. “They get fidgety and anxious quickly. If they’re in the car, they stay comfortable. Walking 30 or 40 feet is too much of an effort.”

Local businesses see increase in ecommerce







Local businesses are joining shoppers and turning to the Internet. The Internet serves as a new form of revenue for many local businesses. With the click of a mouse, businesses are expanding from Lawrence to New York to California.

Consumers and businesses both reap the benefits of online shopping. Shoppers turned to online shopping for its increased amount of convenience, speed and selection. Businesses are turning to online shopping for a greater customer base, an increase amount of revenue and to create a gateway into their store.

In the business world, online shopping is known as ecommerce, sales of goods or services over an Internet or other online connection.

The ecommerce success of businesses often varies among stores. Some local businesses receive a minimal number of sales online, while others completely turn to online sales to support their business.

Footprints, a shoe store at 1339 Massachusetts St., has offered online shopping since 1998.The store receives catalog orders from its Web site and through the phone. Only one-third of the store’s revenue comes from its in-store retail business according to Karen Luecke, store manager.

Brits at 929 Massachusetts St. sells British Isles items. The store has offered online shopping since 1996. Store assistant Elizabeth Herrman said the store receives five to six online sales a day. They ship to customers from coast to coast. At the end of the year its ecommerce and in-store retail balance out 50/50, Herrman said.

Mass Street Music has offered online sales to its customers for the past two years. Employee Kyle Rabe said the store receives one to two sales a week from its Web site. The store’s Web site not only serves as a way to sell merchandise, but to market it as well.

Customers view items on the Web site, but go to the store to buy them. The Web site serves as a gateway into the store. The store’s Web site generates 25% of its sales.

Online shopping is boosting revenue for businesses nationwide. In an emarketer.com study of U.S. broadband users, shopping online influenced 36% of respondents to make a retail purchase. This is compared to the 11% influence created by commercials and the 6% influence created by magazine ads.

J-hood Bookstore, which was located in Lawrence from 1974 to 2000, also changed with the times. In 2000, the store closed its location in Lawrence and began to operate only through ecommerce. The switch from in-store to online doubled the business’ profit. John Hood said the store was able to increase its profits with raid prices and no employees.

As local businesses increase their revenue and customer base to a national level, they also create more work. In addition to assisting customers and running the cash register, stores now need to maintain their Web sites and prepare online orders for shipment.

“We make it a collaborative effort to upkeep our site,” said Elizabeth Herrman, Brits employee. “We also have one employee that comes in on Tuesday and Thursday to do our mail orders.”

Employees of Prairie Patches, a specialty store located at 821 Massachusetts St., also work together to handle the increased workload from online orders. The store has separate Web sites for its greek merchandise and for its flower and balloon gift shop. Lori Lange, store manager, said they have a hard time getting everything done. Recently, they have not been able to maintain their Jayhawk merchandise Web site recently.

Mass Street Music, on the other hand, hired two new employees to help maintain the extra workload from ecommerce business. One fulltime employee deals with information technology. The other part-time employee is in charge of taking pictures, online administration and product descriptions.

In the past, ecommerce has been a small percentage of total retail sales in the U.S., but the percentage is steadily increasing over the years as the amount of Internet users increases.

GoECart, an ecommerce consulting company, reported that online users increased from 68% of the U.S. population in 2005 to 71% of the U.S population in 2006.

The U.S. Census Bureau estimated, the U.S. retail total increased 5.8% from 2005 to 2006. However, the U.S. ecommerce increased 23.5% to $108.7 billion from 2005 to 2006. In 2006, ecommerce made up 7.8% of total sales in the U.S.

Lawrence business owners also expect an increase amount of ecommerce in the future.

Waxman Candles started preparing for the increased amount of online sales in the future by improving its current ecommerce situation. It is working to increase the number of products offered and customer communication.

Weavers department store is also recognizing the future of ecommerce. President Joe Flannery said, “Online shopping is more prevalent than ever. Our dilemma is that we are a one-store operation. Its not critical for one location.”

Forrester Research company projects online retail to hit $230 billion by 2008: 10% of the anticipated U.S. sales total.

Local handiwork benefits artists, stores

Your neighbor may be making a business out of their photography, paintings and handmade jewelry and you don't even know it.

The buying and selling of handiwork, notably at consignment, has become a growing trend in Lawrence.


Music by Kevin MacLeod

“We're able to carry a lot more work by more artists,” Maria Martin, owner of Southwest and More, 727 Mass. St., said. “It allows us to try new styles.”

Business of buying and selling

Consignment work in stores is featured for free. The artist, sometimes with the aid of store owners, decides on the selling price. About 15% of Southwest and More's work is on consignment, mostly paintings, pottery and other fine art pieces by more than 40 artists, according to Martin. Her store's policy is to give 70% of the item's selling price to the artist.


Data courtesy Melissa Padgett

The Third Planet, 846 Mass. St., sells consignment items to keep money in Lawrence and not have to put capital in some merchandise, manager Melissa Padgett said. They sell jewelry, artwork, t-shirts and stickers on consignment, she said, and added that locally-printed t-shirts become popular during election seasons.

About 10-15% of The Third Planet's products are on consignment and they give 60% of an item's selling price to the artist, according to Padgett. She compared the business to renting space for handiwork and said consignment has been profitable for the store.

Alina Scalora, Manhattan sophomore, sells hemp necklaces at The Third Planet when she has time. She said that she has sold a few so far, but expects business to increase in the summer.


Data courtesy Maria Martin

Forgoing consignment

Some stores opt to buy handmade items outright rather than carry pieces on consignment. MissFortune's Creation Station, 726 Mass. St., buys and sells handmade glass pieces, jewelry and clothing items, according to their owner Jennifer Fortune.

About 15% of their products are handmade, which contribute to 20% of the store's overall profits, Fortune said. She acknowledged that consignment work is difficult because of the paperwork and keeping in contact with artists.

“People know we buy local, unique stuff,” Fortune said. She mentioned that summer is the most popular time for handmade items, probably because “more people are coming through town.”

Future of consignment

“Consignors, donors and sellers make money by selling under loved items at our shops, without the expense, work, and bother of a tag or garage sale,” according to the National Association of Resale and Thrift Shops Web site. They also added that customers shop at such stores because it "means more quality for less money."

Southwest and More employee and Lawrence freshman Bridget Lavaveshkul said that featuring items on consignment was beneficial to a business, because they never lose money if a featured item doesn't sell.

None of the stores are concerned about consignment and the business of handiwork losing steam. Customers in Lawrence “like to know they can see the people who make the work,” Padgett said. Martin believes one-of-a-kind products will always be in demand, especially at Southwest and More, which she describes as a specialty store.

In the end, consignment and buying handmade work outright is a benefit to both businesses and artists, Martin said. “It works both ways,” she said. “It helps if we're not sure how it will sell, and we have an opportunity to showcase an artist.”

Warmer weather brings less business for car wash stations

Sitting at a wooden bench outside Auto Plaza Car Wash, Linda Neutel peered up from her book. As the sun reflected off her dark-rimmed sunglasses, two men yelled “You’re ready.”

Lawrence has 10 car wash service stations. Seven of the stations offer both self-serve and automatic car washes and one is a full-service. The other two are automatics attached to gas stations.

cwmap.gifHere's a map and directions to surrounding car wash service stations in Lawrence. Click for larger image. Map courtesty of Yellowpages.com

“I don’t really choose one specific car wash station in Lawrence,” Neutel said. “It’s a random choice based on whatever I’m closest to and whichever has the shortest line.”

Neutel, 46, doesn’t wash her silver Hyundai SUV often. She said the weather usually determines when she washes it.

“I generally wash my car once a month during the winter and once every two months during the summer,” Neutel said. “I wash more during the winter because of salt and snow. I don’t like it to stay on my car.”

According to 2006 Conveyor Survey.(pdf), Midwest car wash stations receive 36% of their business during the winter. December was voted as the busiest month.

On a national level, December through March provides 68% of business for car wash stations compared to 31% the rest of the year, Professional Car Washing magazine said.


This is a chart shows the national percentages of business car wash service stations received monthly in 2005. Click for a larger image. Statistics provided by 2006 Conveyor Survey

Daryl Messer said he sees a difference in business between the seasons at his station at 2828 Iowa St.

“This business is definitely weather related,” Messer, owner of Raco Car Wash, said. “There isn’t anyone in here in the pouring rain or the bitter cold. The only time we know it will get busy is when it snows and all the salt and sand trucks are out.”

Auto Plaza Car Wash owner Bill Stewart said car washing has always been a seasonal business. He said that people want to stay active during the summer months so they wash their vehicles themselves.

To make up for business, car wash stations can offer specials or coupons to help attract customers when it isn’t so busy, Stewart said.

“We offer detailing to help business,” Stewart said. “Detailing is usually down in the fall and winter when car washing is usually up. But in the spring and summer it rises.”

“I detail for a lot of commercial business as well such as Jim Clark and Laird Noller car dealerships. They always have something for me to detail when customers don’t want to wash their cars.”

Stewart said he estimates more than 40,000 vehicles come through his car wash at 28th Terrace and Iowa Street in a year. The national average in 2005 was a little over 51,000.

With the amount of cars that come through the stations, expenses add up with maintenance, water and utility bills.

Messer says the business isn’t as profitable as it was years ago. He said heating the water at a constant temperature of 130 degrees and heating the floors adds up.

“For natural gas we are paying three to four times more than what we were paying 10 or 15 years ago,” Messer said.” It’s a high income, high expense type of business.”

Over 1.4 million gallons of water is pumped through the Auto Plaza Car Wash a year. Stewart said it also uses 150 gallons of concentrated soap a year. But water and soap aren’t his biggest expenses.







Ivan Hollins, manager of Auto Plaza Car
Wash, comments on the amount of
business his car wash has received
over the years.

“The biggest expense is always labor,” Stewart said. “Thirty-eight percent of every dollar earned goes toward labor.”

Paying the monthly $1,100 water bill and advertising on Lawrence media adds up, Stewart said. His biggest challenge, though, is trying to adjust his station to the new models of vehicles.

“When the Ford Explorer first came out, the back wiper blade was always breaking. So we had to put bags that newspapers come in over the blades to keep them from breaking,” Stewart said. “There is always a challenge on how certain cars are designed as to how you can wash them.”

Peoples to break ground

“Not another bank!”

You may have seen these words posted on a sign that used to sit on 31st and Iowa streets. The sign boasted the arrival of a new Peoples Bank for that location. Peoples announced in March 2004 that it bought the land at 31st and Iowa and intended to build a new bank. But after three years, Peoples has only replaced the old sign with new signs that mark a still empty lot.

One of the new signs now projects an opening date of Fall 2007 for the Peoples Bank. Peoples promises on the other sign that it will break ground “real soon.”

The signs appear to be correct. Peoples is about to build its third branch in Lawrence. But why has it taken so long? Maley Wilkins, president of Peoples Bank, attributed the delay to price negotiations.

“We had some trouble settling on a price with the architects,” Wilkins said. “It has taken longer than I thought, but we should be up and running in about nine months.”

Wilkins said she is still waiting to hear the final price quote.

Peoples is working with Chris Cunningham of Treanor Architects to build the new bank. Cunningham also worked with Peoples in 1999 to build the bank on 6th and Wakarusa. He, like Wilkins, said that price negotiations caused the building delay.

“The cost of construction is going up in Lawrence,” Cunningham said. “It’s hard to get the price back down to where everyone wants it, but we are working through it.”

Just the Facts :

Peoples Bank currently has 14 branches in two states in the United States. It has nine branches in Kansas, two of those being in Lawrence, and five branches in New Mexico.

Peoples opened a branch on 23rd and Harper streets in 1999, even before the construction of its main office in Lawrence. The 23rd and Harper location is part of Peoples Plaza, which features a convenience store and liquor store.

The main office on 6th and Wakarusa opened later in 1999.

Peoples employs about 200 people in Lawrence. It has more than $334 million in assets for all its branches as of 2006, with a total interest income of almost $25 million, according to the FDIC Web site.

Peoples’ third branch could cost more than $2 million to build.

The Competition :


The banking business continues to grow in Lawrence and throughout Kansas. The number of branches doubled in the last 10 years for Lawrence and steadily increased across the state. The number of institutions has declined, mostly because of frequent mergers between banks.

Lawrence currently has 18 banking institutions and 50 branches.
For instance, Commerce bank is one institution with six branches in the city.

Many people in Lawrence believe that the city is over banked. Mark Gonzales, executive vice president of Capital City Bank, agrees with them to a certain extent.

“From a banker’s competitive standpoint, Lawrence is over banked,” Gonzales said. “We have more banks per household than Johnson County and Shawnee County.”

He added that this fact could also be beneficial.

“For consumers, having a lot of banks is a good thing. It gives you more options and better rates.”

Gonzales was the president of Commerce Bank before he moved to Capital City. He said that the location and number of banks that an institution has is important for success. Commerce has a lot of good locations, he said, and that contributes to its success.

“Consumer banks, or retail banks, really look to branch out,” Gonzales said. “They want the most banks in the best places, and the best places are near households.”

Gonzales said that banking is about consumer convenience. People like to be able to get to their bank easily, no matter where they are, he said. He projected that Peoples will have a hard time growing at its new location with few neighborhoods around. But, he also said that its large presence in Ottawa will be advantageous.

“The bank will be on Highway 59, and that will be good for people coming in and out of Ottawa,” Gonzales said. “It’s all about convenience.”

Banks within Lawrence don’t have too much affect on each other most of the time, said Gonzales. Customer loyalty is usually pretty high, he said, but it has been declining lately. With changes in technology, it is much easier to switch accounts.

The Numbers :

Want to know where other well-known Lawrence banks stand? Here are a few of the numbers:

Capital City Bank has two branches in Lawrence and more than $380 million in assets overall. Commerce Bank has six branches in the city and more than $13 billion in assets overall. Douglas County Bank has seven branches, with more than $208 million in assets, and Emprise Bank has two branches and more than $1 billion in assets.

The Anticipation:

A chain-link fence and a few signs mark the arrival of the next Peoples Bank. Consumers are eager for the project’s completion. Ryan Johnson, a Dodge City junior, drives by those signs day after day on his way home.

“I just want the thing to open,” Johnson said. “I’m tired of going all the way out to Wakarusa or Harper to use my bank.”

Peoples Bank President Maley Wilkins feels the same way as Johnson.

“We are very ready to get things going,” Wilkins said. “You should see some dirt moving soon.”

Self-storage industry thriving

The end of the school year means it’s time to load up the car and head home for summer. There’s just one problem; you can’t fit in your car because you’re leaving with more than you came with. Don’t worry. Renting a storage unit for the summer could solve the problem.


Benefits of self-storage
Students are a large portion of self-storage users in Lawrence, but nationwide the industry has seen an increase in popularity over the past 20 years.

According to the Self Storage Association Web site, the industry grew by 741 percent between 1984 and 2006. The majority of the growth in the self-storage industry in Lawrence occurred in the late 1990s.

The Lawrence Chamber of Commerce reported that employment in warehousing increased from 682 employees in 2001 to 1,203 employees in 2004. Part of this growth comes from the addition of four self-storage businesses between 2000 and 2005.

One reason for the increase in the self-storage industry in Lawrence is the rise in population over the past 20 years. A 25 percent increase in population between 1990 and 2004 led to a high demand for self-storage units.

Emma Frantz, manager of St. James Storage, 2201 Saint James Court, said that many people need to store their belongings while renovating a home or looking for a permanent residence. Frantz said that students are no longer the only source of income for self-storage businesses in Lawrence.

“We used to only be busy from May until August,” Frantz said. “But now, we’re busy in January when people start their home repair projects.”

The added business means that students needing a place to store their belongings should reserve units earlier than before. Frantz suggests students should book a unit before the beginning of May if they want to find space in Lawrence.

Frantz said the majority of students living in the dorms could get by with a five foot by 10 foot unit, but that students living in apartments may need more space. Students living in one-bedroom apartments should be prepared to rent a 10 foot by 10 foot unit or larger depending on the amount of furniture they need to store.


How much space do you need?

The Self Storage Association reports that the industry generated $22.6 billion in revenue last year. This translates to approximately $441,000 in revenue per facility. These figures only include primary storage facilities, which are businesses that offer storage units as their primary source of income. Secondary storage facilities also exist, but offer storage as a supplement to other sources of income.

Facilities in Lawrence tend to do the majority of their business in the summer. Rates during this time are often higher than during the fall and winter months. Nationwide storage chains often have higher rates, but offer valuable incentives to renters. Public Storage, 2223 Haskell Ave., only charges $1 for the first month’s rent if the renter is leasing for more than a month. The company will also find close alternatives for renters if the location does not have the desired size unit available.

The price of storage units varies depending on size. Other factors influencing price include security, whether the unit is air conditioned, and time of year.

2005 annual overhead costs for self-storage facilities
Low overhead costs and small amounts of employees are main reasons why the self-storage industry is successful. According to the Self Storage Association each facility employs approximately 3 people excluding management staff. This field may not provide many jobs, but can significantly boost the economy.

While summer means a decline in the Lawrence economy, one industry will still be thriving. So go ahead students, make sure you leave college with more stuff than you came with. Your extra stuff means big business for this growing industry.

Used video game market yields higher profits

Gamers have traded their video games since the birth of the gaming industry. Now, many retail chains and smaller, local shops are getting in on the used market to make a profit.

Stores like EB Games and Hastings allow gamers to trade in their old video games for cash or in-store credit. The store then sells those games at a discounted price to consumers who are looking to save cash. This allows the store to set its own profit margin by determining how much to pay for used games as well as how much the used copies cost.

Local stores like Game Nut and Game Guy also take advantage of this used video game market. Over 90 percent of the product each of these stores carry is used. Most of the product on the shelves comes from gamers who have traded in their old games for cash or credit.

“There is no money to be made in new products,” Gene Nutt, owner of Game Nut, said. The profit margin on new video game software and hardware is often about $5, he said. So while a new game may sell for $50, and a used game for $30, a store profits more from the used game because it was purchased from another gamer for $10.

Large retail chains take advantage of that profit margin for a large amount of their business. For GameStop Corp., which owns EB Games, used video game sales accounted for only 26.1 percent of sales in 2005, according to its annual report. However, those sales brought in 47.4 percent of its gross profit that year. This contrasts with sales of new software and hardware, which amounted to 56.6 percent of sales in 2005, yet only totaled 27.5 percent of GameStop’s gross profit that year, according to GameStop’s annual report.

For the smaller stores, the profit margin of used games is what keeps the store running. Unlike the large chains, which have buy and sell prices set by a corporate office, a small store chooses its own criteria when pricing used games. Game Nut bases its sale prices on the newest retail for the games it carries, taking anywhere from 20 to 50 percent off that price, Nutt said.

Game Guy manager Brian Harris said that the store prices are set based on reputation and information taken from the internet. The prices are always under retail, unless the game is hard to find, Harris said.

Top 5 Selling Video Games of 2006
  1. Madden NFL 07 - Playstation 2
  2. Nintendogs - Nintendo DS
  3. New Super Mario Bros - Nintendo DS
  4. Gears of War - X-Box 360
  5. Kingdom Hearts II - Playstation 2
Smaller stores also have an advantage against the larger retail chains. These small stores often carry older game systems and software that the larger chains have stopped selling, like Super Nintendo, Sega Genesis, and Sony Playstation. These items appeal to collectors and those who long for the glory days of 8-bit gaming.

Jacob Burghart, Kinsley freshman, said he prefers Game Nut over the larger stores. “They’re a little expensive.” Burghart said. “EB Games, they don’t have, like, anything below 64 or Playstation.” The term ‘64’ refers to Nintendo’s old game system, Nintendo 64.

The smaller stores also offer other services to gamers besides the used game trade. Game Guy offers console and disc repairs, as well as a rental policy for their games. “A lot of people like to touch stuff before they spend money on it,” Harris said. Game Nut also offers disc repair. Both stores buy and sell used DVD movies.

Game Nut is located at 844 Massachusetts St., and has been in business in Lawrence for a year and a half. Game Guy is located at 7 E. 7th St., and has been in business for nine years.

March 16, 2007

Student Housing Returners on the Rise

The number of returning residents for the 2007 school year has increased about 20 percent as compared to this time last year.

"Student Housing is a viable option for upperclassmen as well as underclassmen,” said Jennifer Wamelink, Interim Associate Director for Residence Life.

The increase can be partially attributed to the recent renovations made on residence halls, like Ellsworth Hall in 2003 and Hashinger Hall in 2006. However, the nicer accommodations of renovated halls are not cheap. Hashinger’s improvements cost $13 million.

The renovations are initially paid for by state bonds according to Diana Robertson, Interim Director for Student Housing. The bonds have to be paid back, a cost that is passed down to residents of the renovated halls. The cost to students limits the scope of the renovation projects.

“Some people are happy enough to pay extra, but not too much for the renovations,” Robertson said.

The cost difference between renovated and un-renovated halls is noticeable in this year’s Housing contract. Two-person rooms in McCollum, Oliver and GSP Corbin cost $3,224. Two-person rooms in the renovated Ellsworth, Lewis and Templin Halls cost $4,564 -- a difference of over $1,000

Some students want the comfort found in the renovated halls, but without the cost.

“I miss the people and life on campus,” said AJ Mallott, Overland Park junior. “But it was cheaper to live off campus.”

Mallott lives in a furnished, four bedroom apartment for $940 per month. Adding the an estimated $300 per month for water, heat, electricity and a cable and internet package comes to $3704 per person for an entire 12 month lease. The 4 bedroom suites in Ellsworth, Lewis and Templin Halls cost $4,242 for the school year.

Campus living does still hold advantages over apartment life. Close proximity to campus, a friendly community and the lack of multiple bill payments are benchmarks in campus living – not usually true for living off campus.

“The biggest draw is the community you get,” said Wamelink. “All-student communities are great.” A draw she thinks keeps residents coming back.

Bowe Neuenschwander, Hoxie sophomore, who will be a third year returner, agrees with Wamelink. “I like it here,” Neuenschwander said. “I have friends here.”

Indoor tanning industry makes money despite known health hazards

Throw caution to the wind. We want to look tan regardless of the consequences. Skin cancer? Who cares, we’ll think about that when the time comes.

In 2004 the indoor tanning industry was a $5 billion business and is anticipated to reach $7.5 billion in the next couple of years, according to the Indoor Tanning Association.

The industry has more than doubled in the past 10 years, making it one of the leading industries of the fitness and recreation markets. The market took a drastic change after Sept. 11, 2001 and is finally picking up. Lawrence indoor tanning salon owners are beginning to see business on the upswing again.

“The indoor tanning industry follows the traveling industry. Right after 9-11 few people were traveling, so business wasn’t as good. It has steadily been on the rise in the last few years,” Endless Summer Tan manager Pam Scott said.

Along with business on the rise, oddly enough so is the number of skin cancer cases.

On an average day in the United States, more than 1 million people tan in tanning salons. Coincidentally, 1 million new cases of skin cancer were diagnosed last year. Skin cancer is the fastest growing form of cancer.

The threat of cancer does not inhibit college students from flocking to the tanning salons to prepare for their spring break trips. The month before spring break is one of the peak seasons for tanning salons. Customers often wait up to an hour for a tanning bed because of the long line. Celsius Tannery on 6th and Wakarusa will see an average of 500 customers every day leading up to spring break.

Celsius manager Lisa Spangler thinks the risks of indoor tanning are far less than tanning in natural sunlight.

Even though there is a lot of research on the hazards of indoor tanning and legislation against it, almost 30 million people in the U.S. tan indoors annually and 2.3 million are teens.

Not only is the number of people tanning on the rise, but the number of tanning locations as well. The indoor tanning industry is such a lucrative business that more and more people are investing in salons.

There are 20,000 tanning salons that focus solely on indoor tanning, and there are around 25,000 locations that offer tanning as an additional service. Several places in Lawrence have dipped into the indoor tanning industry such as Lawrence Athletic Club and The Reserves apartment complex.

“Since tanning has its peak seasons and its low seasons, a lot of salons are offering other services as well to even out the revenue. It is hard for businesses to rely on one main service because there is a lot of fluctuation,” Sunkissed Tanning manager Beth Ryzewski said.

Proponents of indoor tanning can be rest assured because the indoor tanning industry is here to stay. The city of Lawrence has a market for it and so does the rest of the country. The only thing that could decrease the market is legislation. By the time they pass any regulations, we won’t care because we will have our tan, and probably our skin cancer as well.

Restaurants see problems and blessings with locations

An ornate metal divider separates a working college student from the empty dining room where she is supposed to be waiting tables. There is simply no work to do. All that was left was to serve the people that weren’t coming. It was just another slow Wednesday.

Junior, Ramsi Lindgren spent her day at work cleaning a little and standing around. She had two tables between 4 p.m. and 7 p.m. and went home that night with only $6 more than she came there with.

“There wasn’t anything for me to do at the restaurant, so I just read the newspaper,” Lindgren said.

Lindgren works at Stone Creek at 3801 W. Sixth. The restaurant has seen great business on the weekends, but it has sometimes been poor on weekdays. This is a problem that some businesses away from Massachusetts Street have to deal with. Restaurant managers say there are advantages and disadvantages to both locations. Namely, restaurants downtown have substantially more pedestrian traffic and neighboring shops around their location. But they don’t have ample parking like other restaurants situated elsewhere.

David Clemente, the owner of Stone Creek, also recognized the problem. There is nothing around the restaurant for people to shop at, he said. That problem adds to business being poor during the week, Clemente said.

According to lawrence.com there are 232 restaurants in Lawrence. Of the 232 restaurants, 60 (about one fourth) are located downtown.

Fee Monshizadeh, Manager of Marisco’s at 6th and Wakarusa, said that the average person’s busy schedule is to blame for weekdays being less busy.

“Weekends are a strong for any restaurant,” Monshizadeh said. People don’t usually go out during the week because when they get home from work it’s too late to go out to eat, he said. Business has also been very consistent, he said.

Junior Daniel Ohlemeier had his own assessment of an average weekday night. Ohlemeier used to work at Marisco’s and said that the restaurant was much slower on weekdays.

“We’re pretty slow on many weekdays,” Ohlemeier said. The reason for this was that people aren’t looking to just grab something to eat at a finer dining place, he said. He said that he believed sports bars, with more casual patron might be less affected by fewer customers during the week.

Doug Holiday, the manager of Zig and Mac’s on Wakarusa and Bob Billings Parkway, said that his restaurant wasn’t going through the same business fluctuations as the other restaurants. He also didn’t say that a location downtown, with the constant traffic, would be better or worse than his.

“There are advantages and disadvantages to both locations,” Holiday said. One advantage to his restaurant that wasn’t available downtown was the ample parking.

To be expected, more restaurants are on Massachusetts Street than any other street in Lawrence.

Free State Brewery Manager, Debbie Fey, also said that the availability of parking for restaurants farther away from downtown is something to be desired.

“Good restaurants outside of downtown have the advantage of parking,” Fey said. Patrons from outside of Lawrence often come into Free State Brewery angry about the parking situation downtown, Fey said. With all the foot traffic around downtown, business is more consistent, Fey said.







That following weekend, Lindgren went back to work. Friday she took a bigger party that was more secluded in the bottom floor of the restaurant. On Saturday, she was busy.

“I always had something to do but I wasn’t always rushed.” Lindgren said.

It was good she made the money that she did those nights because her future earnings are unpredictable until next weekend.

Ramsi Lindgren – 224-1385
David Clemente – 830-8500
Debbie Fey 843-4555
Doug Holiday 856-0606
Daniel Ohlemeier – 979-8286
Fee Monshizadeh 312-9057
www.lawrence.com
www.city-data.com/city/Lawrence-Kansas.html

Search engine makes funding nonprofits easy, painless

With gas prices and housing costs rising, people find tithing and sharing money with charities more challenging. But now philanthropists can give to their favorite nonprofit organizations without losing money or time. The search engine Goodsearch.com lets users donate a portion of the Web site’s ad revenue to charity of the user’s choice.

GoodSearch, a private company, donates “hundreds of thousands of dollars” to more than 32,000 charities, churches and schools, said Ken Ramberg, the site’s co-founder. Three Lawrence groups use the search engine to raise funds: the Lawrence Humane Society, Boys and Girls Clubs of Lawrence, and Meals on Wheels of Lawrence. All three began using it last year.

“It’s pretty easy on our part,” said Erica Zimmerman, program manager for the Boys and Girls Club at South Junior High. “All we have to do is spread the word. It doesn’t cost us or our supporters anything.”

Lawrence Humane Society director Midge Grinstead and Zimmerman agree that GoodSearch lets new and old contributors donate.

“We’re reaching the people who aren’t able to hand over large amounts of money,” Zimmerman said. “It doesn’t hurt their wallet, and they already search the Internet anyway.”

Nigeria senior Ugo Okoronkwo started using GoodSearch to help the Lawrence Humane Society last month. He said that a tight budget keeps him from giving money on a regular basis.

“I think, even if I’m not donating more than a penny at a time, I’m able to help out the Humane Society,” Okoronkwo said.

Okoronkwo said that he used the search engine exclusively. The organizations also converted to using GoodSearch as their main search engine in the office and at home.

The company sends out checks to the groups for the money they raised annually. A group must make at least $20 to receive a check. In Lawrence only the Boys’ and Girls’ Club received a check for last year, but all three groups said that they are pleased with GoodSearch and continue to use it.

How it works

Large search engines Yahoo! and Google make roughly $6 billion annually, Ramberg said. GoodSearch donates half of its ad revenue, about one cent per search, to charity. Advertisers pay to have their products listed next to the search results.

Organizations receive money based on how many times their supporters use the site. The more supporters, the more money an organization can earn. For example, if a group has 100 supporters who search twice daily, they would raise $730 in a year. If the group doubles its searchers, they would raise twice as much.


Curious how much local nonprofits have made from GoodSearch lately? This chart shows their earnings for February and March.


Groups that fail to raise $20 in the year will not receive a check. “That money is divided pro rata among the groups who raised over $20,” Ramberg said. Totals do not roll over into the next year.

Larger groups such as the Cystic Fibrosis Foundation and the Elephant Sanctuary in Tennessee have large groups searching for them. Both charities received checks for more than $2,000 for 2006.

Ramberg says that GoodSearch will not limit how much they give away.

“There’s no cap on what we’ll give,” he said. “We earmark 50 percent of all ad revenue coming in toward nonprofits no matter what.”

Too good to be true?

GoodSearch has many skeptics. As word of the site has spread virally over the Net and through word of mouth, so has speculation.

Ramberg wants to assure users that he runs a legitimate Web site. He says that his partnership with Yahoo! followed exhaustive investigation into GoodSearch’s business model and the founders’ and advisors’ backgrounds.

Press coverage also helps give the site credibility and publicity. The New York Times and CNN have featured GoodSearch in their stories. Neither reported a problem within the company.

“We found out about it through TV,” Grinstead said. “One of our volunteers saw it on Oprah and told us about it.”

The Better Business Bureau gave the company a “AA” grade, the second-best, and had no complaints on file.

But organizations that have received checks present GoodSearch’s best proof. “Thousands of companies, national and local, can vouch for us,” Ramberg said.

With no problems reported, skeptics can rest easily: GoodSearch seems legit.

The Inspiration

Ramberg worked closely with nonprofits before he started GoodSearch. He founded JobTrak with his mother, Connie, in 1988. JobTrak was a job-listing database for college students. The company didn't give money to charity, but it let nonprofits to post their job listings free.


GoodSearch has grown quickly since its inception in November 2005. This chart shows the number of nonprofits registered with GoodSearch by quarter.


Ramberg saw firsthand how nonprofits struggle to raise money while his mother fought cancer. He has also experienced the success of enterprise. In 2000, Ramberg sold JobTrak to Monster.com for an undisclosed amount.

“It’s a combination of my two experiences that made this work,” Ramberg said.

He hopes to do more than give money away to organizations in need. Ramberg wants to make giving to charity an everyday process for everyone.

By taking the pocket pain out of helping nonprofits, GoodSearch may make that wish a reality.

Circle S Ranch adds elopement package

You don’t have to fly to Las Vegas to elope.

Circle S Ranch, a wedding venue in its ninth year of operation, now offers elopement specials. The ranch added an elopement package because of demand in the industry.

The 1,200-acre ranch lies in the rolling hills 13 miles north of Lawrence. The western atmosphere attracts national attention. Guests have traveled from New York and California to experience a Kansas-style country wedding.






The ranch, which is also a bed and breakfast, advertises romantic getaways, spa treatments and family reunions. It provides a location for meetings and business retreats. University of Kansas faculty often use the ranch for conventions.

The elopement package is less than a year old. It includes flowers, a small cake, music, dinner for two and an overnight stay in a suite for $950. Last year, the ranch booked five elopements. This number is projected to increase in 2007.

Originally, the ranch offered the special only in February.

Debbie Lenz, Circle S employee, said they planned to pick up business in the wedding off-season. The Circle S Ranch now offers the special year-round.

“We really wanted to meet the growing demand of the eloping business,” said Lenz.

Americans are increasingly short of time. Fast food and Internet shopping are two ways people save time. Now, Americans are cutting time even for marriage.

Lisa Tabb and Sam Silverstein, co-authors of Beyond Vegas write that there’s a plus side to this. On average, weddings will cost a couple or couple’s family more than $19,000, a figure published in Modern Bride Magazine.

With eloping as an option, couples save time and money they could put towards other expenses or extravagancies.

“It's our experience that a couple can stay at the best hotels, eat like kings, see the world through a unique perspective, and return home marriage certificate in hand -- with enough dough left over to throw a whiz-bang reception if they so wish,” write Tabb and Silverstein.

The cost at Circle S Ranch rivals eloping in Las Vegas. For a roundtrip ticket and two-night stay in a hotel, couples can pay $317 from Travelocity.com. In addition to chapel use, meals, other travel expenses and possible gambling, a couple’s elopement weekend in Vegas can cost well above $950.

Lenz notices a trend in couples who elope at Circle S Ranch.

“A lot of times it’s about funds,” she said.

Eloping couples are often older or are not marrying for the first time, she said.

The growing elopement industry could be related to today’s older brides.

The average age for brides in 2004 was 25.8, up from 20.3 in 1953, said Letsrunoff.com, a Web site geared for eloping couples.


A University of Maryland, Baltimore, study shows that four-fifths of couples who elope divorce. The study says nearly 60 percent of the early divorces were because of hurried marriages where the couples were very young, not well acquainted and the engagement period was very short.

The first couple who eloped at Circle S Ranch married July 11, 2006. They have a booked a bigger wedding with guests and a reception July 11, 2007, at the ranch.

Healthier, uncommon meat becoming more available

Meat goats are usually maintenance-free when it comes to feeding. They eat grass and weeds in the summer. The winter months can cause a problem with farmers, though.

The most consumed meat in the world is not beef, chicken or pork - it's goat.

Just because it is the most consumed does not necessarily mean it is the most popular, though. The United States is not known for its goats, but America has become one of the largest importers of goat meat because of the increasing demand.

The coastal areas and southern states have a higher demand for goat products than the rest of the country. Goat meat is not found in many local grocery stores in Kansas. It is hard to find goat products in Lawrence.

The Community Mercantile on Iowa St. plans to have goat meat for sale in a few weeks. The Farmer's Market is the only other place where goat meat is sold in Lawrence. Several grocery stores, including Hy-Vee and Checkers, sell goat milk and cheese.

"Goats have been the laughing stock of the farm community for quite awhile now," Diane Hess, president of the Kansas Meat Goat Association (KMGA) said.

She has 31 goats, the majority being Boer goats or meat goats. Right now, she is building her herd so she can sell goats and goat meat. She said that although the market is growing it is not really set-up for the "little guy."

"We need a more centralized way to market our animals. There is a lot of business on the coasts and in highly populated areas of ethnic groups but there isn't much in Kansas. In order to make goat raising a viable way of life we need a meat packing plant in Kansas," she said.

Goat meat is very nutritious and Hess said it is even better for you than chicken. The meat is high in iron and has very little fat. She believes that as we become more health-conscience the more popular goat meat will become.


The KMGA has a list of members on its website. There are 100 members listed. One of those members is Jeff Hill of Hill Farms. He is the only member living in Lawrence. He started with 18-20 head of goats for brush management.

"I thought I could buy goats for pretty cheap. I found out that I couldn't so I decided to raise them," Hill said. "Right now they don't provide income."

He says a person could make money raising goats but it may take several years. The cost associated with goats is one of the reasons why it may be hard to be profitable. Hill says the costs are highly variable.

Like most businesses, there are high start-up costs which include land, fencing and shelter. Other costs can include hay and feed in the winter months. Some of the costs are based on what the market is for hay and feed. The drought in the Midwest this past year caused problems for some farmers because there was not as much hay to buy.

Ron Hennis raises Boer and Nubian goats in Mayetta, Kansas. He says there has been a shortage of hay this year. He had to lend hay to neighbors because they were not able to buy any.

Hennis started out with only a few goats for brush management. At one time he had 100 goats but is now down to 30. He is in the process of "grading" his goats.

"I'm trying to get a commercial, registered herd, or grading my goats. If goats are registered you can get a much higher price for them. Some will sell for $300-$400," Hennis said.

Hennis attends many auctions. People from around the country come to these auctions to buy and sell their goats. Hennis said he travels to Missouri and Oklahoma to attend auctions. There are several here in Kansas including Yates Center, Clay Center and Ottawa that take place every month.

"If you are getting $.97-$1.06 per pound for your goats then you are doing well. So many people have gotten into the goat market recently because the market has gone down," Hennis said.

The goats sold at auctions are sold based on live weight or as people in the industry call it, on the hoof. Courtney Skeeba sells goat meat and milk at the Farmer's Market. She sells the meat for $6 per pound.

Goats that are sold for breeding stock have a wide range of prices. Wethers, or castrated male goats, can be sold for $75-$400 depending on quality. Chad Wilson of Wilson Farms in Edgerton sells his Boer wethers for $200-$300.

There is also another side to goats: the dairy goats. The most popular breed of dairy goat is the Nubian goat. The American Dairy Goat Association (ADGA) says a doe, or female goat, will milk for ten months after kidding.

Goat milk or dairy products are easier to find locally. Hy-Vee sells a half gallon of goat milk for $3. Checkers does not sell milk but has a variety of goat cheese that ranges from $2.99-$4.49.

Goats-babies.jpgThe kidding process, or females having their babies, is happening right now. These babies were born only a few weeks ago.
Photo: Peyton Baldwin


Noah Goddard began raising dairy goats in 1979. He sells raw, unpasteurized milk to customers. He is not allowed to sell the milk to stores because it has not been pasteurized.

"I cannot advertise my milk, except on my own property and customers must come to the farm to pick up the milk," Goddard said.

He has 30-35 dairy goats. Many of them are going to have babies soon. This means the goats are freshened. Female goats come into milk when they are going to have babies. Goddard sells a half gallon of milk for $4.
The price of milk goats depends on the milk records and the linear appraisals on a goat. Goddard has his stock tested for milk records.

Goats-1%20yr.jpgThese one-year-old goats have not yet been put with the rest of the female herd. They will be introduced to the herd later this year when all of the mothers have finished kidding.
Photo: Peyton Baldwin


"There are several ways to gain recognition for your goats: the milk records, going to shows and linear appraisals. I have my goats tested for milk weight, or the components of the milk and those are put in the milk records. I can sell stock for a premium price based on those records," Goddard said.

Shows and linear appraisals are somewhat alike. At shows, goats are judged on an image of an ideal dairy goat. Each goat is competing against all of the other goats, though, so a perfect ideal image may not be present but the best looking goat wins. A judge goes to a farm and looks at all of the goats at that one farm in a linear appraisal.

"Theoretically, your goats are going against all of the goats in the world," Goddard said referring to a linear appraisal.

He sells his goats for an average of $500 a head plus the shipping costs. If a goat is going to San Diego, for instance, shipping costs could be $300. Goddard said there are many regulations to comply with and paperwork to complete if a person is shipping a goat by plane.

Goats-mom.jpgCupcake is one of the does at the Goddard Farm. She is a Nubian goat, or milk goat.
Photo: Peyton Baldwin


Dairy goats are not as maintenance-free as meat goats, either. Nubians have to be milked and can produce about a gallon a day in their peak time. Goddard estimates his day-to-day operating costs to be about $20,000 a year. Those expenses include lights, water, heaters, vaccines, food and shelter.

There is not a standard price for goat meat listed in the United States. Many regions publish newsletters or magazines that include the prices and changes of meat in their area. The San Angelo Livestock Weekly regularly prints goat market changes for Texas.

With future development and standardization goat products may become more readily available at the local grocer.

The Business Of The Burge






When new students come to KU, the first building they come to is the Kansas Union. From that point on, students know the Union as the center of campus activity.

But not all activity takes place in the Kansas Union.

The Burge Union is near the residence halls and athletics department, but not many students realize there’s anything there. The Burge started out with an optimistic business view for the community, but it hasn’t fulfilled that purpose. Union officials are attempting to change that for the future.

“I think its biggest problem is recognition,” said Pat Beard, Director of Building Services. “It’s not on a major thoroughfare.”

The Burge Unionwas built in the late 70s, after students and University officials expressed interest in a union closer to the residence halls. It was named the Satellite Union at first, but was renamed Burge after Frank Burge when he retired. Frank Burge was the Director of the Kansas Union from 1952 until when he retired in 1983.

When it was built during the building trend of the 60s and 70s, the Burge was expected to be right in the middle of campus growth. It turns out, as Beard said, they missed it “by about a block.”

Satellite unions are relatively common all over the country, although MU is the only other school in the Big 12 with a second union. Director of Unions David Mucci, worked in the Big 10 before he came to KU. He said that Ohio State had a satellite union, but was recently turned over to the theater department. Mucci also mentioned the University of Minnesota and the University of Michigan (which actually has three) as schools with satellite unions.

According to the Association of College Union International’s website, a college union “is the community center of the college, serving students, faculty, staff, alumni, and guests.” The plan for the Burge was to be a community center for that side of campus.

Originally, the third floor of the Burge was all open lounge space, and the basement was a dining facility. It was built to serve the large concentration of students on Daisy Hill, as well as the athletic, law, engineering, and fine arts schools nearby.

The Burge hasn’t exactly lived up to its expectations.

Since the late 60s, satellite unions have been on the decline. Residence halls are becoming more self-contained, according to Mucci. “[Students are saying] I have a great lounge, I have a great view, I have a great dining service, I don’t want to lose my parking spot, and I don’t want to walk down the damn hill!” Mucci said.

Mucci and Beard, as well other University officials, want to change Burge’s lack of recognition. Beard said they’ve tried everything from advertising to even moving the signs closer to the street. They have to keep trying new things to get out of the rut they are in now and into the future.

Currently, the Burge is used by Athletics for studying and Training Table meals held in the Crimson Café. Meeting rooms provide a little bit of income, but not much, Mucci said. Career and Employment Services, Trademark and Licensing, and Legal Services are located in Burge, and are expanding. And until recently, art and design students were also able to buy the supplies they needed in the bookstore.

The art and design supplies were moved to the Art and Design building on central campus, and the space occupied by those supplies is now empty. That means that a large part of the Burge is now open for the future.

One possibility for that empty space is a “Collaborative Learning Center”[pdf] (CLC) like the Computer Center at Cox Hall at Emory University in Georgia. A collaborative learning center is like a souped-up computer lab where students can use state-of-the-art equipment in a collaborative environment. The closest comparison at KU is the group study area in the Budig Computer Lab. The new lab would have everything from touch screen plasma monitors, easily moveable furniture, small classrooms, media editing computers, and even down to a simple whiteboard.

Mucci doesn’t know if a CLC is a definite go for the Burge, but he said they are working with KU Information Technology and will know for sure by the beginning of April or May. Mucci also said that a CLC proposed to the corporation board in February got high student response.

Beard mentioned some other possible developments at the Burge, including a Pulse coffee shop and top-of-the-line internet speeds.

Although revenue is generated by the Unions, “we don’t see ourselves as a business,” Mucci said. “That would be the one unifying idea, that whatever your business model, it’s all supposed to support that idea of community centers on campus.”
________
Sources:
David Mucci, Director of Unions
Pat Beard, Director of Building Services
2006 KU Annual Financial Report
Association of College Union International Website/Bulletin
Kuhistory.com
Nation Association of College Auxiliary Services Magazine
Emory University Computer Center website

Tax Preparer Coasts on Advertising Wave

Kenneth Brouhard of Lawrence, Kan. has been leading a double life. The mild-mannered house painter dons a red, white and blue top-hat every weekday from 1 p.m. to 5 p.m.to become his alter-ego: Uncle Sam. Brouhard, as Sam, stands outside of a Liberty Tax Service in Lawrence and gyrates to rock music blaring from a boom-box. Passersby honk their car horns and cheer on Brouhard as he waves furiously to get his message across: "I want you…to get a speedy tax return."

Liberty Tax Service has employed “wavers,” such as Brouhard since its first store opened in the U.S. in 1998. The wavers work in full costume as either Uncle Sam or Lady Liberty. Many simply stand or give the occasional wave, but Brouhard prefers to dance.

“It’s better to look goofier,” he said.


But the results of the goofiness are no joke. “I would say that the wavers bring in well over 50 percent of our customers,” said Richard Todd, Manager of a Liberty Tax Service in Lawrence.

The wavers have become a symbol of the service nationwide. Some have even appeared on the Today Show. Julie Thornton, a tax preparer who works at three of the service’s locations remembers the first time she saw the wavers.

“My gosh! They looked like they were really having a good time,” she said

Thornton said business largely depends on the wavers’ enthusiasm.

“It’s so interesting how much difference the waver’s attitude can have on the emotional impact to someone driving by. In some cases, it can make a person’s day,” she said.

The tax service has ridden these waves all the way to become one of the biggest tax preparers in the nation.

John Hewitt, CEO of Liberty Tax Service, scribbled the idea for the Lady Liberty icon on a cocktail napkin in 1996. Hewitt was CEO of Jackson Hewitt Tax Service, and was forbidden by contract to compete with the service after leaving in 1997.

So, Hewitt opened his first Liberty Tax Service in Canada. He opened five stores in the U.S. in 1998 when his no-compete contract ran out. The service has expanded to 2,400 offices since then and has advertised mostly through use of wavers.
“Wavers are the single most effective marketing tool we have,” said Thornton.

Nina Cunningham, Public Relations Director for the service, said that the wavers were a planned part of their strategy from the beginning. She described the wavers as a “guerrilla marketing” technique. The wavers are more in-you-face than other ads such as billboards. “Every two hours that a waver is outside, he pulls in a customer,” she said.

The method is pulling its weight. Since its start, Liberty Tax Services is now in the top three most successful tax preparers in the nation. The other two are H&R Block and Hewitt’s former company, Jackson Hewitt. The service has been steadily increasing sales, gaining over $10 million yearly in revenue.



Guerrilla marketing was developed by Jay Conrad Levinson in 1984. In his book, Guerilla Marketing Success Secrets, he recommends businesses try unusual methods of advertising, such as public theatrics, to attract customers.

Liberty Tax Service has gone out of its way to bring in the crowds with attention-getters. Stores nationwide throw slumber parties to celebrate the end of tax season. They offer tax preparation at the parties all night long. Wavers often hand out cookies at surrounding businesses.

But Tim Bengston, Associate Professor at the University of Kansas and author of Advertising Slogans USA says that the wavers reflect poorly on the business.
“For my money, they’re making fools out of themselves and they’re a distraction to drivers,” Bengston said.

“They seem to be saying, ‘we don’t know what we’re doing, so we’re trying this.’”

The waver method does little beyond draw attention to the store. Wavers do not hold ad signs and are not trained to do much more than cause a spectacle. They start out at seven dollars per hour. They get a ten dollar bonus if mentioned by a customer.

“I stand out there waving, dancing and get paid to do it,” Brouhard said.

While the job lacks medical benefits, he thinks it has its perks.

“Sometimes students hang out of their cars and yell. Girls: that’s the cool part,” Brouhard said.

Bye Bye Buses

Fume-spewing buses covered with “Quit Smoking” ads are a familiar sight on campus at the University of Kansas. But the environmentally and ADA unfriendly buses will soon be a thing of the past, and KU’s long history with the Lawrence Bus Company could potentially follow.
KU on Wheels is switching from using Lawrence Bus Company’s buses to building its own fleet.
“We will have 30 new buses by the end of July 2007,” said Jessica Mortinger, Transportation Coordinator and head of KU on Wheels.

The end of July is also when Lawrence Bus Company’s three-year contract with KU on Wheels will expire.
The new contract will be open for bids from various transit companies including MV Transportation Inc., a national transportation company that currently runs the Lawrence Transit System. MV Transportation will definitely make a bid on the KU on Wheels contract, said Mike Sweeten, general manager of the Lawrence division. The 2006 contract that MV Transportation has with the “T” is worth $2.6 million. It is part of a five-year contract that expires in December 2008.
The contractor would be responsible for maintaining and running the new KU fleet as well as operating SafeRide and the LiftVan service. These three are a package deal with the option of also managing Park & Ride.
KU on Wheels purposely designed the contract beginning August 1, 2007 also expire in December 2008. In the past, the University and the city have discussed merging the two transit systems.
The Lawrence Bus Company is the only private transport company left in America, manager Debbie Kelly said. All the other transportation companies use federal or state funding. The Company caters mainly to KU. It also operates a charter service. After KU buys their own fleet, this service will be the primary use for the old buses. The Lawrence Bus Company has worked with KU for the past 50 years.
They are able to stay competitive because of their willingness to offer a lower price.
Asked about the upcoming contract, Kelly said, “If they go with the lowest bidder, we’ll stay low enough to get the contract.” Of course, every time the contract comes up for renewal, they get a little bit nervous, Kelly said.

The Lawrence Bus Company contract for 2006 was worth $1.4 million dollars, said Mortinger. It is unlikely that the University will be able to pay much more than that to any contractor despite the recent fee increase. The extra $20 per semester will go to fund the 30 buses that KU on Wheels plans on purchasing before the beginning of the Fall 2007 semester.


Local travel agencies survive during internet age

Lawrence had 10 travel agencies 10 years ago. One by one, the travel agencies disappeared like businesses during the Great Depression. In 2007, only four travel agencies remain: Carlson Wagonlit Travel, Travelers Inc., STA travel, and Lawrence Travel Center. The culprit for this loss of Lawrence travel agencies has been the internet.

Chris Armstrong, President of Carlson Wagonlit Travel, says the internet has done more harm than good.

“The internet has had a major impact on travel agencies around here. There used to be 10 or 11(travel agencies), and now there are three. For us, it’s been both good and bad. It’s been good for publicity, but it was hard on business for local travel,” Armstrong said.

He’s right. It’s been bad for business. The number of agencies in the US has dropped 6.2% over the past 10 years after being projected to increase by 24 percent by the Bureau of Labor Services. In fact, the Bureau predicts the industry to decline through the year 2014.

Airlines played the major role in this decline. In the mid ‘90s, Lawrence travel agencies focused on booking flights for their customers. Booking flights was easy money. The agents made 10% commission when they made a sale.

The airlines cut this commission to five percent in 1999. It did not hurt business because travel agencies were still booking 80 percent of the flights. But business did suffer a huge blow in 2002 when major airlines cut commissions completely.

Lawrence travel agencies needed to charge service fees in order to counterbalance the lack of commission. It didn’t work for seven of Lawrence‘s travel agencies. Most of them have disappeared in the past three years.

College students necessary for success in Lawrence?

The Travel Industry Association of America says seven out of 10 people who book with travel agents are aged 34 and up, while only one-third of their customers are aged 18-34. This is a problem for travel agencies trying to keep up with the younger generations.

. Source: Travel Industry Association


STA Travel has solved this problem. It’s office is located in the Kansas Union on the main floor. STA’s main goal: book flights and vacations for students. It’s main palce to advertise is the University Daily Kansan and in the residence halls. STA Travel has seldom sold flights and packages to anyone old enough to buy a beer.

Their fiscal year almost identically lines with the school year. Business usually increases a few weeks before breaks.

“We’ve definitely seen an increase in business with Spring Break coming up. The students were actually ahead of themselves this year. Most of them already booked their trips back in January,” Tim Davey, an STA travel advisor, said.

The branch in the union hasn’t noticed any negative effect from the internet during the few years they’ve been in the Kansas Union.

“We actually haven’t really noticed a decrease in business. We’ve had about the same traffic at the same times of the year,” Davey said.

Past keeps companies alive

Two Lawrence travel agencies, Carson Wagonlit Travel and Travellers Inc., both have stayed in the business for one reason: history. Both of these companies have backgrounds that go back 30 plus years.

Carson Wagonlit Travel’s President, Chris Armstrong, explained how his company’s background with experienced employees gave his company a boost during tough times.

“Our employees know what they’re doing. Some of our employees have been around since our beginning. We have no specific target audience. We just cater to the Lawrence natives,” Armstrong said.

The other historical travel agency, Traveller’s Inc. goes back even further than Carson Wagonlit. Traveller’s Inc. began in the early ‘90s, but stems back to the early ’50s under a different name, Moppen Tour Travel. [The company changed it’s name because the owner, Moppen, passed away.]

John Novotny, Vice-President of Operations for Travellers Inc., said they outlived the internet’s influence by doing what they did before there was internet.

“We just focused on travel packages and targeted different local businesses. Some of our clients are the KU Athletics Department and Hallmark. We’ve had people who’ve worked with us for over 54 years,” Novotny said.

Novontny offered some advice for anyone trying to stay in business.

“This isn’t a hobby. You have to make it a business.”

What business do business students have with business?

Sports posters and little piles of lint decorate this house inhabited by 11 upperclassmen. Conveniently located two blocks from Memorial Stadium, its an ideal living situation for a soon-to-be graduate. With the constant shouting and inflow of visitors, it’s a wonder that anyone could get anything accomplished. But KU student Justin McAuley manages to stay focused throughout this ruckus, as he examines the newest additions to his company’s website.

McAuley is one of many joining the growing trend of business students putting their education to use prior graduation and becoming entrepreneurs.

Professors in the School of Business acknowledged this increased interest by creating the entrepreneurship program in Fall of 2005. The focus provides classes that apply concepts of business to budding enterprises. But since the formation of this program, students have decided to take matters into their own hand- in true entrepreneurial fashion.







The Entrepreneurship Club was created in November of 2006. About 60 students attended the first meeting- a surprisingly high turnout for any student organization’s debut. The attendance has grown with each meeting and the e-mail list has over 300 names, according to the club’s vice president Adam Masonbrink.

This year KU hosted the first Entrepreneurship Fair on Feb. 27 as part of National Entrepreneurship Week. The event exhibited original technologies and businesses related to the University, according to Jim Baxendale, director of KU’s Office of Technology Transfer and Intellectual Property. The OTTIP was formed to help a different sort of entrepreneur. The organization provides aid and resources for students inventing new technologies. It seems as if the entire campus is supporting students desire to be their own boss.

James Bass is one of the students who applied his business education before completing his major. Bass graduated from KU in December of 2006, but he began his online business, Moolah, a year earlier. Bass’ company services people who want to sell items online. Moolah prepares these articles or inventory and places them on the appropriate e-commerce website.

Bass moved the company to San Deigo after graduating. Moolah has met even more success after the move.

“There’s an amazing amount of capital and opportunity [in San Diego]. But there’s no way I could have done any of this without the experience and guidance I received in Lawrence,” said Bass.

Bass is referring to the aid he received from KU business faculty, such as head of the entrepreneurship program Wally Meyer, who worked with Bass through the creation of his company.

Justin McAuley also utilzed on University resources through the creation of his online food delivery ordering service, FoodPatio. McAuley says he often reread old business textbooks, sought advice from Prof. Meyer, and used KU’s free legal services while writing up contracts.

But even with the support of the University, starting a business can be a risky undertaking for a student. McAuley has faced many difficulties while starting FoodPatio. The planned launch date for the Web site was in September of 2006. The site didn’t open for the public until two weeks ago- six months after originally planned. McAuley blames this delay on the complexity of the site. He has already invested $5,000 in the project and expects to spend much more once he begins advertising.

“There’s just so many little things that you never expect. Now I’m broke. I’m having trouble paying bills on time,” said McAuley

McAuley also said he has very little free time and misses more classes than ever before.

March 30, 2007

Lawrence Pizza Buffets struggling to make money

A $3.99 pizza buffet would seem to be a popular place in a college town. Not in Lawrence.

All three local pizza buffets charge only $3.99 for all-you-can-eat pizza, pasta, salad, and breadsticks. But all three also are struggling to make any money.

"We’re not jumping over any hoops, that’s for sure," said Hal Sasko, who opened Cici’s Pizza on Iowa almost three years ago. "We’re breaking even. I thought we would do a lot better than we are to be honest."

Cici’s Pizza had 200 franchises when Sasko joined the corporate office 12 years ago. Now, Sasko has opened three Cici’s of his own and has plans for two more in Topeka and Olathe before the end of the year. In all, Cici’s now has more than 600 restaurants around the country.

But despite the growing national pizza buffet trend, the three local pizza buffets in Lawrence are all struggling to get customers into their stores.

One problem has been the lack of college students taking advantage of the low price buffets.

"It hasn’t been what I thought it would," said Ricky Dean, owner of the Pizza Street buffet on 6th St. "Only 10-15 percent of our business has been college students and I thought that number would be closer to 40 percent. We’re going to start a college discount to try and get that number up."

Dean opened Pizza Street only three months ago, but has been disappointed in the overall attendance at his buffet, not just the lack of college students.

"It’s starting to get a little better," Dean said. "We just need to get more involved in the community and with the schools. I knew initially it would be a challenge to get people in here, but once they try our product, I know they will want to come back."

Location has played a factor in the disappointing turnouts.

"For us, our problem is our location," said Bonnie Boryca, manager of Godfathers Pizza on Wakarusa. "The other places are closer to campus so I’m surprised they aren’t doing better. We’re so far away that the college kids don’t want to drive all of the way out here."

It took Sasko almost three years to open Cici’s Pizza in Lawrence. When it opened, he thought his location at the corner of 23rd and Iowa was a perfect spot .

"I did, I thought it was a busy intersection and lots of people would see us," Sasko said. "But I think it’s a little bit too busy. We’ve gotten some complaints on the parking lot being too small, which I did not even think about. The other thing we don’t have is a lot of houses around us. Across the street we have a field, and we have businesses all around us. I didn’t think about that either."

Sasko says only 20 percent of his business comes from college students, and, like Pizza Street, he wishes that number was closer to 40 percent.

"College kids don’t have a lot of money, and it’s hard to get them here on a weekly basis, but four bucks for all you can eat pizza is a pretty good deal," Sasko said. "We’re getting some students, but not enough. Don’t ask me why. I have no idea."

Godfathers Pizza offers a buffet daily for lunch, but only for dinner on Monday and Tuesday nights. They do, however, offer bottles of beer for only $1. Still, Boryca and her husband Kevin, the owner, can’t figure out why more students don’t make the trip to Godfathers.

"We’re not getting as many college students as we’d like," Boryca said. "And it surprises me, because if your 21, we have dollar beers, and you're not going to get that at any of the other pizza buffets in town. We’ve been trying to advertise at KU and get more students out here. Right now, they don’t even make up 10 percent of our customers."

Cici’s Pizza has college night on Monday, kids night on Tuesday and senior citizens night on Wednesday. Each of those groups can eat the buffet for only $2.99 on their respective nights. Sasko even gives out free tokens to kids on Tuesdays to get them to come back.

Pizza Street has installed three Plasma TV’s and a surround sound system to try and convince sporting event watchers to choose them over the sports bars.

Despite all of the owners' efforts, nothing seems to be working like they had hoped.

"Nobody knows why," Boryca said. "Believe me, we all wish we knew the answer."

About March 2007

This page contains all entries posted to Multimedia Reporting (Kuhr-Volek) in March 2007. They are listed from oldest to newest.

February 2007 is the previous archive.

April 2007 is the next archive.

Many more can be found on the main index page or by looking through the archives.

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