January 2011

InsideProfile: New IFRA Director Craig Riecks, Paxton IGA

Craig Riecks of Paxton IGA was named to the IFRA Board of Directors at the 2010 Annual Conference. A complete profile about Craig is featured on pages 4-5 of this Monthly Report.

On January 26, 2011, at 11:00 a.m. Central Time, First Data Corporation will be providing a webinar for Association members relating to the

new interchange laws.

Not only are the ways that people buy goods and services changing, with new technologies and services emerging to create new value, but the regulatory landscape around payments is also evolving in a way that can potentially help merchants gain more control and reduce their overall cost of payments.

When President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law in late July, it ushered in a new era of significant regulatory change in the payments landscape. Specifically, the Act included a provision that has become known as the “Durbin Amendment,” which requires the Federal Reserve Board to establish parameters for the regulation of debit interchange fees. On December 16, 2010, the Federal Reserve Board released proposed regulations covering debit interchange rates, debit networks and merchant routing and acceptance of debit transactions.

Interchange Laws Webinar January 26A key component of the Durbin amendment is a modification to debit interchange rates that networks set for transactions. The changes in financial regulations have given merchants the ability to process debit transactions at lower, regulated rates, which could result in significant savings for merchants as they reduce the cost of payments. The Durbin amendment also allows merchants (vs. networks or issuers) to gain control of debit routing decisions; merchants can now select the network where they can most cost-effectively route their POS debit transactions.

Connecting directly to your processor is more efficient and provides lower costs for routing of all payment options. You won’t have to separate your processing – credit and debit with one partner, checks and gift cards with another—to ensure you are getting a great rate for each transaction.

To participate in the January 26 webinar and learn more about these changes, please call the Association office at 630-627-8100. For the most up-to-date information about the Durbin provision, as well as answers to frequently asked questions, please visit https://contact.firstdata.com/regupdate.

IFRA has announced the new Sanitation Class Schedule for 2011, together with an all-new Online Training program provided in English or Spanish. This online program, which complements IFRA's extensive schedule of Sanitation Training Classes given at locations throughout the state, will give participants the option of taking the required 5-hour or 15-hour training via their computer and an internet connection. Students will only have to attend one of the eligible class locations to take the state exam. You'll also have your choice of taking the state exam in English or placing a special order for a Spanish exam.

For more information, please visit the IFRA website, www.ilfood.org, and click on The “Food Sanitation Course” tab to view Chicagoland and Statewide Class Schedules for both the 15-hour full course and the 5-hour renewal course. Here you’ll also find details on the new 15-hour and 5-hour Online Training program for both initial and renewal certification. 

Please contact IFRA at 630-627-8100 if you would like to have information about the online sanitation program mailed to your store. n

2011 Sanitation Class Schedule: New Online Training

Connecting directly to your processor is more efficient and provides lower costs for routing of all payment options.

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Legislative Updateby Rob Karr, IFRA Legislative Consultant, Vice President, IRMA

Out with the Old...The 96th General Assembly adjourned at approximately 2:00 a.m. on Wednesday, January 12, 2011. The final eight days of the session were very active.

Tax IncreaseRetroactive to January 1, employees and employers alike will be paying more income taxes – at least through 2015. However, there will also be some effort to restrain spending, which will be as successful as leaders make it.

S.B. 2505 (Sen. John Cullerton, D- Chicago/Rep. Barbara Flynn Currie, D- Chicago) increases the Illinois income tax rate on individuals from 3 percent to 5 percent and on employers from 4.8 percent to 7 percent. That represents a 66 percent increase. Given the fact that employers also pay a 2.5 percent Personal Property Replacement Tax (PPRT) on the same income, S.B. 2505 gives Illinois an effective income tax rate on employers of 9.5 percent.

This gives Illinois the fourth highest employer income tax rate in the nation behind Iowa (12 percent), Pennsylvania (9.99 percent), and Minnesota (9.8 percent). When compared to our border states, the states Illinois is most likely to compete with for economic development, Illinois has given away one of its few competitive advantages. The income tax rate on employers in Missouri is 6.25 percent, Kentucky 6 percent, Indiana 8.5 percent, and Wisconsin 7.9 percent. This week Indiana Governor Mitch Daniels

commented on Governor Patrick Quinn’s proposal by stating: “We already had an edge on Illinois in terms of the cost of doing business, and this is going to make it significantly wider.”

In addition to the income tax increase, employers who have lost money during what President Barack Obama described as the worst economic downturn since the Great Depression will no longer be able to claim the Net Operating Loss (NOL) exemption against their taxes. This will have an additional and significant financial impact on the many Illinois employers already struggling to stay viable.

In total, the tax package is estimated to increase tax revenue by just over $7 billion annually. The tax increase package is supposed to be temporary with the rates scheduled to decrease to 4 percent for individuals and 5.6 percent (8.1 percent with PPRT) for employers after 2015. Those rates will be in effect through 2024. After 2024, the rates decrease again to 3.5 percent for individuals and 4.9 percent (7.4 percent with PPRT) for employers. The only other time a temporary income tax was enacted in Illinois, it was made permanent when it was set to expire, so we will have to see what transpires by the time 2015 arrives.

In addition to the tax increase, the Assembly considered S.B. 336 (Sen. William Haine, D-Alton/Rep. Frank Mautino, D-Peru), which would increase the State’s bonding authorization by $8.750 billion. These bonds would have been used to pay the State’s significant backlog of bills and other projects. As S.B. 336 needed 71 votes for passage and only received 65, payment to providers on the monies they are owed will be significantly slower.

Cigarette Tax IncreaseLast spring, the Senate passed S.B. 44 (Sen. Jeffrey Schoenberg, D-Evanston/Rep. Karen Yarbrough, D-Maywood) seeking to increase the Illinois cigarette tax by $1 per pack. The bill stalled in the House, however, for lack of support. S.B. 44 was resurrected with a new amendment. As amended by House Amendments #7 and #8, S.B. 44 sought to increase the tax by $1.01 per pack, but the increase would have been staggered over two years – 76 cents the first year and 25 cents the second year. The existing floor stocks of retailers would not have been re-stamped. Also, snuff would have been taxed at 20 cents per ounce. The monies from S.B. 44, nearly $400 million, would have largely gone to education with a very small portion for long-term care providers. S.B. 44 only received 51 votes in the House – nine votes short of the 60 needed for passage. This issue will once again be considered in the 97th General Assembly.

Workers’ Compensation Reform StallsIllinois missed a golden opportunity to remove a significant impediment to economic development and implement significant and meaningful Workers’ Compensation Reform. In the face of overwhelming opposition from those entities who profit from the treatment of injured workers (e.g. medical providers, hospitals and attorneys) and representatives of organized labor who are sincerely interested in protecting injured workers, the effort initiated by the Senate and House Democrats to reform Illinois’ Workers’ Compensation system was not called for a vote. Significantly, House and Senate

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Republicans withheld support from the proposal hoping to obtain greater reform in the future. In its final form, the reform proposal would have:l Reduced the Medical Fee Schedule

by a very modest 15 percent. Ac-cording to the Illinois Department of Insurance, Illinois would have to cut its fee schedule by 50 percent to move from second to third in the ranking of State fee schedules. Nevertheless, 15 percent would have helped to reduce costs for employers – the only entities in the Workers’ Compensation system who actually pay as opposed to getting paid.

l The wage differential would have been capped at the age of 67, or five years after the injury, whichever is later.

l Utilization review would have been strengthened, meaning that medical treatments received by injured work-ers would have been subject to peer review using nationally recognized standards and evidence-based medi-cine.

l The employer would have the right to choose the first doctor for the in-jured employee to see for treatment. The employee would have the right to select a different doctor if they were dissatisfied with the physician chosen by the employer. Under the current system, employees can keep switching physicians until they find one who will render the diagnosis the employee is looking for.

l The amount of money that could be charged for medical implants would have been capped at 25 percent above the net manufacturer’s invoice. Under the current system, employers have witnessed charges from health-care providers that are inflated up to 1000 percent.

l Alcohol and illegal drugs would have been presumed to be the cause of the injury if the worker is injured while under the influence.

State Representative John Bradley (D-Marion), as well as State Representative David Reis (R- Mt. Vernon), spent countless hours prodding the various parties and driving the reform effort. Additionally, thanks are owed to Senate President John Cullerton who clearly recognizes what a significant roadblock the current Illinois Workers’ Compensation system is to economic development, as well as to Speaker of the House Michael J. Madigan (D-Chicago). While the current effort failed for lack of Republican support, Senate President Cullerton announced that the reform effort would continue in the 97th Assembly.

IFRA would also like to thank IRMA President Dave Vite for his representation on the Workers Compensation Reform Committee.

Mainstreet FairnessIllinois retailers compete against on-line, catalogue, and 1-800 (i.e. remote sellers) on price. This type of competition is fair – it is one business model vs. another.

Unfortunately, Illinois retailers must also compete against many remote sellers on an unfair playing field. Many remote sellers do not collect and remit Illinois’ sales tax. That means Illinois Main Street retailers are facing an automatic competitive disadvantage of between 6.25 percent and 9.75 percent – depending on where the retailer is located. This is unfair because it isn’t business model vs business model; it’s compliance with the law vs. non-compliance. Illinois retailers may soon get relief under legislation passed by the Illinois General Assembly and awaiting the governor's signature.

H.B. 3659 (Rep. Patrick Verschoore, D-Milan/Senator John Cullerton, D- Chicago) uses the business relationships these remote sellers have with entities (affiliates) in Illinois to establish “nexus” (i.e. physical presence) under the Illinois

Revenue Code. Because remote sellers have these affiliates, and therefore nexus, they must collect and remit the Illinois sales tax, thereby leveling the playing field with Illinois retailers.

In addition to the 49 Senators and 88 Representatives who voted in favor of H.B. 3659, we would like to thank Senate President Cullerton and Representative Verschoore for their sponsorship. Additional thanks are owed to Representative Harry Osterman (D-Chicago) and Senator Jeffrey Schoenberg (D-Evanston) who have also championed this approach. Finally, we would be remiss if we did not recognize Senator Pam Althoff (R-Crystal Lake) who has worked for many years on the Streamlined Sales Tax Program and has done as much as anyone to raise awareness of this issue. While H.B. 3659 is different in its approach, its goal is the same.

Organized Retail CrimeORC has become a plague to the retail industry. In short, highly sophisticated rings of thieves simultaneously operating in multiple jurisdictions are stealing hundreds of millions of dollars in goods nationwide. A warehouse used by one of these rings was seized this past summer on the northwest side of Chicago. It was found to contain a large amount of stolen goods and $4.5 million in cash.

In response to the ORC problem, a task force was created to discuss issues related to Organized Retail Crime (ORC) and develop potential enforcement mechanisms. We participated as a member of the task force, together with Cook County, the Cook County State’s Attorney’s office, the Chicago Police Department, local police departments in Cook County, the Cook County Sheriff’s office, some Cook County-based retailers and Sen. Iris Martinez (D-Chicago). After much discussion, the task force was able to agree on weaknesses in the current law that

continued page 6 2

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IFRA Welcomes Craig Riecks, Paxton IGA, to its Board of Directors

Pictured here with his wife Candi and their three sons, Craig Riecks, owner of the Paxton IGA, is a new member of the IFRA Board of Directors.

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Paxton IGA

IFRA welcomes Craig Riecks, owner of the Paxton IGA in Paxton, IL, to its Board of Directors. Craig was one of two new directors elected during the Association's annual Conference, held September 28 and 29, 2010, in Champaign, IL. Following is a profile of Craig.

When Craig Riecks learned in 2002 that the competition in town would soon become much stiffer, he decided that it was time to re-tool. "We got wind that a Super Wal-Mart was coming to nearby Rantoul and realized that we had to attack – be proactive and step it up."

Craig's strategy was to create an environment of total customer service, and a key element of that strategy was training.

"Within the first month, we bring every new employee to our home for training with my wife Candi," Craig said. "She sits down with them and they role-play and discuss potential scenarios." These orientation sessions also employ training videos with discussion to follow.

"Candi is a fabulous teacher," Craig continued, "and by using this approach, we know within the first 30 days if someone is not going to work out."

"People really appreciate our taking the time to emphasize what our expectations and standards are for customer service. Service is so large for us because it's a big deal in a small community, especially with the traditional store format."

Craig's customer service efforts are supported by his wholesaler SuperValu, which assigns an account manager to work with him one-on-one. "They really

get me fired up and we've been able to take advantage of their strategic pricing system known as STEP Pricing.

A Rich HistoryA town of 4,600 people, Paxton, IL, was once home to six grocery stores, although the population is relatively unchanged. The community was formed when, in 1850, the federal government offered the newly formed Illinois Central Railroad parcels of land along a corridor from Chicago to Cairo that included the area now known as Paxton. The town was named after Sir Joseph Paxton, an English architect who was interested in organizing an English settlement in Illinois. Although this concept never materialized, the town became the county seat and was soon home to many Swedish immigrants who came to the area.

The original Paxton IGA was a 4,000 sq. ft. supermarket constructed in 1954. The store went through two ownership changes before Craig's father Ken and his partner Glenn Arnold purchased it.

Prior to that, Ken Riecks had worked in training and as an account manager for food wholesaler SuperValu's Champaign division. Like his father, Craig polarized to the food business early on, taking a job with Jerry's IGA in Urbana, IL, while attending school at Parkland Junior College.

"Jerry's had drive-up delivery," Craig said. "The customers would shop and buy their groceries and then we would put them into their car at the curb. I'd be outside so much in winter, my face would be red from the cold."

Like many young people, Craig soon had the urge to see other places, and took a construction job working for the father of a friend in the Hudson River town of Nyack, New York. Later he moved to Tampa, FL, where he also worked construction.

When Craig moved back in 1987, he took a job working at the store owned by his father and his partner.

"When I first arrived on the scene, I got all the messy jobs," Craig laughs, "like

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cleaning and tearing apart old coolers, freezers and shelving.

"Having my dad and Glenn Arnold in the store as mentors was a great blessing. Between the two of them, I had 60 years of experience at my fingertips."

In 1991 the store went 24 hours, which it continues to be to this day. In 1994, Craig began to buy stock in the business and moved to a co-manager position until his father's retirement in 2002.

Longtime EmployeesIn the ensuing years, Craig has stepped up his focus on community and customer service. The store employs approximately 80 people, many of whom have been longtime associates. "Jerry King will be here 30 years this year," Craig said. "He works nights — and that's a big reason why I still feel

comfortable being open 24 hours. Jerry doesn't miss a pin drop."

Craig also credits his longtime assistant manager and office manager as being essential to the success of the business. "Between their people skills and heart for the business," he said, "I can take vacations and days off without worrying."

In his spare time, Craig enjoys taking part in outdoor activities with his three sons, including bow-hunting.

Community FocusThroughout the year, Paxton IGA conducts numerous community events, including weekend cookouts that take place all but three months of the year. "On average, we make about 270 sandwiches in a weekend at the cookouts — alternating between ribeye and pork chop sandwiches," Craig said.

Thirty-five percent of the proceeds from the cookouts go to local charities, with over $12,000 raised last year.

The store has also instituted another fundraising tool for non-profits. "If the members of a church, for instance, spend $200,000 here, the organization gets a check for $1,000," Craig said. "The shoppers just keep their receipts and submit them to us bundled in one-thousand-dollar increments. Our first group, St. Mary's Catholic Church, just turned in their receipts and received a check. We're excited about the public relations benefits too because it's going to be featured in the local paper."

Another draw for the community is the store's annual Kids Fest event, which features everything from petting zoos to magicians. "This year we did cold-blooded creatures," Craig said, "including an alligator, snakes and a tortoise. The alligator was named 'Bubba' and kids could sit on it and pet it."

To gauge customer satisfaction, the Paxton IGA utilizes IGA's customer feedback on the web. "That's been a tremendous help," Craig said. "We get all kinds of great comments from that."

When the Super Walmart store actually arrived in Rantoul in 2007, Craig and his team were ready. "We never did as badly as anyone predicted," he said. "That's a testament to our associates and our community." n

The Paxton IGA's annual Kids Fest is a big draw for the community. This year's event featured cold-blooded animals, including a tortoise, snakes and a friendly alligator named "Bubba."

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needed to be addressed to give law enforcement the tools they need to more adequately and aggressively pursue ORC. The task force’s recommendations were formed into legislative language and inserted as Senate Amendment #1 to H.B. 6460 (Rep. Connie Howard, D-Chicago).

As amended, H.B. 6460 seeks to accomplish the following: a) in the case of an undercover operation or “sting,”  the buyer of the goods will only need to have a reasonable belief that the goods have been stolen; b) if a person commits felony retail theft at least three times within an 18-month period, they will have committed a Continuing Financial Crimes Enterprise (CFCE), making them subject to additional penalties; c) if a person agrees with another person to commit ORC offenses, they will be considered an organizer of a CFCE (or an OCFCE); and d) asset forfeiture provisions will attach to anyone convicted of felony retail theft-related CFCE or OCFCE.

The bill passed the Senate 58-0 and is awaiting concurrence in the Illinois House. On behalf of the Illinois retail community, we would like to thank Sen. Martinez, Rep. Howard and the Cook County State’s Attorney’s office for their help in making H.B. 6460 reality.

Medicaid ReformAfter months of hearings relating to pharmacy, the Assembly passed reform of Illinois’ Medicaid system. As contained in H.B. 5420 (Rep. Barbara Flynn Currie, D-Chicago/Sen. Heather Steans, D-Chicago), the many reforms covering the width and breadth of the Medicaid program are estimated to save the State $744 million over five years. For Medicaid pharmacy, H.B. 5420 included provisions: (1) a requirement that the Illinois Department of Human Services (IDHS) seek a waiver from the Federal Government to require recipients to pay their co-payment or

Legislative Update continued from page 2

the pharmacist can refuse to dispense; (2) allowing 90-day prescriptions for generic maintenance medicines; (3) incentivizing additional generic utilization; and (4) reducing the interest payable to pharmacies under the Prompt Payment Act from 2 percent to 1 percent. While the reduction of the interest payment is unfortunate, it pales in comparison to the draconian reductions in dispensing fees that were originally being discussed.

IFRA would like to thank IRMA President Dave Vite for his representation on the Reform Committee.

In with the New...Tuesday afternoon, January 11, 2011, Governor Pat Quinn (D) was sworn in to his first elected term as Governor, having succeeded to the Governor’s Office upon the impeachment of former Governor Rod Blagojevich in early February 2009. His running mate, Sheila Simon, was sworn in as Lt. Governor, filling an office that has been vacant since Quinn became Governor. Attorney General Lisa Madigan (D) and Secretary of State Jesse White (D) were sworn in to their third and fourth terms respectively. Judy Baar Topinka, former State Senator, State Treasurer and a Republican gubernatorial candidate, one of two Republicans to capture a Constitutional Office last November, was sworn in as State Comptroller. The other Republican, former State Senator Dan Rutherford, began his term as State Treasurer.

Illinois SenateState Senator Suzi Schmidt (R-Lake Villa Township) and State Senator Sam McCann (R-Carlinville), the two Republican candidates who captured seats last November, were sworn in as new Senators in the 97th General Assembly. Three Senators were appointed to fill unexpired terms in the 96th General Assembly, but won their

own terms for the 97th. They are: State Senators John Mulroe (D-Chicago), Toi Hutchinson (D-Chicago Heights) and Kyle McCarter (R-Decatur). Finally, four State Senators resigned for various reasons and replacements were appointed to fill the unexpired term in both the 96th and 97th Assembly. Those new Senators are: Ronald Sandack (R-Lombard), Sue Rezin (R-Morris), Thomas Johnson (R-Wheaton), and Shane Cultra (R-Onarga). Senator Cultra moved from the House where he had recently won another term.

Illinois HouseIn the Illinois House, six State Representatives were appointed to fill unexpired terms in the 96th Assembly and won their own terms in the 97th. They are State Representatives: Robyn Gabel (D-Evanston), Carol Sente (D-Vernon Hills), Rita Mayfield, (D-Waukegan), Camille Lilly (D-Chicago), Anthony DeLuca (D-Crete), Eddie Lee Jackson, Sr. (D-East St. Louis), Noreen Hammond (R-Macomb), Chad Hays (R-Danville), and Arthur Turner (D-Chicago).

Additionally, there are 17 new members to the 97th Assembly. They include State Representatives: Ann Williams (D-Chicago), Daniel Biss (D-Evanston), Thaddeus Jones (D-Calumet City), Bill Cunningham (D-Chicago), Kelly Burke (D-Evergreen Park), Chris Nybo (R-Elmhurst), Thomas “Tom” Morrison (R-Palatine), Michelle Mussman (D-Schaumburg), David Harris (R-Arlington Heights), Joe Sosnowski (R-Rockford), Richard Morthland (R-Port Byron), Pam Roth (R-Streamwood), Michael Unes (R-East Peoria), Wayne Rosenthal (R- Morrisonville), Adam Brown (R-Decatur), Dwight Kay (R-Glen Carbon), and Jason Barickman (R-Champaign). As with the Senators, IRMA looks forward to working with all the State Representatives of the 97th Assembly. n

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The Monthly Report is the official member publication of the Illlinois Food Retailers Association1919 S. Highland Ave.Lombard, IL 60148

Telephone: 630-627-8100Toll free in IL: 800-624-6712www.ilfood.org

Editorial communications welcome

January 1, 2011, is the “sunrise” date for the new GS1 DataBar barcode on coupons. Manufacturers can now begin distributing coupons printed with GS1 DataBar as the only barcode on the coupon.

For the last year, most manufacturers have been distributing coupons with the “interim” GS1 DataBar barcode that contains both the GS1 DataBar and UPC-A barcode information as shown below:

Between January 1 and June 30, 2011, manufacturers will transition to coupons printed only with the GS1DataBar barcode:

Retailers that are not able to scan GS1 DataBar coupons may have to require their cashiers to hand-key coupon data into their POS systems.

New Coupon Barcode: GS1 DataBar Sunrise Date is HereThe Food Safety

Modernization Act (FSMA) was recently signed into law by President Obama. Recent

data from the Centers for Disease Control and Prevention show that one in six people in the United States suffers from food-borne illness each year. This Act offers an opportunity to take real steps toward strengthening the food safety system that is vital to the health and security of the American people.

While FDA is charged with regulating almost all food products, the legislation also recognizes that food safety is a responsibility shared among U.S., state, local, territorial, tribal and foreign food safety agencies. This new legislation clearly endorses the efforts already underway among FDA and our regulatory partners toward creating a truly integrated food safety system.

You may listen to Secretary Sebelius and the FDA Commissioner talk about the Act on a replay of the media conference call by calling 800-964-4586.

For those interested in more information, there are several resources available online and additional resources are being added.l Consumer Update: Food Bill Aims

to Improve Safety (www.fda.gov/ForConsumers/ConsumerUpdates/ucm237758.htm)

l The FDA Food Safety Moderniza-tion Act (FSMA): Key Facts (www.fda.gov/NewsEvents/PublicHealth-Focus/ucm237934.htm)

l Commissioner blog posted on Food-Safety.gov (www.foodsafety.gov)

l Questions and Answers on the Food Safety Modernization Act (www.fda.gov/NewsEvents/PublicHealthFocus/ucm238506.htm)

The legislation, which FDA experts say transforms the food safety system, includes the following major provisions:l Food facilities must have a written

preventive controls plan that spells out the possible problems that could affect the safety of their products. This plan would outline steps that a food facility would take to prevent or significantly minimize the likelihood of those problems occurring.

l FDA must establish science-based standards for the safe production and harvesting of fruits and vegetables. These standards must consider not only man-made risks to fresh produce safety, but also naturally occurring hazards—such as those posed by the soil and animals.

l FDA is directed to increase the frequency of inspections. High-risk domestic facilities must receive an initial inspection within the next five years, and no less than every three years after that. During the next year, FDA must inspect at least 600 foreign food facilities and double the number of those inspections every year for the next five years. With the availability of resources, FDA will build the inspection capacity to meet these important goals.

l FDA is authorized to mandate a recall of unsafe food if the food com-pany fails to do it voluntarily. The law also provides a more flexible standard for administrative detention (the procedure FDA uses to keep suspect food from being moved); allows FDA to suspend the registration of a food facility associated with unsafe food, thereby preventing it from distrib-uting food; and directs the agency to improve its ability to track both domestic and imported foods.

Source: U.S. Food and Drug Administration

What the Food Safety Act Means to Retailers

The telecommunications industry is an ever-changing world with numerous service options ranging from

“plain old telephone service” and DSL to T1 services, such as voice over IP. In the last ten years, the number of service providers has increased from just a few to over 30 national providers. The networks and infrastructures that these providers possess have become far more advanced — a definite advantage — but it can be overwhelming to the business consumer.

The telecommunications industry offers many benefits to businesses, but there are challenges as well. Many companies have reported having bad experiences with their current carriers, including long hold times, having to speak to a different service representative every time and the difficulty of understanding the industry terminologies.

Following are several common mistakes, misconceptions, or items usually overlooked by business owners:n Almost every carrier contract has an auto renew clause

in their terms and conditions. In most cases, busi-ness consumers were not made aware of this and did not take the time to read the lengthy small print. This clause benefits a carrier only; not the business consumer. Renewing for another term of two or three years at old rates is rarely beneficial. You cannot re-negotiate pric-ing with a provider, or drop the provider once it auto renews without incurring a severe penalty.

n Businesses grow, expand, move or alter strategies. As a result, the service that is in place is no longer a good fit. Business owners are often unaware of the available options, if their current service is a good fit or if there is something out there that is better and more economical.

n For many people, reading a phone bill is like trying to read a foreign language. Too often, business consumers assume that if it is on the bill, it must be a service need. This is not always the case. Some providers allow other companies to bill for their services on your local bill. These companies’ charges somehow appear on your bill, and in most cases, no one knows who authorized it. Also, your local or long distance provider can some-times input your rates incorrectly and therefore you are being billed at higher rates than what your contract reads. It is not uncommon for this incorrect billing to continue over months and years unnoticed.

Common Telecom Mistakes and MisconceptionsAn advertorial from X4 Solutions by Cindy Kolek

Some service providers only offer certain types of services or products. Their representative will convince you that this will work for your business without understanding your business or its needs.

Total bottom line monthly cost is always something that a business consumer looks at. Unfortunately, in many cases this information is not given to the business consumer; it remains undisclosed at the time of contract. There are monthly costs on your bill that are in addition to the service that you are contracting for: charges such as federal access, long distance pic and access recovery. In some cases, these charges can add up to be $75-100 additional per month. There are also set-up costs which are commonly not disclosed, such as costs to extend service into your suite, and phone and data vendor charges to get the new service up and running. All of these charges should be disclosed so that you can make a decision based on a clear understanding of your up-front and monthly costs.

X4 Solutions is a telecommunications consulting firm and broker representing over thirty national providers. With thirteen years of experience in the telecommunications industry, X4 Solutions can help you make informed and cost-effective decisions concerning your telecommunications service.

X4 Solutions can identify ways to save money and improve service. X4 Solutions performs a full review of the client’s service and contracts and assembles a comprehensive billing analysis presenting all carrier options. They also work to negotiate the best possible contract terms and manage the order process to assure a smooth transition. In addition, X4 Solutions provides ongoing support related to billing and customer service. These services are performed at no cost to the customer and X4 Solutions will become your one point of contact for all of your telecommunication service needs. The company’s goal is to eliminate long hold times, to be the only point of contact and to help businesses recover any costs due to billing errors.

For a FREE billing analysis of your current telecommunications service, contact:

Cindy Kolek, Independent Agent of X4 SolutionsDirect: 630-369-8799 Fax: 630-369-8772Email: ckolek@x4solutions.com

Cindy Kolek, X4 Solutions