The #USAMfgHour community came together to share ideas and learn from each other in this #USAMfgHour chat. Adam Baker of Schooley Mitchell talked about laws we should be aware of to protect our businesses. So many little details you might not be aware of that make a big impact.
The Host @AdamBakerSM started things off with introductions: Welcome to #USAMfgHour! Thank you for joining us today and please introduce yourself! I’m Adam Baker, owner of Schooley Mitchell of Erie, PA. My team helps manufacturers reduce their indirect spend, manage their vendors, and improve their bottom line – you could say we’re a manufacturer’s BFF.
Ruby+Social Success Marketing @SocialSMktg
Hello friends! This is Ruby and team SSM, your friendly neighborhood B2B social media specialists. Checking in for today’s #USAMfgHour. Thanks for hosting, Adam! It’s another epic hour for sure! Happy Friday Eve, everyone!
Nigel T Packer – Digital Customer Experience @NigelTPacker
Hi Adam, I’m Nigel from Wales UK joining you for across the Pond. We help clients find their elusive customers.
DCSC Inc. @DCSCInc
WOOT! Suzan, Kirsten, and Buddy checking in from DCSC We help distribution & manufacturing companies with shipping, inventory, supply chain solutions & consulting. Thank you for hosting today! #USAMfgHour We’re excited!
Capri Temporary Housing | Anna Scheller @capritemphouse
Hi there! Stoked to have you hosting and to learn. Anna and Susannah here, checking in on the Capri Team! #USAMfgHour
Glimmer Glass Gifts @GlimmerGlassGft
Hello Governor, this is Dan, Dir Marketing/Sales, Dir Greeting card division, Head of Sanitation and Maintenance annnnnnnnnnn Julie’s assistant.
Host @AdamBakerSM then asked the first question: Q1.) Let’s get the tough ones out of the way first – What is Kari’s Law? Here is a hint…it has to do with phone systems.
Ruby+Social Success Marketing @SocialSMktg
A1. Curiosity is piqued… We’ll wait for the answer,
Adam Baker @AdamBakerSM replied: It is a really interesting law…and I’m surprised it took this long to come around.
Capri Temporary Housing | Anna Scheller @capritemphouse
A1: Does it have to do with contracts and agreements? We’re stumped! Time to watch the pros’ replies.
Adam Baker replied: Nope, great guess though!
Nigel T Packer – Digital Customer Experience @NigelTPacker A1. Intrigued.
Host answer: A1.) In the office or at a hotel, check the phone. Can you dial 911 directly, or is a ‘9’ needed first? The latter is illegal due to Kari’s Law, mandating direct access to emergency services. It’s vital for businesses to comply to avoid fines and legal issues. Kari’s Law is named after Kari Hunt Dunn who was tragically murdered by her estranged husband in 2013 a hotel bathroom as her young daughter tried to call 911. The young child tried calling four times, but the calls never went through because she didn’t know she needed to dial a 9 first to reach an outside line. Capri Temporary Housing | Anna Scheller@capritemphouse: Woah! That’s intense and tragic… What a heartbreaking way to have to institute a law that should be common sense.
Nigel T Packer: There does not seem to be an equivalent law in the UK. Baker: Nigel, what do you dial for emergency services over there? 999, it used to be the longest dial number on the old rotary phones. Using this number reduced the accidental misdials to keep emergency services clear for emergencies. Baker: super interesting…I would have never thought about how long it would take to dial. Bigger replied: I miss those Nigel. Packer: So do I Dan. They were just for speaking. No apps, no music, no messaging, no texts, no images. Just good old conversations. Bigger: I might get one for my kids and take away their cells. They would love that. Packer: Do it!
DCSC Inc.: Umm, I know this because unfortunately I had to call 911 and had to press 9 first. #USAMfgHour This was years ago but I had a problematic former employee threatening folks.
Ruby @SocialSMktg: Oh my… I’m taking note of this.
Capri Temporary: Exactly! That poor child… Thankfully it sounds like the law protects other children from going through the same thing now!
Host @AdamBakerSM proceeded with Q2.) What could happen to manufacturers if they don’t comply with the California Circular Economy and Plastic Pollution Reduction Act?
DCSC: A2. I do not know
Capri Temporary Housing | Anna Scheller: A2. Not sure, but we’d assume a fine and a damage to their BBB and other company assessment/ranking levels? Host replied: A fine is correct….any guesses on how much?
Nigel T Packer: A2. I would assume big fines. #USAMfgHour.
Ruby: A2. Will they be penalized? Or the business licensed revoked? Just guessing …
Host answer: A2.) #USAMfgHour They could receive fines of $50,000 daily. To be compliant, manufacturers may need to change to recyclable packing or ensure a % of the plastic they produce is recyclable. Interesting Fact: This act bans plastic sauce packets at Chinese restaurants.
Not in CA? NJ just recently passed a similar law. The ban on single-use plastics will be nationwide eventually. Stay ahead of the legislation to protect your bottom line. Nigel T Packer: There are a number of single use plastic laws coming into effect here in the UK. You can however pay a tax and it doesn’t matter if you use them. Main one is supermarket bags. Host reply: Supermarket bags are a big one here too. But I’m in a heavy plastics manufacturing community, so there are a lot of concerns regarding legislation. Nigel replied, The thing is Adam, the plastics are made to be the big bad ogre when it is the way people discard them that is the problem. Adam Baker, host, replied, For sure, or don’t use re use them. We have plastic grocery sacks that we use for all sorts of things around the house. Nigel replied, When they first brought in the “sack tax” people started buying bin liners. They used to use the sacks from shopping before that. This has resulted in more single use plastics being used. Don’t think they thought that through. Ruby said, Daily? Oh my… That is just too costly to not comply with! Do you have any idea if other states have the same law? Host, Adam replied: Jersey is the only one that strict. A lot of states are implementing laws to decrease the amount of plastic used, but none as aggressive as CA. Capri Temporary Housing stated: That’s quite a heavy levy. Sounds like it works though, can’t imagine any manufacturers have $50K+ just sitting around!
Host Baker then moved on to Q3.) Recently you’ve noticed your credit card processing fees are taking a lot out of your profit. You’ve decided to have your customers pay the fee. How much can you charge them when you accept their credit card as payment?
Nigel T Packer A3. Many people in the UK are returning to cash. This has left many small businesses, who moved to cashless, caught out, as people will not shop or buy with them. Baker: That is tough for the business that really thought they were being forward thinking, but cash is just a cheaper was to do business. DCSC: I wish we would. Every time I buy something they ask for my email, name, if I want to join their rewards program etc. Even if I am paying in cash. GEEZ, I understand marketing but it’s getting silly. I just say I don’t have email. Shameful I know. Do you get the obligatory feedback email as well? If they send me one, they get a poor response. Paying in cash s also anonymous. Common Raven @Bewickwren inquired: A3. What is driving the return to cash? High credit card fees? Packer: Budgetary control. When there is no money left in the wallet the shopping stops. This is being seen amongst young people as well as us more mature. Austin: Nigel exactly, I do think our spending habits change with credit cards. I remember growing up and counting money including change to buy things I wanted. Sometimes my brother and I pooled our money, like when we bought a Net and Volleyballs for the backyard.
Glimmer Glass Gifts: A3) Most everything we do is credit card, but some still use checks. We haven’t added a charge yet. I guess I don’t understand the question. I’m guessing 3%. Baker: it’s state by state dependent, South Carolina is capped at adding 4% on to a customer’s bill as a surcharge for using credit cards. Bigger replied: Good to know. Is that business in SC or if we get customer outside can we charge them that as well?
Ruby: A3. We don’t know. We’re curious to learn this.
A3.) Known as “surcharging” (the act of adding on an additional fee for credit card purchases) is becoming more popular in some industries. Rules differ state to state. Some forbid it, others cap how much you can charge, others don’t allow fees on debit card purchases. If you surcharge, the customer must be aware before they attempt to make a purchase. This could include required signage at a brick-and-mortar store or pop-up notification in an online store. Credit card companies also have surcharging rules you must abide by. Capri Temporary Housing replied: This is super good to know! Is it limited to manufacturers or does it apply across all kinds of sales? There’s some debate over here of whether or not it applies everywhere. Adam Baker replied: This applies to everyone, regardless of industry. The limitations are set at the state level. For Texas, the cap is 3% – 4% depending on the card being used.
The host moved on to Q4.) Why is it cheaper for your business to accept debit card purchases versus credit card?
Nigel T Packer: A4. It is like cash and the store gets it immediately. There are no counting fees and credit referencing required. If the account the debit card is coming from has money in it then the bill is paid. Adam Baker replied: yep, and the credit card companies are cut out of the transaction, so they aren’t taking a piece of it!
Ruby: A4. I’m guessing because it’s directly deducted from your bank and goes through lesser processing than paying via credit card. Baker replied: yep, that’s one of the reasons. You cut out credit card companies that want a piece of the action and there is a legal mandate to keep it low.
Capri Temporary Housing: A4. Because a debit charge is similar to a check and has minimal processing fees, while a credit charge has to go through more loops to charge properly. Adam Baker: yep, that’s a big reason why! You guys know your stuff! Capri Temporary Housing: It helps to have built a company from the ground up, where you had to do most of the jobs in the company (from fulfillment to payroll) for a long time! Experience is a great teacher.
Glimmer Glass Gifts: A4) because it is like a check and not credit.
A4.) #USAMfgHour The Durbin Amendment was passed to protect merchants & consumers from large banks charging excessive fees for accepting debit cards and its much lower than what credit card companies charge. That’s why when you check out at Walmart or the gas station, the default transaction is debit card and you much switch to credit card. Max fee for debit card transaction is 21 cents plus 0.05%, & allows additional one-cent fraud prevention adjustment. Compare to lowest VISA rate of $0.10 + 1.51% or highest AMEX rate of $0.10 and 3.0% and it makes a difference. Debit cards only charge a flat rate per transaction and credit cards charge a percentage of the transaction.
A4. Bonus!) #USAMfgHour To illustrate Durbin Amendment, compare VISA, (one of the least expensive for a business to accept), versus a debit card. The business saves about 66% of the cost when customers use debit cards. For example: If a gas station has 100 fuel transactions per day totaling $5000, how much would it cost them if they were all Visa vs. debit card? 85.50 vs. 24.50 In either case, who do you think really pays those fees? Capri Temporary Housing | Anna Scheller: Ultimately the customer tends to end up paying for the fees. Particularly with small businesses, many companies tend to factor things like a variety of processing fees into their flat rates (Or require a minimum order for credit) in order to avoid incurring a loss. Baker: absolutely right. As we’re out there thinking we’re getting free airline miles, we’re just paying more for bread to pay for them.
Q5.) #USAMfgHour Why might a business be sued for failing to comply with the “Repack Airwaves Yielding Better Access for Users of Modern Services” (RAY BAUM’S Act)?
Let’s add some legal levity – Funny answers only!
DCSC: A5) Whoa, I’m learning today, Adam. I have no clue. Baker replied, oh…it’s another fun one that would have been important to you!
Ruby: A5) Got lost in the word ‘airwaves’, lol! We cannot think of any answer, funny or otherwise. Baker replied: How many times have you typed “airwaves” in your entire life? right?
Dan Bigger of Glimmer Glass Gifts: A5) (funny answer) Because they are ugly……………….. Baker replied: I don’t know Ray, but I think he’d be a little hurt if he knew you called him ugly! LOL!
Anna Scheller: A5: We’re not even sure what this law is, so we’re gonna have to wait and see…!
A5.) It’s all fun and games until someone gets an eye poked out … at work … and EMS can’t find you. No joke, RAY BAUM’S Act mandates businesses with multi-line systems to provide exact 911 location info for each phone (i.e. 2nd floor, rm 212). It ensures quick emergency aid. Legal risks and lawsuits can arise if non-compliance leads to delayed response by EMS. Ray Baum’s Act ensures if someone calls 911, it’s tracked to a precise location.
Thanks to everyone who joined #USAMfgHour today! A reminder: ‘Ignorantia juris non excusat’ – not knowing the law isn’t a defense and could prove costly! Stay informed, stay compliant, stay profitable. Until next time!
At Schooley Mitchell, we don’t just negotiate lower rates; we’re your guide to compliance and savings. For more insights, connect with me on LinkedIn and follow our blogs.
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