Okanagan Business Examiner

Okanagan Business Examiner
 

Sovereign Picks Up Another World Cup Event

In 2005 the Sovereign Lake Nordic Centre moved onto the world stage when it hosted the World Cup in cross country skiing.
Brad Clements, project manager for the 2011 Masters World Cup happening at Sovereign in March, says, “The World Cup really put Sovereign on the map.”
It also punched up the local economy, delivering $3.1 million in direct spending to the community over three days. The total economic spinoff effect was estimated to be $6.5 million.
Says Clements, “I saw the economic impact of the World Cup.”
Sports are supposed to be about the love of the game, healthy activity and wholehearted competition but there is no denying it is also business and it can be big business.
A Masters World Cup is a cross-country skiing competition for those who are 30 or over, so it is not about the hottest young competitors hoping to go to the Olympics. Nonetheless, Clements says about 30% of the competitors are serious competitors while the rest are recreational skiers to one degree or another.
Recreation in this case, includes the onsite racing, but it also means looking around the area when not racing and for the family that tends to come along to watch. As Clements remarks, “This is as much about tourism as it is about the race itself.”
That’s not to discount the race itself as an economic generator. The Masters World Cup will run over nine days and bring in, it is expected, roughly the same size crowd of people the 2005 Cup did.
While the more youthful World’s Cup contenders came with fewer competitors (around 300), there were large training and support staffs. Masters World Cup participants are projected to number closer to 1,200 (registrations are still open), but they come with fewer coaches and more family, friends and time. So many that Clements believes there will be more than 3,000 people here.
How much money they will leave behind is uncertain, but Clements is hopeful. “We don’t know. We estimate it will be at least what the World Cup was.”
Another difference is the length of stay. The Masters will run nine days, but Clements says expectations are that people will stay on another week vacationing; although not necessarily in the immediate Vernon area.
As part of that endeavour the race organizers are working with tour operators to offer visitors things to see and do both before and after the races.
On financing Clements admits they don’t quite have everything they need. The overall budget of $525,000 is still $21,000 shy. Clements says they are still actively looking for sponsors to help make up that budget shortfall for the nonprofit society.
There is also some money coming from the racers when they register, but some of that money has to back to the MWC parent organization.
Outlays so far include $140,000 for venue and $70,000 for protocol and ceremonies. Race expenses will cost about $60,000, and then there is transportation. Many racers will stay at Silver Star and getting them back and forth between the ski village and Sovereign will take time and money. Clements says, “One of the bigger expenses is transportation.”
Where money is not being spent is on the 18 volunteers who have guided the project along to this point.
So far sponsors have kicked in $300,000 and they have received another $150,000 in in-kind donations. Clements says the economic downturn had one silver lining – a lot of heavy construction equipment was left idle. The one major criticism the MWC officials had for Sovereign was a lack of a suitably easy route back to the race start. That trail needed to have a green rating (the easiest) and the current route was judged more difficult than that.
The heavy equipment broke ground on the new Carl Wylie trail last year and was completed this year to address that requirement.
Fortunately the 2005 World’s Cup already put in place most of the other infrastructure needed for the races. Aside from the new trail, the only legacies from these races will be new communications and first aid equipment, along with computers and racing software.
And lots of good memories.
Along with money the race needs many volunteers. The organizers say 3,000 hours of volunteer effort needs to happen during the races and they are hoping 350 people will come forward to make that happen.
Three boosters from Sovereign Lake at the 2010 Masters World Cup at Falun, Sweden
Three boosters from Sovereign Lake at the 2010 Masters World Cup at Falun, Sweden

Masters Cup 2011 Timeline:
Jan 4 2007 - Learn of opportunity to bid for MWC 2011 from Dirk Tempelman-Kluit (former director of the BC Masters Cross Country Ski Association)
Jan 31 2007 - Submit initial bid to Yves Babin, Nation Director for Canada, WMA (World Masters Association), who then forwards on to the WMA
March 2007 - forward letters of support from Cross Country Canada, Cross Country BC, Silver Star Mountain Resort, City of Vernon and Greater Vernon Services, and BC Parks
September 2007 - Brad Clements (former chair of the Sovereign Lake Nordic Centre board) makes presentation to WMA via conference call to McCall Idaho.
March 2008 - Scott Lemon and Darren Derochie made a presentation to the WMA in McCall, Idaho at Masters World Cup 2008
March 8-11 2008 - WMA president tours Sovereign Lake/Silver Star (they also inspected Canmore, Alberta)
March 2008 - Awarded the Canadian bid for MWC 2011 and Bruce Cummings takes on role as Chair of Organizing Committee along with steering group: Scott Lemon, Bjorn Meyer, Glenn Bond, Sharon Clarke, Don Wylie.
September 2008  - Scott Lemon presented a brief to the WMA in Autrans, France (site of the 2009 MWC and SLNC was awarded the bid for MWC 2011
Fall 2008 - Organizing committee is put together to begin planning for the event
March 2009 - MWC 2009 held in Autrans.  Presentation by e-mail to WMA meeting.
September 2009 - WMA (national directors and president) travels to Sovereign Lake/Silver Star for annual AGM and site inspection
February 2010 - delegation sent to Falun, Sweden for MWC 2010
September 2010 - report to WMA done  (powerpoint and conference call) to Oberwiesenthal, Germany by Brad Clements and Bruce Cummings
September 2010 - Registrations open
March 3-11, 2011 - MWC 2011 will take place at SLNC
 

Making the Case for a Change of Name

After more than ten years of selling under the Ashley banner Case Furniture is backDennis and Marion Case founded the Case Furniture business in Enderby in 1977

Not too long after Marion and Dennis Case opened their first furniture store in Enderby in 1977 they realized the need for accounting help. Shortly after that they brought on Loydeen Hagman, but finding office space required them to pry the door off a closet, stick up a shelf and squeeze a desk and chair in.
Times have changed.
Case Furniture Gallery today employs 54 people, working 68,000 sq. ft. of home furnishings in three different buildings in Enderby, Vernon and Kelowna.
They ran under the Case name until 1997, when they signed on to the Ashley Furniture business model. In 2004 the pair opened their second Ashley store in Kelowna.
Ashley is a privately owned firm based in Wisconsin, which started up in 1945. Retailers with Ashley are independently owned and operated, but agree in their license to stock only Ashley products.
Marion says the Ashley product line is a good one, but after working that model for 13 years the Cases felt the restriction on bringing in other lines wasn’t the best option for them or their customers. She says, “We want to be a leader in fashion.”
Along with different manufacturers the company also added outdoor furniture and appliances to the product mix.
In 2009 the Cases decided to expand again. They took over the 18,000 sq. ft. Sandy Furniture store in Vernon.
After renovations it was renamed to the Case logo. This time it was not only an expansion in size, but to another generation. The Vernon store is running under the management of Marion and Dennis’ daughter, Jody Swartz along with her husband Brad.
This year the family changed the other two stores to the Case banner.
Asked about the loss of identity under the Ashley name, Marion shrugs it off. “In Enderby they still referred to us as Case even though we were Ashley for 10 years.”
While the Case name in furniture was never established in Kelowna, she believes that a strong track record of customer service will keep customers returning to the store.cid_E392D51E-0217-481D-907D-24C03AC9FC95ok_shawcable
She lists off several examples of service that make the difference.
The customer, she intones, is always right, even to the point where it sometimes hurts them. When a custom-ordered sofa was brought in the customer came to tell them he’d run into financial difficulties and needed his money back.
He got it, but at Case’ expense. Marion says, “We’re flexible. In fact, we’re too flexible.”
He’d paid for it with a credit card, so they not only had the furniture, but they had to pay the credit card fees. She is certain that this kind of service will bring that fellow back, and likely have him recommend them to others.
All parts of the business work under that service model. Delivery people must check in so that the manager and sales person know a customer is happy with what they bought and how it was delivered.
Explains Marion, “The better the experience the customer has, the better our performance, and [the customer] might not even know why.”
Changes in furniture retailing are about more than the evolution of the Case family business name.
Technology and changing tastes have had profound impacts.
Marion, who is her company’s IT guru, remembers when they used to track inventory using a system of recipe cards. The first computer they brought in, sometime in the early ‘90s – she can’t remember exactly when – was to help with that task.
Unlike many other industries, the computer has not brought a revolution of online buying. Research, yes, but relatively little purchasing. She asks, “There is furniture bought online, but who’s going to buy a sofa they haven’t sat on?”
More important changes have come from how they market and, significantly, to whom. The days when someone would buy a sofa to last 20 years or a lifetime are long gone as is the time when the man believed he ruled the household.
One of the reasons that furniture changes, aside from changing fashions, is our transience. Canadians move much more frequently than they used to, and new homes usually need different furniture. Statistics Canada has charted a correlation and says, “On average, homebuyers spent twice as much on furniture in 2002 as homeowners who did not move.” Statistics from 2002 show the average non-moving homeowner spent $1,371 on furniture (not including appliances or electronics) while a mover spent $2,788. Given the large number of people, especially retirees coming to the Okanagan, strong sales in this market.
This also ties into who makes the decisions about furniture purchases. Women aged 25 to 54 buy 80% of all furniture, and how they buy is very different from men. Marion explains, “Men will sit on a sofa and like it or not. Women have a relationship with their environment. They’ll relate [furniture] to their room, their living space and family and friends.”
It also ties into how Case (and most other furniture stores nowadays) market. It is also reflected in their advertising where, Marion says, “In graphics we like to have lifestyle images.”
They used to display furniture as is, in rows in their stores. Then in 1992 she says they paid “a fortune” to bring in a San Francisco designer to look at their Enderby store and give them advice. His suggestion was to arrange the furniture into settings the buyer could relate to, that she or he could see being in their home.
That vision shapes how the company arranges displays to this day and it’s reflected in dozens of set ups you see as you wander through the main store.
There is another figure from Statistics Canada that reinforces the Case business plan, which is the growing trend for people to buy their furniture and appliances from furniture store specialists. Sales growth from general merchandise stores like department stores are declining in relative importance as are other retail outlets like supermarkets, drug stores and home building centres.
   

Threat and Promise of New Copyright

Bill C-32, the proposed new copyright legislation, currently before Parliament will impact consumers and businesses across Canada. Three areas that could have profound consequences for business are the privileges given to ‘digital locks’ on software and digital media, the exception copyright infringement for ‘parody’ and ‘satire’ as ‘Fair Dealing,’ and illegal downloads.
Tony Edwards, with Horsepower Intellectual Property Law in West Kelowna, sat down to explain some of the potential ramifications of the proposed law and a few of the surprising ways your business might be affected.

Tony_Edwards_2_LR
Photo Credit:
Bobbi-Sue Menard
New bill carries new promise and new complications

ISP companies have been given a reprieve in C-32. The proposed changes allow ISPs to pass through warnings from copyright holders to the ISP customer in cases where the copyright holder may or may not be aggrieved.
The onus is left on the end user to defend their actions to the copyright holder, knowing that once the customer has been warned, the ISP may be compelled to give up the customer’s identity. There is no doubt the ISP is ‘off the hook’ in the new legislation says Edwards. For Edwards, “The real question is how will the government balance the rights of copyright holders against the market and political pressures of a generation that perceives the internet and media as being free?”
Two other crucial questions: How will record companies be able to prove an infringer has relinquished ill-gotten downloads? Will enforcement be worth the effort and expense? C-32 calls for statutory penalties, but the ‘hardship’ escape hatch could reduce damages for a penniless college student.
The separate issue of digital locks on software will be a huge wake-up call for businesses says Edwards, “We are in for a digital hangover, after all the years of free and unlimited copying.”
Software hasn’t been outright owned for years. Licenses for software are the real product and End User License Agreements (EULAs) contain fine print that slowly but surely filches control from the end user licensee. “When was the last time you read a EULA?” asks Edwards. “The enforcement of digital locks will highlight how much control users have given away.”
The ready example is to look at how often your company backs up its information, which treads across various EULA agreements attached to different software programs. To prevent illegal copying, multiple downloads of software could be curtailed, affecting the interoperability of various software and systems that make your company tick.
“You could have many EULAs in use in your company and until the digital locks are put in place by software vendors during upgrades, you won’t know how your business will be affected,” says Edwards.
To Edwards the most interesting philosophical change is the introduction of parody and satire as legitimate fair dealing in regard to other creative work. In the past Canadian courts ruled that parody and satire were not legitimate defenses for copyright infringement. This shift is ‘radical’ says Edwards and it brings Canada closer in line with the U.S.
For the first time Canadians will be able to parody brands and other copyright eligible work with a ready defense under the law. It is conceivable your company could be on the receiving end of this parody. A recent example is the BP logo, with satirical artist renditions of the stylized flower dripping with oil.
In the end it comes down to politics. Bill C-32 is a massive undertaking on a short time schedule.
Its first reading was held June 5, less than a month before summer recess. In the long term the issue won’t die, as Canada is signatory to multiple international agreements on copyright, and a target of the U.S, which claims we aren’t doing our part. Reconciling the divergent interests of the U.S. and Europe remains a challenge, including the ongoing free trade negotiations with the EU. Domestic interests, for politicians seeking votes, must be satisfied including a generation used to free access to digital media and businesses that rely on copyright for their living.
Copyright law is always playing catch-up, and that defines the underlying weakness in any legislative effort. In Edwards opinion, if Bill C-32 is made law as it stands, “We are not going to understand the impacts until it is too late.”

 

   

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