Update on the Marketplace Fairness Act

We recently reported on the upcoming Marketplace Fairness Act that was coming up for consideration in the U.S. Senate.

Here’s an update from The Consumerist:

Senate Signs Off On Marketplace Fairness Act; Online Sales Tax …

On Tuesday, May 7th, the Senate voted in favor of the Marketplace Fairness Act, which would give each state the authority to compel online businesses to collect applicable taxes. Currently, online businesses without a physical …

Although the bill passed through the Senate, it’s may have a more difficult time actually becoming a bill as not all politicians are in favor of it.

Grover Norquist Sets the Record Straight on the Marketplace Fairness Act

ATR President Grover Norquist appeared on Fox Business Network’s Varney & Co. to explain his opposition to legislation that would establish an Internet sales…

So how do most consumers feel about this legislation? Well, according to a study from Gamepolitics.com, here’s the answer:

“If the Marketplace Fairness Act that was enthusiastically passed in the Senate earlier this month were to somehow end up becoming the law of the land (through some sort of divine intervention in the House where it will likely stall for lack of support, in my opinion) then 44 percent would cut back on buying products online. This is according to data from a study sponsored by electronic postage software company Endicia and posted on Mashable.

The study also found that 75 percent of participants ages 18- 25 would cut back on Internet buying and instead shop at local brick-and-mortar stores. This is interesting because that is exactly what members of the National Retail Federation were hoping to hear. The trade group that represents traditional brick-and-mortar retailers has long argued that online retailers have an unfair advantage over traditional retailers because customers don’t have to pay sales tax..

Overall 61 percent of participants said that they disagreed with the Marketplace Fairness Act (MFA), while 39 percent had a favorable reaction. Around 60 percent said that they believe that the bill becoming law would be bad for economic growth. Finally 42 percent of respondents who identified themselves as Democrats agreed with the bill, while 34 percent of Republicans said the bill was a good idea.”

Hopefully, some common sense will prevail before this bill gets any further along.

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Business Supply Donates Nearly 19,000 Pens To Indianapolis Resource Center

One of the best things about our partnership with the Kids in Need Foundation (KINF) is hearing the appreciation from people throughout the country.  Sure we, like others who contribute to causes, understand that we’re helping out.  We know we’re trying to make a difference.  But when you hear/realize just how much you’re helping, it drives you to work even harder.

Such was the case late last week when we donated nearly 19,000 pens to Teacher’s Treasures, a non-profit organization (and KINF Affiliate) serving the Indianapolis, IN. area.  We knew they were low on pens, but we didn’t know they were almost completely out.

While I was out of the office, Barb Sweeney, Executive Director, left us a voice message.  It was about as sweet of a message as I’ve ever heard.  She was so appreciative of the donation, and she spoke of the number of students and teachers that can be helped by such gifts.

Really, though, its all of us at Business Supply who are grateful.  We’re thankful to our customers. Without such a supportive customer base, this program wouldn’t be anywhere near as successful as it has been.  And it’s people like Barb who are out there working hard every single day to make a difference in the lives of millions of schoolchildren.  So you don’t need to thank us, Barb.  We want to thank you for your efforts.

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The Marketplace Fairness Act: Great for Retail 1%ers, Bad for Small Online Businesses

This week, the Senate will vote on The Marketplace Fairness Act. This bill will help the top 1% of online retail businesses by forcing smaller companies like Business-Supply.com to raise prices to cover the administrative costs of collecting more sales tax. Early indications are that the bill will pass and move on to the House. Should it get through Congress and get signed by the President, the results will be disastrous for Business Supply and thousands of other small-medium online retailers. And, it will also mean more money out of your pocket as a consumer—both in sales tax and in higher prices on products.

A quick summary of the bill: currently, online retailers are not required to collect sales tax in any state where they don’t have a physical presence.  The Marketplace Fairness Act would require sales tax to be charged on all orders regardless if the retailer has a physical presence in the state (the bill does exempt businesses which have less than $1 million in yearly out-of-state sales). The goal of the bill is to remove any ‘advantage’ that an online retailer has over a traditional brick-and-mortar establishment.

Sounds fair, huh?  Only the bill will do the opposite of what it purports: it will make the landscape unfair for small-medium businesses online and give a leg up to the retail 1%ers such as Amazon and Wal-Mart. Here’s how:

The cost of collecting sales tax on every purchase will financially cripple the small online retailer.  Currently, there are 9,600 different taxing jurisdictions in the U.S. The bill proposes to reduce that to 27, but that will still require significant resources (assuming the Government is able to figure out how to cut it to 27 jurisdictions). That means hiring an additional staff member, buying additional sales tax software, and configuring it.  You’re talking about tens of thousands of dollars—if not more—in costs.

IT resources are precious and scarce for small-medium online retailers. Integrating new tax software subscriptions into an existing Ecommerce platform takes time and a significant amount of IT resources. For retailers like us, we need to utilize those scarce IT hours for making our sites better for our customers and for innovating.  Not correcting sales tax tables.

Amazon and the other Ecommerce 1%ers know that they can absorb these costs (Amazon already has the foundation in place and sells a sales tax service to merchants) without having to pass additional costs on to the consumer.  These companies know that smaller online retailers will have to inevitably raise prices to stay compliant.  The result? More customers flocking to the retail 1%ers.

eBay’s CEO John Donahoe is leading the charge against this Bill, and I applaud his efforts. However, we disagree on one point.  Donahoe wants to raise the cap on revenue from $1 million to $10 million.  While that’s admirable, I think status quo is even better.  Why should Business Supply, eBay, or even Amazon have to spend incredible amounts of resources to collect sales taxes where they gain zero benefits?  Granted, Business Supply isn’t the one being taxed—it’s the consumer—but it sure feels like “Taxation Without Representation.”

Please let your Senator know that you don’t support this bill.

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Porcelain Or Melamine Whiteboard – Which Should I Buy?

If you are in the market for a new whiteboard, chances are you’ve seen the ones made from melamine and the ones produced from porcelain. In addition to the obvious price differences, what’s the best choice for you? The materials used in each whiteboard plays a role in several factors to consider such as:

• Overall weight
• Durability
• Long term usage

Quartet Melamine Whiteboard

Let’s talk melamine whiteboards first. While Melamine has a number of different applications, the melamine resin is what’s used to create the dry-erase board surface. Essentially, melamine whiteboards are comprised of pressboard with the resin coating. While melamine boards are less expensive than their porcelain cousins, they aren’t quite as durable.

Melamine boards need to be cleaned after every use or you may begin to see ghosted images and stains. These whiteboards are not magnetic and they scratch relatively easily. I wouldn’t consider using a permanent marker on a melamine board as it will stain permanently.

Lorell Porcelain Whiteboard

Porcelain whiteboards are covered in a ceramic coating, which is a variation of porcelain. The actual board itself is typically produced from steel, making them magnetic and extra-durable. Although porcelain boards are more resistant to stains, they still require occasional cleaning. Porcelain boards are really designed for heavy or long term use, while the melamine boards don’t typically last as long.

Here’s something to think about: Budget and/or price is almost always a major decision-making factor when buying something of this nature. If you foresee the board getting heavy use, then consider a porcelain model as it will significantly outlast a melamine one. Yes, the cost is higher, but chances are you’ll go through 2 or more melamine boards before wearing out one porcelain model. In the event the board will only be used sparingly and cleaned after each use, then the melamine version is a good choice.

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Interesting Facts – History of the Stapler

I’ve always found it interesting that we use certain devices daily, yet know hardly anything about it’s history. Well, here’s some interesting information about the history of the stapler.

The earliest records involving staples were attributed to King Louis XV of France during the 18th century. Although there aren’t records specifically regarding a stapler device, this was the first recorded use of a staple. Each staple for King Louis XV bore the inscription of the royal court as required by the King.

As the use of paper expanded in the 19th century, it lead to a need for some sort of paper fastening device. The first documented record of a paper fastening device occurred in 1841, when inventor Samuel Slocum applied for a patent on a device that stuck pins into paper in order to fasten them together. Historians argue about giving Slocum credit for the modern day staple as his device was really designed to fasten large quantities of papers together in more of a commercial intent as Slocum made his living selling the pins that fit into the device.

Most historians credit American, George McGill, as the father of the modern day staple. In 1866, McGill applied for and received a U.S. patent for a flexible brass paper fastener. In 1867, McGill applied for and received his second patent for a special press that inserted the fastener into paper.

European historians argue that that first true staple and stapler was designed and patented in England by British inventor C.H.Gould, although not a great deal is known about the device.

In 1877, American Henry R. Heyl filed a patent on the first device that would both insert and clinch a staple in one step. Based on this design, many consider him the true inventor of the stapler in the form that we know it today.

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