http;//www.thepost.mindspring.com
9A
CIjarlottE ^o£ft
THURSDAY, DECEMBER 4, 1997
STRICTLY BUSINESS
NAACP steps up pressure on national hotel chains
By Tbny Jones
TRI-STATE DEFENDER
NAACP president and chief
executive ofEcer Kweisi Mfume
has announced the second phase
of the civil rights organization’s
plan to study how the hospitality
industry treats African
Americans.
Afiican American organizations
Cut the cost
of dream
home
CHARLES ROSS
Your
Personal
Finance
These da3rs, builders are mak
ing a lot of their money by jack
ing up their prices on extras like
hardwood flooring. An upgrade
on flooring can mean as much as
a forty percent boost in the
builder’s profit margin. "Two
things make that possible: your
desire to set yourself apart and
go for the options, and your behef
that the builder is in the driver
seat.
One homebuyer wanted heu-d-
wood floors in her family room,
kitchen and master bedroom.
Her builder was going to charge
her $7 a square foot, which
would add $5,000 onto her
home’s base price. Instead, she
shopped around and found a con
tractor willing to do the job for
$5.25 a square foot, and saved
$1,400.
'The best advice: check prices
and you’ll get your dream house
for less.
Appliances
LTsually it’s good news when a
consumer can buy from some
body who buys in bulk. Your
builder probably saves money on
apphances by buying them in
bulk. But are the savings passed
along to you? Not always. If
you’re not getting 10 to 20 per
cent off the list price, push for it,
and the more apphances you’re
upgrading, the better your nego
tiating leverage.
One homebuyer wanted to
upgrade tbe apphances in her
kitchen, and was offered a pack
age for $4,600. By shopping
around she fmmd a discounter
willing to knock $400 off that
price. Her builder agreed to
match the lower price, then
threw in a free upgrade on a
dishwasher.
Your best strategy is to check
aroimd, compare prices, and
then ask your builder to match
the best deal.
Windows
Bay windows, skyhgbts and
special windows involve struc
tural adjustments to the house.
So your builder is justified in
charging you a lot for them,
right? Not necessarily. For exam
ple, if the framing on your house
is not yet completed, window
instaUation is relatively imcom-
phcated. So, don’t be taken in by
a builder who says an unplanned
addition will cost you an arm and
a leg.
One couple asked their
builder to add two side-by-side
pictime windows to tbeir hving
room. Tbe builder said that the
late change in the plans would
cost them $4,000. But a sales
associate had told them the addi
tion would cost the builder only
$1,200 to $1,400. Armed with
that information, the couple got
the builder down to $2,000. It’s
yoiu- house, so stand your
ground!
Bathrooms
One way builders make a
profit on every new home or
remodeling job is by marking up
See SAVE on page 10A
are being urged to contact tbe
NAACP to receive a survey form
to gauge the industry’s coopera
tion. Additionally, a hotline has
been set-up to disseminate infor
mation to interested parties.
'This is being made available to
assist consumers and groups in
making informed choices about
where to spend their lodging
industry dollars. Conventioneers,
meeting plarmers, fraternity and
sorority travel planners are urged
to can and to respond to the sur
vey. Tb date, more than 42 nation
al organizations are co-sponsors
of the effort.
The first NAACP Economic
Reciprocity Hotel Initiative
Report Card, released in late
spring, was the result of a year
long survey that reviewed the eco
nomic relationship between major
hotel chains and the African-
American community with the
intention of establishing a busi
ness links for firms owned by
AfHcan Americans.
The Economic Reciprocity
Initiative was launched by the
GRAPHIC/JOETTA TALFORD
The Black Guide, an African American business directory published by The Post, now has a ver
sion on the World Wide Web.
Guiding site
African American business directory goes on-line
By John Minter
THE CHARLOTTE POST
The Charlotte Post has
launched AfHcan American
businesses into cyberspace.
More than 1,200 Charlotte-
area black companies have
been linked to a world wide
audience through a World Wide
Web version of'The Post’s Black
Guide directory. The guide can
be accessed by going to The
Post’s web site at www.thep-
ost.inmdspring.com.
Printed versions of The Black
Guide are already available at
selected locations, including
the Charlotte Convention and
Visitors Bureau. About 30,000
copies of the directory are dis
tributed each year.
By putting the listing of area
Afiican American-owned busi
nesses on the Internet, 'The
Post is breaking new ground.
The online Black Guide is one
of the few instances where
black businesses are listed on
tbe web.
“Now, more than ever we are
exposing the world to the
minority businesses in our
region,” said Post Publisher
Gerald Johnson. “We are prob
ably one of the first to put a
minority directory on the web.
“One of the big things this
will help is people searching
the net trying to get informa
tion about Charlotte. We will
be giving them (black busi
nesses) more exposure.
“We are e-mailed on a regular
basis about information,
because people are moving to
Charlotte, so we are providing
See GUIDE on page 10A
BUSINESS BRIEFS
Black Entertainment 'Ifelevision
chairman Robert L. Johnson has-
been named to the board of direc
tors of U.S. Airways Groups, Inc.,
becoming the 11th board member.
“Bob Johnson has established
an enviable record within the
entertainment industry and in
the arena of community service.
We are fortunate to be able to add
his considerable strengths of the
US Airways board of directors,”
said US Airways chairman and
CEO Stephen M. Wolf
Johnson is chair and chief exec
utive officer of BET Holdings,
Inc., which operates four major
cable television channels: BET,
which reaches 51 million U.S.
homes and more than 90 percent
of all black cable households; BET
on Jazz: The Cable Jazz Charmel,
which reaches 2 million domestic
and international subscribers;
BET Movies, the first aU black
movie channel; and BET Action
Pay-Per-View, which reaches 10
million subscribers.
BET Holdings also has wide
spread interests in pubhshing,
retail clothing, restaurants, hotels
and casinos, financial services
and computer content develop
ment.
Johnson is a graduate of the
University of Illinois and holds a
masters in international affairs
finm the Woodrow Wilson School
of Public and International
Affairs at Princeton University.
He has earned Cablevision
Magazine’s 20/20 Vision Award,
an NAACP Image Award and a
Distinguished Alumnus Award
from Princeton.
In addition to the U.S. Airways
board, Johnson served on the
boards of Hilton Hotels Corp., the
College Fund and the National
Cable Television Association's
Academy of Cable Programming.
NAACP in February of this year.
The hotel and lodging industry
was the first target of the initia
tive and the top 15 chains were
graded and ranked on their
records in five key areas:
Employment, equity and fran
chise ownership, vendor relation
ships/procurement, advertising
and marketing and philanthropy.
The results of the second smveyl
were recently revealed in a pres6|
conference in New York City. 'Itj
date, only the Best Western cha^
has refused to cooperate. The hS
toric Holiday Irm in Memphis has
received a “C” in the survey,
upgrade from its position of fa^'
ure because it did not respond tb^'
See HOTELS on page 10A '-•i
Mutual funds are
where the smart
money usually is
The notorious bank robber Willie
Sutton said he robbed banks
because that’s where the money is.
'This column often discusses
mutual funds for the same reason
- because that’s where the money
is. In fact, one in every four U.S.
households owns mutual funds. As
of year-end 1996, individuals
OMAR DILLARD
owned 75 percent of the $3.5 trilhon of mutual fund assets. ’’
One reason mutual funds have become so popular is because they
offer individuals the benefits of professional management. A study Of
one of the oldest U.S. mutual funds illustrates the rewards of success
ful management. J
Dating back to 1933, the fund was reconstructed out of a closed-end
investment company badly damaged in the stock market collapse that
began in 1929 and hit bottom in 1932. A look at the fund's changing
portfolio over the years illustrates how its managers moved with the
economy.
At the close of 1935, stocks representing the automobile industry
made up 17 percent of the fimd’s portfolio. Ten years later, in
December 1945, oil stocks had become the largest industry holding
representing 7 percent of the portfolio.
By 1955, the biggest holdings included many companies providing
the raw materials that were in growing dememd by consumers, indus
try and defense. One aluminum and three steel companies together
accounted for nearly 7.5 percent of the portfolio. 7
Prosperity and the Cold War best describe tbe years 1956-1965, and
the fund managers went global in this period. Auto and oil companiefj
once dominant, were replaced by other transportation companies
mainly airlines - as rising incomes and cheaper air travel turned
America into a nation of tourists and business travelers. L
. During 1966-1975, with the energy crisis at hand, the fund expand
ed oil company holdings. There also was a major influx of compute!*
electronics companies; IBM, MCA and others accoimted for more than
13 percent of the portfolio. u
Inflation and recovery set the scene fium 1976-1985, with interest
rates peaking and then beginning a long period of decline. By 1985;
technology, communications, data processing, electronics and teleconf-
munications companies comprised about a fifth of the fund’s portfolio:
From 1986-1995, there was a strong market, with two sheirp set
backs. Banking was the major industry, as banks came out of a long
period of problems and became an excellent value. Health care also
came to be a large part of the portfoho. -1
The investments in this fund have been anything but static over tbd
past 60 years. Familiar names have come, gone and come again in A
changing portfoho. The fund's success, along with the success of hun-l
dreds of other mutual funds, attests to the value and necessity of
active management of any portfoho of common stocks.
OMAR DILLARD is an investment counselor at Edward Jonef
investments in Charlotte.
Business growth
through acquisition
By Pierre A. Clark
NATIONAL NEWSPAPER
PUBLISHERS ASSOCIATION
For every high-flying, successful
company generating six-figure
and seven-figure yearly incomes
and earning double-digit after-tax
profit margins, there are 10 that
crash, bm-n and fail, according to
statistics. And for every successful
company generating double-digit
profits there are 10 marginal per
formers. Whether firms are
undercapitalized, poorly managed
or promoted, or just not ready for
prime time, the fact is that the
vast majority of businesses in
America are candidates for either
one of three outcomes: closure,
bankruptcy or acquisition.
Each of these outcomes mean an
excellent opportunity for you to
grow your business by acquiring
the tangible and intangible assets
of these firms. If you are a skilled
manager, recruiter and promoter
and are willing to develop an eye
for the tangible/intangible poten
tial of firms whose product hnes
and assets complement yours,
acquiring and combining existing
firms can put you on the fast-
growth track.
There are three types of acquisi
tion candidates: Money losers.
The firms that have never earned
more than they cost to operate
may nevertheless own extremely
valuable assets like land, furni'^
ture, equipment, formulas;'
patents, software code or other
assets.
• Barely profitable. The firnjsj
that are making a small profit will‘
have assets that under more cr^
ative and efficient managemenr
could perform more profitably
through cost reductions or more^
effective marketing strategies. T
• Profitable but with greater'
potential. Even profitable compd-*
nies can be operated more effi
ciently. Or their owners may wan{‘
to sell out and cash in on the years',
of work expended in building theii'
businesses. ''
Through acquiring these kind4'
of companies, you can build your
small firm into a giant that gener
ates profits through lower-unitr'
cost materials and what econq-'
mists call economies of scale. '
Growth through acquisition is'
the process that drove the ere-”'’
ation of Century 21, Blockbuster.
\5deo, ERA Realty and Waste'*
Management-WMX 'technologies.
They are all companies built by ^
acquiring smaller companies in!
fragmented, inefficiently-operated'
industries and capturing a major
portion of the market. Their"
founders recognized the acquisi
tion process as being much more
See MERGERS on page 10A ”