Eye on the Recession: Second Income

Posted by Menachem Lubinsky on March 24, 2010 under Recession | View Comments

By Menachem Lubinsky

A column I wrote in this space several weeks ago generated an unprecedented response. The subject was the competition between younger and older people for the same scarce jobs. Much of the feedback that I received revolved around personal experiences of people who felt that they were unfairly victimized because of their age. Several were young people who wondered how you can get a job that calls for experience without getting the experience. There seemed to be a common thread that related to the hardships many families face as a result of the recession, ranging from layoffs to business failures.

Many of the people seemed to find the answer in a “second” income. Americans have long become accustomed to the concept of two incomes in a family but increasingly more spouses have pitched in with some kind of income producing venture that helps the family bottom line. Without getting into the social implications for society, I heard of a number of stories that may be worth sharing.

David, a 31-year old father of three, lost his job as a production manager for a trade publication. After six months of job-hunting, he was still not any closer to a job. A job counselor advised him to take some courses in sales with the idea that there were many sales jobs available. It turned out that the compensation for most of the offers was based on commission with little or no fixed salaries.

Eve, David’s stay-at-home wife had started to dabble in a home-based graphics business focusing on a specific industry. She called the money her business made “spending money” and had little time to either plan or actually expand the business. It was at this point that David came up with what he called “an insane idea” to try to build up his wife’s business. He had after all invested the time in the sales training. That was eight months ago. David indeed developed the business, is no longer looking for a job, and the couple is now seriously considering a move to a nearby office building and hiring a clerical person.

Joe, a manager in a small machinery parts business, was having increased difficulty in paying bills. At 30, his two children were in pre-school and the cost of tuition alone was “choking” him. His wife worked part-time at the office of a local dentist but he was increasingly worried about his job. His boss had already notified the staff that sales were off by about 20%. That’s when an idea hit him. Perhaps he could work out some arrangement with his boss to sell the parts on-line. Thankfully, his boss dismissed the idea and agreed to share in the profits provided that Joe made the investment. He did, and left his job devoting his energy to his new successful business.

For many people, a “second income” means taking on another job. A local yeshiva recently hired a Jr. Accountant for Sundays to do journal entries and prepare reports for the accountants. A restaurant hired a mashgiach (kosher supervisor) to replace their full-time mashgiach during weekends.

The challenges of producing enough income for a household are ever-present but so much greater in a recession. It requires a bit of creativity and “out-of-the-box” thinking like David and Joe, whose answers were right in front of their noses. I recently read  about a company that sells amenity kits to hotels and corporations on the West Coast. The gist of the story in an in-flight magazine was that the company had gone “green” and was selling the hotels products that were environmentally sound. There was one line in the article that caught my eye. It spoke about the nephew of the boss who had been laid off from a computer consulting job and decided to expand the business to the Central states with great success.

Al, a self-employed real estate broker had fallen on hard times. At 57, he was having difficulty finding a full-time job and his wife who had worked most of her life suffered from crippling arthritis. Here briefly is his story, in his own words: “I was at the point where I was ready to accept the fact that I would have to rely on benefits just to get by when I took stock of my experience. I realized that I knew many building managers and owners and that they would occasionally ask me for a good repairman. I hired two handymen that were looking for work and started to call and visit all my contacts. In the last four months, I have been averaging $30,000 a month in repairs, enough to pay my bills. I still, here and there, make some money on brokerage.”

A second income, whether for self or a spouse, is obviously not for everyone. Many people’s life circumstances prevent them from even considering a second income, but for those who can entertain the idea, it is a good way to beat the recession. There are many people whose careers were launched in a down economic climate because they had an idea that worked out.

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The New “Optics” in Marketing

Posted by Menachem Lubinsky on March 22, 2010 under Marketing | View Comments

By Menachem Lubinsky

Ever so often a new term emerges in marketing that becomes an operative concept in the field. There was a time when “spin” dominated the marketing profession, although it was often thought of in a derogatory way. Putting a spin on something was not necessarily thought of positively. Spin was looked at my many as a defensive measure and not as a positive marketing concept.

Now ”optics “ is the new boy on the marketing block. It is being used to describe the appearance for something. Talmudic students should have no difficulty in recognizing the new term. The chazal teach us that appearance can be every bit as problematic as the real thing. We are not permitted to drink almond milk in the same setting as meat because of “maaris ayin,” which essentially is optics, or the way that it would appear to the naked eye. Since almond milk looks every bit like cow’s milk, the casual observer would deduce that the person consuming the milk was mixing milk and meat.

Continue reading The New “Optics” in Marketing on Lubicom’s Marketing Blog.

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The Pesach of 2010 Would not be Recognized by Your Grandparents

Posted by Menachem Lubinsky on March 14, 2010 under Pesach, Sixth Sense | View Comments

My Sixth Sense

By Menachem Lubinsky

There is a good chance that several of your neighbors may be heading to one of the many “Pesach programs” in major hotels throughout the country. In fact, you might be one of those headed to a 5-star resort somewhere in Florida, California or Arizona. 20,000 American and Canadian Jews will be there as well. The menu will most likely look like the elegant cuisine that you’ve come to expect from an upscale dining experience throughout the year, save for the Matzohs. The chances are that your grandparents or great grandparents would never have dreamt of such a possibility. They would say: “Pesach”?

If you are one of the “unlucky” ones to stay home, you should not fret. You will have so many foods to choose from that you won’t really deprive yourself. If you’re addicted to bagels, pizza, bread crumbs, croutons and the like, do not despair since they are all available this Pesach. In fact, one distributor told me his list of Pesach items exceeds 21,000. And he admits that he does not have the entire list. You might remember a Pesach that was virtually all made at home, devoid of potato chips and other snacks (a bar of chocolate was just fine to be washed down with Saratoga Geyser and Kedem syrup) and the daily diet usually consisting of matzoh, hard boiled eggs and potato this or potato that, especially if you were going on the obligatory Chol Hamoed (interim days) trip.

The purists amongst us are quite disappointed with the transition. In fact, many homes try very hard to emulate the Pesach home of old. To them, the ultimate guarantee of kashrus is when they are in control over the menu and then there is the concept of the mesorah (tradition) that they wish to impart on their children. Others are grateful for technology and the increased hashgacha that has made eating on Pesach not such a challenge anymore. Even they remind us that it wasn’t like that at all in Bobby and Zaidie’s home.

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Canada in Major Push to Export Products to US Kosher Market

Posted by Menachem Lubinsky on March 12, 2010 under Kosher | View Comments

New York…by Zechariah Mehler…While Vancouver was hosting the 2010 Winter Olympic Games, the Consul General of Canada hosted a collection of kosher food brands from the neighbors to the North. With the Canadian and US dollars on a more level playing field, the Canadians feel that the time is rife for a major push into the US kosher market. Attracting a who’s who of personalities from the world of kosher, the event featured everything from fresh fish from Lake Saskatchewan to premium Canadian beer and even microwaveable bagel bites filled with cream cheese. It isn’t only the dollar exchange that makes the timing so ideal. The Canadians are producing many new and innovative kosher products, many of them certified by the COR, the Kashrus Council of Canada, a major participant in the event. Based in Toronto, the COR represents 900 retail facilities and over 45,000 different products. The Vaad of Montreal has long been an exhibitor at the annual Kosherfest, which takes place this year in October. As a result of the success of their event at the Consulate, the Canadians are looking to host a major pavilion at this year’s Kosherfest.

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“Alef” a New Premium Vodka is Also Kosher for Passover

Posted by Menachem Lubinsky on March 11, 2010 under Kosher, Passover, Wine | View Comments

New York…by Zechariah Mehler…Vodka on Passover? This year Alef, a new vodka  made from grapes rather than from grain, will be available for the holiday, thanks to Avi Petrov of LeChaim Enterprises. “There’s still room on liquor store shelves for a high-end vodka.” says Avi, who immigrated to the US from the Ukraine in 1991. His LeChaim Enterprises was an effort to introduce products that were so much a part of his life and culture in his old homeland. After trying many of the leading brands of high end Vodka, Avi concluded that there was a need for a new brand of premium vodka that was not at all similar to those that were already on the market, but with a twist. “We knew that only an authentic drink with a distinct identity would survive,he says. This led to his creating a premium vodka made from grapes. The spirit market in general featured only a limited number of grape vodka, mostly French, such as Cîroc and Idôl, but none of them have kosher certification. Being the first kosher grape vodka, Alef is hitting the shelves just in time for Passover. Avi has received an enthusiastic response to his new vodka with its distinctive Hebrew Aleph letter on beautiful blue as well as clear bottles.

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Loss of 1500 Rooms Not Necessarily Bad News for Pesach Programs

Posted by Menachem Lubinsky on March 10, 2010 under Pesach | View Comments

By Menachem Lubinsky

New York…With three weeks to the start of Pesach (eve of March 29th), Jewish newspapers still featured advertising for one of the many programs all over the US. Sources say that an estimated 20,000 vacationers will spend the holidays in major hotels. But they also point out that there will be 1500 fewer rooms than last year, namely as a result of the shutdown of five programs, three by the Smilow family. Guests who booked at some of these programs have scrambled to rebook in other programs. One food distributor said that he believed that the programs were 20% ahead of last year when the recession first impacted the programs. “It is really a consolidation that will in the end have more guests and less empty rooms,” he said. In other words, he points out, the operators will have less empty rooms. There appeared to be some last minute bargains as several of the programs dropped prices in an attempt to fill their remaining rooms. The program operators had become accustomed to the last-minute bargain hunters who trade in the lower prices for some of the less desirable rooms. Yitzchok Neger who operates a major program in Lancaster PA will have more than 1100 guests in what he calls the “Wal-Mart model,” offering prices at around $1600 per person. He and several other operators who are also in that price range hope that volume will allow them to turn a profit even at the lower prices. Even some of the most successful programs still have 30-35 rooms to fill.

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How to Stay the Leader

Posted by Menachem Lubinsky on March 9, 2010 under Out of the Box | View Comments

By Menachem Lubinsky

Marketers have long suggested that the most coveted position in marketing is to be the leader. “Being the leader,” said a noted professor in marketing, “is like being the first man on the moon.” Some leaders were so ensconced in their leadership role that a whole generation used them as the generic term. For example, Scotch Tape or Xerox.

Imagine what it is like to wake up one morning to find out that you have been dethroned from a pedestal of power and prestige. There was a time when Kodak was king, not only in selling the lion’s share of cameras but also virtually dominating the film business. Another brand, Polaroid was the leader when it came to instant photos.

Continue reading “How to Stay the Leader” on Lubicom’s Marketing Blog.

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New Kosher Wines for Passover Appeal to Every Taste

Posted by Menachem Lubinsky on under Kosher Wine | View Comments

New York…by Eda Kram…Wine connoisseurs as well as ordinary Jews participating in a Seder this Passover already have an unprecedented number of wines to choose from. But Passover 2010 will have some interesting additions. Kedem, which traditionally adds many new wines each Passover, is this year adding Baron Herzog Pinot Grigio, Kedem Estates reduced Carb Wines, Baron Herzog Jeunesse White (Chardonnay) Alfasi Mistico, Binyamina Reserve Shiraz and Segal’s Argaman. Allied Importers U.S.A has several new wines available for Passover: It includes Dalton Matatia 2006, which is a several years in the making. The wine was named after Mat Haruni, the founder of Dalton Winery. Other new Dalton wines include Moscato 2009 and Unoaked Chardonnay 2009. Beckett’s Flat ‘Five Stone’ Methode Champenoise is yet another new wine. Many Israeli wineries have also introduced new wines. Some of these wines will be on display at a wine tasting sponsored by the Jewish Week on March 14th at City Winery in Tribecca in New York City. The City Winery produces more than 250 barrels of wine a year, over 35 of them kosher. The weekly is also featuring a first-ever Kosher Wine Guide, which will appear as a glossy-covered supplement in its March 5th issue. The magazine-style Kosher Wine Guide will feature articles about an up-and-coming Israeli winemaker, a three-hour scramble to taste 170 wines, how to match the right wine to the meal and more.  The Guide will publish the names of the new winners of The Jewish Week’s Top 18 Kosher Wine Competition.

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Mashgichim (Kosher Supervisors) Get New Respect from Kashrus Authorities

Posted by Menachem Lubinsky on March 8, 2010 under Kashrus Organization | View Comments

By Menachem Lubinsky

Dallas…An impressive gathering last month of kashrus committees from all over the US and Canada as well as Mexico was the setting for an important discussion on the status of thousands of mashgichim (kosher supervisors). Sponsored by the Association of Kashrus Organizations (AKO), the conference heard Rabbi Nissin Davidi of the RCC in Los Angeles urge the attendees to officially adopt minimum standards for accepting a mashgiach into any of the AKO members Vaadim. The agreed upon items ranged from assuring the correct legal status of mashgichim to their proper dress code. After much debate the minimum standards were approved. The important role of the mashgiach in a kashrus organization was underscored by Mr. Bill Finkelstein, one of the founders of Dallas Kosher, who now serves as their attorney. Mr. Finkelstein pointed to the different ways a kashrus certification agency can be liable for a mashgiach’s mistakes.  Mr. David Scharf, formerly of Scharf and Ram Caterers, shared some of the “tricks that caterers and restaurant owners play on mashgichim. Even the most experienced rabbis in the group were amazed at Mr. Scharf’s words as well as his recipe for a successful relationship with the most seasoned owners. There was a recognition that the mashgiach is an important component of elevating the standards of kashrus. Rabbi Reuven Stein of the Vaad of Dallas proposed “the Mashgiach’s Bill of Rights”. This was a result of a year’s work for Rabbi Stein. The AKO members unanimously voted to introduce these conditions into their contracts. The articles in the document include proper working conditions for a Mashgiach, as well as what jobs a mashgiach may or may not be allowed to perform on the job. It also addresses the proper method for a mashgiach to address any grievances.

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Record Sales for Passover Expected Despite Ongoing Recession

Posted by Menachem Lubinsky on March 7, 2010 under Passover | View Comments

By Menachem Lubinsky

New York…”Passover is definitely in the air,” a Brooklyn food distributor said as he surveyed the aisles of one of his customers. He and two workers were stocking two aisles with Pesach groceries as the manager was covering one register for customers already buying foods to get a head start on cooking for Passover. Most retailers throughout the country are by now into the Passover season.  In Cedarhurst LI, Gourmet Glatt has opened a special Passover store directly across from their year-round store. In recent years, a number of stores opened the separate stores. The Orthodox Union opened its annual special Web site, www.oupassover.com, featuring laws of Passover, holiday recipes, cleaning tips, and informative articles. The site compliments the OU’s popular Passover guide. Most of the other major kashrus agencies also publish special guides for the holiday as well as special features on their Web sites. The cRc in Chicago this year published a 56-page guide that was available in both a hard copy and in a downloadable version. A Kosher Today reader wrote: “I cannot believe the number of recipes that are available this year on-line.” As an example, she cited food writer Eileen Goltz who is out with many recipes for the holiday, including one for pizza.

While most industry sources are predicting a record year for sales of Passover foods, the number of people relying on assistance from Jewish charity has grown significantly, according to the Metropolitan Coordinating Council on Jewish Poverty. SuperValu (with stores like Jewel’s, Albertson’s and Acme) have teamed up with Manischewitz (Rokeach and Mother’s products are included) in a charity drive to help the United Soup Kitchens in Israel, according to Yakov Yarmove. Manischewitz now has OU-P whole wheat matzah meal and whole wheat matzah farfel, both made from Manischewitz OU-P whole wheat matzah. In fact, the SuperValu stores are offering a free 5lb. box of matzoh with the purchase of $50 or more of Passover products. The OU now certifies Aviv, Osem, Yehuda, and Rishon matzah products from Israel as well as the Yanovsky bakery in Argentina. The Matzah can be washed down with OU-P Coca Cola which will again be available in 2 liter bottles with its distinctive yellow caps. And for those who may be wondering, Barton’s is back this year after a one-year hiatus.

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