My Interview with Joe Biden

The phone rang and the caller ID said 'Joe Biden'. I answered and Joe said, "Great interview with Sarah--now it is my turn. Let's get going so I can tell America, and the world, how important the glass industry is to the Democratic party, and to my hometown of Scranton, PA." It looked like this would be an easy interview after all. Joe wanted to talk about glass...it can't get much better.

I thanked Joe for being on the blog and threw my first question at him.

Paul: "Senator, tell me how the glass business is different in Delaware compared to Scranton."

Joe: "Paul, that is a great question for a glass guy. Oh, not that a glass guy can't ask a good question. I expected a question on Low-e glass, not on geography. Let me think for a minute and I will answer your question. (Pause...Pause...) OK, you see the party has asked me to count to thirty before I answer any question that I don't know the answer to, hoping I will come up with the right answer. But, all that I do is count to thirty, and don't think of answers."

"Oh well, the glass industry in Delaware is different from Scranton. You see Delaware is a full state, and Scranton is just a small city in Pennsylvania. In Delaware the glass shops can cover the whole state from one location. You can't do that in Scranton. Why it takes a full day just to get to Pittsburgh, and then after you measure the job, you have to drive a full day back to the shop to get the glass you need."

"That's the biggest difference between Scranton and Delaware in the glass biz."

Paul: "Joe, thanks for clearing that up. Our next question is about Low-e glass. Last week, Sarah said hard-coat was better than soft-coat. What is your opinion?"

Joe: "I am definitely a soft-coat guy. Our winters in Delaware are mild, you know, and we hardly ever get snow, so a soft-coat is just perfect for me and my family whenever we need coats. In Scranton, up in the mountains, you probably need a hard-coat to stop all of the freezing rain and sleet."

Paul: (With a quizzical look on my face) "Joe, I think I meant which coat gives better thermal performance?"

Joe: A soft duck-down coat is best, whether you are in Delaware or Alaska."

Paul: "Let's move on. Who do you think is the best fabricator in the United States?"

Joe: "Paul, that is not a fair question...I didn't do my homework on the whole country, just in the Scranton and Delaware areas. The best fabricator is Northeast Laminated Glass. These guys are true Democrats. They have hired laid-off workers, have fought the big guys, and they don't make enough profit to qualify for the McCain tax cuts. The co-owner, a loyal Democrat named Tom Zaccone, works so hard that he doesn't take a day off, other than to campaign for me...but wait, that isn't the reason they are the best fabricator...there is not any politics in my answer...oh...what is the next question?"

Paul: "What other fabricators are there in Scranton or Delaware for you to compare to?"

Joe: "I looked at that Oldcastle Glass company and at Arch, and they don't have a company in Scranton, so they can't be very smart to miss out on the best city in America. Of course, Wilmington, Delaware is also a great city, and...you guessed it, no fabricators there make the big time. That is what makes Scranton the best city in America."

Paul: "Joe, if Barack and you are elected, what will your program be to help the glass industry?"

Joe: "Why, that is another great question for a glass guy...Did you rehearse with Lyle Hill, the wise guy from US Glass? We would hold a hearing in the Senate to ask this very question of plumbers and glaziers named Joe (just like my name!). I am sure we will find that the employees in glass companies need better health benefits, need relief on their home mortgages, and need glass gloves that don't smell like old sardines after a day's work!"

"I think we will have to limit imports of glass from China and make every piece of glass in America into Solar glass that will make electricity. Why, if every picture frame in America could make energy, our problems would be solved!"

Paul: "Joe, solar glass only works in glass that gets sunlight. How would you make that work in picture frames?"

Joe, "That's simple...we pass an environmental law that says every picture frame in America has to be hung in a window, and we have solved the entire energy future of America."

Paul: "Thank you Joe for your time today. By the way that is a nice suit you have on. Did you buy that in Scranton or in Delaware? Joe...wait, don't leave, just answer this one last question...Joe...oh well, he is gone.

Well, to all of you out there in Blogland, you now have the insight into our two Veep candidates so that you can make the decision who to cast your vote for. Keep thinking about this right up to the moment you pull that election lever...vote for the candidate that you feel will help the glass industry!!!

My Interview With Sarah Palin

So, I was watching the debates and the news. I learned that Joe the Plumber isn’t exactly what the news director had ordered. It was then that I realized that neither candidate had taken a position on the glass industry and our questions---soft coat vs. hard coat, union vs. non-union labor, Viracon vs. Oldcastle Glass vs. Arch.


I sent an immediate e-mail to both campaigns asking for guidance on these key issues. An hour later, the phone rang. The Dems said to check in with them next week, but the Republicans needed every plug they could get. They sent the investigators and discovered I was not part of the liberal eastern media, and thought it would be a great chance for Governor Palin.

Here is the transcript of my interview with Governor Sarah Palin about the current state of the glass industry.

Paul: Welcome Governor Palin. It is an honor to have you visit my office in New Hampshire to discuss the glass industry.

Sarah: It is an honor to be here in a New Hampshire, which is a border state, just like my state of Alaska. Can you see Canada from your home here?

Paul: Almost—it’s only 153 miles to the border with Quebec. Sarah, what was it like when you first saw Russia? Were you looking through float glass or sheet glass up there in Alaska?

Sarah: Oh, it was a sheet of glass. In fact, it might have been one of these sheets with the vacuum in it. You know the vacuum glass that saves energy. It was a vacuum glass because there was no dust in it.

Paul: You mean insulating glass?

Sarah: Oh no, there were no pink fibers in the center, there was no insulation in the middle.

Paul: I see. Governor Palin, do you think the future is in soft-coat or hard coat low-e glass?

Sarah: Paul, I am glad you asked this question and not another question about which newspapers I read. You see, I have studied this in preparation for this interview. Moreover, as a mother and almost as a grandmother, you have to be hard with your children. You have to teach them about the hard decisions there are to make, as citizens, and that people will always be trying to trip them up. So, while I know soft-coat may give better insulation, I think we need hard coat. Everything in life will be hard and we have to teach that to our kids. Of course, we have enough oil in Alaska to make up for all of the energy wasted. If only John were to become President, then we could drill-baby-drill right in my backyard.

Paul: Uh, Governor, what is your stance on union labor requirements in the glass industry?

Sarah: I am all for the union. 150 years ago the South tried to break up the union, and I, for one, am glad they didn’t succeed. The union is very important to us in Alaska. We weren’t a state during that war, but if we were, we would have been for the union. If there is another war about the union, count on me to send the Alaska National Guard.

Paul: Governor, I meant union labor on construction work in the glass industry. Should it be required?

Sarah: Now I get it. Thanks for explaining the question. I believe every union worker should work; so should all of the regular Americans who want to work. Working is the cure for our economy. John wants to cut taxes on the rich and on my oil companies so they can spend more and hire your union workers. Of course, we will trickle our money down to all workers, and I sure hope that those union workers vote for me because I work hard too.

Paul: I see. (Pause) Now, Governor, Do you think Viracon, Oldcastle or Arch is the premier glass fabricator in the United States?

Sarah: Thanks for this question Paul. I studied this on the drive here to New Hampshire, knowing you would ask it. On my way here, I looked out the window of my armored Suburban and saw all the pretty colors of the leaves. The reds and yellows and the oranges. In fact the oranges reminded me about pumpkins, and Halloween is coming next week, and I think all of the little ghosts and goblins coming to your door should get candy. None of this healthy stuff…this is the night for candy. If you give out what you grow, then the workers at Hershey can’t make any more chocolate bars, and they are important workers in our economy. In these tough economic times, spending money on chocolate is important. When I grew up we never had chocolate melt in our pockets…it was way too cold…but when I was thirty years old I finally came to the lower states and had my first melted chocolate bar, and it was gooey and it tasted good. If you don’t support these workers making American chocolate you are hurting our country.

Oh, where were we?

Paul: I asked you about Viracon, Oldcastle and Arch.

Sarah: Oh yeah, I studied them on the way up here. And you know what, they are all confused. One of them has only three branches, and the others have way too many. Is there really that much glass business in the Chicago area that there are so many fabricators? When I become the Veep, I will call for a summit meeting of the Chicago fabricators and help them carve up the territory so that all companies can be profitable and pay less taxes under the McCain economic plan. Then I thought why Chicago? Should there be more in New York, or Los Angeles? Or Cleveland? Of course there should. So, I agree that Arch does have the shortest name.

Paul: Sarah, you have left me speechless. Thanks for visiting me and for being on our blog, where next week we will meet Joe Biden and learn about the state of the glass industry in Scranton. After that we will go back to fraud in workers comp.

You Should Be Afraid of Fraud

Fraud Happens. Never in your business. Always in someone else's. You watch things too closely. You know what is going on. And, you trust your people. They would never steal from you. And by the way, be sure to leave your list for Santa; Christmas is only 72 days away.

You get a call to give a quote and it looks like a home-run. All you have to do is send in a small deposit to get the plans. Just give your AMEX number and the plans will be overnighted. You think anyone would know this is a rip-off, but thousands of contractors, in many fields, fell for this one last year. IF IT SOUNDS LIKE IT IS TOO GOOD TO BE TRUE--it is. No one picks you out of the yellow pages to give you a guaranteed hit. Never give your credit card number to someone you don't know. If you are interested, call them back at their office. Google the name. Are they in the Yellow Pages? Will they give references? If they want the cash or your card number now, run in the other direction. Any legit business relationship can stand a day's wait while you check it out. If they won't wait...don't do the deal. If someone calls your company asking for bank or credit info, instruct your staff that this type of call goes directly to senior management. Teach your crew that all company information is confidential and cannot be given out except by management.

Most fraud is done by employees. According to one survey in the late 90's, 58% of fraud was committed by ordinary workers, 30% by managers, and 12% by executives. Look at all aspects of your organization. Also, men were responsible for four times as many frauds as women, but women had a higher average take than men.

Checking your credit for identity theft is advertised on TV every day. Did you ever check your company's history with the credit bureaus? A company is easier to scam than an individual! At least twice a year you should get your profile. Always check your credit card bills, demand receipts from each employee who has a card, and match them to your monthly statements.

Employees who have committed fraud have been interviewed. One of the most common reasons given is: They saw the boss do it, so it was OK for them to do it. If you handle cash in your company, put every cent on the books, and let your people know you do this. You set the tone of the ethics of your business. No one else. If employees see you pocket cash, they will too. And if you catch someone doing it, they can easily blackmail you on your own creative accounting.

Are you checking the references and backgrounds on potential employees? Most of you are not. I've seen too many companies that hire anyone who comes in the door, and wait a couple of weeks to see if they can cut it in their company. If some one is a part-timer, or a temp employee, they can do as much damage as a full-time employee--in fraud as well as worker's comp problems. Look for gaps in employment of longer than a month. Run their driver's license through your insurance agent to check for suspensions. Call their previous employers and get valid references. I do not accept the excuse that it will delay the hiring a couple of days, and you might loose a good employee who wants to work right away. You are paying dues to the short-run devil at the expense of the long-term health of your company.

Another common scam is the office supply scam, where a company calls you, saying they are your supplier of copier paper, and it is time for a re-order. You might just sat yes to a reorder too easily. Many do as this is one of the most profitable scammers games there is. Confirm that this is indeed your vendor, ask for their address, for your account number from them, the brand of paper they sell. If you just give them a verbal yes, you will get a delivery at a higher price than you expected, and you will receive lesser quality than you paid for. The tip-off is the delivery is COD. Never, ever, give COD for basic products that you buy in your community, to a company you don't know. If they want to visit you, and have you fill out a company credit application that is OK; they will never show up and you will be ahead of the game.

If it walks like a duck, quacks like a duck, flies like a duck, it is not a diamond in the rough waiting just for you. Don't be naive in business. The people who create and implement these scams are pros at it. Be careful and you will avoid their duck droppings!

Next week we will discuss fraud in worker's compensation--the biggest single extra cost to small and medium sized businesses in the US.

Keeping Your Money In Your Business

FRAUD. The single word that scares business owners more than any other. You can control purchasing, labor, even customers. You only spot fraud after a loss has occurred. As you take measures to prevent fraud, you never know if they are successful, as you hope there are no problems in your company in the first place. There are many easy-to-implement fraud controls you can put in place that are sound business practices. Let's look at a few that every glass shop should implement.

The single most important control is to enforce that any employee who handles financial information, and especially cash, must take their annual vacation. A bookkeeper who insists that no one can do his/her job, and doesn't take a vacation, is becoming your silent partner. Bet on it.

You, as the owner or manager should sign every outgoing check. Time consuming--yes--it is worth it. Not only is this rule #2 in fraud prevention, but you will know more about your business than you every thought possible. When I worked at Floral Glass in New York, either the President, Chuck Kaplanek or myself hand signed every check. This would take two-to-three hours twice a month, but it was worth the effort. We spotted problems early on; we prevented fraud; and all of our employees knew there was no way to hide a problem, so we worked them out rather than burying them in another purchase order. If you use a payroll service to prepare checks and they are presigned, then look at the register that comes from the service and scan each name and the amount of the check. If you don't recognize the name, ask. If someone has earned more than you expected, ask.

Every check written should have back-up documentation--the invoice from the vendor, the packing list from your receiving of the product, and a sign-off that the received goods are correct and usable. If you don't recognize the vendor name, stop and find out who they are. You must know every vendor. One of the most common fraud tricks is to create a dummy vendor, and process checks to them as normal business.

Never let the person who prepares your checks balance the checkbook. Even if you have just one person in your office, do the bank reconciliation yourself, or have your accountant do it.

If you use your credit card to purchase company goods, take a hard look at the monthly statement. If you use electronic payment for bills, then have your bookkeeper prepare the list of payments for your approval, and when you are ready to have them input to your bank, sit with your bookkeeper for five minutes and have all of the input done at one time. You should keep the password to yourself. You are saying, why should I do this when I have hired a bookkeeper? Just like your parents told you when you were a kid...because I said so. You reserve the final sign-off on all quotes for yourself, cash flow is just as important.

There is a line between your installer doing a good job and earning a tip, and doing extra work that should have been billable through your company. This is the hardest fraud to detect. You can look at the supplies used for a job, you can look at time sheets, and you can make follow-up phone calls inquiring if everything is OK with the work your firm did. About the only way you will really know this one is for your customer to call up and say they wanted more work done at the cash price, or they have a complaint about the work or the installer.

Teach each and every person in your firm that doing extra work is immediate cause for discipline, up to and including termination. Explain that if one person does this, they are stealing from all the other employees as well as the company. Don't back-down on this one if you find your best installer is your partner for a few minutes every day. If one person gets away with this, and you don't react, every work crew you have will be doing this real soon.

Just about everyone takes credit cards. The most common fraud here is giving credits. An employee swipes their own card, or an accomplice's, and issues a small credit to their own account. Credit card merchant statements are tough to read. Have your bookkeeper highlight every credit on your monthly statement and give you the back-up paperwork why a credit was issued. This also helps you understand where problems occur and a customer is asking for a refund.

You can buy a simple cash register at your office supply vendor for a couple of hundred dollars. Insist that all transactions get rung up and a receipt be given to each customer. Follow this yourself and set the example. If an employee sees you putting some cash in your pocket, they will feel they can also. I know...some people creatively handle their cash transactions. Just don't do that in front of your staff.

Next week we will talk about other fraud detection and prevention ideas.