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How the Bonadio Group, Testone, Marshall & Discenza merger happened
SYRACUSE — Rochester–based Bonadio Group and Testone, Marshall & Discenza, LLP (TMD) of Syracuse will merge to form Central New York’s largest accounting firm, effective Jan. 1. It’s a marriage that was in the works for several years. “We have known the partners at Testone [Marshall & Discenza] for the better part of four years. […]
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SYRACUSE — Rochester–based Bonadio Group and Testone, Marshall & Discenza, LLP (TMD) of Syracuse will merge to form Central New York’s largest accounting firm, effective Jan. 1.
It’s a marriage that was in the works for several years. “We have known the partners at Testone [Marshall & Discenza] for the better part of four years. We’ve been talking on and off for four years,” Thomas Bonadio, CEO and managing partner of The Bonadio Group, says in an interview.
The Bonadio Group, which has used acquisitions and mergers to fuel much of its growth, already made two deals in the Syracuse market in the last seven-plus years to establish and build a practice here that employs nearly 50 people, including about 30 CPAs.
The firm has been actively looking for another merger partner that could get it above the 100-employee mark in the area, a level that Tom Bonadio says is key to “getting a shot” at most customers in the market.
It found the right partner in TMD when about eight months ago, the leaders of both accounting firms met in Syracuse and decided “it was obvious to both of us that the timing was right for coming together,” says Bonadio.
TMD employs 71 people, including 44 CPAs, according to CNYBJ Research. The firm was founded in 1976 and has grown to service more than 2,000 clients throughout Central New York, the Southern Tier, North Country, and Mohawk Valley.
“This merger comes at an opportune time, because both of our firms are prepared to offer more to clients in Central New York, and together we have the professionals and the services to help them solve problems and grow,” Frank Discenza, managing partner of TMD, said in a Bonadio Group news release announcing the deal on Dec. 2.
Following the merger, the combined firm, which will operate under the Bonadio name, will have more than 130 employees and 15 partners in its Syracuse, Utica, and Geneva offices, according to the release.
That will vault the accounting and consulting practice to the number one spot, ranked by number of employees, in the CNY market.
“We want to be number one for a number of reasons. It creates a platform for us to deliver better service to our clients and offer better opportunities to our [employees],” Tom Bonadio says. “And at that size, “you’re on everybody’s [client] referral list,” he adds.
The Bonadio Group has been the largest CPA firm in the Rochester market “for decades,” he says, and ranks number three in both Buffalo and Albany, following mergers in those markets.
The Bonadio Group will now employ more than 600 people total, spread across offices in Albany, Batavia, Buffalo, East Aurora, Geneva, New York City, Rochester, Syracuse, Utica, and Rutland, Vt.
The firm’s annual revenue “run rate” should top $100 million, starting in 2015, Tom Bonadio says.
That should move the firm into the top 40 on the Top 100 Firms list of national industry magazine, Accounting Today, he says. The Bonadio Group ranked number 50 the last time the list was compiled.
Later in 2015, Bonadio Group’s current Syracuse employees at its 10,000-square-foot leased office at 115 Solar St. will move around the corner to TMD’s 27,000-square-foot office space at The Foundry on North Franklin Street.
The Bonadio Group’s Donald Taylor will serve as office managing partner.
“All of us in the Syracuse office are very eager to get started with our new colleagues from TMD, and it’s a bonus that we may be the largest CPA firm in the region. That will definitely help our visibility,” Taylor said in the news release.
Regarding the future of the Syracuse accounting market, Tom Bonadio says to expect other firms to also pursue mergers, because he says the market is oversupplied with CPA firms.
“I would not be surprised if this is the first of a few mergers to take place,” he says.
That also mirrors the national trend of accounting combinations.
When asked whether his firm was done with mergers in the Syracuse market, Bonadio quips, “You’re never done.”
However, he adds that the firm will take the time to “make sure we do this right and make sure this is a well-integrated merger.”
Contact Rombel at arombel@cnybj.com
First blow-dry bar opens in New Hartford
NEW HARTFORD — On Saturday, Nov. 8, Norine Rogers (formerly Paolozzi) held a grand opening for the first blow-dry bar in the Mohawk Valley, Norine’s Blow Dry Bar in New Hartford. Rogers is also the owner of Norine’s Salon, located at the same address — 6 Pearl St. The concept originated in North America with
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NEW HARTFORD — On Saturday, Nov. 8, Norine Rogers (formerly Paolozzi) held a grand opening for the first blow-dry bar in the Mohawk Valley, Norine’s Blow Dry Bar in New Hartford. Rogers is also the owner of Norine’s Salon, located at the same address — 6 Pearl St.
The concept originated in North America with a company called Blo, which promoted “no cuts, no color: Just wash, blow, and go.” Customers could choose from a limited menu with options such as “Executive Sweet” and “Pillow Talk.” The Blo chain now includes more than 45 stores in the U.S., Canada, and overseas.
A West Coast entrepreneur, Alli Webb, created a similar business from her home in Los Angeles. She quickly outgrew her residential operation and established a chain of stores called Drybars, which now has 40 locations. Both chains have focused on major metropolitan areas and a price point well below what the standard salon charges. The concept appeals especially to women with busy schedules who appreciate the flexible hours and reasonable prices. Some have branded it an affordable luxury.
The introduction of blow-dry bars is a tectonic change in the $35 billion annual salon business. The average woman spends $50,000 in her lifetime on hair-care treatments and products. A quick perusal of the ulta.com website indicates 2,084 hair products listed.
Norine’s Blow Dry Bar is also offering its customers a similar value proposition — reasonable prices and flexible appointment schedules.
“Our prices start at $25,” says Rogers, the sole owner of the salon and blow-dry bar, “and we have flexible hours that cater to our clientele. Many are executives and professionals who prefer appointments early in the morning and late in the afternoon. They may visit before a day at the office or before an evening event. Or they may just have a bad-hair day and want to change their appearance. The blow-dry bar attracts women of all ages who are typically well-educated and affluent. I have a core group of educators, judges, executives, and lawyers who come at least once or twice a week.” Rogers’ clientele also includes men who may want a wash and blow-dry or just a hair massage and hot towel to feel refreshed.
Rogers has created a different atmosphere in her blow-dry bar than in the salon. “I wanted to create an environment that is peaceful, elegant, and relaxing,” continues the salon/dry-bar owner. “It’s designed to encourage socializing. We have flat-screen TVs as well as iPad chargers. The blow-dry bar provides ice, bottle openers, water with lemon, buckets, glasses, and cheese and crackers; the customers bring their own beverages. What’s more relaxing than sipping a mimosa and listening to friends or music while you get your hair done?”
Rogers says a woman’s hair is more important to her than just appearances. “Our hair represents our personality, thoughts, and beliefs,” she asserts. “Hair contributes to our self-esteem, our self-confidence. That’s why I think the blow-dry-bar concept is a [lasting] trend; it’s not a fad. It’s a positive response to the changing lifestyle of women.”
Salon-industry sales have been flat, and many salon operators wonder whether blow-dry bars will siphon off their customers. “I don’t think that’s the case here,” stresses Rogers. “I think my blow-dry bar complements the salon. We should attract new clients who, in time, will want some of the options offered at the salon.”
Rogers has been in the salon business for 27 years — 26 years as a renter (i.e., not an owner of the business). She opened the salon just one year ago. When asked about starting her own blow-dry chain with multiple locations, she smiles and says: “Let’s make the New Hartford location a success, and then we’ll see.”
Contact Poltenson at npoltenson@cnybj.com
Southern Tier HealthLink plans to merge with smaller downstate organization
BINGHAMTON — Southern Tier HealthLink (STHL) plans to merge with Taconic Health Information Network and Community (THINC) into a single “qualified entity” called HealthlinkNY. A qualified entity (QE) was previously referred to as a regional health-information organization (RHIO), according to a news release the organizations issued on Nov. 17. STHL and THINC are calling the
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BINGHAMTON — Southern Tier HealthLink (STHL) plans to merge with Taconic Health Information Network and Community (THINC) into a single “qualified entity” called HealthlinkNY.
A qualified entity (QE) was previously referred to as a regional health-information organization (RHIO), according to a news release the organizations issued on Nov. 17.
STHL and THINC are calling the merger a “step toward unified exchange of health information in New York.”
The organizations had been collaborating on projects and consulting services and eventually thought it would be a “great idea” to merge, says Christina Galanis, executive director of Southern Tier HealthLink.
“So we got our heads together, looked at budgets and resources, and, as you would imagine with most mergers, two companies can often find economies of scale by combining activities under one umbrella,” says Galanis.
The organizations started preliminary discussions in November 2013, she says.
Galanis, who will serve as president and CEO of the merged organization, spoke with the Business Journal News Network on Dec. 1.
Galanis has been aware of THINC since 2005 because both organizations started under the state’s HEAL grant program, which ended in 2012.
STHL was formed as an entity following the 2005 application for HEAL I (Health Care Efficiency and Affordability Law) grant funding.
Of the 13 RHIOs that started with state funding in 2005, some organizations serving the New York City area have also merged, reducing the number to eight, says Galanis.
STHL is a nonprofit health-information organization that says it uses technology to bring together Central New York health-care providers and consumers to “improve health-care quality, access, and safety while reducing costs.”
Binghamton–based United Health Services, a regional health-care system; Lourdes Hospital of Binghamton; and other stakeholders established STHL in 2005.
Fishkill, N.Y.–based THINC says it works to advance the use of health-information technology through the “sponsorship of a secure health-information exchange network, the adoption and use of interoperable EHRs [electronic health records] and the implementation of population health-improvement activities.”
“New Yorkers will see their health care improve as a direct result of this important union between THINC and STHL,” Susan Stuard, executive director of Taconic Health Information Network and Community. “By joining forces, we will be able broaden our current services for patients and doctors, and expand our policy work.”
Stuard will serve as a senior vice president of HealthlinkNY focusing on grants, demonstration projects, and population health-improvement activities, says Galanis.
The merged organization will span 11 counties across the Southern Tier, Catskills, and Hudson Valley.
STHL currently employs 14 full-time workers. A 15th employee joins the Binghamton office on Dec. 15, says Galanis. THINC currently employs four full-time workers and plans to add two additional employees by January.
STHL is moving its Binghamton office in August “to accommodate our expanding staff,” she says. It currently operates in a 3,800-square-foot space in the Lackawanna Train Station at 45 Lewis St. in Binghamton.
The office will move to a 9,100-square-foot space at 49 Court St. in Binghamton.
The New York State Department of Health in November authorized the organizations to certify as one entity in the 2015 certification, which will take effect in May.
HealthlinkNY has a website that refers to the Binghamton office as the Western office and the Fishkill office as the Eastern office.
The New York State Attorney General and the Supreme Court of New York will need to review and approve the merger before it takes effect.
Galanis plans to file the paperwork for the merger before the end of the month.
“We have been told by others that have gone through this process that it can take anywhere from three months to a year,” she adds.
About HealthlinkNY
STHL has built a health-information exchange in its region and will expand the technology into the Hudson Valley as part of HealthlinkNY. THINC has established a “collaborative” model for “primary-care transformation and population-health improvement,” which will expand to include the Southern Tier with HealthlinkNY, according to the news release.
The new collaborative offers “secure” electronic access to statewide health information for participating providers and patients in the region, along with information and tools to help in “health transformation,” the organizations contend.
As a QE of health information-technology, HealthlinkNY will maintain patients’ electronic health records from participating health-care organizations and provider practices across the region, consolidating them into more “centralized and consolidated” records, the organizations said.
A combined, 20-person board of directors will govern the new HealthlinkNY organization.
Galanis says RHIOs are now referred to as QEs, which are eligible for public funding. RHIOs are required to meet certain regulations and are subject to an external third-party audit before reaching QE status. If an organization doesn’t pass the audit, then it’s not eligible for public funding.
“And if you’re not a qualified entity, you cannot connect with the other RHIOs, or other qualified entities. You can’t come on … to what we call the SHIN-NY,” says Galanis.
The merger occurs as the state is beginning to interconnect the QEs as part of the Statewide Health Information Network of New York (SHIN-NY), a network that enables the exchange of electronic-health records across the state.
New York is the “first large state” to create a public utility network of this kind, which funding included in the current state budget is supporting.
Contact Reinhardt at ereinhardt@cnybj.com
The Nurse Connection Staffing expands into Syracuse market
SYRACUSE — The Nurse Connection Staffing, Inc., an Albany–based provider of nursing staff for long-term care facilities, nursing homes, assisted-living facilities, and school districts, is expanding into the Syracuse market. Dan Moran, the firm’s managing director, says it “is technically referred to as a staff-augmentation company.” Moran spoke with the Business Journal News Network in
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SYRACUSE — The Nurse Connection Staffing, Inc., an Albany–based provider of nursing staff for long-term care facilities, nursing homes, assisted-living facilities, and school districts, is expanding into the Syracuse market.
Dan Moran, the firm’s managing director, says it “is technically referred to as a staff-augmentation company.”
Moran spoke with the Business Journal News Network in a phone interview on Nov. 24.
When an organization calls and says it needs a nurse or a certified nursing assistant (CNA), Nurse Connection Staffing has people it can deploy to fill that shift.
“It’s not permanent placement, it’s not temporary placement,” says Moran, who launched his firm 28 years ago.
With an aging population, the work at long-term care and assisted-living facilities is ongoing, and “that’s not going to change.”
“Their challenge is finding people,” says Moran.
Moran is searching for office space that would give the firm its “foothold” in the market. He and market manager Charles Harkola were searching in Fayetteville and in downtown Syracuse, he says.
Moran is seeking space that’ll accommodate a few offices and conference space.
“We’re not going to lock into a three-year lease now. It wouldn’t make any sense for us,” says Moran.
The firm has been recruiting in Central New York for a few weeks. It also held a hiring event on Nov. 25 at the local office of the New York State Department of Labor at 450 S. Salina St.
As Moran sought options for expansion, he examined the number of annual contracted hours in a given region.
Contracted hours are the number of hours an organization might need from a staffing firm.
In the eight-county Albany region, organizations have about 1 million contracted hours available. When he started examining the number of contracted hours in markets statewide, he says the data indicated Syracuse was “one of the top markets in New York” with more than 2.4 million contracted hours per year.
“So, there’s a significant potential … for our business model,” Moran contends.
Through their marketing and recruiting, Moran and Harkola are finding a “fair amount” of people who enjoy this type of work; it provides “flexibility,” especially to some of the company’s CNAs, who tend to be younger and have children.
The Nurse Connection Staffing employs 11 in Albany, including Moran; 11 in Syracuse, including Harkola; and about 200 field staff members (those who fill the positions), according to Moran.
It hired about 10 people at the Nov. 25 event at the local office of the state Labor Department. The firm has hired a total of 25 nurses in the Central New York region as of Dec. 2, a figure it expects to rise to near 50 by the end of the year, according to Harkola.
Employees are bonded, insured, and Nurse Connection Staffing carries their liability, he adds.
The firm looks for candidates with six months to one year’s worth of experience. “When they go into a facility, they have to walk in and they have to know what to do … because there’s no training time,” says Moran.
The Nurse Connection Staffing handles background checks, criminal-record checks, and credential verification through New York state, says Moran.
“We do all that and we don’t charge for that,” he adds.
When asked how the company is making itself known to organizations in Central New York, Moran replied with a laugh, “It’s called marketing, calling; marketing, calling.”
Harkola has been alerting local organizations about what the company is and does, says Moran.
“In our market research, there’s about 120 facilities in the Central New York area, not including Binghamton,” he says.
Some use staffing agencies and some do not, he notes.
On its website, Nurse Connection Staffing boasts that it currently serves 120 clients in the Capital region and upstate New York area.
Contact Reinhardt at ereinhardt@cnybj.com

Keystone State’s natural-gas boom lifts Payne’s Cranes
BAINBRIDGE — Pennsylvania led the country in spawning the oil business at Titusville in 1859. Today, the northeastern counties of the state are enjoying a natural-gas boom. According to the Monthly Labor Review (February 2014) published by the U.S. Bureau of Labor Statistics, employment in the industry rose 259.3 percent between 2006 and 2012. The
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BAINBRIDGE — Pennsylvania led the country in spawning the oil business at Titusville in 1859. Today, the northeastern counties of the state are enjoying a natural-gas boom.
According to the Monthly Labor Review (February 2014) published by the U.S. Bureau of Labor Statistics, employment in the industry rose 259.3 percent between 2006 and 2012. The financial impact of the gas boom has spilled over the border into New York state.
“The drilling in the Marcellus Shale [formation] just over the [state] border has been the mainstay of our business since 2010,” says John W. Payne, the president of Payne’s Cranes, located in Bainbridge (Chenango County). “Our crane service is needed to remove and install large compressors [that are required to pump the gas through pipelines], and our trucking service is required to haul the compressors back to the factory for repair and rebuilding. The future of drilling in Pennsylvania is bright for the next 20-30 years, because there are multiple shale layers and the amount of gas available from drilling increases over time rather than decreases, which is the reverse of what usually occurs in a gas well.”
Payne’s enterprise includes the original company founded in 1970 — JWP Construction, Inc. — and several other corporations. They are Payne’s Cranes, Inc.; Construction Services of Chenango, Inc.; Delaware Equipment, Inc.; and the newest addition, Dexheimer Building Movers and Riggers, Inc. Payne is also the owner of Bob’s Diner, Inc., the watering hole located on North Main Street in the village of Bainbridge. All of the companies are incorporated as “sub-S” entities. The consolidated operation employs 38 people and includes 26,500 square feet of covered space sited on a total of 17 acres. Payne is the sole stockholder with locations in Bainbridge and Guilford. The Business Journal News Network estimates annual consolidated income at $7 million.
“I thought I was going to be an industrial-arts teacher,” muses Payne. “After graduating Morrisville [College] in 1968, I took a teaching job in Philadelphia, N.Y. (Jefferson County). That year, I felt more like a baby sitter than a teacher. I came back to my hometown (Bainbridge) and worked some construction jobs. One day I was in Bob’s Diner, and Jess Hayes, a local contractor, asked me to buy his business. I walked across the street to borrow $12,000, and based on a handshake with a banker, I had a loan. I returned to Bob’s Diner before Jess had finished his coffee and told him we had a deal. As the owner of a dump truck, backhoe, and trailer, I earned $50 from my first customer unloading some top soil. Unfortunately, I backed over the family’s septic system, which I had to replace. This was the beginning of my on-the-job training.”
The initial capital investment soon grew as the companies added trucks, cranes, bulldozers, and other equipment. “We now own 12 cranes,” adds Payne, “ranging in size from 20 tons to 350 tons and booms that extend from 144 to 400 feet. Most of the cranes are mounted on all-terrain vehicles. For years, we have worked closely with UNA-LAM, a division of Unadilla Silo Co. located in Sydney, which manufactures engineered beams for large structures such as churches, equestrian riding rings, and college gymnasiums. Our work has taken us up and down the East Coast and as far away as Texas, although lately we limit most of our travel to adjoining states such as Pennsylvania and Vermont. A 400-mile radius is an optimal distance for a crane, because you can drive the rig there in one day.”
Acquisition
Payne’s growth had been organic, until last November when he bought L.D. Dexheimer & Son, Inc. in neighboring Guilford. “I have had a long working relationship with the Dexheimer brothers. The oldest, John, was ready to retire. I bought the rolling stock and rigging and leased the Guilford property for five years. The employees all remained with the company and so did most of the customer base. Dexheimer has had a market niche in moving buildings, which complements our business. You really need a specialty in this business to make money.” Guilford is located about 10 miles from Bainbridge.
When asked whether Payne is in a competitive business, the president smiles. “We have crane competitors as close as Binghamton and in nearby cities such as Syracuse, Utica, and Elmira,” asserts Payne. “But our biggest competitors are from outside the area. We really need to run a lean business to compete, and we need competent employees. It’s difficult to find trained crane operators, and many states, including New York, require that they be licensed. Every operator in this state needs at least three years before he can take a written exam, followed by a practical exam. There is no licensing reciprocity, so our operators have to be licensed in each state where we work. [Add to this that] … a crane operator is a dangerous profession, which discourages some people from even considering taking the position.”
Payne, 66, is planning to sell the rigging, transportation, and construction businesses to Gregg Eldridge, a 25-year employee with the business. Eldridge is currently the company vice president. “We’re just in the preliminary stages of putting together a deal, notes Payne, “which I assume will be a deferred-compensation arrangement. The idea is to transfer stock over a few years. I assume I will continue to be active after the sale, retaining the diner, which I bought and rebuilt 20 years ago and continuing as the president of the local chamber of commerce.”
Regarding the area’s business climate, Payne says, “I don’t expect to see the area attract major businesses such as Borden and NYSEG (New York State Electric & Gas), which had a major presence in the community, but we can help the businesses that are here with efforts like a buy-local program. We can also support the building by Leatherstocking Gas Co., [a joint-venture between Corning Natural Gas Corp. and Mirabito Regulated Industries], of a major, natural-gas line into the area which should continue to supply local businesses with an inexpensive and plentiful form of energy and help to attract some new business to the area.”
In America, the national bird is the bald eagle. In Bainbridge, the official bird is the crane.
Workforce report: Demand for nonclinical and frontline health-care roles remains high
A year after the launch of the federal and state health-care exchanges, current demand and future projections remain high for frontline and nonclinical health-care workers whose jobs have been expanded in number and scope. That’s according to a newly released workforce-trend report by the nonprofit College for America at Southern New Hampshire University. The eight-page
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A year after the launch of the federal and state health-care exchanges, current demand and future projections remain high for frontline and nonclinical health-care workers whose jobs have been expanded in number and scope. That’s according to a newly released workforce-trend report by the nonprofit College for America at Southern New Hampshire University.
The eight-page report, entitled “Nonclinical & Frontline Healthcare Roles Continue to Rise: Six growing roles and the 55 skills they have in common,” is available for download at: collegeforamerica.org/healthcare-workforce-report.
Baby-boomer retirements, new technologies, and implementation of the Affordable Care Act (ACA) are redefining the nature of the patient-care team, College for America said in a news release. The report reviews how the shift to team-based patient care and an increased focus on the patient experience demands more complex skill sets of nonclinical and frontline workers. It also identifies six of these fast-growing positions — along with their average education levels and salaries — and highlights the two positions that are most influenced by the effects of ACA.
Through an analysis of labor market data, real-time data, and interviews with health-care administrators nationwide, the report also identified 55 key detailed work activities that are common across these high-growth roles and often easily transferable between job titles, the news release stated.
The report is the product of the workforce strategy team at College for America, which says it is dedicated to better connecting higher education, workforce research, and labor market trends.

Fleet Feet Syracuse announces new training-program platform
DeWITT — The local franchise of Fleet Feet Sports recently announced a new training-program platform that offers fitness classes and workouts for anyone at any time. The new platform will provide “more options, more flexibility, more classes and more convenience,” the company says. It’s a program Fleet Feet Syracuse is calling Running Plus, says Edward
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DeWITT — The local franchise of Fleet Feet Sports recently announced a new training-program platform that offers fitness classes and workouts for anyone at any time.
The new platform will provide “more options, more flexibility, more classes and more convenience,” the company says.
It’s a program Fleet Feet Syracuse is calling Running Plus, says Edward (Ed) Griffin, co-owner of Fleet Feet Syracuse.
Fleet Feet Syracuse operates locations at 5800 Bridge St. in DeWitt and at 4136 Route 31 in Clay in the Market Fair North Plaza, across from the Great Northern Mall.
Griffin spoke with the Business Journal News Network at the DeWitt store on Nov. 20.
Rather than just offering specific programs that meet the same day each week for a 10-week or 12-week period, Fleet Feet Syracuse will now offer membership options that allow participants access to a calendar of training classes.
“Any of the people that are signed up for the program … can participate in multiple programs per day any day of the week they want,” says Griffin.
They include long and short-group runs, spin and functional-fitness classes, open swim sessions and yoga, along with educational seminars and clinics.
Griffin describes functional fitness as “building up the different muscle groups that you don’t hit when you’re … running.”
“It’s really an unlimited access to creating your own schedule when it fits your schedule,” he adds.
Fleet Feet Syracuse developed the new training-program platform based on feedback from its customers who wanted more flexibility to get involved in sessions.
“If you only hold a program specifically once a week and it doesn’t fit into someone’s schedule, then now you’ve eliminated them from potentially being in your program,” he explains.
Fleet Feet Syracuse is giving customers the option to try three sessions free-of-charge. Beyond that, the company offers monthly, quarterly, and annual membership options with different payment plans.
The membership prices range from $549 for an annual membership to $169 for a three-month membership to $69 for a one-month membership, according to the Fleet Feet Syracuse website.
“It essentially is priced to be somewhat below what an average gym membership would be,” says Griffin.
Besides the new Running Plus training program, Fleet Feet Syracuse will continue offering its running program for beginners, a 10-week program that it offers three seasons per year. It will also continue offering its triathlon program.
“So those two programs still stay intact,” he says.
Clay store operations
The 5,000-square-foot Fleet Feet location in Clay has operated for more than a year. The franchise deemed it “the top grossing first year store in the history of Fleet Feet Sports, Inc.”
Fleet Feet Syracuse opened the Clay location on Nov. 1, 2013, and in its first year of operation, the location generated revenue between $1.4 million and $1.6 million, says Griffin.
Griffin, and his wife, Ellen, had planned for the Clay store to generate about 20 percent of the local franchise’s business, but the store’s performance is exceeding their revenue expectations.
“It’s been more in that 25 [percent] to 28 percent range,” says Griffin.
Fleet Feet Syracuse has 52 employees in a mix of full-time and part-time roles, he adds.
Fleet Feet, Inc. is a national 129-store chain that Sally Edwards and Elizabeth Jansen opened in Sacramento, Calif. in 1976. The company is now headquartered in Carrboro, N.C., according to a company description on the website of Entrepreneur magazine.
Contact Reinhardt at ereinhardt@cnybj.com
Survey: Upstate employers expect health-benefit costs to rise 6-10 percent
As we head toward the end of 2014, most businesses are estimating their costs and budgeting for 2015. Upstate New York employers estimated their health-benefit cost per employee would rise 10.1 percent next year, on average, if they made no changes to their current health-care plan. And, they expect to hold their cost increase to
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As we head toward the end of 2014, most businesses are estimating their costs and budgeting for 2015. Upstate New York employers estimated their health-benefit cost per employee would rise 10.1 percent next year, on average, if they made no changes to their current health-care plan.
And, they expect to hold their cost increase to 6.4 percent, on average, by making changes to health-plan design and/or plan vendors.
Those estimates are according to the “National Survey of Employer-Sponsored Health Plans,” that Mercer, a health-care consultant, conducts annually.
Mercer is a wholly owned subsidiary of New York City–based Marsh & McLennan Companies (NYSE: MMC).
The results for upstate New York represent the responses of 46 local employers.
Employers nationwide predict that in 2015 their health-benefit cost per employee will rise 4.6 percent, on average, according to a news release Mercer posted to its website on Nov. 19.
This increase reflects changes employers will make to reduce cost. If they made no changes to their current plans, they estimate that the cost would rise by an average of 7.1 percent.
The same survey found the average per-employee cost of health benefits for companies nationwide rose nearly 4 percent in 2014.
The figure represents a bigger increase than last year’s “historically low” increase, but it is still well below the 7 percent average rate of growth over the past 15 years, Mercer said.
The total health-benefit cost averaged more than $11,200 per employee in 2014, according to the Mercer survey.
At the same time, the total health-benefit cost for active employees in upstate New York increased 4.3 percent in 2014, to an average of $10,739 per employee.
Consultant view
The cost per employee for upstate respondents is still lower than the figures seen nationally, says Thomas Flynn, Mercer’s health and benefits leader for Upstate.
“Even though we’re in … communities where you would expect the health care to be above-average, cutting edge, maybe a little bit more expensive, we’re still lower than most,” says Flynn.
When asked about the expected higher percentage rise in cost-per-employee, Flynn notes that businesses in other parts of the country were “way ahead” of upstate firms in increasing deductibles and moving away from co-pay-based health plans.
“We still like our co-pays and we still like to have a relatively rich plan that keeps our employees confident [and] comfortable,” he adds.
Flynn contends that upstate New York is still “closer to the HMO [health-maintenance organization] community than most places in the country.”
Many employers anticipate spending more to cover more employees in 2015 as the Affordable Care Act (ACA) provision goes into effect requiring employers to extend coverage to substantially all employees working 30 or more hours per week.
“By and large, it’s business as usual,” Flynn said when asked if any of his upstate clients were taking any steps to limit the number of workers reaching the hourly threshold.
Companies will need to adjust, he says, especially for variable-hour employees, where the provision gets “complex.”
He describes variable-hour employees as those who don’t work full- or part-time hours all the time.
“I think what employers have done both locally and nationally is try to get a little more disciplined on managing that population, so that they don’t have someone that bubbles up and meets that 30-hour provision and before they weren’t,” he says.
The survey asked employers how likely they are to terminate their medical plans within the next five years and send employees to a public health exchange to seek coverage.
The survey found 8 percent of upstate New York respondents say they are likely or very likely to do so.
Nationally, 4 percent of large employers and 15 percent of small employers (50-499 employees) say they are likely or very likely to terminate their plans within five years.
Other 2014 upstate findings
The Mercer survey found 46 percent of upstate respondents offered a high-deductible consumer-directed health plan (CDHP) with an account feature (an HSA or HRA) in 2014.
HSA is short for health-savings account and HRA is short for health-reimbursement account.
When asked to think ahead three years, 63 percent said they expect their organization will offer a CDHP in 2017.
Several Mercer clients were evaluating CDHPs during 2013 and appeared to include them in their plan offerings.
“This was the year that people started to make those decisions to have a high-deductible plan at least in their offering because they need to make sure that they have the affordable option,” says Flynn.
The Affordable Care Act says employer-offered health insurance is not affordable if the purchase cost for coverage is more than 9.5 percent of an employee’s wage income.
The Mercer survey also found that 67 percent of all employees covered in respondents’ health plans are enrolled in PPO/POS plans, 13 percent in HMOs, and 21 percent in CDHPs.
PPO is short for preferred-provider organization, while POS is short for point of service.
The average employee contribution amount for employee-only coverage is $142 monthly for a PPO/POS plan, and $74 monthly for a CDHP.
Mercer conducts its National Survey of Employer-Sponsored Health Plans using a national probability sample of public and private employers with at least 10 employees, and 2,569 employers completed the 2014 survey.
The firm conducted the survey during the late summer, when most employers have a “good fix” on their costs for the current year. Results represent about 600,000 employers and nearly 100 million full- and part-time employees.
The error range is 3 percent, Mercer says.
Contact Reinhardt at ereinhardt@cnybj.com

10 Sales Strategies For Taking Charge of 2015
Tactics constantly come and go in sales without making a significant impact on outcomes. On the other hand, solid strategies can make a significant difference in what happens. Here are 10 sales strategies that can have a positive influence on your performance in 2015. 1. Define yourself clearly. Most people let others decide who they
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Tactics constantly come and go in sales without making a significant impact on outcomes. On the other hand, solid strategies can make a significant difference in what happens. Here are 10 sales strategies that can have a positive influence on your performance in 2015.
1. Define yourself clearly. Most people let others decide who they are, define their capabilities, and determine what they can accomplish. This happens without even knowing it. More often than not, the results are far from accurate.
Worse yet, such “labels” stick, unless we work to change them by having a clear picture of how we want to be perceived and actively reinforce it. If being seen as thoughtful, helpful, hard working, cooperative, motivated, and reliable is your preference, then your task should be focusing on strengthening those qualities.
2. Be ready with answers to questions. Experienced salespeople have thoughtful and carefully crafted answers when customers ask questions. That’s good as far as it goes, but what about the questions that customers think about after a meeting? When they’re left unanswered, they can challenge credibility and raise doubts.
This is why frequently asked questions (FAQs) can help avoid problems. Make a list of those that come up time-and-again, along with your answers. Ask customer-service people to help. Then, email your FAQs to a customer or prospect after a meeting. Also add a link to your FAQs to your email signature. It’s a good way to show you know what customers are thinking.
3. Rethink responsiveness. While responsiveness is a top business value, it’s usually related to “putting out fires.” Problems get immediate action. What about the other 99 percent of the time? Specifically, voice-mail messages, emails, agreed-to deadlines — the list might be long. Failing to manage the details sends a powerful message; so does handling them.
4. Use the power of pause. Salespeople often talk their way out of sales. It doesn’t take talent, just an endless stream of words that confuse, frustrate, and antagonize customers, who can’t get a word in edgewise. Salespeople often act as if a lull in their sales spiel is so dangerous that it must be avoided at all cost.
There’s a better way. Taking time to pause lets customers absorb what is being said, and suggests the person speaking is thinking about his choice of words. Pauses also encourage listening; it’s as if customers are waiting for what’s coming next.
5. Manage prospects effectively. The mismanagement of prospects creates the weakest link in the sales chain. Prospects are dropped too soon or disappear due to a lack of regular follow-up.
Like customers, prospects deserve good management — some change their minds, others aren’t ready to buy, and a number simply need encouragement. One salesperson gets referrals from a prospect that didn’t buy because of a health problem, but who felt the consistent follow-up sent the right message.
6. Put the emphasis where it belongs. Because selling is a tough profession, salespeople like to let everyone know that “nothing happens until someone sells something.” This phrase is quoted so often, it’s assumed to be true. It’s never challenged, even though it’s nonsense.
In fact, just the opposite is true. Nothing happens until someone buys something. This stands selling on its head and changes the way to think about marketing and sales. It moves the emphasis from the salesperson to the customer — where it belongs.
7. Getting customers to say yes isn’t the goal. Even though reality has changed, the persuasion mindset remains embedded in marketing and sales. “If I can get an appointment, I’ll come away with an order” is the motto. Or, it’s this: “If we can get through to consumers with our message, that’s all it will take.”
Even though the mindset persists, it’s dead. Marketing and sales are at a different place; they’re about engaging customers by involving them in the process and making sure they have a place at the table. Communication is not just helpful. What customers are thinking and saying dwarfs everything else.
8. Aim for the right fit. No salesperson can serve every customer. No one can always have the correct product or service, and no salesperson can possess the personality or temperament that is the right match for every customer. Too many sales people waste time trying to prove these wrong. It never works.
9. Get people talking about you. Salespeople say referrals are the best business. Yet, for most salespeople, referrals are few-and-far-between. They’re the wish that’s rarely fulfilled. Worse yet, there are customers and others who pass referrals out as if they’re giving candy to kids — and they have no value.
Getting legitimate referrals means being a continuing presence in the minds of customers, prospects, or anyone else. It’s easy to do by finding ways to be of assistance to customers. When this occurs, the common response is to reciprocate. In other words, making referrals is a way for customers, prospects, and others we know to say, “Thank you.”
It isn’t how well known salespeople are that makes the difference; it’s how much help they give that counts.
10. Think like a customer. It’s not only difficult for salespeople to think like their customers, many also make a point of avoiding it. They don’t want to be distracted from staying focused on getting the order. Even so, salespeople should appreciate what making a purchase means to customers.
For consumers, neither what they buy nor the cost is the issue. What’s important for salespeople is recognizing that making a purchase is a personal investment that they take seriously. It’s as if a customer says, “Hey, salesperson. This is my money and I want to feel that you recognize what I’m doing. It’s my skin that’s in the game.”
Whether it’s a friendly smile from a barista at Starbucks handing someone a favorite latte or a life insurance salesperson saying to a client, “I know what doing this means to you,” the message is the same. Both are making it clear that they recognize the importance of thinking like a customer.
When it comes to lasting results, these 10 sales strategies can make a difference in 2015 and beyond.
John R. Graham of GrahamComm is a marketing and sales consultant and business writer. He publishes a free monthly eBulletin, “No Nonsense Marketing & Sales.” Contact him at jgraham@grahamcomm.com or visit: johnrgraham.com
“What is the best use of my time right now?” The famous question posed by author Alan Lakein, and the related response, “goal setting and planning,” captures the essence nicely. For the typical business owner, “planning” brings to mind income-tax planning, or perhaps sales planning, or even budget planning. While all of these are important,
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“What is the best use of my time right now?” The famous question posed by author Alan Lakein, and the related response, “goal setting and planning,” captures the essence nicely.
For the typical business owner, “planning” brings to mind income-tax planning, or perhaps sales planning, or even budget planning. While all of these are important, there is more to the picture. Much more.
It is, of course, quite common to spend a significant amount of time focusing on the day-to-day needs of your enterprise. Covering cash-flow needs, ensuring product delivery, and securing new business are vital activities. These important endeavors often leave little time for planning in the larger context.
Whether you call it risk assessment, succession planning, enterprise risk management, or good old common sense, the list of activities could seem endless and therefore not achievable. So let’s start with just a few A-list items.
The unexpected exit
Starting your business may have been the result of long-term planning or an “ah-ha” moment where resource and opportunity collided. Whatever case, an exit strategy may well not have been part of the picture. It is not too late. Take a look at the potential reality of death, disability, or other unexpected exit circumstances and figure out how you would like things to play out. A solid buy-sell agreement, coupled in many cases with key-executive insurance, to fund buy-out and business continuance is a must.
Desire to share the wealth
Perhaps (and often a foundation of succession planning) there is an interest in bringing in business “partners.” These partners come in many shapes and sizes, some offering financing, and others bringing business-development acumen. By defining needs and drawing agreements on how the business will operate with the addition of new members, you stand a much better chance of a harmonious relationship for the long term. Always know how to get out of a business situation when you get in. Exit arrangements generally fall into two categories: cross-purchase or redemption. The right type depends on your circumstances.
Succession equals sale
Perhaps you are just ready to dispose of your business, or someone is knocking on your door with an offer that is too good to pass up? The best way to be prepared for either circumstance is to have a clear understanding of what your enterprise is worth. How do you accomplish this? Business valuation is the answer. Business brokers may offer input and you can contact an individual certified in business valuation, one who specializes in determining value, to become well-informed and realistic about your expectations.
Wealth management
Your business is likely a significant aspect of your personal wealth. Understanding value (read: business valuation), liquidity or marketability, and the potential tax effect of disposal of your business is critical to making good decisions. Opportunities, or sometimes needs, can come up quickly. So be prepared.
The other stuff
Make a list. It is that easy. Sit down for 45 minutes and assemble a list of the items that keep you up at night, or you heard someone talking about at the gym, or saw in the business section, and give yourself a place to start as you continue your planning journey. To get you started, consider some of the following: insurance review, retirement-plan review, comprehensive retirement plan, budgeting (business and personal), investment diversification, wills, trusts, and health-care proxies.
In Lakein’s words, failing to plan is planning to fail. Avoid becoming part of that story and contact your CPA today; he or she is an invaluable resource as you plan to protect the future of your business and family.
Gail Kinsella is a partner in the accounting firm of Testone, Marshall & Discenza, LLP. Contact Kinsella at gkinsella@tmdcpas.com
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