The
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MARCH 2009 s Vol. s .O. 3
®
A lifestyle magazine for Costco members
Cover story C
PAGE 21
Order in the court COSTCO’S FOOD COURTS began as a humble hot dog cart 25 years ago, selling a hot dog and a soft drink for $1.50. Now? Millions
served, more selections and the price of that hot dog and soda hasn’t changed. BY DAVID WIGHT
DEPARTMENTS
5
Front End By Ginnie Roeglin and David W. Fuller
7
Dialogue Letters from our readers
9
Fresh Views Brain food for the entrepreneur
11
Consumer Connection By David Horowitz
13
Financial Connection By Suze Orman
14
Debate Should animals have the same rights as people?
64
Member Connection Odds and ends from Costco members
INSIDE COSTCO
16
Survivor Corps Costco member Jerry White lost his leg, and found a cause. BY WILL FIFIELD
19
Sucess or bust Warren Tracy’s Busted Knuckle Garage began as a dream—literally.
Section: 40 Special Outdoor Living s s s s s
Bird and butterfly gardens Backyard makeovers Rose-care tips Stone-tabletop care Vertical gardening
51
BY RALPH GRIZZLE
57
includes a variety of tasty traditional dishes.
"9 6!,%2)% 29!.
BY LISA ALCALAY KLUG
legalese easy to understand. BY PETER MALCOLM
31
meals 44 Passover This annual Jewish celebration
Arundhati Roy’s 1997 novel of life in India. Plus three other Pennie Picks. spoken here 29 Lawyer-ish Nolo Press aims to make
Cinderella hamster story? Disney artist Mark Walton’s voiceover for Rhino the hamster became the hit of Bolt. Plus, the star of Twilight speaks.
The check’s in the mail Costco American Express rebates are here! BY WILL FIFIELD
"9 4 &/34%2 */.%3
Pick: The God of Small Things 27 Book Award-winning Indian screenwriter
Costco Travel service A cruise on the Paul Gauguin is an exquisite way to experience Tahiti.
kitchen 45 Germ-free Make sure your cooking center is clean and healthy. success 49 Large-scale Belly Fat Cure participants and Q&A with the man behind the diet.
58
Buying Smart: Special Events Dazzling deals for limited times in the warehouses. BY PAT VOLCHOK
ALSO 60 What’s New 62 Special Events 63 Costco Services Update
MEMBER SE R VICE : 1-800-774-2678
BY JORGE CRUISE
"9 3#/44 34%)."%2' !.$ * 2%.4),,9
contest winners 35 Cartoon The entries were many, the talent overflowing, in the first Costco cartoon contest. COVER AND/CONTENTS ILLUSTRATION: STEVE BJORKMAN; WARREN TRACY PHOTO: M. JENNIFER CHANDLER; BOLT ART: © DISNEY
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Busted Knuckle Garage owner Warren Tracy 19
Rhino, the surprise hero of Bolt 31
2/12/09 1:31:42 PM
You could be earning an annual
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09EX0507 12/08
2/16/09 11:29:33 AM
FRONTend ®
PUBLISHER Ginnie Roeglin EDITOR David W. Fuller 425-313-8510
[email protected] EDITORIAL DIRECTOR Anita Thompson 425-313-6442
[email protected] MANAGING EDITOR MANAGING EDITOR MAGAZINES BOOKS T. Foster Jones 425-313-6748 Tim Talevich 425-313-6759
[email protected] [email protected] ONLINE EDITOR David Wight
[email protected] ASSOCIATE EDITORS Lorelle Gilpin, Ottawa 613-221-2009
[email protected] Sue Knowles, London 011-44-1923-213113
[email protected] Raymond Kyunghwan Kim, Seoul 82-2-2630-2703
[email protected] ASSISTANT EDITORS Stephanie E. Ponder, Seattle
[email protected] Jessica Jihye Han, Seoul
[email protected] REPORTERS Will Fifield
[email protected] Steve Fisher
[email protected] COPY EDITOR Miriam Bulmer CONTRIBUTORS Rhonda Abrams, Jorge Cruise, Ralph Grizzle, Susan Hirshorn, David Horowitz, Lisa Alcalay Klug, Laura Langston, Peter Malcom, Suze Orman, James Podolny, J. Rentilly, Valerie Ryan, Scott Steinberg, Pat Volchok ART DIRECTOR Doris Winters
[email protected] ASSOCIATE ART DIRECTOR Lory Williams
[email protected] GRAPHIC DESIGNERS Ken Broman, Bill Carlson, Susan Detlor, Chris Rusnak, David Schneider, Dawna Tessier, Brenda Tradii PRODUCTION MANAGER Pam Sather
[email protected] ASSISTANT PRODUCTION MANAGER Antolin Matsuda
[email protected] PRODUCTION SUPERVISOR Elaine Emond, Ottawa
[email protected] COLOR TECHNICIAN MaryAnne Robbers
[email protected] ADVERTISING MANAGER Jane Klein Shucklin 425-313-8277
[email protected] ASSISTANT ADVERTISING MANAGER Kathi Tipper-Holgersen 425-313-6581
[email protected] ADVERTISING COORDINATORS Melanie Woods, Seattle 425-313-2558
[email protected] Deborah Lipman, London 011-44-1923-830481
[email protected] Leah Clement, Ottawa 613-221-2383
[email protected] SENIOR ADVERTISING PROJECT MANAGER Steve Trump
[email protected] ADVERTISING / PROMOTION COPYWRITER Bill Urlevich NATIONAL ADVERTISING OFFICES John McCarthy & Associates 2683 Grandoaks Drive Westlake Village, California 91381 John McCarthy, 818-706-8066, BUSINESS MANAGER Janet Burgess CIRCULATION MANAGER Rossie Cruz 425-313-6715
[email protected] CIRCULATION / EDITORIAL ASSISTANT Dorothy Strakele 425-313-6899
[email protected] ADMINISTRATIVE ASSISTANT D. Ted Harris 425-313-2937
[email protected]
COSTCO WHOLESALE P.O. Box 34088, Seattle, WA 98124-1088 999 Lake Drive, Issaquah, Washington 98027 Fax: 425-313-6718 E-mail:
[email protected] For information on warehouse hours and more: 1-800-774-2678 or visit Costco.com
The Costco Connection is published by Costco Wholesale. All editorial material, including editorial comments, opinion and statements of fact appearing in this publication, represents the views of the respective authors and does not necessarily carry the endorsement of Costco Wholesale or its officers. Information in The Costco Connection is gathered from sources considered to be reliable, but the accuracy of all information cannot be guaranteed. The publication of any advertisements is not to be construed as an endorsement of the product or service offered unless it is specifically stated in the ad that there is such approval or endorsement. Products advertised may not be available at all locations at the time of publication. Publishing offices are located at 999 Lake Drive, Issaquah, WA 98027. Copyright © 2009 Costco Wholesale.
from the publisher’s desk Ginnie Roeglin THE RENEWAL OF SPRING seems to bring out the gardener in most everyone. To help you get started, we’ve included a special Outdoor Living section in this issue. Beginning on page 40, you’ll find suggestions on which flowers and shrubs to plant to attract birds and butterflies, tips for growing beautiful roses and ideas for planting a vertical garden. You’ll also find a variety of patio furniture, Ginnie Roeglin is Senior Vice greenhouses, sheds, awnings and lawn-care items available President, E-Commerce and in our warehouses and on Costco.com. Publishing, and Publisher of Preparations may already be under way by our memThe Costco Connection. bers who will celebrate the annual eight-day festival of Passover next month. Our warehouses and Costco.com carry a wide selection of foods that are kosher for Passover, as several members attest in our story on page 44. New to our Web site this spring is our International Grocery, where you will find an assortment of case quantities of your favorite kosher, Asian, Hispanic, Indian and organic foods. Speaking of food, how are you doing with that New Year’s resolution? Fitness expert Jorge Cruise is back for an update on his fitness challenge to Costco members. Nearly 200,000 Costco members have downloaded Jorge’s free Belly Fat Cure report (see page 49 for more details and how to download the report). Many members have already reported success in just the first few weeks of the program. At Costco, we try to surprise our members with great values on unexpected items in what we often refer to as the “treasure hunt.” Cynthia Glaser, vice president of Special Events, and her team of buyers are constantly looking for new and exciting items that they can bring to our warehouses for a limited time. On page 58, Pat Volchok tells the inside story about our Special Events program. Finally, watch your mailbox for our latest coupon book filled with savings on a variety of food and non-food items available at our warehouses and Costco.com. C
from the editor’s desk David W. Fuller THERE ARE MANY GOOD ways to characterize Costco, but I believe the best of them all may be as a company based on fairness. One of the best illustrations of that is our Food Court, where we have, in a quiet yet somehow audacious way, been offering a hot dog and a soft drink for the same price—$1.50—since 1985. Our article on page 21 goes into some of the details of how David W. Fuller is Assistant Vice President, Publishing, and we have been able to do that. I want to comment on why Editor of The Costco Connection. we want to do that. Holding a price that steady for that long sends a clear message about what is possible when you decide to operate your business model on a “cost plus” basis, instead of a “what the market will bear” basis. The “cost plus” approach is based on the idea that a business can operate on a fair markup and still pay all of its bills; pricing is determined by carefully examining true costs, and profits are maintained by stringently controlling costs. “Cost plus” is a world away from the “what the market will bear” approach, which is based on upping prices until they reach the customer’s pushback point; that has little to do with the concept of fairness. What is interesting about a company that strives to operate by being fair to all is what can be accomplished when people (customers, suppliers, employees, shareholders, the community at large) believe they are getting a fair deal. For starters, the work, the products and the prices stand on their own. No need to lavish time and money on tooting your own horn, no need to find elaborate ways to disguise price hikes, no need to be anything but transparent, to use a voguish word. Maybe it’s a lot to ask of a simple hot dog, to have it carry such an important message. Fortunately, the dog gets quite a bit of help from throughout Costco’s operations all over the world, where dedication to fairness is a daily practice. But, let’s face it: A huge dog and a soda for a buck-fifty? Man! C MARCH 2009 The Costco Connection
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DIALOGUEletters
Debate goes on In response to the February Debate, “Should dating co-workers sign a ‘love contract’?” NO. Any contract that is not upheld or enforced is useless, and in a “politically correct” society this will never fly. Madeleine Fratello Smithtown, New York YES. Employee guidelines are necessary to the workplace. Relationships have the potential to affect both employees’ performance. Having clear, concise directives in writing may avoid a difficult situation. Sandra Levenson Souderton, Pennsylvania
Odds and ends The Connection is flippin’ great! While reading the latest edition of The Connection, I realized I wasn’t flipping to the back of the magazine to finish articles. What a unique concept! I read a lot of magazines and newspapers and find I’m constantly flipping towards the back to finish an article. Once finished I have to find where I was to continue through the issue. It is annoying and slows me down. Thank you for the thoughtful layout and interesting articles. Cathy Mugford Tacoma, Washington
Have something to say? Readers are encouraged to submit letters to our editors on any topic or issue covered in The Connection. Please include your full name and phone number or address. Send all letters to: Dialogue, The Costco Connection, P.O. Box 34088, Seattle, WA 98124-1088; fax to (425) 313-6718; or e-mail to
[email protected]. The editors reserve the right to edit letters for publication.
Belly up to the (ice cream) bar We often eat lunch at the Food Court, and always reminisce about the wonderful nutty bars (ice cream bars dipped in chocolate and nuts), which are no longer served. They were the best, and the best buy in town! If they weren’t profitable, the price could have been raised a dollar and still would be a bargain. Doug Fisher Sublimity, Oregon
Costco members will be glad to know that the ice cream bars are coming back to all Costco locations in April—and the price remains unchanged at $1.50. For the full story on Costco Food Courts, see this month’s cover story on page 21.—Ed. A novel approach After reading the article and favorite book lists by some of your book buyers [“Book Table Fable,” November 2008], I want to thank the young lady [book buyer Pennie Clark Ianniciello] who recommended Wallace Stegner’s Angle of Repose. What a great read! I love discovering new (to me) authors and then devouring their works. I am very grateful that you published her ideas. Teresa Quinkert New Albany, Indiana Praise for David Murdock I enjoyed the article on David Murdock, the owner of Dole [“Let’s eat right,” January 2009], and I’m glad he is encouraging people to eat wholesome, low-fat foods. My daughter doesn’t eat meat, eggs or dairy products, and I’m trying to eat better myself, so I always keep an eye out for new vegan foods when I’m at Costco. Katie Moore Baltimore, Maryland Some body out there likes us I loved the [Member Connection] article regarding artist Tehila Eisenstat and the pictures of the swim forms that were painted [“A body of art,” January 2009]. About five years ago I bought a bathing suit at Costco, and made a collage for my son with the form. I used gold glue and lots of pictures from various magazines about things that were relevant
Subscription
changes
You’ve changed ... For subscription address changes or to stop receiving the print edition of The Costco Connection, send an e-mail with the code directly above your name, and your name, address, city, state and zip as they appear on the mailing address area on the magazine, and your change/request to subscription@costco. com, or mail to: Subscription Dept., P.O. Box 34088, Seattle, WA 98124-1088. Be sure to include your Costco membership number.
Subscribe to our Online Edition To subscribe to the Online Edition, an electronic replica of The Costco Connection, go to Costco.com and enter your e-mail address where you see “Sign up to receive offers.” Each week you’ll receive product news, special offers and a link to the Online Edition. Costco does not sell or share members’ e-mail addresses.
Reader survey Please take a moment to complete our anonymous member information survey. Just go to Costco.com and search “Connection.” Click “Reader Survey” on the welcome page. Upon completion, you will have the option to enter a drawing for a $100 Costco Cash card.
to a teenage boy, and I glued and painted on the inside of the form. I had so much fun making it. I am so glad that she took this a few steps further, and it is considered real r art. Nancy Jones Murrieta, California The “dish” on green T I purchased some of the environmentally friendly items e featured in your article [Buying Smart: “Soap Dish,” February 2009], and I couldn’t be happier. Prior to discovering these products, I had bought several other so-called ecominded products, only to find out that they weren’t what they claimed to be. Hopefully, your article will save others from making the same frustrating mistakes. I am so thankful that Kirkland Signature chooses to make responsible products that are also affordable and effective. Chris Hofer Maple Valley, Washington MARCH 2009 The Costco Connection 7
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FRESHviews R H O N D A
A B R A M S :
Rhonda Abrams is president of The Planning Shop, a publisher of books for entrepreneurs (www. planningshop.com).
Get out there THE ECONOMY is bad and going to stay that way for a while. If you run a business, what are you going to do? There’s a long-recognized rule: In bad economic times, companies that maintain their marketing come out healthier than companies that cut back their marketing. But budgets are tight, so you have to market smarter. There’s a common misperception that marketing equals advertising. But marketing is much more than that. In my new book, Successful Marketing: Secrets & Strategies, I cover the entire range of marketing tactics available for small and new companies. In particular, I focus on those marketing tactics that are most affordable. Here are a few key affordable marketing tricks taken from my book. Tighten your target market. Smaller, highly targeted marketing options are far cheaper— and often more effective—than tactics that will reach a larger audience. Let’s say you’re selling a new kind of baby product. Exhibit at a local or state meeting instead of a national conference of pediatricians; advertise in a local publication just for parents instead of the regional newspaper. Ask for “remnant space.” If you are adver-
S T R A T E G I E S
tising, whether it’s print, TV or radio, every media outlet has unsold space they sometimes sell to smaller advertisers at a fraction of the regular price. A company I know got nationwide remnant ads on CNN for only $500. In this economic environment, ask for deals! E-mail newsletters. Web-based services with pre-formatted templates that maintain your list and do all of the technical work for you (except writing a few paragraphs) are a cheap, easy way to regularly remind customers and referral sources of your value. Advertise on specialty items. Keep your name in front of current customers by giving small, inexpensive gifts with your name printed on them. It’s an ad perceived as a gift. Offer samples. Typically the one thing you can most afford to give away is your own product or service. Sampling applies not just to food items or trial versions of software but also to limited free offers of your services or other products. Remember, when times are tough, smart businesses look for every advantage. So get out there and market, market, market! C
Rhonda Abrams’ newest book is Successful Marketing: Secrets & Strategies. Register for Rhonda’s free business tips at www.planningshop.com. Copyright Rhonda Abrams 2009.
More in archives On Costco.com, enter “connection.” At Online Edition, search “Rhonda Abrams.”
SOME ECONOMISTS are crying, “The sky is falling,” while others are focusing on blue skies ahead. Bestselling author, economic forecaster and Costco member Harry S. Dent Jr. does both. In his new book, The Great Depression Ahead: How to Prosper in the Crash Following the Greatest Boom in History (available at select warehouses and Costco.com), Dent explains how to weather the current financial storm. Dent’s financial prognostications have proven accurate. He predicted the great boom of the 1990s and Japan’s downturn in the late 1980s, and, in 1992, foretold a global depression that would begin in 2008. “This downturn is going to be deeper and last longer than most think,” says Dent. “The businesses that get focused, lean and mean early on will gain market share from this survival-of-the-fittest process. There are very specific actions you can take.” Among them are: capital expenditures s Defer and loans until the worst
Collections made easier
of the downturn, when assets and real estate will be much cheaper and interest rates lower.
By Leonard Sklar
the parts of your s Identify business that you want to grow long-term, and sell or close everything else to create capital and cash flow. PHOTODISC
ARE CUSTOMERS SLOW in paying you or not paying at all? Here are some ways to collect more of what is owed to you. s A collection phone call is 10 times more productive than another billing statement. s Call frequently. Calling once or twice a week is not harassment and is far more effective than monthly calls or invoices. s When you call, always ask for payment in full, sent today. If you have to negotiate, it’s best to start from the strongest position. s If your customer is vague and offers to send “a payment” or “something on the account,” tell the customer, “That’s great, but we need to have a specific amount on a specific date.” Then, ask for half now and the balance in two weeks. s If you agree to accept multiple payments, ask for postdated checks to be sent now, along with the first check. s Offer a discount for PIF—payment in full—today. s When you get a promise to pay, confirm the amount and when it will be sent. Tell the customer
Survival of the fittest
you will mark it on the calendar three days from that date to let him or her know you’ll be looking for the check. s If you get no cooperation, say that you hate to turn the account over to collections, but you may have no choice. That tends to focus your debtor’s mind. C
Leonard Sklar (
[email protected]), a Costco member in Redwood Shores, California, is a collections consultant, trainer and author of The Check Is Not in the Mail (Baroque, 1991).
off high-interest loans s Pay and refinance in the downturn at lower rates to be more creditworthy. fixed-rate loans s Choose into late 2010, or later, that switch to variable rates from there on, saving refinancing cost s. your personal s Protect assets from lawsuits through trusts and variable annuities where possible. As Dent says in the book’s prologue, “Best of success to you in the great crash and depression ahead!” C MARCH 2009 The Costco Connection 9
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CONSUMERconnection
Ask David
Also: N Car booster seat safety N Credit limits
Horowitz
An (Internet) taxing question MANY PEOPLE shop online to avoid crowds and sidestep state sales taxes. Under a 1992 U.S. Supreme Court ruling, only businesses with a “physical presence” in a state, such as an office or retail outlet, must collect sales tax on products sold within that state. But those tax breaks are starting to slip away, as state governments are looking for ways to pad their budgets by collecting the money on Internet sales. Companies that do business online only, offering sales-tax-free shopping, are beginning to worry. New York, one of the most aggressive tax-collecting states, was recently sued by Seattle-based Amazon.com over a new requirement that Web retailers must collect taxes on shipments to New York residents, even if the seller is located elsewhere. The court found in favor of New York, leaving Amazon on the hook to charge sales tax. Where does that leave you, the consumer? Although it could take years to achieve a consensus among the states to reach any kind of standardization process of taxing Internet sales, with those same states looking for anything to fill budget shortfalls, you could see more of them lining up to enforce a state-by-state New York–style model sooner rather than later. Car booster seat safety The law says you should buckle up children. For younger children up to 40 pounds, the government recommends car seats. With or without a seat, all children should ride in the back seat until age 13. The government recommends booster seats for children over 40 pounds until they are 8 years old or 4 feet 9 inches tall. Booster seats are typically used by children between the ages of 4 and 8. Booster seats are designed to raise the child so that the lap and shoulder seat belts fit properly. High-back and backless booster seats are available. They do not come with harness straps but are used with the lap and shoulder seat belts in your vehicle, the same way an adult rides. This design guides the belts across a child’s lower hips and mid-shoulders instead of the abdomen to protect the more vulnerable liver and spleen from injuries. Not all booster seats are the same. No one seat is the best or safest. A higher price does not mean the seat is safer or easier to use. The best seat is the one
More in archives On Costco.com, enter “connection.” At Online Edition, search “David Horowitz.”
that fits your child’s age and size, is correctly installed, fits well in your vehicle and can be used properly every time you drive. Parents buying a new booster seat should try it out in their car and see how the seat belt fits on their child. New credit limits Experts at MarketWatch.com, a financial and investment Web site, are predicting that credit-card issuers will scale back more than $2 trillion in available credit over the next 18 months, to protect against defaults. The action will certainly put more pressure on people already struggling to get by. With job losses in most key states, cutting credit will put an unprecedented squeeze on many consumers. A credit reduction on those who may have a $2,000 credit line and are borrowing up to the limit on an ongoing basis could have a severe impact. Worse, some cuts are coming without warning, reducing the credit line below the current balance and forcing the cardholder into a penalty. Be aware! Keep an eye on your disclosures and credit-card statements to see if your limit has been cut. Then, take whatever steps necessary to make sure you do not go over the limit. C
AMY CANTRELL
David Horowitz is a leading consumer advocate. His “Fight Back!” commentaries are heard daily on the Jones Radio Network. For stations and times, check the radio page at www.fightback.com.
WE PURCHASED an HDTV, [not at Costco] and paid for installation, which [we were told] would be $50. On delivery day they said it would cost $100! Once they arrived the TV didn’t fit our cabinet because of [a feature] that wasn’t shown in the specs. They took it back for replacement with a different brand that should fit. But when they came back they didn’t install it properly, and it didn’t work. I also had to pay my cabinetmaker to dismantle the cabinet for installation each time. I want a proper installation and reimbursement for the additional costs! Belle Dana Point, CA DOCUMENT ALL of the sale, delivery and cabinet costs. Outline them in writing, including the problems you’ve had with sales reps and installers. Call the manager of that store and arrange to talk in person. If they don’t make themselves available, send a letter, with the outline, to the company’s CEO at national headquarters. Let them know that if you do not get a response you will consider taking the store manager to small claims court. Update: Belle informed me that, after she contacted the company’s national headquarters, everything was taken care of, including a personal apology from the store!—DH
© 2009 FIGHT BACK! INC. ALL RIGHTS RESERVED.
Do you have a question for David? Just log on to www.fightback.com and “Ask David.” He will personally respond to your problem if you follow the instructions printed on his Web site. (Costco members receive a rebate off the normal fee.) Questions and answers of the greatest interest to Costco members will be used in this column with the permission of the contributor and will be posted on www.fightback.com. MARCH 2009 The Costco Connection 11
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FINANCIALconnection
Where to stash the 401(k)
Also: N Credit-card rates N Credit-union coverage
By Suze Orman
MARC ROYCE
When I retired from the Veterans Administration, I left my employer-matching-contribution account in place. I went to another employer and started an employer-cone ttributed 401(k) account. Now I am with a new employer that does not have a company-matching contribution. I will be 70½ in February and will need to remove my money totaling approximately $40,000. Where do I need to place this money?
Ask Suze
Orman Send your personalfinance questions to:
Q&A with Suze Orman The Costco Connection P.O. Box 34088 Seattle, WA 98124-1088, or fax to (425) 313-6718 or e-mail to
[email protected]. Please include “Suze Orman Q&A” in the subject line. Suze will answer selected questions in this bimonthly column. She regrets that unpublished questions cannot be answered
—A. Garcia Los Angeles, CA FIRST, A FEW things about required minimum distributions (RMDs). The general rule is that you must start taking RMDs by April 1 of the year after you turn 70½. If you are still working past age 70½ you don’t need to start RMDs from a 401(k) until you retire, though IRA RMDS are required. But here’s another twist: In December 2008 Congress passed a law that suspends RMDs for 2009; if you don’t need the money to live on, the IRS is not going to insist that you take any RMDs in 2009. So for a multitude of reasons you may not need to take RMDs this year from your 401(k). Now, that said, if you are asking what to do because an ex-employer is forcing you to quit the 401(k), then a smart move is to roll over your 401(k) account into what is called an IRA rollover at a discount brokerage or no-load mutual fund company. There’s no tax bill when you do a rollover, and rather than be confined to the investment choices offered inside a 401(k) you can pick and choose the best investments for your goals. Because of your age the bulk of your assets belong in low-risk cash, bonds or bank certificates of deposit. You may want to keep a small portion, maybe 10 percent or so, invested in high-yielding dividend-paying stocks or exchange-traded funds (ETFs), where the dividend is safe, so a portion of your portfolio has the chance for inflation-beating gains. Be careful, though. Money that you will need in less than five to 10 years does not belong in the stock market.
individually. Suze Orman’s TV show airs Saturday nights on CNBC. Suze can be contacted at www.suzeorman.com.
My husband has a credit card for his small business. The issuer doubled the card’s interest rate, then doubled it again. We’ve never
More in archives On Costco.com, enter “connection.” At Online Edition, search “financial connection.”
defaulted or paid late. Is there anything we can do to get the company to lower the rate?
—P. Manley Independence, MO WELCOME TO THE new reality of credit cards. Because of the financial crisis, the recession and the rising unemployment rate, credit-card companies have realized there’s a big risk that even good clients like you might run into trouble continuing to pay their bills. The big danger sign is if you are paying only the minimum amount due each month or if your balance is growing even if your payments are on time. Credit-card companies interpret that as meaning you are already stretched thin and could have problems if your business runs into recession trouble. So, in their infinite wisdom, they jack up your interest rate because you are now a bigger risk. I know you did nothing different. The problem is that the credit-card companies changed the rules on you. It is going to be tough to get a better rate. To boost your odds of working out a deal, first make it a priority to reduce the balance on your card. Then, assuming you have a FICO credit score of at least 760, call up the card company, point out that you have indeed shored up your account and see if they will be reasonable about reducing the rate. I’m 65. I have some money in a local credit union. This credit union is not insured by the FDIC. Would you consider my money safe?
—G. Harrington Coronado, CA LET’S BE clear here: Credit unions have never been insured by the FDIC. But they can have the same level of federal insurance if they participate in the National Credit Union Share Insurance Fund (NCUSIF), which is run by the National Credit Union Administration (NCUA). The NCUSIF works just like FDIC bank insurance: Your money is backed by the full faith and credit of the U.S. government. So check to see if your credit union is insured by the NCUA. You can ask customer service or check a recent statement (the NCUA logo is typically prominently displayed). Or you can check online at www. ncua.gov/indexdata1.html. You also need to understand the limits of NCUSIF coverage. In 2009 the general rule is $250,000 per person per credit union, though you can have more coverage depending on the types of accounts you have. The $250,000 is just for 2009; it will revert to $100,000 next year unless Congress acts to extend the current higher level of insurance. C MARCH 2009 The Costco Connection 13
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JUPITER IMAGES/DYNAMIC GRAPHICS/PHOTODISC/CHRIS A RUSNAK
INFORMEDdebate
YES from members: Ricardo Castro San Antonio, TX Animals cannot talk or take care of themselves so someody has to treat them not as possessions but as members of the family.
Alaina Nudell Tinton Falls, NJ As humans, we too are animals and need to be the voice for the rights of those that can’t speak for themselves.
David Morris Arvada, CO Animals are living and breathing creatures as much as humans are. They have beating hearts and deserve to be treated well.
Should animals have the same rights as people? ANIMAL LAW is now taught in 100 out of 180 law schools in the United States, and animal rights has been dubbed “the new morality” by Robert Garner, author of the book Animals, politics and morality. In June 2008, Spain became the first country to give human-type rights to Great Apes. Animal rights advocates say that animals’ basic interests should be given the same consideration as human beings’ similar interests. They believe animals should no longer be regarded as property, or used as food, clothing, research subjects, or entertainment, but should instead be viewed as legal persons and members of the moral community. Critics argue that since animals are unable to make moral choices they should not be regarded as possessors of rights. There is nothing inherently wrong with using animals as resources, they add, so long as they do not suffer as a result.What do you think? Find out more about this topic on the Web: s WWWREUTERSCOMARTICLESCIENCE.EWSID53, s HTTPANIMALETHICSBLOGSPOTCOMLEGAL RIGHTS FOR ANIMALSHTML s WWWOPPOSINGVIEWSCOMARGUMENTSWHY ANIMAL RIGHTS DON T EXIST 14 The Costco Connection MARCH 2009
NO from members: BJ Dillard Greenville, SC Although it would be very interesting if animals started voting or paying taxes, I do not think they should be given similar rights as people.
Matthew Rincon Ontario, CA I believe that animals are unable to make moral choices, therefore cannot have the same rights as humans.
Vicki Metz Arvada, CO There are still many people whose rights are not being protected. We need to take better care of people first.
from experts in the field: Matt Prescott is director of corporate affairs for People for the Ethical Treatment of Animals (PETA; WWWPETAORG). DID YOU KNOW THAT mother hens cluck softly to their chicks that are still in their shells, that cows not only solve problems but also enjoy the challenge and become excited when they find a solution and that sheep can recognize and remember as many as 50 faces for up to two years? It seems that every week we learn more about who, rather than what, animals are. Of course, anyone who has ever lived with a dog or cat already knows that they are unique individuals who feel joy and pain and can be frightened or sad. So, how is it that animals are still often treated as nothing more than property or machines? Chickens are crammed into tiny, filthy cages, unable to stretch their wings. Minks, raccoons and other animals spend their lives pacing in a tight circle in a tiny wire box before finally being painfully electrocuted or sometimes skinned alive for their fur. Even man’s best friend is often chained up like an old bicycle in the back yard. Not long ago, child labor, human slavery and the oppression of women were all legal, approved practices right here in our own “enlightened” country. Some people honestly thought that other people’s interests didn’t matter. Though there was resistance, we amended our way of thinking and changed how we related to those others. Today, we are horrified at what, just a few generations ago, was considered acceptable. The time has now come for us to examine our treatment of animals. Fortunately, no real sacrifice is required to consider animals’ interests. Making kind choices can mean eating a tasty vegetarian dish instead of one containing part of an abused chicken, buying shampoo that hasn’t been tested on rabbits’ eyes and keeping warm with clothing made from natural non-animal fibers or synthetics instead of from fur, leather or wool. For every cruel choice, there is a compassionate alternative if we just look. Change is sometimes difficult. But in a country that values justice, we owe it to ourselves to continue learning and expanding our sphere of respect for others who are not exactly like us but who still deserve to be protected from exploitation. It’s not about radical change—it’s about basic human decency. C
FEBRUARY DEBATE UPDATE: Should dating co-workers sign a love contract?
YES 36% NO 64% Percentage reflects votes received by February 11, 2009.
JANUARY DEBATE RESULTS: Is there intelligent life elsewhere in the universe? YES: 86% NO: 14% Percentage reflects votes received by January 31, 2009.
from experts in the field: David Martosko is director of research at the Center for Consumer Freedom (WWWCONSUMERFREEDOMCOM). THE ANIMAL RIGHTS PHILOSOPHY boils down to one simple concept: Your life, and the lives of your spouse and children, have no more moral value than an animal’s. None of us is more special than a cow, a chicken, a goldfish or a lab rat. So why shouldn’t animals expect the same rights that you enjoy? There’s nothing wrong with choosing tofu over chicken. And if you don’t hunt or fish, it’s nobody’s business but your own. Want to wear vinyl instead of leather? That’s your choice. But others should have the freedom to make the exact opposite decision. When we use animals for food, medical research, entertainment or clothing, we should always treat them well. But the idea of animal rights isn’t about treating a cow with kindness before you turn it into hamburger. It’s about taking the choice to eat hamburger away. Groups such as People for the Ethical Treatment of Animals and the Humane Society of the United States are in favor of animal rights. They argue against any use of animals whatsoever, for any purpose, no matter how responsible or gentle. Extending human rights to animals would require societal changes on a massive scale. For starters, a vegetarian diet wouldn’t just be an option. It would be the only option. Since practically every critical medical-research breakthrough in the last century depended (at least in part) on animal studies, we would have to abandon the hope of ever curing AIDS or cancer. With hunting and fishing a thing of the past, predatory species would quickly overrun their ecosystems. Zoos and aquariums, of course, would no longer be around to preserve endangered species. And seeing-eye dogs everywhere would be released from their bondage. Visually impaired humans would just have to deal with it. We should always treat animals according to the highest standards of welfare possible, but that’s it. Rights, legal and otherwise, belong to humans alone. Why? Because we’re the only species capable of understanding this debate. Show me an animal that can comprehend what rights even mean—or the responsibilities that come along with those rights—and maybe we’ll have something to talk about. C
Opinions expressed are those of the individuals or organizations represented and are presented to foster discussion. Costco and The Costco Connection take no position on any Debate topic. MARCH 2009 The Costco Connection 15
SURVIVORCORPS.ORG
member profile Jerry White (front center) provides a little rhythm for a band of Cambodian land-mine survivors.
How to survive
a crisis
“EVERYONE HAS a date with disaster,” says Jerry White, author of I Will Not Be Broken: 5 Steps to Overcoming a Life Crisis (St. Martin’s Press, 2008). In this book, White, co-founder of Survivor Corps, an organization that helps victims of war and terror, has collected stories from friends and acquaintances, designed to help nearly anyone suffering the aftermath of a life crisis. Some of the stories are from, or include, celebrities such as Lance Armstrong and the late Princess Diana, while others are from everyday people who have survived a wide range of catastrophes. A land-mine victim himself, White says that five steps clearly emerged as he spoke with people who survived crises ranging from cancer to serious injury to loss of a loved one. They are: 1. Face the facts. “This Terrible Thing has happened. It can’t be changed … we must face some brutal facts of the here and now.” 2. Choose life. “Crisis and pain can hold us hostage for a time, but we still have a choice in how we will respond to our circumstances, no matter how dire.” 3. Reach out. “No one survives on their own … one must find peers, friends and family to break the isolation.” 4. Get moving. “Only by summoning energy and then stepping into the future will we find the next best stage of our lives.” 5. Give back. “Until we reach a point where we can be grateful for our life experience, we are at risk of backsliding into victimhood.”—WF
Soul survivor Costco member, organization founder works to help war victims
By Will Fifield into a minefield. The blast severed White’s right foot “THE PEOPLE MOST equipped to make changes and mangled his left leg. that really matter in the world are those who have “Trauma brings out who we really are—and been most affected by what’s wrong with it,” says who we want to be,” White says. “I guess it’s a cruJerry White, a longtime Costco member and cocible. I stepped on a land mine, and this explosive founder of Survivor Corps (www.survivorcorps.org), moment set me in motion, moving me faster toward an organization committed to helping victims of who I wanted to be in life. When you almost die, you war around the world. He is specifically talking know that life is short and you better start now. It about the mayhem of armed conflicts, but in a larger left me with a knowledge that there are no guaransense, he tells The Connection, he’s speaking of all tees and not a lot of time left.” human suffering. Through the harrowing process of recovery folWhite, 45, is Ivy League educated and lives with lowing his accident, White gradually discovered a his wife and four children in Maryland, far from the deep desire to help people. It translated into 20-plus front lines of any war zone. Despite these social years of working in the nonprofit advantages, he is intimately consocial sector. While working as an nected with the horrors of war analyst for an organization that and the devastating aftermath of tracked weapons of mass destrucwar-inflicted trauma. tion, a “light bulb” moment again His education on the subject changed the course of his life. began on April 12, 1984, when Organization: Survivor Corps His epiphany came when Ken White, then 20, was camping with Year founded: 1997 Rutherford, a friend and also a two of his closest friends in Israel, land-mine victim, pointed out that just north of the Sea of Galilee. Founders: Jerry White and Ken Rutherford land mines are weapons of mass They were enjoying a break from Address: 2100 M St. NW, destruction in slow motion. White college classes. It was sunny and Suite 302, Washington, DC realized that, with his personal beautiful, the second day of a pro20037 experience, he was well equipped to gressive hiking trek. They rose Web site: www.survivor help land-mine victims. early and, after a quick breakfast, corps.org His conversation with RutherWhite strapped on a heavy backPhone: (202) 464-0007 ford ultimately led the two men to pack. Despite the weight of his Member at: Beltsville, establish Survivor Corps in 1997 pack, he recalls feeling light that Maryland under the moniker Landmine day, invincible. Comments about Costco: Survivors Network. The organizaThe trio cut across a field, “Costco has been feeding tion was part of a large movement, eager to tear up the trail. White my family and our Survivor the International Campaign to Ban was about 15 yards ahead of his Corps team for years.” Landmines, for which White companions when a loud thud shared the 1997 Nobel Prize for shattered the joyous scene. The Peace. Through this foundation White hopes to help earth opened up, swallowing him in dirt and rocks. victims of war all over the world—80 percent of As the dust settled, they realized they had wandered
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profile
16 The Costco Connection MARCH 2009
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… people in war-affected “ areas are suffering in so many different ways and need help on so many different fronts …
”
limp-free. “It’s not like you can say, ‘OK, landmine victims to the front of the line; burn victims and the rest of you will have to wait at the back.’ ” Because people in waraffected areas are suffering in so many different ways and need help on so many different fronts, Jerry White in Et hi the organization broad- curious children. opia showing his prosthetic leg to ened its original focus, land-mine survivors, to war survivors enables them to reclaim their lives. of all kinds. Wars are still raging, and long-forgotten One thing that distinguishes Survivor war sites laden with active mines are still Corps from other organizations that help destroying people’s lives. But White points war-affected areas internationally is that it out that suffering is global. “Life can hurt us encourages war victims to overcome devastaterribly, and our deepest questions are never tion and violence together through its peeranswered,” he says. “We will never know why support services. Survivor Corps believes that we’re allowed to be tortured by fate. But if we victims who get support can become very hang on long enough, we will see there is a effective catalysts for change. The idea is that sequel in survivorship: the opportunity to survivors help one another overcome trauma, grow stronger and thrive.” C which aids their own healing and eventually
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whom are civilians—to not only survive but thrive in their post-trauma lives. For landmine victims, that means helping them get well-fitting, high-quality prosthetic limbs and jobs. But Survivor Corps endeavors to help all kinds of war victims. More than 35 million people around the world have suffered devastation similar to what White endured due to armed conflict. Some are victims of the 39 different wars currently raging over the globe in places such as Iraq, Afghanistan, Cambodia, Colombia and Sudan, but many have suffered random devastation left over from the 250-plus conflicts that ravaged the world during the 20th century. The mine White encountered, for instance, was laid by Syrian soldiers in 1967 during the Six-Day War, when White was only 4 years old. “While we were working with war victims in many different countries through Landmine Survivors Network, we found that there are all kinds of victims of war,” explains White, who now, nearly 25 years after his accident, carries his 6-foot-plus frame with a prosthetic limb,
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NI FE R
Warren Tracy’s Busted Knuckle is a total gas
CH AN DL ER
Garage brand N JE M.
By T. Foster Jones TRY TO PICTURE the swoosh before the shoe, the apple before the, well, Apple. This is the story of a business that began as a logo. There was no building. There was no merchandise. Heck, there was no idea of what kind of merchandise there would be if there was merchandise. Just a logo, a name and a man with an entrepreneurial dream. The man is Costco member Warren Tracy. The logo is a wrench-wielding hand with a bandage on the index finger. The name is The Busted Knuckle Garage. And the dream? To run a business he could call his own. In sort of a “design it and they will come” approach, he created a successful business, backwards. But, we’re getting ahead of ourselves, just as Tracy did. Let’s dial back 13 or so years, to the bottom of the Grand Canyon, a place accessible only by foot, by raft or on the back of a mule. It’s hardly the place you would expect automotive inspiration to strike. Yet it did, and, as long as we’re using automotive terms, the inspiration that struck Tracy came in reverse. In 1996, Tracy had been living on and working as manager of the Phantom Ranch guest ranch for about 10 years. A selfdescribed “gear head,” who had started twisting wrenches as a teen, he woke up one night with a vision. He made a quick sketch of an injured hand holding a wrench and then went back to sleep. For someone with an entrepreneurial itch, someone who understood the power of branding from his experience marketing Phantom Ranch, the doodle presented something of a conundrum. What did it represent? It haunted him, nagged at him. He eventually trademarked it, but a year later the logo was still dangling there, its meaning just out of reach. It was in 1997 that Tracy, whose career
path has also included mortgage banking, delivering yachts and operating a bicycle shop, met a man making faux-antique distressed wooden signs. He decided to commission some featuring his design, along with the name “The Busted Knuckle Garage,” and posted an ad in an auto magazine. “We sold 100 the first month,” Tracy says. Encouraged, Tracy struck a deal shortly thereafter with an herbologist, a regular ranch patron. She had developed a muscle-easing salve she was looking to sell, something that
member
profile
Member: The Busted Knuckle Garage Owner: Warren G. Tracy Address: 697 Sixth St., Suite 100, Prescott, AZ 86301 Phone: (928) 708-0897 Web site: www.BustedKnuckleGarage.com Motto: “Repair & Despair Under One Roof” Comment about Costco: “From a business person’s perspective, I am always amazed at how Costco Co can continue e to offer offe the assurance off a pred predictably great shopping shoppin experience while at the same time the he store always has a suggested ggested ‘newness’ about it. t. That’s quite a trick, and nd says a lot about the merchandise rchandi mix.” —Warren Tracy —W
Tracy thought would be perfect for an aching mechanic. They marketed it under the Busted Knuckle brand, and “it just took off,” Tracy says. “We knew we were on to something.” What the logo was and what the logo meant were beginning to come together. Tracy quit his job at Phantom Ranch. He mortgaged his house, ran his credit cards to the limit. He sold the cars and motorcycles he had built and collected. He marketed more skin-care products. The logo made its appearance on signs and T-shirts and hats. Tracy began attending car shows and automotive supply stores across the country, hawking the brand and the growing line of products. Combining the marketing and smallbusiness lessons he’d learned from his various occupations, over the past 10 years Tracy has built The Busted Knuckle Garage into a lifestyle brand that sells more than 250 different items—from clothing, garage and home décor and gifts to collectibles and car-care products—to fellow wrench twisters. Through direct sales at the Busted Knuckle Web site (www.bustedknucklegarage.com), automotive catalogs and national chain stores, Tracy, who finally opened an actual brick-and-mortar retail location in 2005 in Prescott, Arizona, has created something unique. While the logo and the brand became a business for Tracy, they represent myriad things to his customers, resonating with everyone from hard-core mechanics to wannabes. He built the business around what the logo meant, rather than the other way around. And in a final twist, guys aren’t the only ones buying Busted Knuckle products. Tracy says that 70 percent of retail sales come from women buying gifts for men. “Who is my market?” he asks. He’s still at a loss to explain. “We let customers define it, as it relates to their experience.” C MARCH 2009 The Costco Connection 19
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Use your rebate to get more of what you shop at Costco for. Whether you’re entertaining friends or spending quality time with family, you’ll find your Costco rebate can help make the day more delicious. Find your rebate coupon on the last page of your February statement, then redeem it for your reward before it expires on August 31, 2009. Continue to use your Card for all your purchases—inside and outside of Costco—and you may earn a bigger reward next February. Not yet a Cardmember? Apply today—call 1-800-AXP-4600, go online to Costco.com, or visit a Costco membership counter.
* The rebate applies to purchases but not to Cash Advances, returned purchases, Balance Transfers or the purchase of American Express® Travelers and Gift Cheques. See your Cardmember Agreement for complete terms and conditions. © 2009 American Express Company.
ENJOY
$30 OFF
Costco members save up to 25% on every rental when you use AWD # A108300. Plus, you can enjoy $30 off a weekly rental with coupon # MUGA010. Reusable savings are just another reason why Avis is your other car.
Call Costco Travel toll free at 1-877-849-2730 or book online at Costco.com.
AS A COSTCO MEMBER
Terms and Conditions: $30 off a weekly rental offer valid on an intermediate (group C) car and higher, excluding groups S and X. Dollars off applies to the time and mileage charges only on a minimum fiveconsecutive-day rental period. Taxes, concession recovery fees, vehicle license recovery fee, customer facility charges ($10/contract in CA) may apply and are extra. Optional products such as LDW ($28.99/day or less, except in Louisiana $49.99/day) and refueling are extra. The savings of up to 25% applies to the time and mileage charges only. An advance reservation is required. May not be used in conjunction with any other coupon, promotion or offer except your Costco member discount. Renter must show proof of Costco membership at time of rental. Offer valid at participating Avis airport and neighborhood locations in the contiguous U.S. and Canada. Offer subject to vehicle availability at time of reservation and may not be available on some rates at some times. For reservations made on Costco.com, dollars off will be applied at time of rental. Renter must meet Avis age, driver and credit requirements. Minimum age may vary by location. An additional daily surcharge may apply for renters under 25 years old. Rental must begin by 9/30/09. Travel purchases are not included in the Executive Membership 2% Reward program. Seasonal surcharges, availability, blackout dates and restrictions may apply. All prices are in U.S. dollars. Costco Travel disclaims liability for any inaccuracies or typographical errors. Costco Travel is registered as a seller of
travel in each of the states listed: California registration number: CST 2054248-50 s &LORIDA