Renner USA Response

Erwinspiano@aol.com Erwinspiano@aol.com
Wed, 29 Jun 2005 21:28:46 EDT


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=20
Lloyd
   Thanks for  for the reply & clearing  this up.  I know you & Donna  & thi=
s=20
didnt' make sense.  I couldn't imagine your making an arbitrary decision suc=
h=20
as this on the  spur of the moment especially at the cost you expended to ge=
t=20
there in the first  place. I hope these matters are resolved for the future=20
as we need our ardent  supplier supporters on our side & at our PTG conventi=
ons=20
showing new product  for our benefit & our clients.
  Regards
  Dale Erwin


Dale,                  =20

Thanks for letting me know that the matter of  Renner USA canceling their=20
exhibit at Kansas City has been a subject on the  List, and for sharing some=
 of=20
the posts.  I sent a letter to Jim Birch,  the new president and board, and=20=
the=20
PTG staff, but have not commented  publicly on the matter in order to give=20
the PTG an opportunity to  respond.  Jim Birch did acknowledge the letter, b=
ut=20
reserved comment for  later.  Two weeks have now passed without a single=20
response from anyone  else, or even an acknowledgement of the problem.  Inst=
ead of =20
acknowledging our letter, we now understand that their new president sent an=
 =20
e-mail published on your List stating that Renner had aborted their exhibit=20=
in=20
 the middle of setup, as though we somehow contributed to the problem,=20
without  disclosing what actually happened.  That is unfortunate, but Mr. Sw=
afford =20
did say in his e-mail that he was a bit baffled, so I=E2=80=99ll give him th=
e benefit =20
of the doubt.  He seems like a very nice guy.  In fact, they all do,  but=20
someone there really needs to step up to the plate on this one.   Since this=
 has=20
become an issue on your List and also for our own customers who  were very=20
disappointed we were not able to exhibit, I guess we do need to  respond bec=
ause=20
this is a very serious issue for all of us.  We will,  therefore, accept you=
r=20
offer to publish the letter I sent to Jim Birch, the  PTG Board, and PTG Sta=
ff=20
two weeks ago.  I want to underscore what I  stated in my letter which is=20
that we will continue to strongly support the PTG  in-spite-of this problem=20=
which=20
is best left for their membership to deal  with.  You=E2=80=99re welcome to=20=
include=20
this note with the letter, and your  membership can reach their own=20
conclusions.  You should probably warn,  however, that it is long.

Lloyd

Letter to: Jim Birch, present  and former PTG board members, and PTG staff.

Jim,

I want to  thank you for your concern regarding the sales tax issue which, I=
=20
understand,  also caught you and the board by surprise.  Prior to leaving=20
Kansas City,  I contacted the Missouri Department of Revenue and was, frankl=
y,=20
astonished by  what I learned.  First, the DOR advised that the PTG was full=
y=20
informed  of the sales tax issue more than a month in advance of the convent=
ion =20
dates.  Secondly, when I explained that this convention is closed to the =20
public and I described the nature of the sales transactions that would be =20
conducted, they immediately agreed that a sales tax should not have been  as=
sessed=20
under those conditions.  Karen Danna, who signed the letter that  was=20
distributed to the exhibitors by Shawn, stated that she specifically asked =20=
the PTG if=20
sales would be made to the public and was given an  affirmative.  She also=20
advised that if the sales tax was collected, even  though in error, it must=20=
now be=20
paid to the State of Missouri.=20

I don=E2=80=99t  expect your organization to be necessarily knowledgeable or=
=20
experienced about  sales tax and other business related issues, but I do exp=
ect =20
honesty.   If the report I received from the DOR is correct, then  the PTG=20
deliberately withheld that information from the exhibitors until they  arriv=
ed at the=20
convention and it was too late to do anything about it which is =20
unconscionable.  We were not advised until we were actually in the  process=20=
of setting up=20
the exhibit.  Jim, this is shameful.  Shawn  repeatedly stated that he was=20
acting on the advice of your attorney when he  served us with the tax docume=
nts=20
mandating compliance and advised that the PTG  would be providing the DOR wi=
th=20
the name of our company to confirm our  liability for the tax.  Jim, if your=
=20
attorney did, in fact, discuss this  with the Department of Revenue and came=
 to=20
those conclusions, he or she is  arguably one of the most inept and legally=20
challenged attorneys on the planet,  and I will be happy to personally deliv=
er=20
that message.  In fact, I would  like to know the name of that attorney for=20=
the=20
record.  As I told you at  the convention, if I had known even one or two=20
days earlier, let alone a  month, this entire problem could have been avoide=
d; we=20
could have offset part  of the huge investment we made through some sales;=20
and your membership would  have saved the additional 7.35% tax.

Our exhibit-only related costs  will total between $6,500 and $7,000.  We=20
have not received all the final  bills yet, but that will be the range of co=
sts=20
strictly related to bringing  the exhibit and additional personnel to manage=
=20
it.  That does not include  the cost of our All Day Class, which is another=20
significant number, or the  profit from the sales which would have occurred=20=
had=20
this not happened.   Please advise how you would like to handle that.

On the bright side, we  were very pleased with the All Day and the other=20
classes we sponsored.   The cooperation and service from the hotel were exce=
llent=20
in every  respect.  Sandy Roady and Rick Florence were particularly helpful=20=
in=20
 assisting us with our All Day class.  I understand convention attendance  i=
n=20
general was disappointing, but our classes were well attended and I believe=20=
=20
we will have very positive long term results for both the PTG and Renner  US=
A.=20
 I have no regrets having supported this convention except for the  sales ta=
x=20
debacle.

Going forward, I am very concerned about the  selection of Rochester.  The=20
state of New York is about the last place I  would choose to conduct busines=
s=20
and, based on our prior experience there, we  could be looking at another=20
disappointing convention and even more regional in  scope.  We are very plea=
sed=20
about the selection of Rick Florence to head  the Institute next year.  He h=
as=20
some excellent ideas, and we plan to  support him in every way possible.  I=
=E2=80=99m not=20
sure we will exhibit.   If we do, I am considering a different way to do it=20
and on a much smaller  scale.  It would be a departure from what we have don=
e=20
in the past, and  less expensive, which would enable us to put more dollars=20
behind our  educational classes which I hope the PTG would support.  Our maj=
or =20
emphasis as a company continues to be education because that=E2=80=99s how w=
e=E2=80=99ve built=20
 our business, and where we see the future.   =20

I didn=E2=80=99t  intend to write such a long epistle, and do so only becaus=
e I=20
continue to feel  so strongly about the potential the PTG represents for our=
=20
industry.  I  want you and the board to know that we will continue to suppor=
t the=20
PTG,  in-spite-of this problem, and that we do plan to attend next year.  I=
=E2=80=99m =20
very concerned about the negative trend we=E2=80=99re seeing with convention=
 =20
attendance, and I want to make clear our continued support well in advance o=
f  next year
=E2=80=99s convention, and look forward to working with Rick in developing =20=
the most=20
effective educational program we can.  I believe it is very  important,=20
however, to fully investigate the problems that occurred in Kansas  City, be=
cause=20
you cannot afford any more problems like this in my  opinion.  We just got o=
ver=20
the July 4th problem, and now this.   Something went terribly wrong here, an=
d=20
you need to get to the bottom of  it.  We are, essentially, all in this=20
together and there is simply no  reason not to be totally open and honest wh=
en=20
problems develop.  In this  case, we could have helped, and we deeply regret=
 and=20
resent the fact we were  not given that opportunity.

Sincerely,

Lloyd
Renner  USA






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