Govt. Regulators Drive A Pillow Company Out Of Business
Their offenses and problems include using the wrong font on their labels. Yes, the wrong font! Leading to a costly fix.
Other issues are government regulations that cause them to raise wages and workmen's comp -- and never mind how the Internet is eating away at their business. (It's e-commerce and its affect on the gift stores they sell to.)
Without the government intervening, they could possibly make their costs commensurate with what they take in. But government has a heavy fist and just brings it down, and never mind who ends up losing their job.
Debbie Cobb writes at ActionNewsNow that the Woof & Poof C.E.O. and owner, Roger Hart, said the company will stop production on his products, which include stuffed collector dolls, blankets, door hangers, musical Santas, and pillows:
Hart says a raise in minimum wage and workers compensation are just a couple of issues that have made it difficult to keep the business financially afloat here. Hart said, "The high cost of doing business in California coupled with ridiculous regulatory environment makes it virtually impossible to do business." He says he has seen an 11% hike in payroll.At the company's work peak, during the summer months, he has 30 employees. He says he hasn't taken a paycheck home in two years. A recent visit by an inspector with the Department of Consumer Affairs set the company back. The inspector from Sacramento cited him for having the wrong size font on the decorative pillow labels. He was told to take the labels out, or they would have his inventory seized. It was a costly fix. Hart says he and his wife, Sabrina love Chico. His employees also live and work in Chico and they don't want to send production to China. Production costs would be a lot less in China, Hart said, but it wouldn't be the same 'Woof & Poof' product. There is a possibility someone could buy the business and keep it local, but that decision has not been made.
Meanwhile, today, people started lining up at 4:30am for the 8am Woof & Poof annual sale at the warehouse. Items have to be snatched up pretty fast or they're gone. The Santa Claus dolls are usually the first to go.
The Grinch of government regulation came first.
via @reasonpolicy
Per the quoted material the issue with the font was that it was too small. I am sure there is some standard so it should be easy to follow and so long as it is reasonable -- and I have no idea if it is. I was wondering about the font comment...I thought maybe they were using ding bats or something.
I can see the other things being a problem...I am assuming they for all of CA not just him or some small group of business (ie. minimum wage went up for pillow companies only). I don't have a good idea for a solution.
The Former Banker at November 16, 2015 7:11 PM
Leave a comment