Star Tribune from Minneapolis, Minnesota • Page 28

Business PAGE D2 STAR TRIBUNE TUESDAY, AUGUST 51997 FOR EXECUTIVES ONLY No reason to sit through meetings that run long Lending U.S. finds lenders reject 49 of black applicants, 24 percent of whites Rejection rate for all groups has risen since data first became available in '90 QOur sales manager has gotten into the habit of calling spur-of-the-moment meetings at the end of the day. He always promises to get us out of the office within an hour, but usually we end up staying past our normal work hours. We don't want to look as though we're not committed, but it is frustrating for those of us who have kids to get home to or plans to keep which he doesn't seem to have. What can we do about his insensitivity? Working Overtime Sue Says: Try talking to him about your concerns before the next meeting is announced; suggest a specific ending time for those occasions.

Then the next time the meeting is running late and you need to leave, gather your things, stand up, and announce that you have a previous commitment or a child counting on you to be there. He may not like it, but I am sure the rest of the sales force will appreciate your actions and hopefully will follow your lead. Perhaps your sales manager will have more regard for your commitments when you show that you take them seriously. Now exchange the word 'football' for the word Do you think you'd have a case in personnel?" To her credit, she stopped dead in her tracks and said, "yeah, you're right!" My contention Is that there is much less inherent difference in how men and women act in such situations than people like to think. There often is a double standard at work, based on the misconception that women inherently are unlikely to engage in what are currently perceived as harassing behaviors.

I believe that women also do such things, if they are in the position to do so. Ron Sue Says: No one (male or female) is immune from making a mistake or offending someone. How refreshing it would be if we all were as concerned about each other in general as we are about catching someone doing or saying something wrong. Sue Morem is founder and president of Premier Presentation a Twin Cities consulting and training company. You can call with questions or opinions on her Star Tribune message line at 673-9042, fax letters to 557-51 70 or send e-mail to mzbiznizaoLcom.

Going over budget can be by income level. For low-income applicants last year those with less than 80 percent of the median income in their areas the rejection rates were: blacks, 44.5 percent; whites, 32.1 percent; Hispanics, 37.5 percent; and Asians, 17 percent. Rejection rates for applicants with more than 120 percent of the median income were: blacks, 20.4 percent; whites, 8.6 percent; Hispanics, 16.7 percent; Asians, 10.6 percent; and American Indian, 16.6 percent. Allen Fishbein, general counsel of the Washington-based Center for Community Change, which assists nonprofit community groups, said some individual lenders have made great progress in narrowing differences in rejection rates, showing it can be done. 'Carrying the industry' "But the industry as a whole isn't doing as well opening up opportunities for minorities, African-Americans in particular," he said.

"Some individual lenders are carrying the industry as a whole on their backs and the industry as a whole isn't showing the types of gains that can be made." Comptroller of the Currency Eugene Ludwig, whose Treasury Department agency regulates nationally chartered banks, pointed out that lending to lower-income households is increasing more swiftly than lending to higher-income households. The number of home purchase loans approved rose 17.7 percent for those with less than 80, percent of median income and 11.7 percent for those earning 120 percent or more. However, among ethnic groups, blacks registered the smallest increase in loans in 1996, 3.1 percent. That compares with 8.1 percent for whites, 13.4 percent for Hispanics, 8.2 percent for Asians and 11.4 percent for American Indians. Over the latest four years, though, lending has risen 52.5 percent for blacks, 14 percent for whites, 55.6 percent for Hispanics, 15.3 percent for Asians and 26.6 percent for American Indians.

"Some of the data show a need for more detailed analysis," Ludwig said in a statement. The data covered 14.8 million home-loan applications and were compiled from 9,300 lending Associated Press WASHINGTON, D.C. Mortgage lenders still reject black applicants twice as often as whites, despite a push by regulators since the start of the Clinton administration to toughen enforcement of fair lending rules. According to the data released Monday for 1996, banks, savings institutions, credit unions and mortgage companies turned down 48.8 percent of applications for home purchase loans received from blacks and 24.1 percent from whites. The denial rates were 34.4 percent for Hispanics, 13.8 percent for Asians and 50.2 percent for American Indians.

This is the seventh year that the data have been released by the Federal Financial Institutions Examination Council, a coordinating body for five federal regulatory agencies. Wide disparity Over the period, rejection rates for all groups have risen along with Americans' debt levels and bankruptcy rates. But the disparity in rejection rates among race and ethnic groups has remained wide. In the first year, 1990, 33.9 percent of blacks were turned down, 14.4 percent of whites, 21.4 percent of Hispanics, 12.9 percent of Asians and 22.4 percent of American Indians. An official of the American Bankers Association attributed the continuation of that pattern in part to the fact that lenders were working harder to solicit applications from minority appli- cants who in the past never would have applied and that many rejected applicants receive consumer counseling and go on to make a successful loan appli- cation.

1 "We always think we can improve and we're working at it, but we also recognize that the rates reflect greater outreach," said Ju- dith Knight, director of housing community development for "the American Bankers Associ-, ation. Flawed measure In the past, lenders also have said the numbers are a flawed measure of fairness because they do not take into account such factors as an applicant's previous indebtedness or credit record. However, disparities persist, even when the data are grouped A great restaurateur I know was overseeing the opening of a new restaurant in New York City. He had committed several millions dollars to the design and construction of the dining room, which he hoped would become one of the city's most distinctive salons, and he checked on its progress often. On one particular morning, as the job was nearing completion, the restaurateur was disturbed by what he found sloppy finish work on ceiling moldings, low-quality door fixtures and flimsy curtain rods.

The restaurateur, a courtly but street-sawy man who knew every trick a contractor could use to shave costs from a budget (and thereby increase his profit) was not happy and let the contractor know it on the spot. Taking care of business Sue Morem QI just read your response to "Teary-eyed," the woman who could not control her tears when she was upset or stressed. I'm not sure I agree with your response. I have the same problem and after spending years beating myself up for it, I finally discovered that it was not a matter of self-control. I have heard that being upset or stressed triggers different hormones from the body that can cause tears.

Therefore, it's no good thinking "if only I could control my emotions, I'd be OK." When I find myself in a situation that puts me in tears, I try to explain to others that it's a physical reaction I need to ride out. This helps me from becoming angry with myself because I'm being a "cry-baby" in the past this made me even more upset and only made the situation worse. If more people understand that tears are not entirely under our control, maybe there would not be negative attitudes toward the person who cries Success secrets Mark McCormack The contractor protested. "Hey, I'm doing the job on schedule, and better yet, I'm exactly on budget." The restaurateur exploded. "I don't care if you are on budget.

Budgets are for mediocrities. I'm trying to build the best restaurant in the world. I expect you to be over budget!" The restaurateur instinctively knew that showmanship makes up a big part of elegant dining. He also knew that showmanship carries a high price tag, and he accepted the cost. In his line of work and at his level of ambition, a robust contempt for budgets is not only cording to New York-based market research firm IDCLink, 18 percent of personal computers acquired in 1996 were used or refurbished.

Refurbished models, those typically sold at the retail level, accounted for 6 percent of computers acquired last year. "It was really a pretty big year for this marketplace," analyst Bill Ablondi of IDCLink said. More than 39 percent of U.S. households own computers, according to IDCLink. More than half of consumers who acquire used or refurbished computers never have owned a system before.

Others are getting a secondary computer for their household, Ablondi said. Computer Renaissance sells systems with a 286 processor or newer. Consumers can bring their old computers into an outlet and sell them for cash or store credit, depending on the age and quality of the equipment. 'Broader base' The retailer tests and refurbishes the systems, and offers a warranty. "I believe that we appeal to a broader base than retailers selling new only," Flynn said.

Customers who buy used computers say that in addition to easily. "Teary-eyed" should learn to control her stress-level. The emphasis should be on control, not on the tears themselves. Teary-eyed too Sue Says: While it can be embarrassing to cry in front of coworkers, if you are prone to tears, either acknowledge the fact that the tears are involuntary or excuse yourself until you regain your composure. QA few years ago, when I was a lower-level manager, two of my female colleagues and I attended a meeting.

The discussion topics drifted away from business and into shopping. The topic settled into the problems of buying shirts and blouses. I had been silent, but I am a big guy and I've had my problems in this area. When I expressed this, I was cut off and told, "you're a guy, you don't understand shopping." I said nothing. At the end of the day, my boss and I walked together out to our cars.

Once we were out of earshot of anyone else, I asked her the following hypothetical question: "Say you were the only female present at our morning meeting, with a male boss and two male colleagues. an investment healthy but probably the only way to do business. I suspect the same sort of contempt for budgets might be useful in other organizations. After all, given the choice of being over budget with the job done, on budget with the job not done or under budget with the job not done, I would always choose the first option. But like the contractor above, some people have an almost religious obeisance to budgets.

They tremble at the thought of exceeding their spending authority. What they fail to see, of course, is that budgets are elastic and ever-changing estimates, and they should be treated with enlightened skepticism, if not with outright contempt. Even when we were a young company, I was skeptical of bud a cheap price, they are attracted by the idea that they won't have to get a system that does more than they need. Someone who uses a computer only for word processing or accounting programs, for example, may not require a unit with advanced multimedia and audio capabilities. Officials at Eden Prairie-based Best Buy said they don't really consider Computer Renaissance or similar dealers as direct competitors, because they target a different market niche.

Computer Renaissance expects to open about 100 outlets this year, Flynn said. Although it looks to open franchises across the country, a number of its most recent stores have been located in Florida and Southern California. Games market Grow Biz which franchises Computer Renaissance and used-merchandise concepts Play it Again Sports (athletic equipment), Disc Go Round (compact discs), Music Go Round (musical instruments) and Once Upon a Child (clothing) wants to broaden its reach into the consumer electronics field. It is buying Cleveland-based Video Game Exchange, and plans to expand the new and used video and computer game chain from 40 stores to 1,000 franchises with the moniker It's About Games. Grow Biz hopes to have 50 It's About Games franchises open next year.

The first corporate-owned outlet, located in Apple discontinue any of its leases. Peter Chapman, president of Bankruptcy Creditor Service in Princeton, N.J., said it is likely that Ward will ask the bankruptcy court for more time to consider the complicated leasing situation. Judy Gustafson, a spokeswoman for Ward, said it would be premature to discuss any kind of company liquidation. in COMPUTERSrom Dl Computer Renaissance gives new life to used computers Earnings in success gets and their self-fulfilling nature. If you give some people $10,000 a year to spend on travel and entertainment, they will spend their limit even if it, is unnecessary or imprudent.

I also think budgets can be self-limiting. How, in a dynamic industry, can you accurately forecast your budget needs 12 months down the road? And what if you're wrong? If consistency is the hobgoblin of small minds, then too much respect for budgets is the curse of the eternally mediocre. Mark McCormack is CEO of International Management Group, which represents a number of high-profile athletes. His column is distributed by King Features. Valley, will debut this month.

"The industry is in a tremendous growth cycle now," said Brad Tait, president of the Disc Go Round and It's About Games operations. However, the market is crowded with video game resellers. Among the most prominent is Eden Prairie-based Funco which operates nearly 200 Fun-coland stores. Careful managing Analysts say retailers specializing in used video game sales need to be careful managing inventory and anticipating downturns in demand. Funco, for example, languished last year when consumers held off on purchases, waiting for the release of game players with 64-bit technology.

Its average store sales slipped more than $100,000, to aboyt $400,000, said analyst Brent Rys-trom of Piper Jaffray. But the chain has rebounded to post average store sales of about $600,000, Rystrom said. Moreover, the chain has worked to improve its infrastructure and balance sheet, and should be better prepared for the next market change, he said. The chain that Grow Biz is buying also has struggled. It recently closed half its stores and emerged from a Chapter 11 bankruptcy reorganization.

The retailer blamed its woes on expanding too quickly. Only one Ward store, in Boulder, has been closed since the filing. And, Gustafson noted, the proposed closings of the Lechmere, Home Image and Electric Avenue stores has to be approved by the bankruptcy court in Delaware. Sherrie Neuheisel, a Petters spokeswoman, said the company bought some of the stock of the closed Colorado store. In addition, some stock in existing Ward stores has been bought by Petters recent months, as well.

She declined to name the locations of the stores or distribution centers involved. Ag-Chem Equipment Co. Inc. Ag-Chem Equipment Co. Minnetonka, makes on-land application equipment for agricultural, industrial and municipal areas.

The company attributed the third-quarter revenue decline to equipment purchases earlier in the year followed by a strong second-quarter delivery program. 3rd Quarter, 630: Stratasys Inc. Stratasys Eden Prairie, makes rapid prototyping devices for equipment manufacturers. 2nd Quarter, 630: 1997 $6,965 (83) (.01) 1996 chng. $5,317 31.0 573 .10 Revenue Net NetShr 6 Months Revenue $12,174 $8,069 50.9 Net (487) 583 NetShr (.09) 10 Figures in thousands except for earnings per share.

Figures in parentheses are 1997 1996 chng. Revenue $66.4 $69.7 4.6 Net 12 NetShr 0.00 12 I Months Sales at Computer Renaissance outlets that have been open at least two years increased 33 percent last year. Average store volume is more than $1 million, said President Michael Flynn. "They're doing spectacular. There aren't a lot of competitors out there, for one thing," said analyst Tom Emmel of John G.

Kinnard the only analyst who follows Computer Renaissance's parent company, Grow Biz International Inc. Computer Renaissance may be the largest retailer selling used computers, but there are a number of smaller chains and individual shops that resell computer products. Used vs. new Before the evolution of used consumer electronics stores, old computers usually wound up at garage sales or second-hand shops. In some cases, classified advertising or mail order outfits offered a selling medium.

That trend is changing. Ac- nificant discount. Both mortgage holders would be bought out after successful completion of the bond sale. The bonds will be secured by the first mortgage on the MAC'S land and building. Other proceeds from the bond sale would be used to renovate the club's 80-room hotel, its meeting rooms, and athletic and dining facilities.

Other structural improvements also would be made. "The MAC is a grand tradition smack dab in the middle of the downtown action," Abdo said. More than 85 percent of its core members work within a four-block radius of the club. Cim from Dl Minneapolis Athletic Club plans bond sale to pay debt PETTERS from Dl Montgomery Ward's plight could turn into Petters" boon Revenue $253.4 $216.0 17.3 Net 9.3 7.9 18.3 NetShr 56 171 Figures in millions except for earnings per Share. Venturian Corp.

Venturian Hopkins, makes computer software and defense-related products through its subsidiaries. 2nd Quarter, 630: 1997 $8,078 (355) (.47) 1996 chng. $7,752 45 (44) (.06) Sevenue et MShr 4 6 Months Revenue $14321 $14,535 2.0 Net (1551) 228 NetShr (1.67) .29 Figures in thousands except for earnings per share. Figures in parentheses are The club currently has about 1,200 core members who pay the full dues rate. The MAC, which dates back to 1915, will be host for five meetings this month to give members more information about the sale of the 10- and 15-year bonds.

The sale, to be completed by November, also will be available to non-members. About half of the $4 million proceeds would be used to pay off mortgages on the property. Lutheran Brotherhood currently holds a $1.6 million first mortgage. Norwest Bank had a $2.2 million second mortgage on the property, but sold it in May to a group of MAC members at a sig Lechmere has 3,200 employees and operates 33 stores in New England, Michigan and Alabama. Ward has seven stores in the Twin Cities area, but there's no word whether they will close.

By law, a retailer in Chapter 11 has 60 days from the filing date to notify landlords whether it will break a lease. But several local landlords said they haven't heard any news on whether Ward will 1.