Author: chase

Big Box Watch: Berkeley seeks reimbursement for alleged Office Depot overcharging

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As reported earlier, Berkeley, CA has accused Office Depot of overcharging the city over a quarter of a million dollars for office supplies. According to the Berkeley Daily Planet, City Manager Phil Kamlarz has asked for a return of the money.

The article goes on to state that while Office Depot has only issued a standard “we are looking into the matter/taking it very seriously” form letter, Berkeley is by no means the first to find itself in this situation:

• Following a state audit last year, Office Depot agreed to reimburse the state of California $2.5 million for overcharges incurred during a two-year period of $57 million in state office supply purchases.

• A 2008 North Carolina state audit concluded that Office Depot had overcharged North Carolina state agencies by more than $294,000 over a six-month period. Among the charges in the state audit was that the company inflated base retail prices on the bid so that it would look like it was offering a higher discount than it actually was, included unauthorized items in shipments during the course of the contract, and switched brands so that the value of the products shipped to North Carolina was less than what was contracted and paid for. In a prepared news release, North Carolina State Auditor Leslie Merritt said that “There are numerous reports that Office Depot has engaged in a pattern of overcharging and violating state contracts in Georgia, California, Nebraska, Florida, and now North Carolina.”

• Last year, Nebraska State Auditor Mike Foley found that Office Depot overcharged the state as much as 400 percent ($1.06 for staples that were supposed to be bought for 21 cents, for example) on purchased items included in the state’s $3 million per year, three-year contract with the company.

• Also in 2008, the state of Georgia terminated its $40 million per year office supply contract with Office Depot over charges by state officials that the company “repeatedly overcharged and mispriced items for state employees,” according to the Atlanta Journal-Constitution.

• Earlier this year, the Missouri attorney general’s office began an investigation into allegations that Office Depot had overcharged government agencies, nonprofit agencies and charitable groups in that state by using “bait-and-switch” tactics.

So while this article is not really an update to the ongoing investigation (other than the City Manager’s public request for repayment), it goes a long way to highlighting some of the previous allegations and shady dealings that Office Depot has been involved in.

What I find morbidly curious is that this article appeared in my inbox right alongside a notice that Office Depot has opened a new “Caring Connections” website to help teach people about volunteerism, citing the Office Depot Foundation’s previous work providing college supplies to foster kids. While I’ll never turn my nose up at a charitable action that actually helps people (the kids got their school supplies, and were better off for it), it seems like parading it around now during a time of inter-company crisis is a cheap PR move. Maybe they can wrangle up some volunteers to help them pack their bags when this whole mess is over.

Gadget DIY: Wall outlet charger caddy for home or office

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Found via Lifehacker, this cool blog post from Zakka Life outlines a craft project to make your very own cell phone holder that hangs from the wall outlet it’s charging from. The charger itself pins the plastic caddy in place.

I always thought this was one of those “why didn’t I think of that” ideas when I saw some of the other models on the market; made from silicone or thin plastic, they couldn’t have cost more than a few cents to make and were selling for $15-20.

Apparently over at Zakka Life they had the same idea, because the caddy you see here is made from an empty lotion bottle, with a total cost of $0. That’s my kind of project!

This sort of thing would be perfect in a cubicle with a wall-mounted power strip, or anywhere you don’t want the cord trailing around while you put your cell phone or mp3 player in a safe place to charge. Right now, this design has the cord sitting in the “basket”, but you could also cut the “neck” between the pouch and the outlet a little thinner, and wrap the cord around that while charging.

You could also make it a little deeper, plug in a wall charger for your rechargeable batteries, and keep the spares in the pouch. All in all, a neat project that’s easy to put your own spin on, and a good way to save some cash.

Big Box Watch: Office store stock “uncertainty” on the rise

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A recent article by Morningstar has listed their appraisal of OfficeMax stock to an uncertainty level of “extreme”. In a quote that I feel is only good news for online retailers and the end-user consumers, Morningstar said:

Office supply retailers have been disproportionately impacted by the current economic downturn as well as mounting competition from mass merchants and online retailers. In our view, an industry shakeout is inevitable, and it is unlikely that all three office supply superstore chains will survive in their current form.

And while they feel that Staples may be the best positioned to survive the economic storm, given their greater geographic reach and availability of online options over the other two big-box names, they went on to state:

…It is not immediately apparent whether OfficeMax or Office Depot (if either) is better-positioned to weather a severe economic downturn. Both firms carry heavy debt burdens on their balance sheets, and with few indications of an imminent pickup in office product sales, we expect free cash-flow generation to be increasingly difficult over the coming years.

I think this sort of uncertainty is definitely not a new concept, and is certainly being felt across the industry. The availability of quality online alternatives to big-box retailers has been chipping away at their stranglehold on the market for several years, and coupled with the downturn in the economy and stories of impropriety, consumer faith in the office megastore is at an all-time low.

To be fair, these businesses have no one to blame but themselves. They’re clinging to an outdated business model in a time where people are looking to move forward. Office supply sales is an old industry, but that doesn’t mean it needs to keep a death-grip on old ideas. Guess what, guys? Turns out if you provide good, lasting value to your customers, stock the inventory they want at a price that is reasonable and appealing, and deal with them in a friendly manner, your business ends up doing just fine. Who’d have guessed?

Workspace Innovation: The Simple Corner

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Lifehacker  mentions some of the headaches I’ve often encountered trying to set up a work space in a small room, or the corner of an often-used room (the curse of the apartment-dweller):

The problem with a corner desk is you’re almost always stuck with two outcomes: you either have a wide open desk with a ton of dead space behind it or you have a hutch style desk with a store built up on the desk. The problem with the former is that you send up staring into an empty corner and while the latter makes better use of the space it’s usually an eyesore and makes the room seem smaller because it walls off the corner of the room.

Josh took a different approach, combining a table desk with a series of small bookcases (2 on the side and one in the back) to provide storage and fill in the “negative space” created by putting the desk in the corner. With his laptop on the table and his monitor on the shelf behind it, switching from computer work to good ol’-fashioned writing and other desk activities is as simple as unplugging the laptop and sliding it out of the way. An innovative use of space using simple components. I dig it.

Managing Potentially Awkward Workplace Scenarios

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I came across a great article outlining some easy ways to cut stress at the workplace by managing 10 different sticky situations. It’s aimed at employers, but there’s no reason you can’t apply the information to making your own office life a little smoother. Check out the article to find out what to do when:

1. Two employees start dating or break up
2. An employee shares too much personal information with co-workers
3. A laid-off employee turns vengeful
4. Employees wear politics or religion on their sleeve
5. Employees think a co-worker got an undeserved promotion
6. An employee is planning a wedding and annoying co-workers
7. An employee who needs to drive on the job gets a DUI
8. An employee’s substance-abuse problem is becoming obvious
9. There’s conflict between childless employees and working parents
10. An employee is taking advantage of company money or equipment

The last one is what set off my flags regarding office-supply news. Employee theft of your hard-earned equipment is no laughing matter, and the article lists some good ways to deal with it discretely and humanely. Remember folks, that stapler may not seem like much to you, but after a hundred go missing every year, your boss is going to start getting grouchy. The good news is: they’re cheap! Buy your own!

 

Article: Design a Home Office on a Budget

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I just came across an article from the Los Angeles Times with some helpful hints for building a home office on a budget. While I plan on doing a full feature on this very topic, I thought I’d share the article now because it has some interesting tips. In the article, interior designer Lauren Rottet is shopping brick-and-mortar office supply stores and liquidators, but the fundamental principles she outlines could easily be applied to online ordering:

“Because it’s quick and easy, there’s always the temptation to buy a whole room ensemble – matching desk, chair, cabinet and hutch – but they really dominate a room, and chances are you don’t need all four pieces.”

She moves on, gravitating to the simplest desk – nearly black with unfussy hardware.

“Wood veneers and laminates look cheap,” she says. “The darker the piece, the more it tends to disappear.”

And in the lighting aisle?

“Most people probably have a lamp at home that would serve their purposes,” she says, passing on the options here. “Or they could find a cool one at a vintage furniture store.”

Rottet’s main piece of advice is to keep your home office as much a part of your home as possible. Use design choices that match your personal style, rather than making your home office feel like a workstation or cubicle. Mix-and-match pieces and look for vintage or pre-owned materials to accent your new hardware. One of the ideas I really like was using two pedestal file cabinets as pedestal ends for a desk, and laying a piece of thick glass or granite across them for a DIY feel that still has charm and elegnace.

However you end up kitting out your home office, be sure to do it with quality materials from a reputable retailer. While the temptation is there to trawl the bargain-basement offerings and your local big-box store, you’ll more than likely end up with cheap particleboard junk that falls apart before too long. You don’t need to break the bank; just buy a few quality pieces and accent them with personal touches wherever you can. If you’re going to be spending a lot of time in your home office, you want it to be as comfortable and natural as possible.

Quick News: Buying trends in small business

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I was just handed a pretty interesting document courtesy of the School, Home and Office Products Association (SHOPA) that lists buying trends in the office supply arena. The numbers are from 2006, but they still make for an interesting read. One of the major things that impressed me was how little brand name mattered to the average office buyer, and also how little they were concerned about price matching. Take the following chart:

Print Cartridges and paper are the only two products that show a huge push for price comparisons, presumably because they are purchased the most often. That means that everything else in that graph is only occasionally thought of as being “worth” shopping around for the best price. Add into that the information found in this chart, which outlines the important attributes when selecting an office supply retailer:

And you can see the price is only third on the list of importance for most companies, with product availability and the company’s needs coming first. To me, this begs the question: “What if a company had almost limitless availability on a huge range of products, from paper, ink and the stuff I buy every day to the things I only buy once or twice a year, AND they offered a great price?” Seems to me like that would be the place you’d shop, right? Food for thought.

I’d personally love to see the updated numbers since 2006, when we’ve seen an explosion in online shopping and a general shying-away from big box retailers in ALL markets, not just office supplies. I imagine they’ll be pretty impressive.

Universities suffering from “Paper Cuts”

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In these troubled economic times, lots of universities are forced to cut spending wherever they can, and unfortunately office supplies are often first on the block. While it might seem like a few sheets of paper here or there don’t make much difference, new articles show the results of these cutbacks can be worse than originally anticipated. An article recently posted in The Central Florida Future, the University of Central Florida student paper, shows that cutbacks to office supplies are having a damaging effect on the way professors teach:

Humanities professor Debra Maukonen can no longer allow students to keep their tests as study tools because she has to collect them due to the recent cut in paper.

…

These changes are part of an effort to cut back on office supplies because of decreased budgets.

The lack of office supplies “makes it more difficult for instructors to do their jobs,” Maukonen said. “In the larger picture, it’s more than paper — it’s people.”

She said a smaller budget means just what students are seeing now: reduced faculty, staff and services; reduced course offerings; reduced face-to-face classes and more online classes; larger class sizes; and an higher student-teacher ratio.

“I know we are saving trees and money by going paperless, but I am seeing a difference in teaching,” Maukonen said.

The trend towards a paperless office has seen huge strides in recent years with the advancement of technology, and in certain places it works wonders for helping an office “go green” and cut back on costs. But it seems like in a university setting cutting the office supply budget is only hurting students.

At UCF, last year, office desk accessories, such as organizers and calculators, totaled around $164,500, and mailing supplies totaled about $34,000. This year, the totals dropped to about $83,800 and $11,900, respectively. Print, copy and fax supplies had the biggest budget for the two years. Last year, they cost the university about $182,800. That number was nearly cut in half for this year to about $94,600.

I think it’s important for universities to consider the impact of slashing budgets on the quality of education they can provide. Rather than unilaterally make huge sweeping cuts, institutions need to consider their options when picking an office supply retailer. Any self-respecting office supply dealer will offer bulk pricing on office supplies, as well as make special deals for educational and governmental institutions. It’s all a matter of shopping around for the best deal, and I can only hope that a university will exhaust all other options before making budget cuts that may harm students.

Big Box Watch: Office Supply stores hit hard by recession

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Just browsing the big-box news and came across an article by Tribune Media Services columnist Andrew Leckey. While the bulk of an article relates to his personal encounter with a big-box retailer (describing it as “a ghost town”), he has some eye-opening facts at the end of the piece:

Financial results underscore a brutal economy and industry in transition:

— Staples’ net income dropped 14 percent in its fiscal fourth quarter ended Jan. 31. It suspended its store remodeling and is looking toward smaller stores.

— Office Depot is closing 112 under performing North American stores, reducing by half its new-store openings and closing six distribution centers. Including substantial charges, it had a $1.54 billion net loss in the fourth quarter.

— With charges, OfficeMax had a net loss of $396 million in its fourth quarter, suspended its quarterly dividend, eliminated jobs and delayed store remodeling.

The thing that I always notice when people are making these doom-and-gloom predictions for the office supply industry? They always seem to be referring to brick-and-mortar stores. First it was the big-box stores pushing out local enterprise, and now it’s those very same big-box stores crumbling in the bad economy. No one seems to mention that the new face of office supplies has been online retailing for quite a while now, and people looking to improve their office-supply experience only need to look as far as their computer.

This doesn’t help all those big-box retailers, of course, and I’m sad for the people who are losing money when office store stock crumbles. But for the average consumer needing office supplies, the future’s never been brighter.

Office supply model-making: shouldn’t you be working?

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It’s Friday, and as the work day and week draw to a close I find myself thinking about anything other than work itself. In this spirit, I found a post from Make magazine’s blog that collected all of their submissions that dealt with…ahem, non-standard uses for office supplies. I have to admit it takes me back; almost all of my office jobs have involved creating things out of office supplies at one point or another. I personally think this kind of three-dimensional doodling is essential for keeping workplace creativity and energy levels up (or at least that’s what I told my bosses), so take some of these ideas and run with them!

Office supply Mario Kart courtesy of Donald Kennedy, who hosts all kinds of impressive creations on Flickr as well as his personal page, KodyKoala. Made from binder clips, colored paper clips, and loose change. Those feet look pretty official, though. I think there’s a GI Joe amputee stumping around somewhere without his boots.

A couple of variations on the theme of the Starship Enterprise. The first one came from Instructables and has a saucer made from blank DVDs, a thick Sharpie body and binder clip arms attaching the ink pen engines. The smaller one is made from paperclips, small binder clips and a wall clip that actually detaches for extra realism! Well, not realism I guess. You know what I mean.

These sci-fi papercraft projects are pretty great, and require nothing more than some heavy paper or card stock and some white glue. It’s basically a matter of printing and following directions, and you end up with a cool, incredibly cheap cubicle decoration for the price of a printed sheet of paper. For more ideas, just run a Google search for “papercraft.” You’ll be amazed at the variety of stuff that will come up.

Last but not least, this incredible Star Wars Tie Fighter made from stray Starbucks materials. This model is completely made of paper cups, heat sleeves, coffee boxes, drink carriers and stir sticks. Pretty astounding work from Wired magazine photographer Dan Winters.

Check the Make Magazine post to see more examples of fine office supply creations, and feel free to email me your own at chase@ontimesupplies.com and I’ll be sure to feature them in later posts.