Lagging sales could lead to Longaberger layoffs (970 jobs)

[UpInArms]

http://www.qctimes.com/internal.php?story_id=1030579&t=Business&c=31,1030579

NEWARK, Ohio (AP) — The Longaberger Co. is warning 970 employees — nearly a fifth of its 4,500- person work force — that they may be laid off in September if sales do not increase, the basket maker said Tuesday.

“We have been fighting hard to keep Longaberger jobs,” said Tami Longaberger, president and chief executive of the maker of handcrafted baskets and other products, including pottery, wrought iron and fabric accessories.

Longaberger said sales have been lower than expected for more than a year.

<snip>

Fowler said basketmakers and those who support them would be the workers most affected. She declined to say how much sales need to increase to avoid more cutbacks.

...more...

[cap]

1. why do we want to buy cheap foreign baskets

that can't hold anything and break under any significant weight?

[Redhead488]

4. I've never had one break

While expensive, those damn LongBomber (what I call them) baskets are very durable. Plus, they aren't foreign.

[mbperrin]

2. That *Bush jobs machine just hums along,

don't it?

[tooncesj0nes]

12. I wouldnt hang this one on bush...

..my guess is that the greedy longaberger family has flooded the market with too many 'call me sweetheart' and christmas baskets.....its supply and demand that drives any market....this one is definately oversupplied...

[notbush]

43. I have a relative who sells these

God, it's like a cult.

[meisje]

3. many cannot afford Longaberger baskets

$100 for a basket! Yeah thats right

[Redhead488]

5. They are not all that expensive

some are over $100, many are not. Market forces rule out. If they become too expensive (which it looks like they might have), then people will stop buying them.

[LizW]

6. This seems weird

"The privately held company posted record sales in the last two months of 2003 and continued strong into early 2004. But overall customer trends in 2003, combined with lower-than-expected sales during the past three months, has forced the 31-year-old company to take this step, the company said."

A thirty-one year history, and yet the company can't withstand a blip in sales right after several months of record sales?

Someone who understands this explain it to me. :shrug:

[Redhead488]

7. Over expansion perhaps

based on the great 2003 sales? You have a good question...

[UpInArms]

8. if I were to make any guesses

on this, I would say that they are going to layoff US workers and start having their baskets made elsewhere.

[BiggJawn]

32. "lower-than-expected sales during the past three months"...

Sounds like somebody in the bean countery is panicking...

Good excuse to try and squeeze concessions out of the help.
"You know, sales are off, and we're gonna need all of you to 'help' for the next few quarters, or we may have to make some cut-backs..."

what they're not saying is those "cutbacks" include a new contract with the Lustful Ardvaark Basket Factory and Diesel Locomotive Works of Fuk Yu, China....

[noonwitch]

9. If they lower the price a little, they might sell more baskets

I went to a party once in which my friend was hawking their baskets and I didn't buy one, because they were too expensive.

[devinsgram]

38. Exactly, till you pay for everything

the price gets totally out of hand. Longaberger gets their cut, the hostess gets something, the consultant gets something, you pay sales tax on the shipping and who knows what else is added. This is what makes them too expensive. People just don't have that kind of money anymore. They used to be able to purchase them now their selling them on e-bay to be able to pay the bills and eat. I know a few people that have done that.

[tooncesj0nes]

10. this is one industry I wont miss...

..the only people I know that bought these did it with the notion that they were 'collectable' limited editions that would go up in value- much like the NASCAR diecast mentality..perhaps thats how they justified it to their husbands when they bought a $100 basket as an 'investment'....they would display them around their home - and were not intended to be of any functional value...one time i was shown one designed by grandma longaberger or someone like that- ...seems the whole longaberger family was into the feeding trough that we americans perpetuate..I know..call me a cynic...

[truth2power]

17. "call me a cynic..."

Uh....ok, you're a cynic. :-)

Seriously, though...I have a few Longaberger baskets (about 5 or 6), and they are all in use. They are sturdy and utilitarian.

You are right that, even given their utility, they are grossly overpriced, which is why I don't have more of them.

edit> reading on down this thread: The few baskets I have are not "cutsie" and they're all the cheaper ones. I have one in the bathroom to hold my makeup. Keeps all the clutter in one place and it's attractive to boot.

[llmart]

18. I agree with you.

I was coerced into going to a party and bought the cheapest basket they had - about $65 if I remember correctly - and these women there were silly as all get out. They were of the "beanie baby" mentality that these would be worth a gold mine in the future. I never get into any of that collecting stuff. Because so many people collect this shit, it won't be worth a plug nickel in the future.

[hightime]

11. This is a "party" based business. It is destined for the trash heap.

Just like Tupperware parties and candle parties. Even Beanie Babies ran their course and disappeared.

[tooncesj0nes]

14. anyone want to take a guess at how many of these are for sale on EBAY?

..try 12,000!!!..not 100- not 1,000..not even 5,000......and Ill bet if you read the descriptions, not one will say 'sturdy-never failed me once...' they all say 'comes with certtificate,mint/ unused from my smoke free/ pet free home...I want to vomit when I see these types...

[Red State Rebel]

41. Kinda like all those Cabbage Patch Kids & Beanie Babies

Craziness.....

[Retrograde]

46. hey, tupperware's good stuff!

Good, reliable products. I just can't stand the parties.

[molly]

13. I grew up in Newark, Ohio

they are mostly pugs - maybe this will be their wake-up call.

[Redhead488]

27. Yeah, it's always

nice when people lose their jobs (Sarcasm).

[molly]

35. Oh PLEASE!!!

I have not been back there in years and years and years and refused to go to any reunion - last one was a big one - because they are in love with * and the pug party. I have received very nasty emails demeaning the DEMS. These people are brain-washed and live in never-ever land. Give me a f'n break - you never lived there.

[Toucano]

37. I think you're being a wee bit unfair.

In 2000, Licking county voters cast over 25,000 votes for non-Bush/Cheney candidates.

That's a pretty big chunk of people to paint with the broad republican brush.

You should also know that the property taxes on those fantastic Buckeye Lake homes just south of Newark are now higher than people's mortgage payments!

Taft, Ney, and Bush have really screwed them, and they're starting to wise up. I'm about an hour away from Newark, and I hear a lot of grumbling from the people I know there.

Consider the possibility that you just are associated with all the wrong people in Newark. LOL!

So, yes, you are right. There are a lot of stupid republicans there, but the victims of this layoff will surely include a lot of hardworking Democrats with families to care for. They're probably the people your family doesn't talk to. :)

[tooncesj0nes]

15. Ive got an idea that can save this company from layoffs...

..being that the americans just love George and Laura, why dont the longabergers come out with a limited edition 2004 'Laura Bush cake basket in cherry red plaid' ..or perhaps the lynn cheney 'sweet pea print pacemaker basket w/pockets?'..I think these would make a lovely accent to any repug home and what better way to show your friends and neighbors that you support democracy around the world?

[yellowcanine]

16. Fashions change - cutesy baskets of flowers and teddy bears on the way

out? Or maybe people are worried about their jobs and aren't spending as freely? Or some combination of these and other intangible factors.

[llmart]

19. Another observation....

as the boomers get older (I'm one) they realize that they don't need "stuff", so they start getting rid of and not accumulating any more. I have cleared out anything that isn't necessary over the past 5 years. You gain a new maturity where you no longer measure your self-worth by the things you own (well, at least the more evolved of us do - there are still plenty of older people who aren't smart enough to evolve - I call them Republicans:).

[Redhead488]

20. But the younger folks are still acumulating stuff

so shouldn't it even out in the end?

[hightime]

21. They collect different "stuff".

[tooncesj0nes]

23. you have a point..

....perhaps thats why so much of popular culture /advertising is geared toward the young--even though the older folks are a continually growing segment of the population

[llmart]

29. Maybe, but there's a lot more of us!

And we have more buying power than the young.

[yellowcanine]

24. Now wait - Some of us just collect "stuff". We can't help it. Not a

Republican thing, believe me. The person I know that has the worst case of this is a yellow dog Democrat public defender.

[truth2power]

25. I'm a bit older than you

and I know what you're saying. I've felt the need to pare down in recent years. All the "stuff" you accumulate just controls your life because you have to keep finding places to store it, and after you die, your kids or other relatives throw it all away.

OTOH, I consider myself a "nester". I enjoy making my home a pleasant place to be in. I try to strike a balance the former and the latter.

I once read a book on getting rid of clutter. It suggested 3 criteria for deciding whether to keep something or toss it: is it useful, beautiful or loved?

[llmart]

30. You are so right.

Many people think their children are going to want all this stuff when they die, but in reality most of them just hate being left with a bunch of stuff to get rid of. I practice voluntary simplicity and it's very true, that every thing you bring into your house makes more work and stress for you. It needs repaired, maintained, accessories to go with it, etc. etc. etc. One needs very little material things in this life to live comfortably and contentedly. We have been duped by advertising to think we HAVE to have this stuff.

[BiggJawn]

31. And that's why I have 12 bicycles...

"is it useful, beautiful or loved?"

Bingo on all three counts!

[SW FL Dem]

40. I just spent 3 days cleaning closets and dumping "stuff". We moved

4 years ago to a smaller house and I am tired of having closets and a garage stuffed to the gills with stuff I never use. We have drawers full of cassette tapes. I love the music, but the reality is that we haven't opened those drawers since we moved. If we haven't missed the music so far, we probably won't in the future. Hubby and I are debating whether we need to keep the 20 + Star Trek videos (taped off of cable in the 80s - not professional)

As far as the Longaberger baskets go, I would never buy a basket for $50 plus. They are overpriced even if they are well made.

[TommyO]

33. Amen, llmart!

I've gone through some periods, mainly while depressed, where I bought all kinds of crap that I wanted, but didn't really need; call it retail therapy.

Now that I'm almost 40, and happily single again, I'm purging my life of most of the garbage that I've accumulated over the past ten years and going for a much more streamlined existence. Truly a matter of quality over quantity, with a healthy realization that things can't make you happy.

[Salmo Trutta]

22. I've got a couple Longaberger baskets I'm trying to sell

in my antique shop. They've been on the shelf for months, so I am thinking about gifting them to somebody this winter.

[dryan]

26. There baskets are too pricey!

Sorry to hear about the possible layoffs but I think they have saturated the market. Waiting for Partylights to go this way soon. I do a lot of gift baskets for my Avon business for donations (I give them out as door prize items for various charities) and I always go to the Salvation Army or Goodwill for my baskets. When you put items in them with straw or raffia, some greenery and a ribbon, no one can tell the difference.

[maxsolomon]

28. its their monstrous headquarters building

that's responsible!

heads rolled at the architecture firm responsible for building a 9 story woven basket with heated handles (ice would otherwise fall off & break the atrium roof).

someone somewhere has to say no to a client.

[yardwork]

36. The building is truly bizarre - it rises off the mid-Ohio plain

like some bad dream....

I agree with Molly above that Newark and Zanesville Ohio are Republican strongholds. I also grew up in this part of Ohio, and many of the people who live there represent Shrub's core base - religious fundamentalists who have been brainwashed into believing that Republicans look out for their interests.

I think that the war and economic smash may be waking up a lot of people there.

[TahitiNut]

34. They're big Republican contributors - Fuck 'em

I'd bet a dollar to a mouldy ol' horse turd that the more liberal employees get the ax first.

LONGABERGER, TAMALA L
ZANESVILLE,OH 43701
6/26/2000 $15,000 Republican National Cmte

LONGABERGER, RACHEL L MS
NEW ALBANY,OH 43054
4/19/2001 $10,000 RNC/Repub National State Elections Cmte

LONGABERGER, RACHEL L
NEW ALBANY,OH 43054
6/26/2000 $15,000 Republican National Cmte

http://www.opensecrets.org/indivs/search.asp?NumOfThou=0&txtName=&txtState=%28all+states%29&txtZip=&txtEmploy=Longaberger+&txtCand=&txt2004=Y&txt2002=Y&txt2000=Y&Order=N

[hightime]

39. So they have the same attitude as you do? Fuck 'em?

These big Republican contributors employs more than 5,700 craftsmen and craftswomen as well as professional support staff and nearly 70,000 Independent Home Consultants. In case you didn't know, Longaberger also provides domestic partnership benefits to employees. The Longaberger Foundation, has donated millions to local charities and educational institutions since its inception in 1998.

Longaberger is one of Forbes magazine's top privately held companies. The company was recognized as one of the largest woman-owned companies in the U.S. by Working Woman magazine and has been cited by Newman’s Own, Inc. as one of the Top 10 Most Generous Companies in America.

For the home consultants, the little people who are trying to scratch out a living, the offer a repurchase, at 100% of the original cost, of the Business Kit within the first 12 months if they decide to leave the business.

Since 1995, The Longaberger Company and its nearly 70,000 Independent Home Consultants nationwide have teamed with the American Cancer Society to raise research funds and boost educational efforts in the fight against breast cancer and its complications; this program is called Horizon of Hope. The Horizon of Hope campaign has raised more than $9.8 million to date; 100 percent of this total is given to the American Cancer Society for use in research and education.


Early breast cancer detection
Imaging in high-risk groups
Risk estimation and communication
Lymphedema research
Psychosocial support for survivors
Mammography access and quality.

$5 million gift to The Ohio State University supports medical education and research, student leadership initiatives, scholarship opportunities for women, minority outreach and alumni relations.
A $1.1 million gift to Muskingum College in New Concord, Ohio, will endow a faculty position to assist students in the learning process, to help prepare future teachers and to serve as a resource for K-12 teachers in the region.
A grant to Children's Defense Fund-Ohio provided funding for a report on Ohio's Appalachian Children, a first-ever look at children's health, childcare and education in Ohio's 29 Appalachian counties.
Among other projects, The Longaberger Foundation's Dave Longaberger Fund for Children partnered with over 100 public and private schools and public libraries in a number of central and southeastern Ohio counties to provide materials geared to excite young minds about lifelong reading through the K-3 Reads Initiative.

Every employee volunteering 25 hours of service to qualified charitable organizations receives a $500 contribution for the organization from the company. Approximately $130,000 was distributed in 2003 alone to schools, volunteer fire departments, youth organizations and many more community groups as a result of this program. Through the program, employees logged more than 6,500 volunteer hours in their efforts to improve the lives of others.


But things are SOOOO black and white in your world. FUCK THEM AND THEIR EMPLOYEES!!

[TahitiNut]

45. Yup. Too bad Daddy died, huh?

:shrug:
The daughters supported the political cabal that's carrying water for greed and predation. Life's a bitch.

Then ya die.


Good 'ol Tami ...

Appointed by President (sic) George W. Bush to a six-year term as a Member of the Board of Trustees of the Woodrow Wilson International Center for Scholars.
http://www.longaberger.com/cgi-bin/bv/ourStory/historyAndFamily.jsp?BV_SessionID=@@@@1475871780.1089254665@@@@&BV_EngineID=ccccadclljkjdhmcfngcfkmdgfhdgfh.0&datetime=07%2f07%2f04+10%3a44%3a31+PM&channelID=-8020

BTW ... They're still hiring.

Sr Instructional Developer The Longaberger Company US-OH-Newark
Sr Instructional Developer The Longaberger Company US-OH-Newark
Sales Recruiting Programs Planner The Longaberger Company US-OH-Neeark
Sales Recruiting Programs Planner The Longaberger Company US-OH-Newark
Content Management The Longaberger Company US-OH-Newark
Sr Sales Field Communications Specialist The Longaberger Company US-OH-Newark
http://jobsearch.monster.com/jobsearch.asp?co=xbasketx

[Tight_rope]

42. "sales have been lower than expected for more than a year"=outsourcing!

The people in India, China and Indonesian can make the baskets for only $.10 a day. It's the trend.

[bleedingheart]

44. Can we say OUTSOURCING...

Soon the executives at Longaberger will figure out that it will be more profitable to have a "show facility" where they can take the Longaberger tours ...so that they think their baskets are American made...and then what they won't know is that they will set up some factory in Mexico, China or Indonesia to make baskets...at a fraction of the cost....BUT they won't lower the price of the baskets.....then they will sit back and rake in the cash.


ps...I worked for a company that provided the china to Longaberger and I can tell you that it was a crime that they sold industrial china to those customers at Lenox prices.... cuz the china was the same quality that we sold to family restaurants....but hey...it's the American Way.

[TahitiNut]

47. They did it in July 2001, too. (Company towns?)

TAFT ANNOUNCES HELP FOR LONGABERGER EMPLOYEES
Governor Calls on State’s Rapid Response Team to Assist Workers

COLUMBUS (July 17, 2001) – Governor Bob Taft today said the state would take immediate action to assist workers who will be affected by September layoffs at the Longaberger Company’s Frazeysburg and Hartville facilities.

“I have directed the Ohio Department of Job and Family Services to mobilize its Rapid Response team immediately to assist the affected workers and their families,” Taft said.

The team, which consists of state and local employment staff, will meet with company representatives to advise them what services are available to the impacted workers.

In addition to on-site application for unemployment compensation, available services range from skills assessment and resume preparation to job training. The goal of the Rapid Response team is to help dislocated workers find work as quickly as possible, which benefits all employers by keeping unemployment tax rates low.

http://governor.ohio.gov/releases/Archive2001/71720017522.htm