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Simple As ABG
ISRAEL DIGEST
Specially compiled by The Jerusalem Post
—$1 EQUALS 3.0130 NIS (shekels) - Close Price 7/6194—
Smaller businesses can cut costs of goods and services.
Cooperation? No Way
FRANKLIN DOHANYOS SPECIAL TO THE JEWISH NEWS
T
he
owners of a Birming-
ham company say they
have found a way to help
small- to medium-sized
businesses cut their costs: Act big.
Since it began operations in
October 1993, American Buyers
Group Inc. (ABG) has been mak-
ing products and services avail-
able to its affiliates at discounts
normally offered only to major
corporations.
ABG has done this by negoti-
ating with vendors for reduced
prices in exchange for marketing
the vendors' products and ser-
vices to ABG affiliates.
"Vendors benefit by increased
sales. Affiliates benefit by in-
creased savings. It's a total win-
win situation," said attorney
Dennis Morse, 44, co-owner of
ABG along with CPA Ronald
Kief, 47.
Mr. Morse and Mr. Kief, who
counts on more than 50 products
and services. One of the most
popular is a 2.09 percent rate for
retail credit-card processing in-
stead of the normal 4 percent
rate.
Other discounts include at
least 40 percent on telephone ser-
vice, 15 percent on cellular ser-
vice, 37 percent on office supplies,
35 percent on office machines, 41
percent on office furniture, 30
percent on payroll services, 20
percent on printing needs and cof-
fee services, 25 percent on ad-
vertising services, up to 70
percent on computer equipment
"It's a total win-win
situation."
— Dennis Morse
The Palestinians do not want
cooperation with Israeli busi-
nesses, Manufacturers Associ-
ation Autonomy Committee
Chairman Uri Menashe said.
Mr. Menashe, who ad-
dressed an Israel Management
Center seminar on the eco-
nomic agreement with the
Palestinians, said that al-
though individual Palestinian
businessmen are interested in
cooperation, the leadership is
not.
vices. It's also important for a
vendor to have a good standing
in the community."
Affiliates are assessed a one-
time $250 fee for joining ABG
and are charged a $50 monthly
service fee for ABG's adminis-
tration of the rebate program for
discounts.
"Considering how much mon-
ey our affiliates save, those fees
usually pay for themselves very
quickly," Mr. Kief said.
Before a business joins ABG,
an invoice analysis is done to see
if it would be a cost-effective
move.
"But the question usually isn't
`can we save you money?' It's 'how
much can we save you?' " Mr.
Morse said.
"Once people sign up, it usu-
ally takes a while to get accus-
tomed to using us effectively. We
work with our affiliates continu-
"The Palestinian Authority
has declared a boycott against
business cooperation with Is-
rael. Maybe we should also de-
clare a boycott against
employing workers from the
territories," Mr. Menasbe said.
He noted that even Abu Ala,
who headed the Palestinian
team that negotiated the eco-
nomic agreement, says cooper-
ation with Israelis will take
place only after the Palestini-
ans reach parity.
Which Way Is Boeing Going?
While visiting in the United planes, a process decided upon
States, Israel Transport. Min- following the crash of an El Al
inter Yisrael Kessar asked Boe- cargo jet in Amsterdam in Oc-
ing Corporation to expand its tober 1992,
cooperation with Israel Aircraft
According to the Transport
Industries (IAI) and give Israeli Ministry, top officiAls at Boeing
firms contracts valued at hun- said they would consider the re-
dreds of millions of dollars, quest favorably.
Mr. Kessar, who toured Boe-
During his visit, Mr. Kessar
ing's main operations in Seat- viewed the last of three 747-400
tle, asked that IAI be engaged Jumbo Jets which El Al or-
as a subcontractor to carry out dered from Boeing. The first
some of the replacement of met- two $450 million planes were
al parts on Boeing's El Al delivered this spring.-
Israelis Love Their Plastic
Approximately six of 10 Israeli year 2000, nine of 10 Israeli
adults carry credit cards and adults will carry credit cards,
they make an average of eight ICC managing director Ya'acov
credit card purchases per Dior said.
month. That makes Israeli the
One quarter of all Israeli re-
second most frequent user in tailers accept credit cards, but
Europe, after Iceland, accord- that number is expected to rise
ing to Israel Credit Cards (ICC), to two-thirds by the end of the
which issues VISA cards. century.
Projections indicate by the
PHOTO BY GLENN TRIEST
Whopper Of A Decision
Dennis Morse (left) and Ronald Kief
have known each other for about
20 years, started ABG after look-
ing for ways to cut costs at their
own businesses.
"Obviously, we can't help com-
panies like Chrysler or Ford,"
Mr. Kief said. "But we can pro-
vide good discounts for our affil-
iates. It's buying power they
probably couldn't get on their
own."
ABG affiliates can receive dis-
and training and up to 45 percent
on travel services.
Most of the vendors working
with ABG are based in the tri-
county area. Nearly all are lo-
cated in Michigan.
'We're always looking for new
products and services," Mr.
Morse said. "We are selective,
however, in that a vendor has to
be reputable, reliable and have
good-quality merchandise or ser-
ally, but the last thing we want
to do is interfere with someone's
loyalty to a vendor."
Mr. Morse, a Bloomfield Hills
resident, has put his law career
on hold to develop ABG. He is a
University of Michigan and De-
troit College of Law graduate. Mr.
Kief, still a full-time CPA, lives
in West Bloomfield. He is a grad-
uate of the Detroit Institute of
Technology. ❑
Yair Tamir has resigned as of the Israeli Pizza Hut fran-
managing director of the Israeli chise, which is operated by Clal.
Burger King franchise. Burger Rikamor is owned by a group
King's board of directors ap- of investors headed by United
pointed Major-General (Res.) States-based entrepreneur
Kobi Hivan to replace Mr. Meshulam Riklis and Yair
Tamil., who will go into private Hasson, who have a 50 percent
business. stake in the chain. The re-
Rikamor, which owns the Is- maining shares are held by the
raeli franchi.se, did not state the Kamor group, which has a 40
reasons behind Tamir's deci- percent stake, and Mr. Tamir,
sion to leave. Until about a year who owns the remaining 10
ago, Mr. Tamir was manager percent.
Israel Seeks U.S. Air Limits
Israel is seeking to "update" its U.S. Transportation Secretary
civil aviation agreement with Federico Pena, Mr. Kessar told
the United States to limit the Israeli reporters that Israel
number of American carriers wants to ensure "that El Al
serving Tel Aviv, Transporta- doesn't lose more money as pri-
tion Minister Yisrael Kessar vatization (of the company) ap-
proaches."
said in Washington.
Following a meeting with
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