May 2004

www.gallupchamber.com

(505)722-2228

1(800)380-4989

The mission of the Gallup-McKinley County Chamber of Commerce is to create, enhance and maintain a positive environment that encourages and supports positive business activity.

The Chamber receives hundreds of inquires weekly about tourism and relocation, as well as calls for telephone numbers or information about our business community. As a member, you are actively represented by the Chamber of Commerce and callers and visitors will be encouraged to do business with you.

Thanks so much to all of you who responded to our survey. We had a 15% response which was good, and we appreciated your comments. The majority of you indicated that moving to the Cultural Center would be a good idea. The majority of you also indicated that you think the time is right for the Chamber to consider new directions. Since the mailing of the survey, events have occurred which have caused the Board of Directors to rethink the Chamber’s future (short- and long-term) priorities. The Chamber was approached by former members of the Gallup Development Commission Board about the possibility of merging the two organizations. The Chamber would continue as a 501C6 organization, and the Gallup Development Commission, formerly the McKinley Development Foundation, would maintain its 501C3 status. The umbrella organization will be called the McKinley Development Foundation/Chamber of Commerce. We will work closely with the City’s Director of Economic Improvement to address issues of economic stability in the Gallup area.

After many meetings between the Chamber Executive Committee and the GDC Managing Board representatives, the Chamber Board of Directors voted favorably to pursue the merger. The non-profit status will be kept by each entity, and a Board representing each organization as well as other business people will be formed. Chamber Executive Director Ed Jungbluth will be retained during the transition, with the new organization forming strategies to address the management of the new entity. Herb Mosher has been hired as the Executive Director of the umbrella organization and began his new position on June 1. John Dowling is the Chairman of the umbrella organization Board, I am the Vice-Chair, Jennifer Dowling is the Secretary, and Brett Newberry is the Treasurer. You will be receiving a letter shortly from John and me about this organization.

The new organization will have the following purposes: to

• Develop a proactive agenda of major community priorities that include downtown development, water, sustainable tourism, health, quality of life, business growth, education, workforce development and job growth.
• Develop a network of business, education, government and non-profit leaders who share a common vision of the region’s future.
• Develop the capability of providing unified political advocacy for issues that strengthen economic growth.
• Develop a successful series of strategic planning business forums that can be expanded to include all levels of community leadership.

The Chamber Board of Directors agrees that these purposes will certainly create tremendous value for Chamber members, and we hope you will work with us during the next months as we further develop this concept. Please call me or any Board member with your questions or concerns. We think this is the right thing to do for business development and economic stability for our community.

Good morning all:

I hope everyone had a marvelous Memorial Day weekend and remembered the true meaning of the holiday.

Things are happening so fast here at the Chamber, Beth Miller, President of the Chamber will be sending you all a letter explaining the happenings.

We had two ribbon cuttings this past month. The New Mexico Department of Tourism formally opened its new Visitor Information Center at the Manuelito Rest Area just inside the state line on eastbound I-40. This has been something that has been needed for a long time and will definitely be a positive boom to tourism for Gallup & McKinley County. The other ribbon cutting was at the remodeled Taco Bell on the north side on US 491. A taco eating contest was part of the event and I find it interesting always to try and understand why someone gets delight in stuffing their mouth so full of food that they in no way can possibly taste what a delightful meal they have in their mouth. I probably sometimes stuff my mouth to full but not so much that I can’t taste what I’m eating. It was great fun for those participating and that’s what counted.

This is a planning time for us now looking at membership, A Taste of Gallup and many other activities that I’m sure will be of interest to you as they come to fruition. The Chamber Intercom is a great way to stay attuned to what is going on. We also invite your input if you think there is something that should be covered and is not.

By the time you read this the Business After Hours will have been held on Wednesday the 2^nd of June, (rescheduled from May 26^th) These are fun opportunities for each of us to meet other Chamber members in a relaxed atmosphere and exchange what’s going on with each other. The June event will be held June 30^th at Wells Fargo Bank.

The summer looks like it will be dry which is to bad but Gallup is still a great place to live and do business. Remember to do your business (shopping) in Gallup. Support the hometown folks. We have a New Applebee’s which will opening soon. Watch the paper for the opening date and give them a visit.

That’s about all for now. Hope to bump into you on the street or after hours.

Ed Jungbluth

There are five basic ways in which a firm can have a direct effect on its profitability-increasing sales volume, reducing costs and/or ensuring that costs are fully recovered where this has not previously been the case, improving the product or service mix, raising prices selectively or overall, and reducing the capital employed in the business.

A change in any one of these affects the others. Any change, made or planned, voluntary or involuntary, must therefore be considered in the context of all the others; changes made in isolation may not have the expected impact on profitability.

Take a close look at current and potential markets using focus groups, customer feedback, and commercial and commissioned market research. Bear in mind that in certain product and service sectors technological innovations can significantly change market structures and shift loyalty very quickly.

Increasing sales volume may appear to be an easy way of increasing profitability, but this is not necessarily the case. Selling more and more is not the key to increased profitability; profit requires sales, but sales does not equal profit. If you increase your sales volume, you must at the same time rigorously control costs, prices, capital employed, and your product/service mix. If you cut prices and margins to generate more sales, you need to achieve a considerable increase in sales volume. Selling more of all your existing product/service lines or introducing new ones may increase your sales volume, but be sure you know the contribution each line makes.

Investigate and calculate your true costs in total and for unit sales. You cannot adjust your costs in relation to other parts of your business unless you know what they are. Consider the effects of specific cost reductions carefully-arbitrary reductions may not produce the desired results in the long term.

Your product/service mix reflects the combinations in which the products or services you provide are sold. Examine each product and service you sell in terms of the costs attributable to it and the net margin it makes.

Raising selling prices is a potential route to increased profitability, but there are of course pitfalls. Although customers may accept price increases if they are part of a general price adjustment in your business sector, raising prices in isolation without losing business requires either a near monopoly, a vast difference between your products/services and your competitors’, or a carefully thought out and implemented policy and sales strategy.

Obtaining a good return on capital and reducing the capital tied up in your business normally improve profitability. Identify the categories of capital employed in your business and consider whether the following strategies can apply to any of them-exercising tighter control of credit, reducing inventory levels, introducing outsourcing, disposing of redundant buildings or locating to a new site where better terms may be available, and exploiting information and telecommunications technologies more fully.

A healthy business in a competitive environment is always changing, and this is particularly true of the five components of profitability and their interrelationships. Change, particularly in the factors affecting profitability, always requires compromise; you should aim to achieve the best possible balance among sales volume, costs, margins, product/service mix, and capital employed.

Governor Bill Richardson Announces Statewide Short Film Festival
The Governor’s Cup Film Festival

June 1-30…………..Nightly Indian Dances @ Multi Cultural Center
June 5…………………………..Native American Appreciation Day
June 5…………………………..Arts crawl @ Downtown Gallup
June 4-6……………Red Rock Team Roping @ Red Rock State Park
June 9-13……….…….New Mexico State High School Championship Rodeo @ Red Rock State Park
June 11……….Crownpoint Rug Auction @ Crownpoint Elementary
June 12……………….Navajo Rug Auction @ Ceremonial Office
June 12……………..Annual Lions Club Parade @ Downtown Gallup
June 16-19……….56^th Annual Lions Club Rodeo @ Red Rock State Park
June 18-19….Relay for Life-Gallup American Cancer Society Fund Raiser
June 21……………3^rd Annual Music Festival @ Navajo Nation Museum

July 1-31………Nightly Indian Dances @ Multi Cultural Center
July 1-4………Navajo Nation PRCA Rodeo @ Window Rock
July 2-5………4^th of July Celebration/PRCA Rodeo @ Window Rock
July 9-10…11^th Annual "Wild Thing" Championship Bull Riding @ Red Rock State Park
July 10………………………………..…Arts Crawl @ Downtown Gallup
July 10…………Navajo Rug Auction @ Ceremonial Office
July 16………..Crownpoint Rug Auction @ Crownpoint Elementary
July 24-27…..………Eastern Navajo Fair @ Crownpoint, NM

We would like to explain a little bit about how Business After Hours works. If you are hosting a Business After Hours you should provide hors d’ oeuvers or finger food, beverage’s and door prizes.

June 30, 2004..............................................................Wells Fargo Bank
July 28, 2004......................IF INTERESTED PLEASE CALL
August 25, 2004....................................Newberry & Associates
September 29, 2004......................................Clear Channel Radio
October 27, 2004.......................................McKinley County Schools

January 22, 2005…...........................Annual Banquet @ Best Western Inn
February 23, 2005............................................................Quick Lube
April 28, 2005…………………………..………Powerline Technologies
May 2005…………………………………Relay for Life-Gallup
September 28, 2005.......Red Rock Balloon Rally (25th Anniversary)

June…………………………..SER, Jobs for Progress

1. Communicating with Tact & Finesse, June 7-8 in Albuquerque at La Posada de Albuquerque, register online at www.natsem.com or call 800-258-7246 (#1329193)
2. Albuquerque Writing Skills, June 9, same as above (#1329194)
3. Communicating with Tact & Finesse, June 7-8 in Farmington at the Courtyard by Marriott, register online at www.natsem.com or call 800-258-7246 (#1329470)
4. Wage and Hour Law Compliance, June 14, in Albuquerque at Doubletree Hotel & Convention Center, register online at www.natsem.com or call 800-258-7246 (#1330227)
5. Wage and Hour Law Compliance, June 16 in Farmington at Holiday Inn, register online at www.natsem.com or call 800-258-7246 (#1330225)
6. Doing Business with the Government, June 24 at the Chamber of Commerce Code Talkers Room FREE. For more info call 722-2220
7. Project Management, June 23 & 24 in Albuquerque at Doubletree Hotel & Convention Center, register online at www.natsem.com or call 800-258-7246 (#1329475)
8. High-Impact Communication Skills for Women, July 29 in Albuquerque at La Posada de Albuquerque, register online at www.careertrack.com or call 800-556-3009 (#24736)
9. How to design Newsletters, Brochures, Ads etc., July 29 & 30 in Albuquerque at the Marriott Hotel, register online at www.natsem.com or call 800-258-7246 (#1332793)

THANKS!!! Wells Fargo, Gurley Ford and Rico Motor for the Computer.