Winnipeg Free Press

Winnipeg Free Press (Newspaper) - July 14, 1991, Winnipeg, Manitoba Winnipeg free july 1320 managing by Bud Robertson Why did the Canadian Cross the Border to save Money on the other of if hed Only looked a Little harder at he might have saved Gas and a pile of frustration coming Back through our prices Are very competitive to what they Are in the says Joe owner of Lemax Cor a Winnipeg bedding Manu his is one of several companies in town which operates a factory out Selling goods to the Public for up to half the Cost of those which have made their Way along the retail Chain such As distributors and whole with overhead and transportation costs to the aver age retailer doubles the Price of goods it says adding Hes already made a profit on the product by the time it leaves the a comparable item Selling for in the factory outlet will have a ticket Price of More than once it gets into a retail he while business at his which has been open about a year and a int usually its just a sideline says its a very Small end of our but its enough to make it pay for what were doing it for that the company Doest invest much in advertising the preferring instead to let potential customers learn of it through word of Mouth or by Reading the Large sign on the Side of the Plant that Calls attention to others simply cant advertise for fear of angering their retail custom overhead costs that not a problem for Klap Man whose customers Are mainly institutions such As nursing Homes and but it is for people like Sidney Vic president of Rice sportswear a Winnipeg cloth ing we dont want to compete with our he in Many they resent even our name being in our store and also being in their those who do find the factory clothing outlet can wind up spending half what they would in a retail overhead costs Are says and in most cases the products sold Are factory seconds and not Only does the factory not make any Money from outlet he we actually take losses on those things in order to dispose of fashion consciousness is also not a big concern of the he in other you get what you dont have a Chance to Dave free press Joe Klapman profit made on product by the time it leaves the choose what the customer de were not looking for big chalking up big sales int what were just looking to get rid of a the factory outlet is All says minimum amount of Merchan such int the Case with Superb Linds which opened an outlet in a Busy retail Section of the City in order to aggressively pursue the re Tail not everybody wants to drive All the Way out to Inkster Park just to save Money on explains owner Morley the James outlet is More con he adding the Plant also didst have the space to accommodate customers coming into the factory outlet can save up to 40 per says whose company represents Faber windows fashions in if you go to a retailer Treyve got to make their from the standpoint of space and overhead and All the factors that go along with running a most of his wholesale business comes from outside says meaning Hes not in Competition with them for As he the company main business is in architectural that primarily our the retail division of our com Pany is a secondary part of our while his is a True factory Myren warns of others that theres a bit of lip service Hap he where stores claiming to be factory Oil lets Are really just Selling merchandise Treyve purchased from manufacturers somewhere customers to his says can go directly to the Plant to see where and How their Mer Chandise is its a bit of a misconception As to what is truly a factory outlet and what and those which Arent May not provide the same level of after Pur Chase service and warranty Protection As the cautions Dale Canadian federation of in dependent business vice president for Western he factory outlets do bypass the middlemen and allow companies to sell much lower than array of goods limited it has its theres no question in some he but of has its the array of goods and services available through a factory outlet Are much More limited than in retail says adding Consumers have to weigh those Trade offs when it comes to deciding where to right there Arent that Many factory outlets in he mainly because there Arent As Many manufacturers Here As in some Industrial with a Small Domestic mar he most manufacturers Haven found opening an outlet Worth the they rather go through whole salers or other distribution net works to get to As big a Market As cultural donations reap tax benefits most persons think about charitable giving in terms of Cash the donation of Art or other cultural property can reap a tax credit As Well As other tax As described below qualifying recipients gifts can be made to charitable her majesty in the right of Canada or a or a tax credit can be earned with a gift of certified cultural property Given to a designated institution under the cultural prop erty Export an official receipt bearing registration numbers and other Tion is required to support the claim on the tax donations can be made to d registered certain tax exempt housing corporations Dent in registered Canadian Amateur athletic Cana Dian the United nations and its certain scribed universities outside Canada attended by Canadian and charitable organisations residing outside Canada to which the Federal government has made such gifts Are limited to a Maxi mum claim of 20 per cent of the taxpayers net income they Are Dai Mawe at a rate of 17 per cent of 4 Evelyn jacks the first and 29 per cent of amounts Over amounts in excess of the net income limitation May be carried Forward five d gifts May be made to the government of Canada and the prov such gifts Are not subject to the 20 per cent of net income and the full amount of the not subject to the 17 per cent and 29 per cent May be d taxpayers Are encouraged by the Federal government to dispose of National treasures to designated Sti Tutins or Public authorities in Canad such if certified by the cultural property Export and import will result in a tax credit to the verified for tax purposes on form amount of the tax credit will be the fair amount of credit used in a tax the donation applied to whatever is left of the taxpayers income after deducting donations to registered charities or excess credits May be carried Forward to reduce net income five years into the qualifying a tax credit will result on the tax return of any individual who gives qualifying gifts to qualifying Art dealers who donate Art objects or other cultural property will include in their business income the fair mar Ket value of the this will be offset by an equivalent tax credit on the artists who donate their works from inventory May value such a gift at any amount not less than the inventory value and not More than the fair Market and then include this amount As an offsetting amount is then deducted As a charitable qualifying gifts most taxpayers make Cash donations to their favor Ite others donate certified cultural property or rare books from their As described Many people Are unaware of the provisions available for gifts of capital property taxpayers who donate capital property May be required to show a number of entries on the tax there for a disposal at an amount Between the property adjusted Cost base and its fair mar Ket value at the time of the this could create either a capital gain or or an offsetting capital gains the same value is then also used As the value of the donation for the purposes of claim ing the charitable donations there Are special roles for person Al use properties personal Stamps or coins which fall into a distinct gory for tax in the year of charitable donations May be claimed in the year of death and any excesses May be carried Back to the immediate preceding persons interested in making gifts other than Cash should enquire about the tax rules that will effect such including whether there should be a certification or appraisal of any property and what recipients Are a very Good overview of these requirements is available in reve nue Canadas free pamphlet gifts in available at tax the District Evelyn jacks is director of Edu cation at u i tax services Dianne Matey savers savor mortgaged backed ties mass May not have their Promise to but they Are an inter Esting alternative for they offer monthly payments and a yield that is higher than government Bonds or guaranteed investment certificates it was not always when Mort Gage backed securities hit the mar Ket in they paid less than two years when Central Mort Gage and housing Chc began insuring yields were still not As attractive As some com Peting things have yields on mass fluctuate with the but they Are now paying about 10 per cent for five not bad when you consider that they Are backed by a Chc guarantee and can be cashed in at any mortgage backed securities allow investors to buy a stake in a Pool of residential mortgages insured under the National housing act by the Pool is assembled by lenders such As Banks and Trust homeowners make monthly pay ments to the the Lender skims off an administrative charge and passes the payment a blend of principal and interest on to invest mortgage backed securities were conceived As a Way to raise Lon term Money for homeowners and subsidized housing so this has not most of the Money goes to housing but it is not As the intention was to extend the original five year term to 10 it has been mass can now be packaged in six month and one year but if they have failed to keep their Promise to mass have proved popular with new issues Are snapped up eagerly by individuals and big financial institutions looking for a Safe alternative to government Bonds or depos mass Are sometimes described As an alternative to direct mortgage this is not really the people who lend Money for Mort Gage Loans tend to earn substantially higher in they assume considerable mass Are sold by stockbrokers and Trade like marketable like mass have some Poten tial for capital but it is limited by their relatively Short they Are Best suited to people who want a steady Stream of monthly the big disadvantage is that they Are complicated you have to account for the repayment of principal As Well As interest As you have to reinvest a portion of the Money so you do not end up with less at maturity than you started if you Are interested in mortgage backed ask your Stock broker for More you will pay commission when you Trade and there is some risk that borrowers will repay their Mort gages ahead of leaving you with the problem of How to reinvest your during times when the yield on mass is higher than they Are Worth they will be especially attractive for people on a fixed income who have substantial savings and would like to diversify their although they can be included in Sel administered registered ment savings the monthly payout tends to make mass unsuitable for holding in this Thomson news service retirement annuities and Rulfs 1991 annuities end Grifs Ere available from certain life insurance Trust companies and Banks licensed in availability is subject to Federal legislation and individual Porpor sle policies among those offering such tre following table illustrates the monthly Insong that of registered funds will provide at Wrein rates Ere also certain minimum my apply Ano ill raws Ere so Sci 19 change in Tiroui notice 62 63 64 65 66 68 69 79 71 49905 55558 of write 45614 49166 51 47438 48644 48247 two 43940 ;