Minnesota Municipal Beverage Association Newsletter
(November 29-December 5, 2009)
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As I See It...... 
 
KryptoWho said "You can't teach an old dog new tricks?"
 
Well in my case, they"re wrong.
 
Maybe some of this I've heard before & in some cases maybe I've heard more than once, but for whatever reason, maybe this time I heard it louder & clearer than before & it stuck...
 
1) Pricing -- I know that Paul has been preaching 9's for a hundred years but I was one of those from the old school & used convenience pricing.
 
A lot of our prices came out to the even dollar, or at least in 25 cent increments. That way we didn't have to monkey with those pennies, nickels & dimes.. We were known as the store where prices most always came out even monies.
 
But you know what??? More & more & more people are now using plastic, & pennies, nickels & dimes are no longer a nuisance (AND) with some higher pricing comes higher profits.
 
It may not seem like much but pennies, nickels & dimes all add up & every little bit helps, especially these days.
 
2) Old Product(s) -- Beer & liquor I don't have much trouble with beer and liquor but not wines.
 
I have now taken a number of wines (some old & some new) & priced them all at $7.99. But if they buy 3, they get a 4th bottle "FREE".
 
Why is it that the word "FREE" really works wonders?
 
Customers who came in for 1 or 2 bottles of wine are now walking out with 4 & some are leaving with as many as 8, all because of that magic word "FREE".
 
I use the $7.99 price because the program I use with the Total Register system allows me to discount $2.00 in increments of 4 which amounts to 4 x $2.00 or $8.00 which amounts to 1 free.
 
By the way, we had a record day of wine sales the day before Thanksgiving.
 
3) Beer of the month -- I have always tried to price my case beers at 25% GP "BUT" now I have taken the Miller Lite & priced it at $17.99 (about 18% GP).
 
I now have a beer that is comparably priced with most of the other stores in the area (even the Fargo-Moorhead stores).. Those of you who have seen the beer prices in the Fargo-Moorhead area, you know what I am talking about.
 
Why did I chose Miller Lite? Because they were the distributor in this area who did not raise their pricing to us & I wanted to show my appreciation.
 
4) Bullet Reports -- I made a written report to the City Council informing them of the activities at the store for the past month. That way they are aware of what I am doing & what is going on at the store.
 
These are just a few of the things discussed at the Regional Meetings but this is what I have been working on since the Meetings & believe me, they are working.
 
Which goes to prove -- "You can teach an old dog new tricks."
 
My next project -- To start using inventory cycle counts.
 
I hope everybody has a very happy & successful Holiday Season
 
Bob Leslie
Pelican Rapids Liquor Manager
MMBA Director

Northfield Shoppers Seek Value
Northfield2 
JIM HAMMERAND, Northfield News Staff Writer

Alcohol buyers are putting their money where it will have the best value, according to some city sales figures.

Shoppers are still spending at Northfield's municipal liquor store downtown. Stephen DeLong, who runs the city's alcohol operation, said he's seen a trend toward value-oriented shopping for the past five years that intensified as stocks dropped and jobs evaporated.

"When it first hit, there was a certain sympathy where people didn't want to be ostentatious with their purchases," DeLong said.

But he said it's difficult to figure out exactly what goes through a shopper's mind at checkout. Sales are up by about 7 percent through the end of October compared to the same period in 2009, DeLong said. That growth is likely coming at the expense of bars and restaurants, where service and ambiance drives up the cost of drinking.

The average transaction has held steady over the year but is trending up. At $22.22 in November, it was about $1.40 more than the same time last year.

Premium brands are holding strong, but some bottom shelf brands of liquor and beer seem to be growing in popularity. That's possibly at the expense of mid-range brands, the regular consumers of which may be trading down.

Sales of Busch Light in 24-can cases, for example, were down about 10 percent through October. One step below, 24-can cases of Natural Light sold that much more often through the same period.

Consumers are also shopping with per unit prices in mind, buying in larger volumes to save in the long run. Boxed wines, which cost as much as a fourth less by volume than bottles of the same product, are selling briskly, DeLong said.

And wine drinkers are less willing to trade down, DeLong said, but will try different brands from different countries to get the best price.

"In wine, people are less brand conscious because they can try anything," DeLong said. "As long as the price is right and it tastes good and is a good value, it'll sell here."

Other liquor store employees in northern Rice County have anecdotally reported changes in purchasing habits, but hard data is difficult to come by. A Gallup poll conducted in June shows that Americans are drinking at the same rates as they did a year before and for about the entire decade. Even that study noted that it's difficult to figure out how consumers' alcohol spending changes in tough economies.

Mike Cords, an area manager with Paustis Wine Co. of Plymouth, was pricing wines in the Northfield store Tuesday afternoon. He said thrifty consumers are recognizing the value - based both on quality and exchange rates - of South American wines.

"People are definitely looking for more bang for their buck," Cords said.

Review Your Security Procedures
 
Robber 
As you will read below, last week the Columbia Heights Liquor operation was robbed.
 
While this is an extremely rare occurrence, it is a good incentive to review your facility security procedures and discuss them with your staff.
 
Two men are wanted by police in Columbia Heights for robbing a liquor store and firing three gunshots.

Around 8:20 p.m. Saturday, two men entered Heights Liquor on the 5200 block of University Avenue NE an immediately confronted the two clerks working at the time. One of the suspects grabbed a clerk from behind and fired three shots.

Nobody was hit by any of the shots fired.

The second suspect ordered the other clerk to empty the cash registers. Both men were armed with handguns.
 
The suspects fled on foot after taking an undisclosed amount of cash.

Columbia Heights police are particularly concerned with this robbery because the suspects almost immediately fired shots.
 
Police hope images from surveillance video will lead to the arrest of the two suspects, who police say are capable of immediate violence.

Anyone with information on the identity of the suspects are asked to call Columbia Heights police at 763 427-1212.

 

Designated Driver Gift Cards
Designated Driver 

 
 
 
 
 
 
 
Last year MMBA and MLBA members displayed and distributed Minnesota Department of Public Safety "Designated Driver Gift Cards" during the holidays.
 
The gift cards allow a person to "give the gift of a safe lift" to friends/family. The cards aim to prevent impaired driving. The gift cards are used with small card-holder displays to be placed on checkout counters.

The Department is again looking for support in this effort to help distribute this life-saving item that encourages people to have a plan for a safe and sober ride if they plan on partying.
 
The cards come in packs of 250. 
 
This year the cards and accompanying counter-top displays can be ordered directly online at no charge. 
 
Click Here to Order the Free Cards
 
 


A Man Walks Into A Bar....
Bar Sign 
A man walks into a bar and says, "Excuse me, I'd like a pint of beer." The bartender serves the drink and says, "That'll be four dollars." The customer pulls out a twenty-dollar bill and hands it to the bartender. "Sorry, sir," the bartender says, "but I can't accept that." The man pulls out a ten-dollar bill and the bartender rejects his money again. "What's going on here?" the man asks. Pointing to a neon sign, the bartender explains, "This is a Singles Bar."  
Future Dates to Remember!!
2010 MMBA Boot Camp,
 
February 22 - 24, 2010 Breezy Point
 
2010 MMBA / MLBA Legislative Day
 
March 1, 2010
 
2010 MMBA Conference
 
May 15-18, 2010 Arrowwood 
 

 
Ask A Director
 
Gary Buysse
Rogers
763-428-0163
 
Bob Leslie
 Pelican Rapids
218-863-6670
 
Brian Hachey
Stacy
651-462-2727
 
Nancy Drumsta
Delano
763-972-0578
 
Lara Smetana
Pine City
320-629-2020
 
Joyce Zachmann
Spring Lake Park
763-780-8247
 
Virgene Shellenbarger
Hutchinson
 320-587-2762
 
Tom Agnes
Brooklyn Center
763-381-2349
 
Steve Grausam
Edina
952-903-5732
 
Toni Buchite
50 Lakes
218-763-2035
 
Michelle Olson
Sebeka
218-837-9745
E-Mail Me
 
Bridgitte Konrad
North Branch
651-674-8113
 
Paul Kaspszak
MMBA
763-572-0222
1-866-938-3925

 
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Containers Brought Into Premises
Clinking Glasses
An MMBA member recently asked if a customer could bring a bottle of alcohol into their establishment.
 
The answer is yes.
 
However, according to Minnesota Statute:
 
340A.512 CONTAINERS BROUGHT INTO PREMISES.

A licensed retailer of alcoholic beverages may prohibit any person from bringing into the licensed premises any container of alcoholic beverages, or from consuming from such a container on the licensed premises, without the licensee's permission.
 
Tip of the Week
Dusting
 How's the view?
 
Have you seen the view that your customer has when paying for a purchase? Sometimes it is not pretty at all.
 
We see our surroundings all the time and might not really see what's there.
 
Think - tangled cables, used staples and paper clips, old pens and pencils, rubber bands and just about anything else you can thinkof. The worst part is that all of these things look even worse when they are coated in dust...which is not unusual.

Another thing that often goes unnoticed by management, but certainly not by customers, is the dust that gathers in the air vents on your POS equipment.

As part of your morning opening routine, you should stand in the position that your customers are in when they are purchasing.
 
Take a good look around.
 
Check out the cash desk, the wall or windows behind the desk, the ceiling immediately overhead, the floor and the POS equipment.

If you don't like what you see, you know what to do!

Retailers continually search for ways to keep customers in their stores longer, the strategy being: "The longer customers stay in the store, the more they will buy."