The Pricing Game .49's and .99's -

Are you stuck in old ruts or are you a forward thinker?

I know this has been the subject of much discussion over the last few years.  MMBA representatives travel throughout the state and discuss many items with managers that can help their business. Always at the top of that list is changing your pricing structure to end in .49s or .99s. This seems like a pretty simple concept to adhere to; when pricing a product most of the time simply move it up to the next price point or sometimes move it down.

A representative of the MMBA did an analysis of a municipal liquor store not too long ago and simply did a spread sheet with this structure.  It proved to bring in an additional $9,000 of pure revenue for that store. Anyone out there that does not need an extra $9,000 in revenue? In the words of Jimmy Fallon in one of his commercials "Send it to me!"

Believe me when I say I have been all over the state and heard every reason for rounding those pennies.  In fact I used to be one of the people that made that excuse when I was questioned about it. After making that transition many years ago I realized I was simply carrying over old ideas that were set in place many years ago by managers who were long gone, and my fear of change would not let me see that this is a smart move.

In looking at the picture above, which is from a real municipal liquor store in Minnesota, can you see it through a customer's eyes or do those eyes of manager take over? If you are not a person who has authority over making these changes please question the person who does?

Can we as a group of Municipal liquor stores set a 2012 goal to get all our prices (Beer, Liquor, Wine and N/A) moved to this structure?

Please consider this move if you have not already. If you have already made the change please send me your story of success.  If you are making the move in 2012 also send me your progress.  Tagnes@brooklyncenterliquor.com

Finally I will leave you with a guy who was a forward thinker and achieved great success.

Most people spend more time and energy going around problems than in trying to solve them. - Henry Ford

Tom Agnes

MMBA President

According to Wayzata mayor Ken Wilcox (pictured left), quite possibly the biggest success story of the last year for the city is the performance of the city's municipal liquor operation - The Muni.

When including both sides of the business - the bar and grill and the bottle shop - the new Muni tripled its budget projections, Willcox said. As with the money made from the Muni at its old location, funds are pumped back into local projects.

The Social Media Revolution 2012:

Are You Ready??

The MMBA office received the following note from The Pond (Blackduck) manager Shawn Waldo on her upcoming departure... 

 I was offered a great job as a Administrative Asst. at the school where my kids attend. No more driving or day care. I am going to truly miss this business however. It has been a pleasure working with you and the MMBA. You are a great organization. Thank you for everything you have taught me over the years.

MMBA wishes her the best of luck!

By MMBA Lobbyist Sarah Psick

This was a short week at the Minnesota Capitol due to the legislative break for precinct caucus meetings. The precinct caucuses are the first step in determining who will appear on the ballot in November.

The entire Minnesota Legislature will be up for election this fall because of the new redistricting maps - a process that happens every ten years.   Current legislators and those seeking to run for the Legislature begin the process by seeking endorsement of their political party at the local level.   Potential candidates use the caucus meetings as a way to introduce themselves to the local delegates and to being building support for their candidacy.

At the Republican caucus meetings, a non-binding "straw poll" was held to select a winner in the race for the Republican nomination of a candidate to run for President. At the Republican caucuses, Rick Santorum won with 45 percent of the vote, Ron Paul garnered 27 percent, Mitt Romney had 17 percent, and Newt Gingrich had 11 percent. Unlike many states, Minnesota does not have a presidential primary election to select a candidate for president.   The straw poll is used to guide delegates to the national convention where the Republican presidential candidate is selected.

Back at the Capitol - The House and Senate re-convened at noon on Wednesday, February 8. In the House, a bill was passed to prohibit union deductions from state child care assistance payments. Minnesota does not currently have a child care union, but Governor Dayton signed an executive order last November calling for an election. However, the vote was stalled when a Ramsey County judge issued a temporary restraining order.   House Democrats said that this bill is a solution to a problem that doesn't yet exist.

First Vetoes of the Session - Governor Dayton issued his first vetoes of the 2012 legislative session, vetoing all four bills passed by the Republican House and Senate relating to tort reform.   In his veto messages, the Governor stated that he is deeply concerned that the legislation would make it more difficult for average citizens to defend themselves against powerful interests. He says, "The suggestion that passage of this measure will somehow create jobs in Minnesota lacks merit and substantiation. Not a single job would be created - but important protections would be greatly impaired."

Looking Ahead - Governor Dayton will give his State of the State Address on Wednesday, February 15 at 7:00 p.m. when he addresses a joint convention of the House and Senate in the Minnesota House Chambers.

If I had asked people what they wanted, they would have said faster horses

--Henry Ford