News from Minnesota Municipal Beverage Association

Minnesota Municipal Beverage Association Newsletter

(November 11, 2012 - November 17, 2012)

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As I See It...

Goldy

As you read this, I will be in Lincoln Nebraska cheering the Minnesota Golden Gophers football team to victory against the dreaded Cornhuskers.

The 2012 MMBA Regional Meetings concluded last week and again proved to be very valuable to participants. I know meeting planners always say their events were successful. But again, these were.

Two concepts come to mind when I reflect back on what members shared:

For the off-sale, the importance of developing a "pricing strategy."

Many (most?) members use a straight forward approach to pricing. For example, a liter of Product X costs $Y from the wholesaler. A certain percentage is added as a mark-up and then rounded to .49 / .99 to determine a final selling price.

A member explained how she went beyond this process by analyzing her marketplace and then deciding to raise prices on all non-core items.

In order to justify the increase, product selection would be the best in the area and customer service would be the best it could be by going beyond the standard "carry product to the car" approach of many facilities.

Customer service was defined as focusing like a laser at customers as they enter the store and beyond.

Every customer is greeted and staff is highly educated on products being sold. They are able to help customers make selections and offer alternatives to items not carried.

This approach has led to a 4% increase in gross profit.

On-Sales discussed their move away from "bands and entertainment" to "activities, events, and themes."

For the majority of attendees, entertainment such as bands and karaoke is being reduced.

Activities such as turkey bowling, chili contests (remember, pot lucks are legal), Ladies Night Out, minnow races, Kentucky Derby party etc. are proving to be very successful in all parts of the state.

Hopefully you were able to see live Tweets about these topics and more during each meeting at #MMBAconf.

Go Gophers!!

Paul Kaspszak

Executive Director

Good News For Perham Taxpayers

By East Otter Tail Focus

Landmark Liquors is having a good year, and that's good news for Perham taxpayers.

Sales at the municipal liquor store are up 12.5 percent from this time last year, putting the store on track to have its second-best year ever. That means more money in the city coffers, going toward projects that would otherwise be dipping deeper into taxpayer's pockets.

"We had great summer traffic again," said manager Bob Dreger in an interview last week. "It shows that people are responding to things that are going on here and that it's a good place to shop."

Dreger and the liquor store staff have been making efforts over the last year to improve the shopping experience and attract and retain more customers. A store remodel in January has helped "make things flow better," he said, and customers are now noticing products that they used to just walk right by.

A billboard that went up along Highway 10 last spring has also "been a big plus," he said, as it's been bringing in new customers. Store sales and other incentives, along with good customer service and a wide selection of products, keep those customers coming back.

Not to mention the sheer size of the store, adds Dreger - with its wide, open aisles and "more cooler doors" than most other liquor stores for miles around. The store has also held some successful open house and tasting events, and has just created a new facebook page.

But the real secret to the liquor store's success, Dreger said, is the people - both the staff and the customers.

"The people we have here are just solid," he said of his staff. "They're great people and they care about the products we sell. And then if you have a community that supports you, it all just comes together."

Already this year, $30,000 in liquor store revenues has been dedicated to a community project - the new grandstands at Tuffy Stadium.

Liquor store revenues are used to support a variety of community events and projects. They also fund the Perham Area Community Center to keep membership rates as low as possible, and go into the city's general fund to help keep property taxes down.

Last year, a total of $172,000 was channeled from Landmark Liquor's revenues back into the community. Of that amount, more than $134,000 would have otherwise come from increased tax levies. Without the liquor store, the city's tax levy would have gone up 11 percent in 2012 (instead, the levy is preliminarily set at a 1 percent increase).

"You can come in here and get what you need, and help the community," said Dreger.

Concentrating on the Customer: 15 Things Every Retailer Must Train Employees

By Bob Phibbs, The Retail Doctor

* When you see a customer, stop what you are doing, look up so you can meet their eyes and then approach them in a non-threatening way with a greeting like, "Good morning" or "Good afternoon." If a customer is at the register waiting, take the initiative to see if you can ring them up.

* Listen to the customer to find out why, on this day, they came in to your store. Your time will go by more quickly, when you see every interaction as different.

* Say "we" not "them" or "they." Otherwise you sound like an outsider. You are a part of our success. We will not survive in business without you.

* Be on time. There will be traffic. There will be parking off-site and having to wait for a shuttle. There's still no excuse for being late for a shift.

* Turn your phone to vibrate and put it away while on the floor. We're not paying you to look in the palm of your hand, so use your phone on your time.

* Customers can be rude, angry and unreasonable. Don't share your stories of how awful they were with other employees - and especially not to our customers. The pace of the holidays will be crazy busy; keep your own attitude above the fray.

* We all have stress, family and personal concerns. We will all get along much better if there is no additional drama brought onto the sales floor. When you walk in the door, leave your problems at the door.

* Patrol the floor. If you see it, step over it or kick it - pick it up and dispose of it. That goes for anything from a ripped price tag to a used diaper- yes, we get those now and then.

* It's great to have friends, but please don't have them visit you while you are working; you're working.

* Since we spend a lot of time on scheduling, a manager has to approve any "switching" of days, times or breaks.

* We take theft seriously and will investigate and prosecute accordingly. We also conduct random checks of the trash.

* Just because you may not be able to afford some of our more expensive items, doesn't mean our customers can't. Your goal is to help us sell that merchandise and make our customers' holiday gifting fun.

* You are an important part of our business. We can't do it without you.

* It's never a sin to wear a grin. Remember to keep a sense of humor.

* If you don't know the answer to a question posed by a customer, tell them you don't know and that you'll find someone who does.

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