Minnesota Municipal Beverage Association Newsletter
(February 24, 2012 - March 2, 2013)
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As I See It...

Brodie                                

 

What kind of kennel do you run?

 

Watch your employees....You can often see dog-like behavior in the way your employees treat the customer, some good, some bad and some indifferent.

 

Indifference...the worse offense in the customer service world!

 

Let me explain...

 

We had an employee who when approaching customers would almost bounce, then he would smile, slap his hands together and ask them what he could assist them with. You could feel the energy!

 

I could relate it to watching a golden retriever looking to please his owner. All that was missing was seeing a tail wag (which I guess he could have been hiding in his pants), or for him to drool all over the customer. But it was enthusiastic, energized, and you could see the appreciation the customers had towards this attitude. They felt important, and truly isn't that what we want in all aspects of our life?

 

Unfortunately, we have also had the pit bull employee...They can be hard working creatures, nose to the grindstone. Among close personal friends and relatives, they can be kind and caring.

 

But heaven forbid if a customer interrupts them while they are working on a project. They are the type that will lower their ears, snarl a bit and if a customer gets too close, they may actually bite.

 

Just like you would work with a temperamental dog in breaking bad habits, we as managers have to work with our employees to improve customer satisfaction within our stores. Not only do we need to break bad customer service habits, but also to encourage and reward those for a job well done.

 

Do not allow the pit bulls to sulk and bite. Address these issues in a professional manner. While we would often like to roll up a newspaper and swat these employees across the nose, we need to encourage and teach better behaviors in a positive manner.  

 

Remind your employees that communication is not just about words. Tone and body language can play a large role in the satisfaction of the customers!

 

Brenda Visnovec

Lakeville Liquor

Credit Card Minimums 
Credit Card 2  

The following is courtesy of the Minnesota Restaurant Association and is from their recent newsletter:

 

Credit Card Surcharges 

 

We have had a number of calls from members about media coverage on surcharges on credit card purchases and about offering a discount for cash.

 

A provision of a recent court-approved settlement of a class action lawsuit against Visa and MasterCard struck a provision of the merchant agreement that prohibited surcharges for the use of a credit card.

 

Effective on January 27, 2013, a merchant may charge up to the cost of processing the payment as a surcharge unless prohibited by state law. Minnesota does not prohibit surcharges. We expect significant consumer objections to surcharges for using a credit card and do not expect this practice to be common. This does not apply to debit cards or to cards from brands other than Visa or MasterCard.


A provision of the Dodd Frank Financial Service Regulation Act of 2010, called the "Durbin Amendment," included two provisions that allow new options for merchants. Some businesses have had policies like these in the past but they are now clearly permitted by law:

  1. Merchants can impose a $10 minimum on credit card transactions (this number can be adjusted by the federal government as it sees fit). Previously, Visa and MasterCard banned this practice in their merchant agreements.
  2. Merchants are allowed to give discounts at the register to those who pay with cash or debit cards. Previously, Visa and MasterCard banned this practice in their merchant agreements.

Lynn Dederich, Regional Manager - U.S. Bank Payment Solutions (Elavon), Government & Institutional Sales adds:

 

I ran this by our compliance group, here is what they provided. And if it was not apparent from the verbiage, surcharging can be done on credit cards .. but not on debit / check card transactions.

 

Yes, merchants can set a minimum transaction amount.  MasterCard and Visa have similar requirements, below:

 

MasterCard:

 

A Merchant may set a minimum Transaction amount to accept a Card that provides access to a credit account, under the following conditions:

 

1. the minimum Transaction amount does not differentiate between Issuers; and

2. the minimum Transaction amount does not differentiate between MasterCard and another acceptance brand; and

3. the minimum Transaction amount does not exceed USD 10 (or any higher amount established by the Federal Reserve by regulation).

 

Visa:

 

The minimum Transaction amount must not be greater than US $10 and must not be discriminatory between Issuers or between Visa and another payment network.

 

Merchants are allowed to offer a discount, rebate, free product/service or other incentive/benefit if the customer pays with cash, check or PIN debit.  Additionally, if a customer first presents a Visa or MasterCard, the merchant can now steer or encourage the customer to pay with different card type and offer discounts/rebates/incentives to do so.

 
Mandatory Deposit / Bottle Bill
  

There are indications a Mandatory Deposit / Bottle Bill will be introduced in the 2013 legislature.

 

There is a large coalition against the proposal including the Minnesota Municipal Beverage Association and Minnesota Licensed Beverage Association, Minnesota Beer Wholesalers Association and Minnesota Wine & Spirits Wholesalers Association.

  

For those unfamiliar with the concept, when a retailer buys beverages from a distributor, a deposit is paid to the distributor for each can or bottle purchased. The consumer pays the deposit to the retailer when buying the beverage. When the consumer returns the empty beverage container to the retail store, to a redemption center, or to a reverse vending machine, the deposit is refunded. The retailer recoups the deposit from the distributor, plus an additional handling fee in most U.S. states.  

 

Here is a fact sheet against the proposal:

 

Beverage Container Deposits: A Hidden Tax and A Bad Idea

 

This is no time to add a new tax on everyday consumer products. Some legislators are proposing that we add an Iowa-style deposit to the price of every soft drink, juice, water, tea, beer, and wine container. This old idea would make recycling less efficient and less convenient, while raising prices for consumers.

 

Consumers:

 

  • Higher prices - not only from the deposit, but for the hidden costs of setting up and operating a new redemption system for bottles and cans. Past proposals would have added nearly $3 per case for all types of drinks. Higher prices hit low-income families and seniors hardest.
  • Pay for two systems - the current recycling infrastructure and a new redemption system.
  • Inconvenience -
    • Store deposit containers apart from other recyclables (especially difficult in apartments)
    • Make special trips to return empties - more time, more gas, more emissions
    • Handle the sticky empties, sort, and count them as part of the return process
    • Pay more for curbside recycling when the valuable aluminum and plastic have been removed from the curbside bins.

Minnesota Jobs:

 

  • Higher prices hit border communities and their merchants especially hard by driving business out of state. Border food stores lose 5% of total sales in other deposit states (most with 5¢ deposits); the loss would be worse with the higher deposit proposed here.
  • In-state beverage producers and distributors will lose jobs.   Higher prices mean declining sales and fewer employees needed. New part-time jobs sorting bottles and cans won't offset those paying living wages and benefits.
  • Minnesota recycling businesses that have made substantial investments in infrastructure to recapture recyclable materials will have their whole business model disrupted.
 Disappointing Environmental Results:

 

  • Building a new recycling system to compete with our existing recycling infrastructure would hurt our existing programs and doesn't offer much environmental gain.
  • Existing recycling programs will be among the first to feel the pain as they lose the revenue they earn today on aluminum and PET (plastics) - the two most valuable materials they collect. Recyclers would have to fund their current programs with a lot less revenue or resort to higher consumer fees.
  • Greenhouse gas benefits of any additional recycling would be reduced by the new fleets of trucks put on the road to collect empty containers and by extra consumer trips to return empties.

 

Consider an effective alternative: Single Stream Recycling

 

The City of Minneapolis is in the process of converting to a "one-sort" system where all recyclables are collected in a single cart. The simplicity and efficiency of that approach are apparent as initial recycling rates have increased by 63%, even more than predicted.

 

 

A Drunk Goes Out to His Car...

Drunk Guy 2  

A drunk goes out to his car to go home for the night, but soon comes back in and picks up the phone to call the police.

 

"Hello, occifers, they've stolen the dashboard, steering wheel, brake pedal, radio and even the accelerator out of my car," he wails.

 

He gives them the name of the bar, agrees to meet the squad in the parking lot, and goes out to wait.

 

A few minutes later, he sheepishly walks back into the bar and picks up the phone. "Hello, police? Me again. The guy who called from Kelly's Bar. Never mind. I got in the backseat by mistake."

 

Future Dates to Remember!!

2013 MMBA Annual Conference

 

May 18 - 21, 2013

Arrowwood Resort

Ask A Director

Gary Buysse
Rogers
763-428-0163

Cathy Pletta
Kasson
507-634-7618
  
Vicki Segerstrom
Milaca
320-983-6255
  
Brian Hachey
Stacy
651-462-2727

Nancy Drumsta
Delano
763-972-0578

Lara Smetana
Pine City
320-629-2020

Michael Friesen
Hawley
218-483-4747

Tom Agnes
Brooklyn Center
763-381-2349

Steve Grausam
Edina
952-903-5732

Toni Buchite
50 Lakes
218-763-2035

Brenda Visnovec
Lakeville 
952-985-4901
 
Bridgitte Konrad
North Branch
651-674-8113
  
Shelly Dillon
Callaway
218-375-4691
  
Karissa Kurth
Buffalo Lake
320-833-2321
 
Paul Kaspszak
MMBA
763-572-0222
1-866-938-3925

 
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Minnesota Alcohol Taxes
Tax2 

There is a legislative proposal to increase Minnesota alcohol excise taxes.

 

However, many do not understand how alcohol is currently taxed:

 

Alcohol is the most uniquely and highest taxed product in Minnesota.

 

There are only three products where an excise tax is charged: alcohol, gas, and cigarettes.

 

Of those, only alcohol has an additional sales tax.

 

 Additionally, there are only three products where an additional 2.5% gross receipts tax is imposed: alcohol and rental cars.

 

Furthermore, many cities add an additional local alcohol tax.

 

 Consequently, the total tax burden is very high compared to surrounding states and the nation.

 

Any additional tax would be very difficult to pass on to consumers, especially in bars and restaurants that are already facing tough economic times.

 

 When these taxes are added together - it is more taxing to buy a pint of beer in Minnesota than it is in New York City or Miami Beach!

 

 

 

An architect imagines what if.

 

A builder figures out how to.

 

Great structures only emerge when the two work well together in pursuit of a shared vision.

 

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