Minnesota Municipal Beverage Association Newsletter
(December 8, 2013 - December 14, 2013)
 Click Here
for the
As I See It... 

  

 

Are you a responsible landlord??

 

Think about it, each of us as a liquor store retailer owns real estate, and it's an investment everyone needs to watch over very carefully!

 

Each manager possesses several pieces of property in which his/her city is counting on them to properly maintain and recover the highest return on investment possible. There is much more than this, but during the holiday's the areas that are most vital include counter space, displays and coolers.  

 

At this time of year, the counter space at the registers can be some of the most valuable space in your entire store.  

 

Think about your own experiences...

 

How many times at the supermarket do you add on to your purchase just because a magazine was looking you in the face, a chocolate craving came upon you looking at the Snickers in the rack, or you just realized a pack of gum may be good considering the garlic sauce you had at lunch?  

 

Make sure you monitor this area closely and remember:

 

* Counters should be kept clean and well dusted. The bottle of hand lotion, the single lost mitten, your coffee cups..... none of these items can be sold so remove them from view!

 

* Put high impulse items in the area such as trendy 50 mls, holiday nogs, nouveau wines, gift bags and accessories at the register.

 

* Pop coolers and ice chests should be well merchandised and clean.  

 

So many times, I've observed cans or bottles of soda being sold at cost or much lower than a convenience store. When I question this, the reply is often that we keep pop pricing low for our employees to purchase. If this is the case, utilize your inventory system in a manner in which you can have different pricing for employee's verses customers.  

 

A customer that is parched at the holidays will gladly pay full price for that bottle of soda so don't be giving it away!

 

* Most importantly, set displays in a manner that will again provide you the best return on investment. Cross merchandise by placing a display of margarita mix in with tequila, or bloody mary mix by vodka. Try to hit multiple price points in your displays, ensuring you have low, medium and high priced items in the sales.  

 

Especially at this time of year, the customer is ready to spend a little bit more and are willing to trade up. Don't be putting a ceiling on what they can spend. And remember, if the product is not priced, it is not for sale!

 

* Lastly, one of the best suggestions is to place a little stack of non-alcohol bubbly at the registers. This is high impulse at less than $4.00 a bottle and also demonstrates that as a retailer, you are responsible and promoting non-alcoholic alternatives.

 

So make the most of your real estate and have a good holiday season!

 

Brenda Visnovec

Lakeville Liquor 

48.39 Tons of Food Collected by MMBA Members in October!!!!!
Food Drive Display

MMBA members collected 48.39 tons of food in October during the MMBA / Coors Light Food Drive!!!

Some facilities generated a significant quantity, others not so much. 

However, your humble executive has learned by touring various food shelves is that every contribution is important!!
 

Winners of the $1,000 added donation to their food shelf is:

Fifty Lakes: Under $1 million in 2011 total sales

Hackensack: Over $1 million in 2011 total sales

Winners of $100 added donation to their food shelf, based on a random.org drawing of all participants, excluding the above:

Buffalo
Longville
Waverly
Northfield
Alexandria
Elmore
Farmington
Lakeville Kenrick
St. James
Hawley

Thanks to all who participated!!!!
Maximizing Your Share of the Market

By MMBA Conference Presenter Tom Shay

Often, the statistical information you see in articles in trade publications is given to you utilizing a pie chart.

 

For example, using a pie chart, the writer may show you the results of a survey taken to ask consumers where they shop.  

 

Many times, the pie chart is accompanied by a second pie chart that indicates how the pie was divided several years earlier.  

 

There are two changes that you will frequently observe when looking at the changes over a period of years.   

 

The first is to see which types of businesses have gained in percentage share as compared to those types of businesses that have lost a part of the market.   

 

The other change is that there are one or two new groups of retailers that now have entered the market and own a percentage of the overall trade.

 

When you look at the pie chart, think of the favorite pie grandmother always made for you.  It was very delicious, and she had baked it especially for you.   

 

Yes, grandmother had a slice, and so did Mom and Dad.  But, the majority of the pie was for you.   

 

Unfortunately, today you now have a little brother or sister, perhaps several, and now even the cousins are wanting to have a piece of your pie.  

 

Business today is much the same as grandmother's pie.  It was, and still is, very desirable.  But, a growing number of competitors think that what you sell is one of the best pies to be a part of.   

 

Are these retailers your competitors?  If a dollar that could be spent in your store is spent in another store, then you most definitely have a competitor.   

 

It does not matter why the other retailers have begun to offer what you have sold for years.  The important question is, "What are you going to do about it?"

 

The number of potential customers has not increased as significantly as has the number of choices of places for the customer to shop.   

 

Fortunately for you, as the number of retailers increases, the focus of the competition has frequently been price.  

 

A study gives us reason to be excited.  In a study of 20,000 consumers, the five greatest demands in order of importance were:   

 

* Have inventory on hand

* Save my time

* Sell value to me

* Have attractive visual merchandising

* Have qualified help available.

 

Where is price in this equation? We do not know, but this survey does indicate there are at least five more important things to the customer.  

 

Try taking this five step approach to increasing your market share:  

 

First, visit the competitors to see how they operate. How is their merchandise displayed?  What product categories do they specialize in?  Be knowledgeable of what they are doing and do take note of their prices.

 

Second, take special note of what they do not do.  Do they have extended hours?  What do they have a small selection of that you have a superior selection of?  Do they offer additional services? What accessory items do they sell?  In short, look for their weaknesses.  

 

Thirdly, look for success stories of retailers not in your trade area.  Trade magazines are an excellent place to start your search.  Call or visit other businesses and ask for ideas that they have tried.

 

Your fourth step should be to establish a plan, schedule, and budget to implement any additions and changes to your business.   

 

You may be adding new products, a specialty selection, or just rearranging your sales floor. Are products grouped according to how a customer selects them or are they arranged according to some manufacturer's plan-o-gram?  

 

Regarding the usage and enjoyment of the products you sell, someone has to educate these customers.  Don't you want it to be you?   

 

The fifth step is to begin to promote.   

 

Note that promotion and advertising are definitely not the same thing.  An example of an excellent promotion by a business is to find a non-profit organization and become an active part of their efforts.  

 

Research shows that customers change their opinion of a business in a positive manner because of the participation of the business in the community.

 

Grandmother's pie was always delicious; that is why we wanted a bigger slice or a second helping. Your business should be the same way - looking for more.

John Schmidt Recently Said....


St. Francis Bottle Shop manager John Schmidt recently said he once worked at a fire hydrant factory.

Problem was, he couldn't park anywhere near it.
 

Don't think leadership is important?


How are the Green Bay Packers doing without Aaron Rodgers?

Future Dates to Remember!!
 2014 MMBA Boot Camp

 

February 17 - 19

Breezy Point Resort

 

Click Here for More Information 

 

2014 MMBA / MLBA Legislative Day

 

March 10

Kelly Inn, St. Paul  

 

2014 MMBA Annual Conference

 

May 17 - 20

Arrowwood Resort 

Ask A Director

Gary Buysse
Rogers
763-428-0163

Cathy Pletta
Kasson
507-634-7618
  
Vicki Segerstrom
Milaca
320-983-6255
  
Candice Woods
Hutchinson 
320-587-2762
  
Nancy Drumsta
Delano
763-972-0578

Lara Smetana
Pine City
320-629-2020

Michael Friesen
Hawley
218-483-4747

Lisa Kamrowski
Nevis 
218-652-3135

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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Thoughts About Pricing
Taffer
By Jon Taffer

* Price is only an issue when a customer doesn't have a positive reaction to an experience.

* "Absolute value is a simple price comparison, whereas perceived value is the result of your quality, experience and business dynamics.

* Pricing has a great deal to do with perceived value.  Perceived value
(a REACTION) beats absolute value every time.

* The exact science of pricing is in covering costs and making a profit.  The art of pricing is finding the sweet spot, the magic number that suits the experience you offer and meets the expectations of your market.

* Every business owner needs to ask themselves, "What do I need to do to delight a customer and win his or her loyalty?"
The answer will never be about price, even though spending habits have changed.

* Nobody leaves a great bar and talks about the prices.  They only leave a lousy bar and talk about the prices. 

* Raise your bar to match your prices - don't lower your prices to match your bar!  Don't be cheaper - be better!

* Effective cost control only succeeds when management is engaged.
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