Minnesota Municipal Beverage Association Newsletter
(June 8, 2014 - June 14, 2014)
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As I See It...
Partners
Summer is here, sales are up and schedules are busy. 

This is a good thing!

 Another good thing is the support of the MMBA!

I have had the opportunity to complete my first year on the board of directors and as much as I have shared my knowledge with other municipals, I have grown and gained a huge base of support from all of our MMBA directors. 

One major benefit I gained in my own store was how to utilize the single point of contacts with those who have partnership with our organization.

I was having frustrations with a sales rep and have been struggling with this person for several years.

It wasn't always bad, but it had gotten to where the bad was starting to out weigh the benefit of carrying their products. 

I took the advice of my fellow directors, made a phone call, left a message.  Within minutes the CEO of the company not only took the time to call me back, but to listen to what my frustrations had been. 

He assured me he would take care of it and by the next day he had my issues resolved.

My sales representative has been better at serving our needs even as a small store and I have  received two follow up calls from that single point of contact to make sure their company was satisfactorily meeting my needs.

This experience is just one example of thousands of why we have the partnerships we do in the MMBA.

We as a group and individuals (big or small) have the network with a single point of contact because we are all just as important to them as they are to us.

So if your struggling with something, having issues with a vendor, or need to ask about products or where to find them, reach out to your board of directors as your first tool.

Utilize the contacts listed in our magazine and website and maximize your potential!

"Every opportunity has a door, sometimes you have to initiate the knock for it to open, and when it does you'll realize you had the key."

Happy Summer Season to all!

Lisa Kamrowski
Nevis
Riddle Me This...

Answer Below
 
Seven Mistakes of Poor Pricers
Price is Right

By Frank V. Cespedes,Elliot B. Ross and

Benson P. Shapiro  

 

Face it: Most companies can't compete on price. And the good news is they don't have to.

 

If performance pricing is so profitable, why don't more companies do it?  

 

Largely because most businesses stick to one or more of the following wrong ideas when it comes to pricing their products:

 

NOTHING WE DO DESERVES A PREMIUM PRICE: The first thing a company can do to help itself identify and communicate new areas of value is to create a system for reliably gathering and analyzing data on every product and service for every customer - basically, what each customer wants more of, and how much that will cost to deliver.  

 

That's the foundation for coming up with a new value proposition that your marketing and sales people will understand and embrace.

 

A question to discuss at your next leadership meeting: Is your marketing budget better allocated to gathering customer feedback and training your sales force, or to developing another vague "branding" campaign?

 

AVERAGE PRICING SEEMS FAIR: Many executives celebrate a sort of pseudo-democracy in their pricing policies.  

 

For years UPS prided itself on charging one price to all its customers.  

 

But when FedEx Corp. entered the market, one reason for its swift success was its variable pricing, which recognized inherent value differences between customers, orders (parcels versus messages) and times of delivery (a.m. versus afternoon).

 

Using an average price across your customer base almost certainly means that you are leaving money on the table with some customers who are paying less than the value they receive and perceive, and overcharging customers who don't receive or perceive the same value.

 

COST-BASED PRICING IS EASIER TO EXPLAIN: People around the world do understand and accept pricing based on costs.  

 

But that shouldn't stop sellers from experimenting with other price structures, or forms of payment, that yield more profit.  

 

It's all about how the prices are linked to benefits and framed.

 

EVERYONE ELSE PRICES IT THAT WAY: Many companies think there is safety in charging the same prices their competitors do.  

 

But the essence of performance pricing is being smart about being different.  

 

Relying on herd pricing also means running the risk that your prices are the legacy of obsolete circumstances.

 

OUR SALES TEAM'S GOALS ARE DRIVEN BY VOLUME, NOT VALUE:

With performance pricing, a company doesn't want its sales team to be pushing for increased volume across the board.  

 

Sales goals linked only to gross volumes often motivate cuts in price to meet volume goals, and may even be counterproductive if the cost of maintaining those volumes is too high or if the reduced prices are met by competitor price cuts.

 

DON'T STEP ON ANYONE'S TOES:In too many companies, marketing, operations and sales are expected to stay out of each other's way as they independently pursue top management's goals.  

 

Performance pricing breaks down the separation of roles across the company.  

 

All departments must do their part to figure out not only what customers want, but how it can be delivered in the most profitable manner.  

 

Interdepartmental meetings on pricing strategy should use a common language and keep information flows current to the whole company.

 

THE CUSTOMER "TELLS" US THE PRICE:Few customers wake up wanting to pay a higher price.  

 

But most do seek value.  

 

By voting with their feet, customers determine what they are willing to pay.  

 

But it's your responsibility to frame and deliver the value proposition, and the pricing mechanism.

 

Remember: A price is not the same as pricing. The price is what a customer is willing to pay. You and your organization do pricing; and the leverage - up and down - can be tremendous.

 

Frank V. Cespedes is a senior lecturer at Harvard Business School. Elliot B. Ross is chief executive of MFL Group, a Beachwood, Ohio, consulting firm that assists clients on growth strategies and pricing. Benson P. Shapiro is the Malcolm P. McNair professor of marketing emeritus at Harvard Business School.   

The Answer

There are eight holes.

Collar, two sleeves, waist and 4 holes in the body...two in front and two in back.
 
Future Dates to Remember

2014 MMBA Regional Meetings 

 

Thief River Falls  September 10

Alexandria
September 17

Worthington
September 24

Rochester 
October 1

Duluth
 October 8

Metro
 October 9
Ask A Director

Gary Buysse
Rogers
763-428-0163

Cathy Pletta
Kasson
507-634-7618
  
Bill Ludwig
Paynesville
320-250-3325
  
Candice Woods
Hutchinson 
320-587-2762
  
John Jacobi
Isanti
763-444-5063

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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Sunday Sales: Convenience at What Cost?
The MMBA website now contains comprehensive information on Sunday Sales. 

It is a reference for members, legislators, media, city councils and the general public.

Click Here for the Website

 

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