After the recent Citrus Bowl featuring the Minnesota Golden Gophers, I tailgated with some friends.

During this time, a young man (pictured left with my pal Jenn) approached selling some common boxed snack items.

I can't remember the details, but he explained the money would be used for a good cause in the development of young people, including him.

He had a very polished sales technique, so I let him show me his inventory.

It was very basic stuff and I asked him the cost.

He said, "$10."

I said, "$10 for a box of Fiddle Faddle?"

Right on cue he calmly responded, "It's not the price of the product, it's the purpose of the sale."

I was very impressed and made the purchase.

It also reminded me of the strategic nature of pricing.

Author Paco Underhill says:

86% of women look at price tags when they shop. 

Only 72% of men do. 

For a man, ignoring the price tag is almost a measure of his virility.

As a result, men are far more easily upgraded than are women shoppers.

They are also far more suggestible than women -- men seem so anxious to get out of the store that they'll say yes to almost anything.

Retail consultants Mort Brown and Thomas tilling say:

You do basic pricing with a formula that assures you the minimum margin call for by your financial projections. 

You adjust your final, real price by a little twiddling and a feel for what the market will buy.

Finally, author Lee Eisenberg says:

Retailers know how to implant reference prices.

Dan Ariely, the behavioral economic professor who wrote "Predictably Irrational," notes that shrewd restaurateurs [and retailers] understand why it pays to include high-priced entrees and super-expensive vintages on their menus and wine lists [shelves]; not because they expect us to order [buy] them, but because we have a tendency to order [buy] the NEXT most expensive selection.

Why?

Because even though the highest-priced items are out of the question, we don't want to be taken for total pikers.

The last scenario recently happened to me when buying champagne at my local municipal liquor store. 

I didn't want the cheap stuff, nor the expensive. 

So, I took the middle.

The point of this article is to encourage you to analyze your pricing strategy.

Most have the "basic pricing formula" and .49 / .99 concept down pretty well.

The question is, how are you doing on the "little twiddling?"

GO GOPHERS!!

Paul Kaspszak
MMBA Executive Director

To the Grand Puba of all Munis,

It has been my distinct pleasure to be part of your organization.

I have for the most part enjoyed providing our city with much needed revenue to support community projects.

While my final days will be bittersweet, I am looking forward to a new adventure.

January 19th will be my last day as manager and I hope the store will be in good hands.

I have informed the new Manager (Tom Donnelly) of the importance of our partnership with the MMBA.

I told him this organization is the best tool to becoming a successful manager.

He will be attending the Boot Camp in February where I know he will gain much knowledge into this industry.

I know you will be there to help him as you have helped me over the years.

I will miss your guidance and the friendships I made with each and every one of you!

So many of you have inspired me to become a better manager and I know you will do the same for Tom.

Best of luck this legislative session as I know the battle sometimes can be uphill.

You will always have my support as I go from a city government employee to the private sector.

I send all my best to you, the board and the hard working Muni managers out there that struggle every day to support our communities in the best ways possible!

Keep me in mind come conference time.

I would love to re-connect with you all!

I know I will be in Milan Italy the month of April with the hubby, but after that I will make a point of hanging out with you all in May!

My contact information will be:

 

mmeyer@midco.net 

507-399-1328

Molly Meyer

1332 Holland Street

Fairmont, MN 56031

 

CHEERS! 

By Jason Jenkins, SunSailor

Those who frequent Wayzata's municipal liquor store are likely to notice a new face during their next visit.

 

Kevin Castellano has been named the new general manager for Wayzata Wine and Spirits.

 

Wayzata's Director of Administrative Services Don Uram introduced Castellano at the Jan. 6 city council meeting, noting Castellano was chosen from a field of more than 25 applicants and given the job based on his experience as general manager of retail and liquor establishments in both the public and private sectors.

 

"We're happy to have him," Uram said.

 

The new role was officially handed over to Castellano Jan. 5 in relief of Steve Maeger, who had served as the store's interim manager since August 2013.  

 

Uram commended Maeger for his hard work, increased sales and improvements made during his time as manager.  

 

Uram said Maeger will resume his previous duties and continue to bring his knowledge and years of experience to the store.

 

Castellano's duties will include directing the operation's budget, developing and implementing retail sales objectives, maintaining good relations with the community, conducting wine events and overseeing store marketing and promotional events.

 

Castellano, whose resume includes four years as the Wayzata Caribou Coffee manager, said he grew up near Lake Minnetonka and is excited to get back to working in the area.

 

"It's been really fun so far. It's good to be working back in Wayzata," Castellano said.

 

The new manager will also bring to the municipal liquor store his knowledge as a Certified Specialist of Wine and a Certified Specialist of Spirits, both certificates awarded by the Society of Wine Educators.

 

"I'm a wine geek at heart," Castellano said.  

A 3 years old boy sits near a pregnant woman.

Boy: Why do you look so fat?

Pregnant woman: I have a baby inside me.

Boy: Is it a good baby?

Pregnant woman: Yes, it is a very good baby.

Boy: Then why did you eat it?!

 Contact Bob Leslie at:

 

320-766-3871

 

763-428-0164

E-Mail Gary