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April 2008

Your Source of Useful Information for Retail & Hospitality Businesses

 

 

In This Issue:   

 

 

Special Features

In the Retail & Hospitality News:

Leaving Number Crunching to Others is a Sweet Deal

Regular
Features

Retail Management: Integrating Credit Card Processing

Retail Marketing: Tips & Tricks, Using Sale Pricing in CREST and CRE Software

Your Email & Letters

From the Editor

CPA leaves number crunching to others to start ice cream shop
 

Nashville Business Journal

 

Editors Note: This is an interesting article I came across that I'm presenting in part here in The Point it tells a great entrepreneurial story with good lessons. Click on the link at the end to get the whole story. When he saw an opportunity he decided he couldn't be risk averse all the time. An aggressive entrepreneur can lurk behind the calm exterior of a conservative, risk-adverse personality.

Bybcase Insert

That's certainly part of Michael Duguay's business story, an adventure that started five years ago when he left a predictable life in Michigan to open an ice cream shop amidst the honky tonks and souvenir shops of downtown Nashville, Tennessee.

Taking big chances was never a part of Duguay's life on Michigan 's scenic Upper Peninsula , where he worked as a certified public accountant and assistant school superintendent.

His destiny was altered by three factors : a life-long love affair with ice cream, a passion for country music and the lure of what Duguay calls a "perfect untapped opportunity."

He got the idea for Mike's Ice Cream Fountain when he visited CMA's FanFare festival at the Tennessee Titan's stadium several years ago.

"I'd never seen a tourist city that didn't have an ice cream shop," Duguay says.

Surprising his family and friends - even himself - Duguay started jumping the hurdles to open his first business 700 miles from the forests and rivers of Northern Michigan .

Before he knew it he had signed a commercial lease for space at 208 Broadway, tapped into life savings and chalked up some credit card debt.

Not exactly normal behavior for a cautious accountant.

"I'm pretty risk adverse," Duguay says. "But you don't know when your opportunities are going to come. You can't always be conservative."

Reaching break-even and making a profit happened quickly.

The first year of business at Mike's Ice Cream Fountain yielded about $239,000 in gross revenues. Business has increased at a rate of about 25 percent a year since, Duguay says.

Having a strong background as a level-headed accountant has helped the business stay in the black.

"I had already explored the best and the worst accounting and point-of-sale systems," Duguay says. "I'm sure it's helped me."

 Link to information on Accounting and Point-of-Sale Systems

Link to rest of article, mixing hot coffee with cold ice cream...

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Retail
Management
Department

Credit & Debit Card Processing with Point of Sale System: Why “Integration” makes good dollars and sense.

As a method of making retail purchases, credit and debit cards are most popular with consumers. As a retail store owner you probably have a stand alone terminal which you use to swipe the customer’s credit card, input the total sales amount from your existing old fashion cash register, press the “enter” button and the terminal then dials out through a phone line, connecting with a transaction processor’s computer which verifies the customer account status. If OK, the sale is approved and the terminal prints a receipt and the cash register prints a receipt, which are both given to the customer.

If you are just starting your store it makes no sense to go through the process just outlined and if you have that existing system it still makes good sense to upgrade to a point-of-sale system with integrated credit / debit card processing.

What is Integration?

Generally speaking, in the world of Point-of-Sale there are two types of software developers: those that create software for keeping tract of inventory and making sales, and those that create software for transaction processing of credit and debit cards.
 

So “integration” simply means that the process utilizes two software programs running simultaneously and at the point of tendering the sale, if credit/debit card is the method of choice for the consumer, the point-of-sale system will seamlessly integrate with the transaction processing software to quickly process the sale.

Benefits of Integration:  Accuracy.
 

Transactions are much more accurate because the amount of the sales does not have to be remembered by a busy clerk from the sales terminal and correctly typed into the card processing terminal. The process of retyping is an action “fraught with peril.” All sorts of things can happen between the moment the total appears on the sales terminal and it is input manually to the card processing terminal.
 

Was the sale $19.69 or 19.96? “Oops!” accidentally hit that key too many times (so that the transaction for $22.22, became $222.22).


Speed.

There is no reentering of numbers, no turning away from the customer, no waiting for the modem to dial. The customers are much more quickly served, lines are shorter and customer satisfaction is improved.

Next to the bottom Line: Cost

 

The cost of what is probably the most popular credit card transaction processing software, PC Charge, for a single user is $599.00. If you want a Magnetic Card Reader, a good deal is a ID Tech “Mini Wedge” for $120.00. Compare that to the cost of the Verifone systems and the price is the same or less and you get a better product.

If you already have purchased dial-up processing equipment, consider the vast improvement in customer service plus the availability of a multitude of full size reports that will make your back office and end-of-the-day balancing out procedures so much easier. The little more than $600, is for most retail businesses, worth it. And keep that old dial-up processor as a backup for emergencies, temporary special needs or off site use at special functions were the high speed access is not available.

Remember that our Payment Processing Integrator Packages with includes software and hardware are guaranteed to save you processing costs. We promise to pay you $500.00 if we can not lower your processing fees after you submit to us for review 3 months of your current processors statements. Click here for details

(Next Month we journey deeper into the world of credit card processing to visit all the players that are in the game, from VISA and Mastercard, to the processors to Merchant Services Providers and more.)

click here for a complete version of the article

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Retail
Marketing
Department

Tips & Tricks: Using Sale and Special Pricing with the CREST system and CRE Software

Last month our Retail Marketing Department article featured the suggestion for increasing foot traffic and profits as, "Having a Sale". we observed that, nothing beats the lure of something that's less expensive for a limited amount of time. And, while the idea of a sale may seem a bit blasé to some, technological advances have made sales events more potent than ever before.

For example, if you maintain a database of customers, contact them via an e-mail newsletter to let them know of upcoming sales events and other promotions. To further boost foot traffic, urge them to pass along your e-mail to others. That's not only effective but exceedingly cost efficient, as you're not dropping money on mass mailings that only saturates the uninterested. And as we observed last month, offers that come with a sense of urgency are always effective to get customers to come to stores.

We noticed that most of our software training and management training materials emphasized the technical aspects of the day-to-day use of the software but we did not have the same thoroughness and detail in how to use the software to help manage sale and special pricing.

So here it is! We will look at Using Sale Pricing and Creating Sales using Global Selection, two different way to use your Complete Retail Express or Cash Register Express software and better manage your business. While these are step-by-step instructions we have eliminated most of the screen shots to save space so you will want to link to the Adobe .pdf version of our Quick Steps instructions.

The |Special Pricing| tab ( [Options], [Administrative], [Inventory] ) from the inventory maintenance screen allows sale pricing three (3) different ways:

- Sale Pricing By Day

- Sale Pricing By Quantity

- Sale Pricing by Hourly Period Happy Hour Pricing

Both time based methods have a specific start date and time with which the sale pricing is in effect. When the sale ends of the time pricing is not in effect the item price reverts to the regular price

Sale Pricing By Day, The simplest sale the select item is offered at a reduced price for a set period.

•  Select the [Add] Button
•  Enter the % off in the dialog box, [OK]
•  Enter the Start Date from calendar, [Select]
•  Enter End Date from the calendar, [Select]
•  Select [Save Changes]

Sale Pricing By Quantity , while termed bulk pricing use this method for “2 for 1” or “5 for $10.00” sales

•  Select the [Add] button
•  Enter the Quantity for the special price, [OK]
•  Enter the price to be charged, [OK]
- Select [Save Changes]

Sale Pricing by Hourly Period, Happy Hour Pricing , the price charges for the item is for a specific day of the week and time period, to have the reduced price every day at the same time, create a sale for each day.

•  Select day of the week by number code, [OK]
•  Type Start time, [OK]
•  Type End time, [OK]
- Type Sale Price, [OK]

Click here for a complete Adobe Acrobat version of the article.

Next month we'll look at how to get special pricing for specific customers or groups of customers, making for a great "members only" pricing scheme

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CREST POS System

 

A CREST Point of Sale System provides many ways to market your business from managing a coupon promotion, to selling and redeeming Customer Gift Cards, plus, Managing a Customer Loyalty program

More information..

 

 

 

 

 

 

 

Your Emails & Letters

NOTE FROM THE EDITOR:  We would like very much to hear from retail store/hospitality owners and managers.  We want to use this section of the newsletter to have your real world experiences shared with others and to be a kind of clearing house for great ideas in both the retail and hospitality industries. 

So please send us your comments, suggestions, thoughts and ideas to: info@point-of-salesystems.com or jas@charcola.com, you also call us at 310.379.3739 or mail us at:

Point-of-Sale Systems.Com
6033 West Century Boulevard, Suite 450
Los Angeles, CA 90045

To act as an inducement, if we use any of your input we will give you a $25, $50 or $100 gift certificate (depending on the amount of material you supply) from your choice of either Point-of-Sale Systems.Com or Charles Carroll Associates.  You can use the gift certificates to purchase POS supplies or get a discount from any accounting, tax or consulting services!

 

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Point-of-Sale System News

Letter from the Editor -

 

I thought I'd spend some time this month bringing you up to date on some of the latest Point-of-Sale Systems we are working on and some we have completed.

Over the past few months we have done a number of restaurants and have found this particular type of retail business a lot of fun to work with!

Starting with Club 55 just outside of Dayton Ohio this installation for 5 terminals and a server took our team 3 days on site to complete and provide training for 25 new employees. Although our original contact with the company was in 6 months prior to installation they waited until the last moment and we were racing to complete our configuration, testing, installation and training before they opened for business.

I'm happy to report that we met the deadline and the opening was a huge success!

A smaller Los Angeles based eatery that for you local ( Los Angeles ) public television fans was featured on KCET's Huell Howser show is Mamas Hot Tamale Cafe. This full serve restaurant features ( guess what?) that's right tamales and they call themselves, "the tamale capital of the world".

While the configuration and testing was just completed they are so excited about adding Point-of-sale to their operation that they are expanding to a second facility in Pasadena and a Point-of-sale system is in the works there as well.

Finally, on the retail, retail side we are excited to be going to Reno, Nevada for Seymour's Fine Wine and Spirits, a newly constructed 2 POS terminal and 1 back office store.

Until next month...

Cheers!

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