Entries Tagged 'Business Management' ↓

The ability to make a profit and stay in business long-term depends upon repeat business.  This is true for almost every type of retail and restaurant operation.  Even in areas with high tourism traffic, it is the local repeat traffic that helps keep the business open during the off-season.  On top of that, if a business can somehow get a tourist to come back even once more before they leave the area they then have doubled their sales from that specific person.  Do this over and over again and you will build a nice business for yourself. 

What costs only a fraction of a penny to produce and can go with every customer as they depart your business?  The answer is a printed cash register receipt. 

What can you print on that cash register receipt to bring back customers?  The answer is only limited to your imagination and a piece of paper. 

Receipt Header

This is the portion of the receipt above and below the main body.  In general, this is 3 lines above and 3 lines below the main body that can be programmed to display a variety of messages.  Most often the header contains the name, address and phone number of your business.  This is important to identifying your business but you can get creative.  Maybe you can find room to add a bit of ad copy, your tag line or company motto.  “U Save More at Our Store” or some clever tag line. 

Use bold print to bring emphasis to your message.  But remember that you can only get half the letters on the row when you double the size of the letters.  Also, regular size font not only gets you more letters it can be emphasized by placing it between rows of double sized fonts.

The best possible scenario is that your point of sale software and printer allow you to use a logo in your header.  Using a professionally designed logo can add a lot to your customer receipt and free up the printed lines of your header for more marketing messages.  If you can have a logo on your receipt be sure to increase the marketing message on your customer receipts. 

Receipt Footer

Here you have a lot more options, all depending upon your point of sale software.  Generally, you have between 3 and 6 lines of footer messages that can be programmed.  This allows you a great deal of flexibility in getting a message to your customers. 

Here is where you can advertise your business. 

1. Announce upcoming events
2. Offer discounts on return visits
3. Offer discounts on portions of your menu (10% off appetizer on next visit)
4. Advertise special discount times such as Happy Hour or Early Birds
5. Receipt good for $5 off next visit

Like I said, this is only limited to your imagination and about 6 lines of print. 

Web Site Registration 

One of the best uses for the receipt footer that has come out recently is getting people to register on your web site.  This gives you a tremendous start on building your E-mail mailing list that is used to advertise your business.  Offer the visitor a reward of a coupon or discount for completing the registration. 

Have a nice web site built that has lots of pictures of happy customers at your business.  Advertise your menu if you are a restaurant and the latest arrivals if you are a retail store.

Customer Survey

Depending upon the point of sale software that you have you can have random customer surveys printed on the customer receipt.  These surveys are usually linked to a web site where the customer completes a short questionnaire about their visit to your business.  In return they get a coupon, discount or are registered for a drawing to be held on a future date.

You get to know how their visit was and another registration for your E-mail and direct mail mailings.

Change the Message

Don’t look at your customer receipt as something you are obligated to hand to them.  Look at it as if you are advertising to your customers and enticing them to come back.  Give them a reason to come back more often and watch your sales increase.

Many point of sale systems make it very easy to change the header and footer messages.  There are some that allow you to pre-program the message and automatically change it by day and time of day.  That means you can advertise specials on a daily and weekly basis, reminding your customers of upcoming events and specials that might interest them.

Be sure to train your customers to look at their receipt.  Have your cashiers or wait staff highlight the message by circling it or highlighting it with a market.  Get the word out.  Don’t just look at your receipt as an obligation and expense.  Look at the customer receipt as your marketing tool that is used to market to your best customers.  Those are the ones that just bought from you.

My POS

You would never want your point of sale system to be down because you ran out of paper.  The same is true with regard to not have a supply of ribbons to use when your existing ribbon gets too light to read.

We are not suggesting that you have a warehouse full of backup printers, but we are suggesting that you can almost eliminate your downtime by having a single backup printer for your business.

Receipt and remote printers are the parts of your point of sale system most prone to failure.  They get the most use and have the most wear and tear of any part of your system.  If a part of your point of sale system is going to break it will most likely be one of your printers.

The Reality of Service and Repairs

Point of sale dealers today are passing the manufacturer warranty directly to the business owner.  In more and more situations, this means that the dealer that you bought the equipment from is not the person who is repairing the broken hardware.  In most cases, they send the printer off for repair and never get beyond the simple repairs that can be done locally.

What this means for you is less cost of repairs but a longer down time.  In many cases the local dealer will offer you a loaner program.  Sometimes, this loaner program is in the form of a maintenance plan.  Most maintenance plans call for you, the business owner to prepay for a quarterly or annual contract that covers repairs and a loaner.  Look closely at the cost of this contract to fully understand what you are paying for.  You might be shocked at the cost when compared to owning your own backup equipment.

Even in the best of situations you should expect to have hours of downtime if a replacement printer is needed.  Even with your prepaid service agreement the technician has drive time to your place of business or there is shipping time if you are more than a day of travel from the service provider’s office.

In most businesses this is totally unacceptable and can cause significant loss of customer service.  If you are a customer oriented company, this is totally unacceptable.  If you want to have your customers return for future visits then must avoid this situation at all costs.

You Have Backup Ribbons don’t you?

The price of printers are coming down along with the cost of other computer peripherals.  There really is not need for your customers to suffer through the down time caused by a faulty printer.  You keep backup supplies such as ribbons and paper for your printers.  You keep other supplies in your operation and you should consider keeping a backup printer as well.

Even if you have a mixture of thermal printers and dot matrix printers in your point of sale system, you should consider having a simple dot matrix printer as a backup.

Printers today are almost all “plug and play” with identical printer drivers.  This makes many of them interchangeable with other makes and models.  In most cases you can exchange a dot matrix printer for a thermal printer without any difficulties. 

The only real difference you might encounter is a speed difference between a thermal and dot matrix printer.  Other than that you should not have any major problems exchanging a dot matrix for thermal at the point of sale.

For restaurants, you would not want to put a thermal printer in a kitchen environment simply because the receipt would turn black from the heat in the kitchen.  For this reason, if you only bought a single backup printer for a point of sale system that had both thermal and dot matrix printers it would probably be a dot matrix printer.

What Printer to Buy?

Look at your point of sale printer to determine what type of interface it is.  Many point of sale systems will use serial printers at all locations.  This makes buying a replacement printer extremely simple.  You need only buy a serial printer to backup all printers in your system.

In systems where a parallel printer is used as the point of sale receipt printer and a serial or Ethernet printer is used for the remote printer you will need to buy 2 different printers as most printers do not have multiple interfaces.

Note that I said most, as there are some printers that do have multiple interfaces.  Please be sure before you buy that the printer truly will work with multiple interfaces.

The Benefits to You

This is easy.  Downtime is reduced from hours or days to a matter of minutes.  In the time it takes to call your service provider you could have already exchanged the broken printer and be back up servicing your customers.  Now the situation is not as critical and your service provider can either dispatch a technician to gather your broken printer and send it off for service.

You are not as stressed by having your point of sale system be crippled by a down printer.

Your customers are not inconvenienced by not receiving a receipt, guest check or by having their food come out of the kitchen slow because the kitchen printer is down.

In a matter of minutes you are back up and running where before you could have been down for days by a low-cost part of your point of sale system that you could have exchanged yourself.

Don’t be caught without a backup printer for your operation.

Adminstrator
My POS Printer.com

If you do have a computerized POS system then look at the reports. Don’t just pass them off or throw them in the trash. POS systems are designed to slow or stop employee theft. Manage your business through these reports. Look for holes and places where your money is going.

Balance Sales to Deposits

If the sale is recorded then there should be a corresponding deposit at the bank. It is just that simple. However, this is overlooked by the vast majority of business owners. Too many don’t take the time to balance the 2 totals.

If a sale is recorded then the tender should be in the drawer. If not, someone should be held accountable for the difference.

Most restaurants that have servers have found a good method of accomplishing this through “Server Banking”. In this method of doing business the server brings their own starting bank and makes change out of this bank. At the end of the shift the POS system will produce a report that shows credit card sales and a Cash Due amount. It is this Cash Due amount that the restaurant owner is interested in. The server produces this report, produces the credit card slips and then the exact amount owed the restaurant based upon the Cash Due amount. The rest of the cash they keep as their tips. The restaurant owner is never short when using this method.

In retail operations where there is a cashier use the blind balance routine in most systems to identify employees who commonly steal from your cash drawer. This module will calculate exactly how much cash should be in the drawer and ask the cashier to count and blindly enter the amount of cash that is in the drawer. The report shows instantly the over/short of the drawer and will not allow the cashier to re-enter a new cash amount.

Use the non-resetable totals in the system like you would an odometer in your car. This is exactly what you would do if you loaned your car to your teenager. You would look at the odometer before and after the night out to see just how far they drove the car. The non-resetable totals in a POS system work the same way.

Using server banking, blind balance routines and non-resetable totals are 3 great ways to match sales to deposits. By controlling your cash and charges you will see more of them actually reaching the bank.

Identify you Best Sellers

Use item and product movement reports to spotlight your top selling items. You should know almost daily what your best movers are and then make sure that you are never out of them.

To miss a sale is a terrible thing. Being out of your top selling items will cost you sales and profits. Stay on top of your best sellers to make sure that you don’t ever miss a sale.

Just the opposite of this is knowing what is not selling in your business. All businesses work on turns of inventory. You should know what turns are expected in your vertical market. If you have product that is historically not meeting your turn expectations you should re-evaluate if you should continue stocking the item.

What is worse is an item that is not selling at all. In restaurants it does not pay to continue to stock an item that is not selling or restock an item because you threw the last case out.

In a retail store if you have to continue to knock the dust off of an item or if it has been on the shelf so long the packaging is starting to dry rot then you have a problem item.

Know what items are not selling, reduce them for quick sell and then do not restock them. You are much better off pouring this money into items that do sell or draw new customers into your business.

There are six Core Communication Skills, each with a separate function. These skills are used in different degrees, at different stages throughout the communication process. Although most of us have a good understanding of each skill, the highest-performing supervisors and managers use all of them at a high skill level.

Skill and Function

• Rapport Building to establish a personal connection with the other person
• Acknowledging to keep the other person actively participating in the meeting or discussion
• Questioning to get information about the issues, situation, problems, and needs of the other person
• Clarifying to confirm important elements of the discussion or meeting
• Presenting to present information, solutions, ideas or alternatives to the listener
• Listening to show the other person that you have received and “heard” their message

Rapport Building establishes a personal connection with the other person.

Aligning – adapting your body language, speech patterns and tone of voice to the other person

Looking for Common Ground – searching for issues or topics of shared interest. This could be sports, children, hobbies, politics, or any other subject.

Certain training programs have described this skill as “ice breaking,” occurring only at the beginning of a conversation before the real issues are discussed. Although an “ice breaker” is a form of Rapport Building, Rapport Building should occur throughout the conversation. It “personalizes” the conversation.

Acknowledging is intended to keep the conversation flowing.

Empathizing – showing that you understand how the other person feels
Example: “That’s quite an accomplishment. You should feel proud.” or “That must have been very difficult.”

Receiving – demonstrating that you have heard the other person. This does not necessarily mean that you agree, merely that you understand his or her point of view.
Example: “I understand your position.” or “That’s an interesting idea.”

Highlighting – showing that you want to hear more about a particular topic.
Example: “Can you tell me more about that?” or “That’s interesting; I’d like to hear more about it.”

Acknowledging is intended to maintain the other person’s air time, either to get information or merely to increase the other person’s sense of contribution or importance.

Questioning gets information about the circumstances, position, desires, wants, wishes, needs, problems and perceptions of the other person.

Closed – are those which can be answered with a simple “yes” or “no”

Example: “Is this a delivery problem?” or “Does this issue require a meeting with maintenance?”

Open – are those which contain a what, where, when, why, who, which or how. Their advantage in getting information is that they require the other person to give you a more complete response.

Example: “What delivery problems are you having?” or “Who will that involve?”

Clarifying confirms important points of the discussion

Agenda Setting – lists topics or issues to be discussed
Example: “I called this meeting to discuss two things.”

Confirming – summarizes important points that have been made, are resolved, or require clarification. This skill is also used to list next steps or the agenda for the next meeting.
Example: “It seems that we’d better look at lead-times at our next meeting.”

Closed questions are often used at this point to get the other person’s agreement.

Examples: “Is this in line with your understanding?” or “Are there additional items that we should add to this list?”

Presenting provides information, solutions, options or alternatives.

Reacting – means giving brief statements about your position, reaction or role.
Example: “I don’t think that we can agree to that.” or “I’ll be responsible for this project.”

Providing – means giving longer statements and answers that provide your or the company’s position. They are often used in goal setting or outlining policies and procedures.
Example: “The company’s new policy is to . . . .”

Giving Alternatives – means giving options that may be solutions or resolutions of conflict and disagreement.

Example: “It seems that two possible solutions might solve this problem.” or “I think that we might be able to meet that request if we can figure out a solution to ‘a’ and ‘b’.”

Listening shows that you have “received” and “heard” the other person. You can show it in a number of ways by using the five other communication skills.

Rapport Building – making eye contact

Acknowledging – nodding or saying “Uh-huh”

Questioning – asking follow-up questions

Clarifying – confirming that you “received” the message by repeating important points

Presenting – providing a response to the other person’s question or situation.

These six skills can occur in every discussion. It is our choice whether we use these skills or not. Research shows that although it is not necessary to use every skill in every conversation, the most effective supervisors and managers have developed skill in each of these areas – and are skillful in using them when they will have maximum impact.

During harsh economic times it is the savvy businessman that not only survives but flourishes. Be smart in your purchases, keep your eyes on your money and market directly to your customer base to grow your business.

Buying Smart makes you Money

There are 2 ways to make money when you sell something. You obviously make money if you sell the product above your landed cost. However, what so many people do not realize is that you made money much earlier in the process when you bought the product for less than you bought it before.

Lowering your cost is a subtle but effective way to increase your bottom line. While it may not be apparent in the near-term the effects of buying smart will produce results as you sell the product.

I am not talking about lowering your cost and keeping the same margin %. People do this a lot when they make a quantity purchase to build an end cap display. While this is great for an ad or short-term promotions think about the extra profit that will be made when you put this discounted product back on the shelf at regular price.

I am talking about lowering your cost and selling the product at your normal sale price. When you do this you dramatically increase your bottom line.

Keep an Eye on your Money

During harsh economic times employee theft goes up. Already, the main source for inventory shrinkage is employee theft. When economic times get tough employee theft rises dramatically. Employees are being squeezed like everyone else. This forces people who normally would not steal to do things totally out of their normal character.

If you do not already have a computerized point of sale system installed in your business you should consider investing in one. Yes, I know money is tight but if you don’t put security measures in place what money you have will disappear.

In the POS business it is a common occurrence to see business owners with more partners than they realize. It is these additional partners who take their cut before expenses that drive businesses into bankruptcy. The partners that I refer to are your employees who help themselves to your cash and do not share in the expenses of the business.

Market Directly to you Customer Base

This is as old as selling itself. Market to your existing customers to build repeat customers and a solid business.

One of the things wrong with too many companies is that they work so very hard to get someone to buy but don’t spend any money keeping the customer. Studies have been done on the investment to obtain a customer and it is staggering. It is also staggering to see how little attention is giving to the retention of these same customers.

Know your customers and you will grow you business. Know their buying habits, their likes and dislikes. Pop quiz… what are the top 5 selling products in your business? You may actually know these. If so, congratulations but don’t rest because here comes the 2nd question. What are the 5 worst selling products you have in your business?

If your customers don’t like a particular product then why do you have money invested in stocking it? Knowing what your customers don’t like is just as important as knowing what they do like.

Direct mail works. Mass E-mail works and does not cost you a dime. Be creative in how you obtain E-mail addresses of your customers but build your list and then market to it. Offer them monthly specials, coupons or even things as special menu items if you are a restaurant or Internet only discounts for retail shoppers.

Administrator
My POS Printer

If you own a business you need to know what “Owner proofing” is and its importance to you in quality of life and the value of your business. You may even find it difficult to let go of some of your hands on control. However, the end result will be a much improved quality of life and a better operating business.

What is Owner Proofing?

Owner proofing is the minimized need for ownership involvement in daily operations as a manager and/or worker.

What Causes the Need for Owner Proofing?

Most owners want total command of their business and are reluctant to release any control. This is because when the business was started, they did everything. The operation becomes dependent on them. They like the feel of being on top of everything, “hands on”.

Owners tend to hold knowledge and information in their minds. Since it is not written down, employees find it difficult to do their jobs without the participation of the owner.

It is almost impossible for the owner to take any time off because they take their mind with them.

How to Owner Proof

By delegating authority, others take responsibility for doing certain aspects of the business. This reduces the company’s need for the owner to be involved to overseeing rather than doing.

Put on paper what is in the mind. This gives the employees the owner’s thought process to do the jobs they are authorized to do. Another benefit is it reduces training time for the employee because the employee can read the standards whenever they have a question. Reduced training time provides more time for the owner to concentrate on other aspects of their responsibilities or to take time off.

Example: By detailing maximum and minimum requirements on inventory items, the owner maintains control of inventory as long as the employees follow the guidelines. The owner designates amounts based upon storage space, usage, lead-time, quantity discounts, etc. With this information, almost anyone can come in and handle purchasing in a pinch.

Produce monthly written journals of profit and loss statement line items.

Included in the journal are: Previous year’s amount for the month, the amount budgeted for the current year, the actual amount for the current year. A variance analysis and a justification for the amount projected in that month for the next year are also included. WHY, WHY, WHY.

The journal provides the thought process in each situation.

The owner can review their ideas and make adjustments to compensate for changes in the business, which might not have been considered. They do not need to remember, it is written.

It helps track the success or failure of their planning.

Budgeting improves because of what is learned by the process in turn creating better planning.

The business has more value to a potential buyer or investor. They can see the thinking and be more apt to jump in because they are able to see the management philosophies. They have more confidence in the business.

Owner Proofing Provides the Following Benefits

• More time for the owner away from the business.
• More time in the business to plan and effect change for improvement.
• An opportunity to run the business rather than the business and employees running the owner.
• Better employees because they can act without the constant need of ownership to be present.
• Employees are able to “take over” while the owner is gone.
• The company is worth more to a buyer (investor) because details of the business are written and their required involvement is minimized. Value is created.
• Businesses find it easier to borrow money because they are “on top” of the company’s direction.

Owner proofing enhances the quality of life for the owner and their family.

Administrator
My POS Printer

Price and service are not the only criteria for establishing vendors or suppliers. All suppliers have standard working agreements. Other benefits, however, are available “only for the asking”. A vendor can be a long term partner. Your success and future profits will rely heavily on what they offer on your behalf. This is most important considering the high cost of merchandise and supplies. The initial agreement sets the basis for additional profit.

You need to have a plan for growth so prospective vendors know what they can expect now and in the future. Be sure to only contact vendors capable of supplying necessary merchandise and supplies. Advise each vendor he is one of many suppliers being considered. The potential supplier’s attitude toward your company and any future business can be determined by the supplier’s response to the benefits you request.

The following are some of the points you should consider when establishing suppliers and vendors. All points might not apply to every vendor product line but if special agreements are not negotiated you will not receive maximum benefits.

• Payment terms – many times the vendor’s opening policy will be C.O.D. on all merchandise purchased. However, you should attempt to negotiate along the following lines.
• Request extended billing on the initial order for basic stock; this will help improve cash flow (120 days, 90 days, etc.). And/or request extended billing for a period of restocking. For example, ask for 60 day billing for the first six months and then the maximum they allow after six months
• Discounts – Request the maximum discount for early payment. For example – 2 % – 30days.
• Unit cost – Lowest price possible, negotiate quantity discounts for high volume purchases, find out the point at which the vendor can afford to give you the lowest possible price and factor this amount against your inventory holding costs.
• Cost guarantees – Negotiate the longest possible price guarantee, unless you are dealing in a commodity type market where your price may decrease.
• Freight – always insist on prepaid (the vendor can probably get a better rate then you can) and you also may be able to negotiate freight completely paid by the vendor especially in conjunction with volume purchases.
• Invoice due dates – determined from the date goods are received or the invoice date – whichever is later.
• Cut off dates – merchandise received after the 25th of the month to be considered as received as of the first of the following month and the invoice due dates shall be determined from the first of the month.
• Returns – full credit with no restocking charge for return of excess inventory or late shipment.
• Substitutions – full credit for return of merchandise not ordered.

After negotiating the above points, determine what the supplier will agree to and set a time for the potential vendor to get back to you with a working agreement.

Select at least three suppliers for each product line to meet your merchandise and supply needs.
Check the reliability of the potential supplier through other customers and develop and maintain a file of special agreements with suppliers selected.

The supplier also wants the highest profit attainable and if he can get your business with little or no extra cost he will take it, so remember if you do not negotiate these points you will get the deal that is best for the vendor and not necessarily the best for you and your business.

Administrator
My POS Printer

It has be a few years since we went through a recession. According to some economists it has been since 2001 that we have enjoyed a recession. It might be a good time for a refresher course in how to do business during a recession.

There are a few key points to consider during tough economic times. Some have to do with common sense, which is always in short supply during a crisis. Others have to do with things that slip our minds and things we simply forget about until they come up again.

Customers, Shoppers and Buyers become more Cautious

The squeeze of every economic slowdown and recession is first felt by the consumer. They will know of a problem long before any government economist will admit that there is a problem.

Energy prices rise, food prices rise and pay days don’t. In the case where there is a commission based job in the household the paycheck may even take a dip during slow economic times. Combined with the rise in energy and food prices this puts a terrible squeeze on the household budget.

Therefore, your customer is going to spend less simply because they have less to spend. Be aware of this in your marketing and you can still garner your share of their spendable income.

Know your Strengths and Capitalize on them

If you are a casual dining restaurant that has a menu with items priced under $10 now is not the time to introduce your new, higher priced menu. Save that for when your customers have more spendable income and can afford to pay more to eat out.

Your mission during tough times is to survive like anyone else. Take a look at your menu. Find the high profit items on your menu and feature them in your advertising. Also know what your most popular items are and help people to know that you have them. Do you have a sign board outside of your restaurant? If so, use these items as your daily specials and price them right for your customers.

Be Smart with your Purchases

A very wise businessman taught me that there are 2 ways to make money when you sell something. Obviously, you make money on the difference between your cost and the selling price. However, what most people don’t realize is that you made money when you bought the item if you paid less for it.

Now is the time to comparison shop. Now is the time that you might pick up a new vendor or 2 through comparing what you are doing now and the other options that are available to you.

You have to understand that tough economic times reach way up the food chain. Your vendors are also having to scramble to do business. They too will be looking at how to continue selling during a recession. Being competitively priced is going to be one way that they survive. It is not wrong to competitively shop and force your vendors to cut prices in order to keep your business.

You should also take a look at what you can do yourself that you once hired out. For instance, there are probably maintenance items that you might have hired out that you could do yourself if you put your mind to it. Washing windows, plunging a toilet or maintaining equipment are all examples of things you might once have hired out that you now must do for yourself. Don’t hire an electrician to change a light bulb and don’t call a technician to replace a printer on your poit of sale system.

Be sure to use the Internet and search engines to help locate better pricing and help maintaining equipment. There are thousands of resources on the Internet that can help with better prices on inventory items, do-it-yourself help sites and even sites to buy equipment at drastically reduced prices.

Be smart in all aspects of your business and you will survive this recession.

Adminstrator
My POS Printer