Joe's Journal

I never know what to expect when I walk into my favorite convenience store. Take last week, for instance. I enter in and Darlene is hunched over the counter grasping a freshly scratched lottery ticket. Her eyes closed in prayer, she laments about losing another $10 to the State of North Carolina

“Darlene,” I said. “You’re supposed to sell the tickets, not scratch the tickets!”

Laughing, she replied that a customer hit a winning $300 game card the day before and she was just trying her luck at winning the Mustang Fever $100,000 grand prize.

Speaking of the lottery, I asked if she had installed the latest version of CMI’s PriceBook Manager with lottery reconciliation.  I wanted to see if she had any questions or suggestions for enhancements. Darlene’s eyes lit up like the sparkling headlights of her fantasy ‘Stang as she praised how easy it was for her to now track lottery sales, end games, and activate new games. She loved how the store can now keep track of its lottery inventory in just a few minutes each day and how the online help screens and FAQs were really helpful in her understanding the system.

To those of you with the latest CMI upgrade, please take advantage of the lottery reconciliation enhancements recently made. You will hit the jackpot in time and efficiency!

We just received a “tweet” from our local c-store manager, Darlene, to let us know about her July 4^th promos that are kicking in this week. No, Darlene isn’t practicing her karaoke version of “Rockin’ Robin”. She has catapulted her store into the Social Media Marketing Age and utilizing the website, Twitter, to inform her customers of the latest goings on at her store.

D’s tweets range anywhere from the latest promos and discounts to new product shipments. Because setting promotional pricing and date ranges in her PriceBook Manager software is so simple, Darlene can have her promos ready to roll and be speeding along the information superhighway to update her Twitter account faster than Bernie Madoff ‘s cellmate can say “wanna’ back rub”.

CMI clients such as Darlene, may also find Chapter 8 in the training manual helpful when setting promotional pricing. It covers Zone and Store pricing, depending on your particular needs. The changes are easy to do, just remember to record the expiration date of the price change so your pricebook will automatically revert to the regular pricing after the promo period.

Happy 4^th of July everyone! Let freedom (as well as your cash registers!) ring!

When marketing a business, it is oftentimes easy to get caught up in the high-level hierarchy that comes with trying to simultaneously obtain new customers while, at the same time, retaining the old.  We become consumed with finding that newest cash cow product or finally striking gold with that magic number price point. The thought for this week questions “Are you effectively communicating your new discoveries to your customers?”

A fellow CMI employee and “Darlene” from the convenience store down the street are quickly becoming BFFs.  Here is the story my co-worker recounted to me last week:

“I went in today for my regular chips and sandwich lunch purchase and, as I was checking out, Darlene let me in on their combo promotion. She told me that if I purchased a fountain drink, I would receive combo pricing.  After verifying that they had fountain Coke products (and not just Pepsi…ick!), I said why not and filled up.  So, now, with the combo pricing my total came to $3.50ish. Typically, without the combo pricing, just my chips and sandwich would have been over $4!  Here is my insight:

1)     Luckily, Darlene was nice enough and had time (as opposed to being buried under a pile of paperwork), to fill me in on these discounts.

2)     While it’s always an adventure to converse with Dear Dee, I probably would have been making this combo purchase weeks/months ago (and possibly more frequently) if there had been signage or a banner advertising their “value meals”.

Regardless, I’m definitely psyched about the promotion (however old it is) and am solidified as a repeat customer.”

As the price of fuel climbs in the coming months (and, come on, folks, you really didn’t think the oil companies were going to play nice all summer did you?), are you doing what is necessary to keep your customers  coming back to your store every day?

Proper signage and advertising are a must, but, more so, are your cashiers giving your customers a verbal invitation to partake in your “rope them in” promotions? After all, the allure of the c-store is that you can get “In-N-Out”, fairly “Quck & Easy”, and make it a “SpeeDee Stop”.  Your customers may be in such a hurry that they pay no attention to the bright red banner perched about the hot dog rotisserie. It never hurts to give a heads up and, in the end, it could be the start of a beautiful relationship between your store and customer.

Employee turnover is one of, if not THE, biggest concern of c-store owners today. The cost of hiring, training, and then losing an employee (either by employer or employee choice) has always been a challenge in the retail industry.

Since this is a subject many consider more important than the swine flu, the credit crunch, or the Yankees dropping three to the Red Sox last weekend, we turn to our store manager Darlene for the answers.

Darlene knows she wants an employee who exhibits the following qualities:

1. Honest (No history of stealing)
2. Strong  Work Ethic (An employee who will come to work as scheduled, and will work well with fellow employees, and do what is necessary to increase store sales)
3. Has the ability to Multi-Task  (Must be able to be polite with customers, assertive with vendors, be computer literate, and be able to handle pump controllers, lottery sales, bottle deposits, verify age of buyers, and so on…)

There are other areas Darlene attempts to check as well (i.e. substance abuse, Workman Comp claims, and ability to work in a stressful environment).

“In short, the same qualities you would want of an Air Traffic Controller, but at a slightly lower wage,” jokes Darlene.

How does Darlene find solid employees?  The best way is from the referrals of other quality associates within the store’s chain. The c-store clerks do have a network that was established long before Facebook and Twitter and, if they find out an employer will treat them well, the best ones will gravitate to that c-store chain.  Darlene is always on the lookout for good talent. In addition, if an employee refers a clerk who stays on board for over 90 days, both the referring employee and new employee each receives a $100 store gift card.

How are you getting the best employees?  Share your experiences with us so we can pass along to our network of c-store operators?  We will keep your name anonymous.

This is a very important concern in our industry and every suggestion is worth sharing.

I was reading an article this week regarding the sales crunch that many businesses put themselves under during the last quarter of the year as a means to make up for the first three quarters. Think that will business as usual for 2009?

Last weekend, we watched as Phil and Tiger attempted to make up for the first three days of missed opportunities with incredible drives and putts during the first 16 holes on day four just to fall short of their goal as Masters champions.

On Monday, we here at CMI reviewed the status of clients who have not fully implemented pricebook at their stores and of prospective clients who have not yet committed to implementing a retail accounting system at all. Waiting for the 4^th quarter to make up for lost sales is akin to not putting yourself in a competitive position on the first three days of The Masters.  However, failing to win a green jacket pales in comparison to a failing business.

The first quarter of the year has just passed.  Are you waiting for the 4^th quarter to automate your accounting and store processes with a sound pricebook and inventory management system? As the great Yogi Berra once said, “90% of putts that are short don’t go in.”  Begin making an effort now to ensure your business does not fall short for 2009.

It never fails. During this time of year — when the trees are just starting bloom, the days are ever so slightly longer, and we have that rogue week or two of perfect 70 degree weather — I come down with what my father used to call “beach fever”. Apparently, I am not the only one who suffers from this condition. As I was visiting my favorite c-store last week, the manager (and muse for many of my blogs), Darlene, and I got to talking about what perfect beach weather it was and how she would not see me the following week because she was going on vacation. Well, sort of.

Darlene’s children are out of school for their spring break this week and since the trips to the beach are a distant memory now that her cigarette habit costs as much as a week at the Ocean Lakes camp site, our dear recessionista will be opting for an at-home “staycation”.  Now, something tells me that even though Darlene will technically be on vacation, she will somehow manage to find an excuse to either drive down to the store she manages or log into her store’s computer remotely. It is evident that her store is her pride and joy (and a large part of the reason why I go in there so often). If only all store managers shared a similar pride of ownership!

As the economy and societal views on flexible work hours shifts, we find that more and more clients allow their store managers or supervisors to “remote access” their stores in order to stay in touch — even while out sick on while on vacation. While not the most restful way to spend a vacation, it certainly beats having to drive down to the store — regardless if you are in town or 3 hrs away at the beach.  The electronic age has provided the tools to increase response time when an emergency comes up or simply to check in with relatively little inconvenience.

For those people who cannot relax while on vacation without checking into their businesses, there are several tools that CMI has available to monitor and control your stores remotely. Darlene and her store are an excellent example of the 24/7 business culture we live in today. She is able to maintain her competitive advantage even while at home with the kids preparing for the Easter egg hunt.

Are you giving your employees the competitive edge?

In our last article we discussed the importance of not forgetting the fundamentals of store appearance and basic store marketing.

While you can get buried in data and the day-to-day store challenges, we must keep the basic fundamental processes in place.

One of the fundamentals is being certain you are aware of competitive fuel pricing.  Our favorite store manager, Darlene, makes it a practice at her store to check competitive fuel prices on first thing each morning and then again before she heads home.  She wants to be sure she is not losing business due to fuel prices.

She records the competitor prices in her CMI software by 7:00AM each day. She doesn’t have to wait to complete the rest of her paperwork.  This specific information is transmitted immediately.

The fuel prices from her store (and other stores within the chain) have been sent to her company’s home office and 5 minutes later are analyzed.  This process is done again in the early afternoon.   Darlene especially checks prices on Friday afternoon as one of her competitors will always drop prices a couple of pennies to get an edge on the weekend traffic.

Again, this may sound basic, but driving down any street you will see a c-store operator who has fallen asleep at the wheel and let his competition win his customers.   Don’t let this be you.

If you want to hear the sound of customer chatter and cash register ka-chings being rung up in your store, remember the fundamentals that made you successful.   Ignore the fundamentals and you will hear the silence of an empty store broken only by the chirping of crickets.

Recent studies predict that c-store operators can expect to continue with moderate sales growth in 2009 with inside sales increasing anywhere from 3% to 5%.  Sounds like a decent organic growth, right? However, given higher product and inventory carrying costs, this sales growth will equate to no real bottom line growth and, in fact, actually chew into your cash flow.

The good news: The average consumer, even in hard economic times, is not likely to give up fuel purchases, cigarettes, and beverages. Studies show consumers are more likely to give up high priced vacations or expensive meals before they give up cable TV or the lower ticket items found in the c-store.

But don’t be lulled into a false sense of security.  You still have competitors down the street who are working hard to drive your customers into their stores.

When you head to your stores today, stop and take a long look at the way a customer might view the shopping experience at your properties. Apply the “Big Three” principle to help protect the millions of dollars investment you made in your store and equipment:

1. Is the store front as well lit and as clean as the day you opened?
2. Are the bathrooms clean?
3. Is your store clerk greeting new customers in a friendly manner and repeat customers by their name?

If you fail at any of these three areas all the product placement, displays, special pricing, and yes, even a superior back office pricebook and inventory management system like CMI’s PriceBook Manager won’t save you.  There is a distinct correlation between the “Big Three” and items purchased per transaction.

2009 promises to be a year of tremendous opportunity in our industry for those not willing to settle or get caught up in the negative news de jour. We have products to sell in this economy which consumers are most likely to buy.  Don’t damage your business in ’09…dominate it!