Joe's Journal

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.

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!