OFFICIAL PUBLICATION OF THE MINNESOTA MUNICIPAL BEVERAGE ASSOCIATION www.municipalbev.com

Is Your Stash, Stashed Properly?

Municipal Liquor Store PRST STD Box 32966 U.S. POSTAGE Minneapolis, MN 55432 PAID Permit No. 1770 CHANGE SERVICE Minneapolis, MN REQUESTED

Volume 67, Number 6, 2008/2009 Griggs, Cooper & Company has been Delivering Customer Service for 126 years!

1882

2008 We are Proud of Our 98 Full-Service Sales and Management Team Members that Sell and Service the Largest Inventory of Wines and Spirits to Retailers of Minnesota.

1882 Eagle Wine Company Prior Wine Company 2008 Division Division 489 Fine Wine Company Division 126 Years of Continuous Service. 489 N. Prior Ave. • St. Paul, MN 55104 • 651-646-7821 • 800-672-0970 MUNICIPAL On The Cover LIQUOR STORE Recently, thieves stole a 600-pound safe from an MMBA Volume 67, Number 6, 2008/2009 member facility. It is estimated the process took about 3 minutes. Official publication of the Minnesota Municipal Beverage Association. Published six times annually: September/October, This example shows the sophistication of today's criminals, and November/December, January/February, the importance of building and perimeter security. It is also March/April, May/June, July/August. For important to look at cash handling procedures and other internal advertising and editorial inquiry contact controls. Paul Kaspszak, Editor, Box 32966, Fridley, MN 55432. Phone 763-572-0222 or During these economic times the revenue generated by 866-938-3925. Advertising rates available upon request. Change of address: List both old municipal liquor operations is more important than ever. As a and new address. result, managers need to ensure the stash is stashed properly.

For more information on this subject, see pages 6 & 10. DIRECTORS

GARY BUYSSE VIRGENE SHELLENBARGER (President) Liquor Hutch Rogers Liquor 245 Washington Ave. East P.O. Box 371 Hutchinson, MN 55350 Rogers, MN 55374-0371 320-587-2762 763-428-0163 MICHAEL FRIESEN DAN BAHR Hawley Liquor (Vice President) P.O. Box 69 Bemidji Discount Liquor Hawley, MN 56549 460 Paul Bunyan Drive NW 218-483-4747 Bemidji, MN 56601 218-751-8868/3911 TOM AGNES Brooklyn Center Liquor BRIAN HACHEY 5625A Xerxes Ave. North (Sec./Treas.) Brooklyn Center, MN 55430 Stacy Wine & Spirits 763-381-2349 30962 Fenway Avenue MOLLY MEYER Suite 700 Fairmont Liquor Stacy, MN 55079. P.O. Box 751 651-462-2727 314 N. Park Fairmont, MN 56031 NANCY DRUMSTA 507-238-2269 Delano Wines & Spirits P.O. Box 108 Delano, MN 55328 763-972-0578

LARA SMETANA Voyageur Bottle Shop 205 - 6th Street Pine City, MN 55063 320-629-2020 MMBA Has a New

JOYCE ZACHMANN Toll Free Number Central Park Liquors 8101 Hwy. 65 N.E. Spring Lake Park, MN 55432 866-938-3925 763-780-8247 MMBA President’s Message

Analyze labor costs. Staffing levels can mowing? Are you getting be reduced at non- critical times to the best price on your liquor liability reduce employee cost. Are you currently insurance? If you are a combination store carrying the appropriate mix of part and and you insure with the League of full time employees? Our staff members Minnesota Cities Insurance Trust you are Gary Buysse are our most important resource, but our probably paying more than necessary! President ultimate responsibility is to our citizens and communities. The current political and economic You are your city’s stimulus package! climate has created an atmosphere of Control inventory levels. I don’t care increased accountability in the private A.I.G., Bear Stearns, Citigroup; you’re how great you think you are, you can’t and the public sector. Our elected all familiar with the names. These control your inventory without some type officials, city administrations and companies and many others like them of inventory control system. You can’t residents expect more from us this year. have become symbols of corporate control it in your head! You need to It is our job to operate our businesses as excess, mismanagement and greed. order in a manner that is most cost cost effectively, efficiently and profitably Many of our financial institutions are effective and profitable for your store. as possible to assist our cities with the also teetering on the brink of disaster due Carrying inventory over two months in current budgetary crisis facing us all. to poor investment strategies and general quantity is generally the absolute mismanagement. maximum. Items that turn more slowly As I have said before, there is more to may be ordered individually and marked management than stocking the beer The Federal government deemed it accordingly including split case charges. cooler. Our member fraternity provides necessary to provide these companies The inventory you carry in your back all of us with limitless access to and banks with working capital, or room may have looked better in your information. All we need to do is ask the economic stimulus, to forestall what bank account. Effective inventory question of a fellow MMBA member or could possibly be the ultimate collapse management will greatly enhance the Director. As managers we need to be of our economy. This decision has economic profile of your operation. prepared to ask for assistance when we created a climate of increased interest don't know the answer. and a certain distrust of big government, Do an overall cost analysis. Is your as government influence is increased in janitorial expense reasonable? Does your I am available to assist you if I can....we areas previously dominated by private city do your maintenance, plowing and all are! business. State and local governments can expect fewer federal dollars and are faced with the responsibility of funding many projects and daily services more creatively than ever. This is where we come in. One call. Regardless of size, our municipal liquor If it has anything to do with beverages, ice stores are more important to our cities or refrigeration, call the Shamrock Group. than they ever have been. Our existence With our expert attention to detail, starting may represent the only accessible with us will set you up for business succcess. revenue source available to our city officials. It is our responsibility to manage them efficiently and profitably! I Over 100 beverages I Shamrock Beer Systems Operating hours need to be monitored to I Walk-in Freezers/Coolers maximize efficiency. Do we still need to I Shamrock Water Filtration open as early as we have in the past? I Bulk CO2, other gasses Can we close earlier in the evening on I Service, repair, installation certain days? Hourly sales reports are a I Ice machine rentals useful tool when determining efficient I ‘Purefect’ Ace Ice operating hour strategies.

MUNICIPAL LIQUOR STORE 4

Is Your Stash, Stashed Properly?

By Lakeville Liquor inform them to keep this informa- combinations. If counting money Manager Brenda Visnovec tion confidential. Do not share in an office, doors should be information on safe locations, locked, and drapes should be Recently, the National Retail deposit totals etc. drawn. Federation reported that due to the down turn in the economy, employee 3. Don’t place your store or safe keys 10. Ask your staff to be aware at all theft, which has long been the largest on the same key ring as your car times. Use incident reports as portion of retail loss, is now on the keys. Car keys go everywhere part of your daily routine. If your decline. Evidently, jobs are now worth with you and are often misplaced staff witnesses anyone or anything more than a $20.00 bill in a pocket or a or borrowed. peculiar they should record it on bottle of booze out the back door. an incident report. While an indi- 4. Secure your safes. As proven vidual may just be an odd duck, While this is good news, they are above, even 600 pound safes are they may also be casing the unfortunately reporting that retailers not a deterrent. Bolt your safes location. Have your staff right are now recording a dramatic increase into the floor, and whenever down descriptions or license plates in organized crime, including burglaries, possible, conceal them in a location of individuals who appear in areas major shoplifting schemes and fraud. not visible to the public, such as in that private citizens shouldn’t be Unfortunately, we as MMBA Members the floor or inside a cabinet. such as store rooms, coolers or are not immune to these occurrences. closed offices, or of people who 5. Have your staff all leave as a shop for long periods of time Just recently, one of our members was group at the end of the night. One without purchasing anything. You burglarized overnight. They lost their person leaving a building is more never know what this information safe and all the money within. The vulnerable to a robbery and/or could lead to. irony in all of this... the store had high bodily harm. tech surveillance equipment, door and During these economic times, when motion alarms and a giant safe that no 6. If you can afford them, drop safes cities are facing huge budget deficits, one thought could be moved. With all located at the registers is a good the revenue we generate is more of this equipment in place, the thieves idea. Having staff drop large bills important than ever before. As were still able to break into the store, or accumulation of other bills managers we need to ensure we do go through a window and remove the allows the money to be spread in our job to be best of our ability and 600 pound safe all in less than three multiple locations throughout the make sure that we stash the stash minutes time. store. Just seeing that multiple properly. safe locations are being used may In comparison, we’ve had board be just enough to deter potential Stay Safe! members witness some of our members thieves. toss their deposits into file cabinets and even in one circumstance on to a store 7. Ensure all of your exterior doors room shelf. This is not security, this is have duel locking mechanisms How People stupidity. including a dead bolt that has a Receive Messages minimum throw of 1”. So how can we ensure our stash is From Others in stashed securely? 8. At the end of the night, make sure your staff conducts a walk around Face-to-Face 1. If not cost prohibitive, use the entire store including technology to your advantage by restrooms, offices and behind Situations installing surveillance equipment, displays. You want to make motion sensors and door alarms. certain that nobody is left behind. 55% = Body Language

2. Don’t share information regarding 9. Always use common sense when 38% = Tone of Voice opening or deposit procedures. If handling money. Post signage that 7% = Words staff must know these procedures staff does not have access to safe

MUNICIPAL LIQUOR STORE 6 Regardless where you are, we've got you covered. Rely on the MIIMA members for 'bottled water' quality ice, first-rate service and fast, dependable delivery.

Minnesota Independent Ice Manufacturers Association

MIIMA Members:

Ace Ice Company 2900 Fifth Avenue South Minneapolis, MN 55408 612.824.9600 800.862.9273 Contact: Matt King

Carlson’s Lakeshore Ice Company 602 Ogden Avenue Superior, WI 54880 888.943.2665 Contact: Chuck Wessberg

MID-CENTRAL ICE LLC Duluth/Superior Crystal Springs Perham Ice Company 25503 Russell Road Pine City, MN 55063 866.629.6267 Contact: Tom Valvoda Pine City Mid Central Ice Belgrade 39072 County Hwy. 49 Perham, MN 56573 218.346.4423 877.346.4423 Minneapolis Contact: Dave Chase

Precise Ice Company 608 Parkway Drive Belgrade, MN 56312 Waterville 320.254.8018 320.293.0010 (cell) Contact: Mike Buckentine

Waterville Ice Company 14853 E. Benton, Suite 1 Waterville, MN 56096 507.362.8177 888.362.8177 Minnesota ice for Contact: Bernie Akemann Minnesota businesses. Perham Liquor Sales Up Nearly Half-Million

Louis Hoglund “Our goal was to transfer as much as $5,000. Also up were credit card fees, Perham Enterprise Bulletin - we ever have to other city expenses, by about $5,000, due to the increase in and still service the debt, so we’re fair- retail transactions. Sales at the Perham municipal liquor ly pleased,” said Keil. store increased by nearly a half million Insurance premiums, likewise, rose in dollars from 2007 to 2008. If not for the $125,000 transfer of correlation with the value of the new funds to the city hall remodeling project, facility--by $5,000. Year-end financial reports have been the store would have shown a released on the municipal-run store’s Utilities were $10,000 more than last $100,000 profit--after all expenses, performance. Sales in 2008 increased year, with $14,471 in utility costs for including debt repayment. an estimated 33 percent over 2007. 2008, compared to $4,165 in 2007. Wages were up about 9 percent, but The new store, with its highway The 33 percent increase in total sales is that was expected because of the location, opened in early spring. So, actually ahead of projections, noted expansion of the facility and the the store didn’t have a full 12 months Keil. The city was aiming for at least a increased retail traffic. In total, salaries of sales at the new site. Still, gross 25 percent increase in the first year. and wages were $99,609 in 2008-- sales in 2008 were $1.99 million-- compared to $90,025 in 2007. “Our goal is to have the place double compared to $1.52 million in 2007. in sales within a few years--and With the increased inventory for the “If you consider it was only nine ultimately, it looks like we’ll get larger store, freight costs were up about months in the new store, and some there.” of the unusual expenses we had as a starting operation, I’m fairly pleased,” said Perham Mayor Kevin Keil. “2009 will be a true test of where we’re at, and give us a true reflection of what Total Register Systems we can do.” 4215 Louisiana Avenue New Hope, MN 55428 In terms of operating profit, the store earned $283,222 in 2008--compared to $221,821 in 2008. (763) 537-1906 • www.trs-pos.com But debt service was $53,799 Point-of Sale & Inventory Solutions --compared to only $14,628 in 2007. for the On-Sale / Off-Sale Also, the remodeling of city hall, including the downstairs Chamber of Municipal Beverage Industry Commerce headquarters, tapped $125,000 of the liquor store profits. Systems Include A total of $245,750 was transferred from liquor store proceeds to the • ID Verfification city’s general fund and the remodeling. Last year, only $193,999 was trans- • Credit Card Interfacing ferred from liquor store revenues to the • Sign Painting general fund. The liquor store was also tapped for a • Gift Cards $10,000 donation to the Perham Area Community Center, which was not the • Wireless Scanning case in 2007. • Touch Screen With the debt retirement and the unusually high transfer of revenue, the • Report Wizard actual bottom line was a $22,163 loss-- • Video Camera Interfacing compared to a $9,346 gain in 2007. Total Register Systems has 20 years of Experience in Retail Partnerships

MUNICIPAL LIQUOR STORE 8

Premises Security Tips

The following 10-point checklist Are they fitted with deadlocks? Are have a drop-chute facility? Is it kept provides a starting point for doors and windows locked at all times? locked? considering the security of your Are skylights secured? business premises: 7. Cash handling. Are there established 4. Property identification. Has the cash handling procedures? Do you 1. Security lighting. Is security lighting make, model and serial numbers of have irregular banking procedures? Is installed throughout and around the items such as computers, printers money counted out of public view? Do premises? Are all lights operating? Is and photocopiers been recorded? you use a company to transport cash? some lighting left on inside the busi- Is your property photographed for ness at night? Are entry and exits well identification? 8. Key and valuables control. Is there lit? a key register? Are all keys secured? 5. Telephone. Are telephones pre- Do staff have somewhere to store their 2. Building design. Is the building programmed with emergency contact personal items securely? Is there solidly constructed so unauthorised numbers? Are telephone lines installed restricted access to this area? access is restricted? Is there adequate in such a way so they cannot be protection against entry through the tampered with (particularly important 9. Alarm systems / surveillance roof? Is the building secured to reduce if your alarm system is connected to equipment. Is an intruder alarm the risk of vehicle ram raid? your telephone line)? system installed? Is it monitored? Is surveillance equipment installed? 3. Doors and window. Are the external 6. Safes. Has a safe been installed? Is Is footage recorded with the tapes kept doors and windows solidly constructed? it appropriately positioned? Does it for a minimum of seven days? Is there a fire alarm?

Making Citrus Wedges 10. General. Are sensitive documents appropriately destroyed? Are computer 1) Slice the fruit in half the long way. passwords changed regularly? Do you If you commonly hang your wedges on the edge of a glass, go have an emergency evacuation plan? ahead and cut a notch in them now. Make a small cut the Do staff know the plan? short way across the inside of each half at this point. Make sure you don’t completely cut through the fruit’s peel or you’ll In addition to the above checklist, the implementation of a security plan is an cut the wedges in half, rather than notching them. ideal time to review your business 2) Lay the cut halves down, (peel side up) and insurance. Consider: halve them the long way again. 3) Cut each of those halves the long way to create • What does your Shop & Retail eight wedges total. Insurance policy cover?

(Note: A "squeeze" is very similar to a wedge, but smaller. In • Have you met all the minimum fact, it’s half the size. Make wedges as shown below and then requirements stipulated in your cut those wedges in half the short way. Rather than hanging policy? on the side of a glass, a squeeze is squeezed into the cocktail by the bartender, and then dropped in the drink.) • Have you updated your business insurance policy to reflect any new purchases or changes to your business?

• Do you need to upgrade your insurance to include add-ons such as stock protection, contents insurance or theft by employees? 1 2 3

MUNICIPAL LIQUOR STORE 10

For 2009, A “To-Do” List For Wine

Taste a flight, find a new store and lose notes throughout. Whether it’s a fine the closest winery, drop in to the that old corkscrew. A checklist of 20 white Burgundy or a good Cabernet, second-closest, and so on. You’ll be things to try this year the wine will change with time, air and amazed at the diversity of wines and warmth. When you go back over your styles in your own neck of the woods. By DOROTHY J. GAITER AND JOHN notes, you might be amazed at the BRECHER Attend a Winemaker’s Dinner at a changes. It’s like pictures of children: Restaurant Happy new year! Here’s a checklist of You know they’ve grown up, but it's 20 things to do this year that will make only when you look at the old pictures Keep your eyes open and you will find wine more fun, whether you are just that you realize just how much. plenty. They are not only fun, but often beginning your wine journey or are far can be a very good value. Sometimes Have a Sauternes along the road. wine stores sponsor these, too. This -- the real thing, from France’s Try a Wine From a Different Have Fun With Stemware Bordeaux region -- is the classic sweet Country wine. Yes, it will most likely cost you Experiment. Try a good sparkling wine A country whose wines are new to some real money, but, fortunately, they in a regular wine glass. Pour the same you. Have you ever had a wine from do come in half bottles. Still, Sauternes fine wine into two different kinds or Croatia? Uruguay? Georgia? Next time is underappreciated and therefore, in its sizes of glasses. We all have our you see one, grab it. They’re out there. own way, a good deal. There are few “everyday” glasses, but they can get more life-affirming wines, especially boring if you don't watch out. Engage Go to a Wine Bar and Have a Flight with some age, and even that half bot- all of your senses when you drink wine. of Wine tle could last several nights, making it Find a New Wine Store If you have been to some wine bars more cost-effective. before, try a wine bar you haven’t Have a Blind Tasting Buy a bottle at a wine store where you visited. have never shopped before. With all of Maybe you want to go whole-hog and the good shops these days, there's no Order the Cheapest Wine on a invite over a few friends and ask reason not to find a caring, patient, Restaurant’s Wine List everyone to bring, say, a 2005 knowledgeable merchant. Even if you Really, just screw up your courage Bordeaux under $20 in a brown-paper have a great merchant, every store is and do it. Restaurateurs know that lunch bag. But doing that at home different, so give another store a try. many people won’t order the cheapest with your significant other and just two Try a Varietal You’ve Never Had wine on the list for fear of appearing bottles of the same kind of wine is also From a U.S. Winery miserly, which is why the second- fun and instructive. cheapest wine on the list is often the Organize Your Labels American wineries make all sorts of worst deal. The cheapest wine can interesting wines that are hidden sometimes be a pretty good deal. We've heard from many people over among the Cabernet Sauvignon and the years who have saved wine labels, Chardonnay. Maybe you’ve never tried Open a Sparkler at Home for No but just keep them in a big pile some- Norton, or a Melon made in the U.S. Reason at All where. Get a photo album and put Now’s the time. There are so many reasonably priced them in. Maybe jot a little note for the Either: Have 12 Different Bottles in bubblies these days that they can be special ones about where you drank it the House at Once cheaper than ordinary Merlot or or why you liked it. Looking at them Chardonnay. Put a bottle in the fridge will bring back savory memories. Even now, most Americans don’t have and open it for dinner. Yes, then it will Visit the Closest Winery to Your a single bottle of wine in the house. seem like a special occasion, but that’s Home Buying a mixed case is cost-effective the point. (because you will likely get a discount) It’s amazing to us how many people and fun. And, if you are going to do Take Notes on a Fine Wine From haven’t visited the winery next-door. this, think about getting one of those Beginning to End Now that there are commercial wineries little wine coolers, which are widely Make a notation of the time when you in all 50 states, there is likely to be a available for $150 and less. open it, then drink slowly and take winery near you. If you have visited

MUNICIPAL LIQUOR STORE 12 Or: Drink Up had a 1991 Gewürztraminer from Get a New Corkscrew Alsace (Domaine Zind Humbrecht If you already have a wine collection, C’mon, we know that old corkscrew “Clos Windsbuhl” Hunawihr) that was mark those bottles that really need to still kind of works and you’ve been so effortlessly rich, well-balanced and be drunk and then actually drink them. through so much with it. We, too, hold satisfying that at one point we called it OK, we know you won’t drink all of on to corkscrews way too long. But “the essence of wine.” If you have a them, but if you drink just five of them give in and get a new one. merchant who offers well-tended older this year, you can check this one off. whites, or know of a restaurant that Serve a Dessert Wine to Guests (No, we’re not sure we can do this one, offers them, try one. If not, buy a good either, but we'll give it a good try.) white and hide it somewhere for a Maybe your friends don’t think they like dessert wines and maybe you Go Crazy on a Wine Pairing for while. (You can check this off if don’t, either. But try an Icewine from Dinner Some Night you’ve put a good white away some- where and haven’t touched it by Canada or a Muscat from the U.S. or Try a New Zealand Sauvignon Blanc Dec. 31.) something else along those lines (serve with steak, a Ripasso from Italy with with fruit, nuts or cookies) and watch Southern fried chicken, a sparkling Try a Type of Wine You Think You the wine disappear. Shiraz with barbecue. Just smash Don’t Like Shatter Your Price Limit outside that box and see what happens. Are you sure you don’t like German At least once this year, whether at a Try an Older White wine? Have you tried today’s Rioja? If there's any type of wine you haven’t store or a restaurant, go above your Many fine whites age beautifully, tasted for at least two years, get a bottle. usual limit for wine if there is a bottle from white Burgundy to Riesling. Things change, including your taste. that looks especially interesting to you. Well-cared-for Muscadet can be And the opposite applies as well: If beautiful for more than a decade. you really believe there are no good At a restaurant two weeks ago, we wines under a certain price, try one.

2007 Municipal Liquor Report Again Shows Increased Sales & Profits

The 2007 Analysis of Municipal Liquor Stores has been released by the Minnesota State Auditor.

The report shows a continued increase in both sales and net-profits.

Total sales were $291.7 million, a 3.7% increase over 2006.

Total net profits were $22.4 million, and increase of 11.8% over 2006. Over the past five years, net profits have increased 16.7%.

Total transfers to other city funds were $16.3 million, a decrease of 0.3% from 2006.

To see the full report, go to: www.osa.state.mn.us

MUNICIPAL LIQUOR STORE 13 1904-2007 Quality Wine & Spirits Company A Century of Service Statewide: 1-800-552-8711 Twin Cities: 952-854-8600 Police Work With Blue Earth Municipal Liquor Store To Identify Underage Alcohol Suppliers

Tony Acosta help pay for officer overtime hours “We implemented a mandatory Faribault County Register and develop strategies and educational sentence of 30 days in jail on the first instruction. offense,” says the county attorney. Whether it’s training provided by a From July 2005 to May 2007, 13 Under the county’s ZAP sentencing grant three years ago or just plain luck, arrests involving furnishing alcohol to guidelines, first-time offenders the number of people charged with minors were made in the county. Of would face a fine of $750 plus court furnishing alcohol to a minor has that amount, nine were in Blue Earth. surcharges, be placed on probation increased lately. for two years, must do Sentence to During that same period, nine Serve, obtain a chemical dependency In the past month, three people have citations were issued for underage evaluation, abstain from use of alcohol appeared in Faribault County District drunk driving; 72 for underage drinking and submit to random drug testing. Court for providing alcohol to someone for those 18-20 years old; and 44 under 21 years old. under 18 years old. Judge Douglas Richards says sentencing is handled on a case by case basis. Police Chief Dean Vereide says the Despite tougher enforcement, drinking arrests weren’t part of a sting, but among youths remains a prevalent “Hopefully the sentences we are giving rather the result of ‘circumstances’ problem. are sending a message,” says Richards. involved. Vereide says there are always going to Vereide says the police department Vereide says one incident involved a be persons willing to buy alcohol for works closely with liquor establish- citizen reporting a loud party at a minors. ments — especially the Blue Earth residence. municipal liquor store — in identifying County Attorney Brian Roverud says people who may be supplying underage “We happened to be at the right place one of the persons charged has two drinkers. at the right time. A lot of law enforce- previous convictions. ment is just that,” he says. “Our officers continue to focus their Furnishing alcohol to a minor is attention on catching the people who Vereide credits tips from the public a gross misdemeanor and carries a are buying it and are the suppliers,” in helping officials apprehend maximum penalty of one year in jail Vereide adds. wrongdoers. and a $3,000 fine. Residents are our ‘eyes and ears,’ he adds. How Satisfied Is Your Staff Part of the credit for the arrests may be With Their Jobs? due to a one-time grant Faribault County received in 2005. The most common reasons for an employee’s That year, the Minnesota Institute of resentful job attitude are: Public Health funded a program to target underage drinking and those furnishing alcohol to them. “Our ✔ Not feeling listened to or appreciated officers have been trained in what to look for,” says Vereide. ✔ Feeling overwhelmed by an ever-increasing workload Countywide the ZAP program (Zero Alcohol Providers) was implemented ✔ Inadequate job training or support to address the problem of illegal consumption of alcohol. ✔ Lack of teamwork between departments ✔ Poor supervisors or managers The county was one of three to receive a $5,000 grant that could be used to MUNICIPAL LIQUOR STORE 15 Ways To Improve Your Profitability

by Tony Lemaire • a good source of income for your Ensure proper pricing business when you factor out direct As customers become increasingly BUSINESSES ALWAYS LOOK and indirect costs? price sensitive, pricing can make or for ways to improve profitability. break the sale of your product. It can Fortunately there are many options • complementary to the other products also have a huge impact on your prof- available to do just that as long as you in your product mix? itability if you aren’t able to maintain are willing to do some homework. your profit margins. Gather market • expected to have a long enough life intelligence by asking these questions: By studying your product mix, pricing, cycle for the required time and marketing strategies, overhead, debt resource investment involved? • What value and benefit do your and cash flow you may learn some customers get from the product? valuable lessons that will put you on Based on your answers to the above track to running a better business with questions, determine whether there are • What is the current supply and increased potential for profits. products that should be your product demand for this product? mix. Review your product mix • Does any business currently offer One big key to profitability is offer- Next, review your current product this product? ing quality products that fill a need in line compared to your target high demand by your target market customers’ needs or wants. Determine • How does the competition price the customers. Review your current if there are any additional product product? product offerings to determine how offerings that would be attractive to they are performing. your customers and serve as companion • Are these prices consistent with the products to your current offerings, really customers’ perceived value and Is each product: rounding out your product package. benefit? Incorporating products such as these • providing a tangible value and can bring more income to your bottom • What is the break-even pricing on benefit to your target customer? line. this product when factoring in direct and indirect costs? • in high demand? • Is it possible to mark up prices for additional profit and still remain competitive?

• How can your business set itself apart from the competition? Aggressive pricing? Service? Product packaging specials?

Get 100% Minnesota grown wine for your shelves Next, set a pricing strategy that will with help to merchandise it! allow you to adequately compete while maintaining profit margin. How much Fieldstone Vineyards is ready to deliver to you quality wine profit margin can you get? Do you that is 100% Minnesota grown and made. want to lead, meet or lag the market in price? Do you want this product to Join the dozens of other municipal liquor stores that are be a loss leader? Is this is a premium successfully selling Fieldstone Vineyards wines by calling product where you may be able to ask 507-249-WINE (9463) or emailing [email protected] today! for more markup? If the product has a Low minimum orders, free delivery and available inventory! short life cycle do you want to price the product to move quickly and make Fieldstone Vineyards • 38577 State Hwy. 68 Morgan, MN • www.fieldstonevineyards.com your profit through high-volume sales before the market is saturated? All these factors, and more, need to be MUNICIPAL LIQUOR STORE 16 taken into account when developing market, now would be the time to Manage cash flow your best strategy. identify new markets that you can sell Another way to improve profitability your products to. After all, you already is to control expenses and manage cash Conduct strategic marketing have achieved a desired level of success flow. The best way to control expenses in your current market and have the is to first understand your company’s If your sales have slowed it is important established processes, production and financial statements, including cash to think strategically about how to distribution channels in place. flow and how it relates to the bottom grow your business. Are your customers line. using all of your products, or is there You just need to determine if the an opportunity to cross-sell other contributing factors that have helped Analyze your financial documents to products to your existing customer your business be successful in your see if there are areas where you can base? current market will be present in the reduce your expenses. Strictly monitor new target market and how that target every expense your business incurs Existing customers are already familiar market differs positively and negatively and make sure you are getting with and like your organization. from the one you are in now. maximum value. Where possible, Therefore it is easier to introduce new share fixed expenses (such as office products to them than to prospects. Another marketing strategy is to space, equipment, even administrative network and build key relationships staff) with other businesses. Existing customers often view your that can become referral sources. attempts to sell additional products Identify sister industries that can feed Determine if alternative work schedules that can help them as good service. In customers to your business and vice could be more cost-effective. Make addition, if you have identified a new versa. Consider forming alliances sure you are fully utilizing your product that fills a gap in your product with other non-competing businesses employees. Streamline staff and assess package, approaching your existing that offer complementary products whether to fill vacant positions or customers to sell the new product is a and services to yours or have the same whether another employee can absorb good place to jump-start sales and target market customer. This can be a the responsibility. quickly help generate more income. powerful growth strategy. It reminds me of that old story about If you have saturated your current Lastly, review your promotional the supervisor who was complaining practices and measure their success. bitterly about the poor performance of Do more of the promotional activities the people in her department. A friend Wells Fargo that produce positive tangible and pulled her aside and asked her, “Were valuable intangible returns. Eliminate they such poor performers when you Insurance those activities that demonstrate little hired them?” Services to no returns. (formerly Acordia) Has Helped Municipal Liquor Combination Facilities A Pony Significantly Reduce Their A pony walks into a bar and says, Dram Shop Premiums. “Bartender, may I have a drink?” The bartender says, “Speak up, I can’t hear you.” The pony says again, “Bartender, may I have a drink?” The bartender replies, Tony Baldwin “Look, if you don’t speak up, I won’t serve you.” 952-830-7353 952-563-0528 Fax The pony replies, 612-819-0540 cell “I’m awfully sorry, I’m just a little hoarse.” [email protected]

MUNICIPAL LIQUOR STORE 17 MMBA Commercial Members Are Available to You! Contact Them! Crown Imports Vinocopia Platinum Member Contact: Jim Shikenjanski Contact: Marion Dauner Supporting Member Address: 15230 Painters Lane Circle North Address: 6636 Cedar Avenue South #300 West Lakeland, MN 55082 Minneapolis, MN 55423 Arctic Glacier Ice Phone: (651) 998-1300 Phone: 612-455-4000 C & L Distributing Contact: Bob Nikolai Fax: (651) 998-1281 Fax: 612-455-4001 Contact: Russ Goldstein Address: 1654 Marthaler Lane Cell: (612) 817-5600 Cell: 612-532-0406 Address: 1020 Industrial Drive So. W. St. Paul, MN 55118 E-mail: [email protected] E-mail: [email protected] Sauk Rapids, MN 56379 Phone: (651) 455-0410 Web: www.bartoninc.com Web: www.vinocopia.com Phone: (320) 251-7375 Fax: (651) 455-7799 Fax: (320) 259-7981 E-mail: [email protected] Don Sebastiani and Sons E-mail: [email protected] Web: www.arcticglacierinc.com Contact: Bryant Pascoe Wells Fargo Insurance Services Address: 316 Willow Pointe Drive Contact: Tony Baldwin Fieldstore Vineyards St. Charles, MO 63304 Address: 4300 MarketPointe Drive, Suite 600 Contact: Charlie Quast JIm Beam Brands Compaaany Bloomington MN 55435 Contact: Greg Giannini Phone: (636) 300-3524 Address: 38577 State Highway 68 E-mail: [email protected] Phone: 952- 830-7353 Morgan, MN 56266 Address: 3601 W. 76th Street Fax: (952) 830-3048 Suite 20 Web: www.planeteria.com/sandsons/ Phone: 507-249-9463 E-mail: [email protected] Fax: Edina, MN 55435 Web: www.acordia.com Phone: (952) 830-1131 E&J Gallo Winery Cell: Fax: (952) 830-0123 Contact: Chris Weese E-mail: [email protected] Cell: (847) 420-3114 Address: 730 North 4th Street #105 Web: www.fieldstonevineyards.com E-mail: [email protected] Minneapolis, MN 55401 Silver Member Web: www.jimbeam.com Hagen Beverage Distributing Phone: Contact: Mark Hagen MillerCoors Brewing Company Fax: Pig’s Eye Brewing Company, LLC Address: 500 Industrial Lane Contact: Jon Chance Cell: (763) 656-8763 Contact: Jeff Crawford Worthington, MN 56187 Address: 5805 Zenith Avenue South E-mail: Address: 10107 Bridgewater Parkway Phone: (507) 376-5903 Edina, MN 55410 Web: www.ejgallo.com Woodbury, MN 55129-8587 Fax: (507) 376-5951 Phone: (952) 920-6862 Phone: (651) 734-1661 E-mail: [email protected] Fax: (952) 285-6862 J.J. Taylor Distributing Fax: (651) 734-0171 E-mail: [email protected] Company of Minnesota, Inc. E-mail: [email protected] Heck Estates Web: www.millercoors.com Web: www.pigseyebeer.com Contact: Kathy Bilcik Jones Contact: Mike Bamonti Address: 10135 Parrish Ave NE Minnesota Independant Ice Address: 701 Industrial Blvd. NE Ostego, Mn 55330 Minneapolis, MN 55413 Manufacturers Association Phone: (763) 227-4214 Phone: 651-482-1133 Fax: (763) 355-9585 Contact: Steve Kelly Fax: 651-482-9810 Bronze Member Address: 2900 5th Ave. So. E-mail: [email protected] E-mail: [email protected] Web: heckestates.com Minneapolis, Mn 55408 Web: www.jjtaylorco.com Phone: (612) 824-9600 Alcorn Beverage Co., Inc. Fax: (612) 824-1974 Contact: Terry North LHB E-mail: [email protected] Pabst Brewing Company Address: 7870 -218th St. West Contact: Joellyn Gum Web: www.aceice.com Contact: Mike Brattensborg Lakeville, MN 55044 Address: 21 West Superior Street #500 Address: 7117 Emerald Lane Phone: (952) 469-5555 Duluth, MN 55802 Eden Prairie, MN 55346 Fax: (952) 469-5571 Phone: 218-727-8446 Ste. Michelle Wine Estates Phone: (651) 334-8284 Web: [email protected] Fax: 218-727-8456 Contact: Randy Dobratz Fax: (952) 937-2609 E-mail: [email protected] Address: 16540 Hyland Court E-mail: [email protected] Web: www.lhbcorp.com Lakeville, MN 55044 Web: www.pabst.com Bellboy Corporation Phone: (952) 891-1560 Contact: Dave Gewolb Additional Contacts: Address: 2200 Florida Avenue South Fax: (952) 891-1560 Bob Ourada, Area Manager, Locher Brothers, Inc. E-mail: randy.dobratz Minneapolis, MN 55426 Contact: Tim “Jonesy” Hukriede Metro, Southern (612) 251-1228 Phone: (612) 544-8178 @ste–michelle.com Jeff Van Schoick, Area Manager – Address: 18098 – 365th Avenue Voicemail:1-800-423-8396 Ext. 3813 Metro, Northern (612) 281-1859 P.O. Box 35 Web: www.ste–michelle.com Dakota Worldwide Green Isle, MN 55338 Contact: Len Sage Phone: (507) 326-5471 Trinchero Family Estates Proximo Spirits Address: 8200 So. Humbolt Ave.,Suite 302 Fax: (507) 326-5487 Contact: Brad Musolf Contact: David Budge Minneapolis, MN 55431 E-mail: [email protected] Address: 1770 Braunwarth Circle Address: 608 Montcalm Place Phone: (952) 835-4505 Waconia, MN 55387 St. Paul, MN 55116 Fax: (952) 835-4461 Madison Bottling Co. Phone: (952) 442-8287 Phone: (651) 69888-0652 E-mail: [email protected] Cell: (347) 497-2149 Contact: Dave Bergerson Fax: (952) 442-8582 Web: www.dakotaww.com Address: RR2 Hwy 40 East Cell: (612) 619-9949 Fax: (651-) 699-4295 E-mail: [email protected] Madison, Minn. 56256 E-mail: [email protected] Griggs, Cooper & Company Phone: (320) 598-7573 Web: www.tfewines.com Contact: Harold R. Rutstein Fax: (320) 598-3738 Retail Data Systems Address: 489 N. Prior Avenue Contact: Matt Ambuehl E-mail: [email protected] W.J. Deutsch & Sons Wine St. Paul, MN 55104 Web: www.madisonbottling.com Address: 6566 Edenvale Blvd. Phone: (651) 646-7821 Eden Prairie, MN 55346 Fax: (651) 646-1497 Merchants Phone: (952) 392-2691 The McComb Group Contact: Joe Mayne E-mail: [email protected] Contact: Bill Gorton Address: 18998 Baldwin St. NW Cell: (612) 805-6683 E-mail: [email protected] Address: 222 South Ninth Street, Suite 380 Elk River, MN 55330 Johnson Brothers Liquor Company Minneapolis, MN 55402 Phone: 763-241-7675 Contact: Michael Johnson Phone: (612) 339-7000 Fax: 763-241-8842 Retail Information Technology Address: 1999 Shepard Rd Fax: (612) 338-5572 E-mail: [email protected] E-mail: [email protected] Web: wjdeutsch.com Enterprises St. Paul, MN 55116 Contact: John Schroeder Phone: (651) 649-5800 / (800) 723-2424 Address: 330 S. Hwy 10 Samuel L. Kaplan, P.A. St. Cloud, MN 56304 Fax: (651) 649-5894 Contact: Sam Kaplan Phone: (320) 230-2282 E-mail: [email protected] Address: 5500 Wells Fargo Center Silver Plus Fax: (320) 230-1796 Web: www.johnsonbrothers.com 90 South Seventh Street E-mail: [email protected] Minneapolis, MN 55402-4126 Web: www.rite.us Life Media Inc. Phone: (612) 375-1138 Anheuser-Busch, Inc. Contact: Mike Juszczak Fax: (612) 375-1143 Contact: David Anglum Reco Store Equipment Address: 7211 Ohms Lane E-mail: [email protected] Address: 12107 Wellesley Ave. Contact: Mike Martino Edina, MN 55439 St. Paul, MN 55105 Address: 1617 - 5th Street South Phone: 612-920-5433 Sunny Hill Distributing Phone: (612) 597-1967 Hopkins, Mn 55343 Fax: 952-881-7797 Contact: Mike Baron Fax: (612) 699-6989 Phone: (952) 935-4330 E-mail: [email protected] Address: East Highway 169 E-mail: [email protected] Fax: (952) 935-6875 Web: www.lifemediainc.com P.O. Box 333 Web: www.budweiser.com E-mail: [email protected] Hibbing, MN 55746 Bacardi USA Web: recostoreequipment.com Quality Wine & Spirits Phone: (218) 263-6886 Contact: Jeff Lange Contact: Tom Morgal Fax: (218) 263-6111 Address: 22546 128th Avenue North Total Register Systems Address: 7900 Chicago Avenue South Rogers, MN 55374 Contact: Brian Anderson Thorpe Distributing Company Address: 4215 Louisiana Avenue Bloomington, MN 55420 Phone: (763) 428-1048 Phone: (952) 854-8600 Contact: Jack Stevenson Fax: (763) 428-1048 New Hope, MN 55428 Address: P.O. Box 120 E-mail: [email protected] Phone: (763) 537-1906 Fax: (952) 851-0501 Rogers, MN 55374 Web: www.bacardi.com Fax: (763) 537-1504 E-mail: [email protected] Phone: 763-463-2000 E-mail: [email protected] Web: qwsco.com Fax: 763-463-2001 Brown-Forman Web: www.trs-pos.com E-mail: [email protected] Contact: Jerry Ronke Web: www.thorpedistributing.com Address: 5717 Portland U.S. Bank Government Banking White Bear Lake, MN 55110 Contact: Jennifer Vucinovich Tushie Montgomery Architects Phone: (651) 491-3411 Address: 101 East Fifth Street Contact: Gary Tushie E-mail: [email protected] St. Paul, MN 55101 Address: 7645 Lyndale Ave. So. Web: www.www.brown-forman.com Phone: (651) 466-8750 Suite 100 Fax: (651) 466-8910 Minneapolis, MN 55423 Cold Spring Brewing E-mail: [email protected] Phone: (612) 861-9636 Contact: Mick Detviler Web: www.usbank.com Cell (612) 861-9632 Address: 962 W. Nebraska Avenue E-mail: [email protected] St. Paul, MN 55117 Web: www.tmiarchitects.com Phone: (651) 489-2376 Fax: (651) 489-3127 E-mail: [email protected] Web: www.gluek.com

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