“Darlene, our store manager, and her sister, Jolene, at our other store, set up all the retail price changes and specials. We never have to do that work at our home office,” said an office manager during a recent meeting.
Yes, our poor fictitious c-store heroine, Darlene, who didn’t order the turkey and cheese sandwiches last week, now is the one the company is depending on to set the pricing. Again, this is a true story (although names have been changed to protect the innocent).
No wonder Darlene doesn’t have time to work with customers…..she is stuck in the back office doing the paper work to set up proper pricing. What’s more is the huge leap of faith being taken that she is even changing prices to assure expected gross margin.
Here is the wild part: this particular company actually has a complete retail software system in place with a centralized pricebook --- and it is not being used! What a waste of money! Just another company that has invested millions of dollars in their stores, but not in their business processes.
Many business owners are simply distracted. Especially this year, considering the spike in fuel and credit card fees. The focus on fuel and fees are justified. Unfortunately, in-store product prices are also rising and managing that process is more involved than changing fuel prices.
Now is NOT the time to abdicate responsibility of the $80,000 c-store to Darlene and Jolene. They should be too busy with customer service and employee management to push paper.
CMIsolutions produces and sells software to meet the needs of the industry. CMI does consulting work to review business processes. Software without the proper process is just a wasted investment.
It may be time to fine tune your processes or, in the case of Darlene’s company (and it really has become “her company” as she is the one running a multi-million dollar investment), it may be time for a complete overhaul.
You do not have to be a CMI client to take advantage of our process consulting services. Give us a call and let us help you see the ROI you should for your investment.
To learn more about pricebook and inventory management solutions, call Joe Terranella at 800.211.5980 x2504 or visit our website http://www.cmisolutions.com.
Thursday, July 31, 2008
We Just Let Darlene Do It.
Wednesday, July 23, 2008
Darn You, Darlene. Darn You!
Over the past several months, readers have asked me where I get the material for writing this weekly blog. Many assume I simply make it up. They couldn’t be more wrong. No one could make this stuff up! Visit any retail store, on any given day, and the material is prime for the pickin’.
Last week, a reader recounted her disappointing c-store experience She regularly goes to a c-store store during her lunch break to purchase, of all things, a pre-packaged turkey and cheese sandwich (she claims they are delicious… who am I to argue?). On this particular day, stomach growling and mouth watering with anticipation, she goes into the store for her lunchtime favorite, but, alas, the sandwich of her morning dreams was missing!
Frantic, she approached the store clerk to inquire about “her” sandwich. The clerk, knowing this was one of her “regulars”, did what any store clerk would do when approached by an upset customer…she immediately threw her manager under the bus. The clerk explains to our hungry protagonist that “Darlene forgot to check our inventory and place the order with the sandwich guy. She forgot the mustard and mayonnaise condiments, too, so your sandwich would have been dry anyway.”
Are you relying on “Darlene” to place your orders or are you ordering based on triggers from your Recommended Purchase Order report in your software? This report can be run from your corporate home office for each store so YOU control YOUR purchases.
The store owner invested over $2 million dollars in that location, but he has not invested the less than quarter of 1% per store to get an accounting system which would insure that investment.
Has this store lost a customer? Probably not (if this is the first time!), but in today’s competitive marketplace can they afford to take a chance? Can anyone?
Last week, a reader recounted her disappointing c-store experience She regularly goes to a c-store store during her lunch break to purchase, of all things, a pre-packaged turkey and cheese sandwich (she claims they are delicious… who am I to argue?). On this particular day, stomach growling and mouth watering with anticipation, she goes into the store for her lunchtime favorite, but, alas, the sandwich of her morning dreams was missing!
Frantic, she approached the store clerk to inquire about “her” sandwich. The clerk, knowing this was one of her “regulars”, did what any store clerk would do when approached by an upset customer…she immediately threw her manager under the bus. The clerk explains to our hungry protagonist that “Darlene forgot to check our inventory and place the order with the sandwich guy. She forgot the mustard and mayonnaise condiments, too, so your sandwich would have been dry anyway.”
Are you relying on “Darlene” to place your orders or are you ordering based on triggers from your Recommended Purchase Order report in your software? This report can be run from your corporate home office for each store so YOU control YOUR purchases.
The store owner invested over $2 million dollars in that location, but he has not invested the less than quarter of 1% per store to get an accounting system which would insure that investment.
Has this store lost a customer? Probably not (if this is the first time!), but in today’s competitive marketplace can they afford to take a chance? Can anyone?
Wednesday, July 16, 2008
Is Your Retail System Like an All-Star Pitcher or Hitter?
Those of you who are bleary-eyed from staying up watching the All Star baseball game last night may know what I mean. The pitchers ruled last night --- mowing down hitter after hitter. Even A-Rod struck out twice (not including the strike out his wife’s divorce attorney blew by him last week).
As a Yankee fan, watching a team this year without a strong pitching rotation is painful. Think about it…in the early era of baseball, the hitters ruled the game. Babe Ruth, Joe DiMaggio, and Mickey Mantle all hit for power and average. Now, however, the rules of the game have changed and the pitchers rule the game.
One pitcher, directing 9 batters…talk about centralizing and managing your game. Don’t you wish you had that kind of control in your business? The good news is you can.
A centralized Pricebook is similar to an All-Star pitcher. At your home office, a centralized Pricebook is the one place where all prices are validated and sent to the stores which puts you in complete control. It is the one place where you can control your inventory and cash flow. The store managers do not decide which products you buy and at what price. You do. Yet many c-store operators are still playing by the old rules and not controlling their businesses from a central location.
Not using a centralized retail inventory management system is analogous to allowing the batter give the pitcher his signals for each pitch. Are you kidding me? As a technology shop, change is a part of our everyday business and we strive to be ahead of the curve every hour of every day.
In a game as traditional as baseball, for better or worse, times have changed. How about your business? Are you running it like the pitchers who faced Babe in 1927 or are you running like the pitchers of the 2008 All Star game?
As a Yankee fan, watching a team this year without a strong pitching rotation is painful. Think about it…in the early era of baseball, the hitters ruled the game. Babe Ruth, Joe DiMaggio, and Mickey Mantle all hit for power and average. Now, however, the rules of the game have changed and the pitchers rule the game.
One pitcher, directing 9 batters…talk about centralizing and managing your game. Don’t you wish you had that kind of control in your business? The good news is you can.
A centralized Pricebook is similar to an All-Star pitcher. At your home office, a centralized Pricebook is the one place where all prices are validated and sent to the stores which puts you in complete control. It is the one place where you can control your inventory and cash flow. The store managers do not decide which products you buy and at what price. You do. Yet many c-store operators are still playing by the old rules and not controlling their businesses from a central location.
Not using a centralized retail inventory management system is analogous to allowing the batter give the pitcher his signals for each pitch. Are you kidding me? As a technology shop, change is a part of our everyday business and we strive to be ahead of the curve every hour of every day.
In a game as traditional as baseball, for better or worse, times have changed. How about your business? Are you running it like the pitchers who faced Babe in 1927 or are you running like the pitchers of the 2008 All Star game?
Tuesday, July 1, 2008
Have You Declared Your Independence?
Good question. As we get to the mid-year point of 2008, many in this business feel far from independent.
The mindset of many is we are dependent on so much. The oil companies are against us, the credit card processing fees are killing us, the cost of food products is escalating, labor costs are up, taxes are on the rise, profits are getting squeezed, and any other number of negative issues have some crawling into the corner in fetal position.
Not exactly how you envisioned the year when it began, is it? The New Year - full of hope and the usual list of resolutions - now mostly forgotten. The good news is there is still half a year to plan for better times ahead.
Instead of dwelling on the problems which, by the way, have always been a part of this industry, get these issues in balance or you will never survive. Usually, this weekly blog features tips regarding technology and how it can help solve your problems. While it can, that is for another week.
This week’s tip is one of balance. We know the issues mentioned above are real, but don’t make them overwhelming. Add some balance to your life and you will find your life is not completely dependent on the economic ills of the moment.
One way to gain balance when lamenting your own fate is to turn around and help someone else. I learned from a highly respected fuel jobber (and former employer) just how important this was, not only to the community, but to your own sense of perspective when viewing the big picture. Many times, after assisting others with their problems, your own may suddenly appear a lot less daunting.
Many of you have already figured this out as demonstrated by your involvement in charity work: MDA, FCA, cancer fundraising, and local benefits. One of you donates a penny a gallon to help those in need of home heating fuel in the inner city. Another delivers turkeys every Thanksgiving to families in need. The list goes on and on. We are a very charitable industry.
At CMI, we have people individually involved in fundraising for cancer walks, time devoted to Boy Scouts, time donated to troubled youth, and another who donates his frequent hotel staying points to families with sick children so they can be near them while at a far away hospital.
The common thread for all of these companies and individuals is they lead a balanced life with purpose and a shield of goodwill which all the bad news of the economy cannot pierce.
Don’t let the second half of the year go to waste. The bad news is not going away, but if you get involved in helping an individual or group of people, you will be gain the perspective to overcome those issues and realize true independence.
To learn more about pricebook and inventory management solutions, call Joe Terranella at 800.211.5980 x2504 or visit our website http://www.cmisolutions.com.
Feel free to forward this tip to friends, co-workers, employees, business partners who you feel might enjoy or benefit from it.
The mindset of many is we are dependent on so much. The oil companies are against us, the credit card processing fees are killing us, the cost of food products is escalating, labor costs are up, taxes are on the rise, profits are getting squeezed, and any other number of negative issues have some crawling into the corner in fetal position.
Not exactly how you envisioned the year when it began, is it? The New Year - full of hope and the usual list of resolutions - now mostly forgotten. The good news is there is still half a year to plan for better times ahead.
Instead of dwelling on the problems which, by the way, have always been a part of this industry, get these issues in balance or you will never survive. Usually, this weekly blog features tips regarding technology and how it can help solve your problems. While it can, that is for another week.
This week’s tip is one of balance. We know the issues mentioned above are real, but don’t make them overwhelming. Add some balance to your life and you will find your life is not completely dependent on the economic ills of the moment.
One way to gain balance when lamenting your own fate is to turn around and help someone else. I learned from a highly respected fuel jobber (and former employer) just how important this was, not only to the community, but to your own sense of perspective when viewing the big picture. Many times, after assisting others with their problems, your own may suddenly appear a lot less daunting.
Many of you have already figured this out as demonstrated by your involvement in charity work: MDA, FCA, cancer fundraising, and local benefits. One of you donates a penny a gallon to help those in need of home heating fuel in the inner city. Another delivers turkeys every Thanksgiving to families in need. The list goes on and on. We are a very charitable industry.
At CMI, we have people individually involved in fundraising for cancer walks, time devoted to Boy Scouts, time donated to troubled youth, and another who donates his frequent hotel staying points to families with sick children so they can be near them while at a far away hospital.
The common thread for all of these companies and individuals is they lead a balanced life with purpose and a shield of goodwill which all the bad news of the economy cannot pierce.
Don’t let the second half of the year go to waste. The bad news is not going away, but if you get involved in helping an individual or group of people, you will be gain the perspective to overcome those issues and realize true independence.
To learn more about pricebook and inventory management solutions, call Joe Terranella at 800.211.5980 x2504 or visit our website http://www.cmisolutions.com.
Feel free to forward this tip to friends, co-workers, employees, business partners who you feel might enjoy or benefit from it.
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