According to Digital Transactions Magazine, “66% of small-business owners say inflation is having a severe or major impact on their businesses this year”
Inflation can be a major challenge for small business owners, especially in the liquor store industry where margins are often thin. However, by utilizing the right point-of-sale (POS) technology, liquor store owners can effectively fight inflation and maintain their profitability. Here are the top 3 ways to utilize POS technology to fight inflation:
1. Implement Dual Price Surcharging: Surcharging is a way for liquor store owners to recover the cost of inflation without sacrificing their profits. However, surcharging can be a delicate process and it is important for liquor store owners to do it the right way in order to avoid upsetting customers. That is why implementing “Dual Price Surcharging” with the help of a partner is critical for liquor store owners. This method allows for an increase in price for credit card purchases while maintaining the original cash price, making it a fair and legal way to recover from inflation.
From the same article quoted above “As Sellers’ Fees Rise, Satisfaction With Merchant Service Providers Declines, J.D. Power Finds”. Your credit card processing fees are continuing to go up! Just ask Mastercard. At the very least you should have someone (like us 😉) review your card processing agreement to make sure you’re getting a fair deal.
2. Diversify product offerings: Utilizing a POS system, such as Cloud Retailer, allows liquor store owners to easily track and manage their inventory, allowing them to diversify their product offerings. By offering new and unique products, such as craft beers and spirits, liquor store owners can attract customers looking for something different and stay ahead of the competition. Additionally, offering non-alcoholic products such as snacks and accessories can increase sales and help offset the effects of inflation.
3. Implement a loyalty program: A loyalty program is a great way to build customer loyalty and increase repeat business. Cloud Retailer’s POS system allows liquor store owners to easily track customer purchases and offer rewards based on those purchases, making it easier for owners to implement a successful loyalty program. Offering discounts, rewards, and special promotions can encourage customers to return and purchase more, leading to increased sales and higher profit margins. See a video on how here.
The average Cloud Retailer user that implements loyalty experience a 10% increase in average transaction size. You many people deploy loyalty WITH dual pricing – they work together!
In conclusion, fighting inflation is a continuous effort that requires a combination of strategic planning, smart investments, and effective management. By utilizing the right POS technology, such as Cloud Retailer, implementing Dual Price Surcharging, diversifying product offerings, and implementing a loyalty program, liquor store owners can mitigate the effects of inflation and maintain their profitability. Subscribe to our newsletter today to learn more about how Cloud Retailer can help your liquor store succeed!