Smart Buy Program. The Power of Partnership

Transcription

1 Smart Buy Program The Power of Partnership

2 Session Agenda I. Updates on General Smart Buy Programs A. Office Depot B. Jani King C. Trend Source II. BPAA Foodservice A. Pepsi B. SYSCO C. Buchi Z Pizza III. Bonus Topic A. Credit Card Processing IV. WIN CASH A. Guess Actual Savings of Real Member Center

3 Core list - providing members with the strongest discounts on their highest usage items. Approximately 300 items average savings on core list is 52% from nonmembers

4 Examples of Core list: Color Copy Paper BPAA Price - $3.97 Non Member Price $7.99 Thermal Register Tape 9pk BPAA Price - $7.02 Non Member Price - $13.99

5 Centers also save 10% on all other items. Loss leaders in retail store can sometimes be priced less if a manager has to move inventory, however center will pay lowest price. Free delivery without minimums.

6 Office Depot Program saved BPAA members and associations more than $803,000 so far this year.

7 Sign up Process This is not an automatic savings program. Call: Set up an account to shop online: http//:bsd.officedepot.com Or Link a Personal Credit Card to use in store

8 Standard Cleaning Specification Restrooms Bowlers Area Dinning area Meeting Rooms Game Rooms Lounge Snack Bar area Lobby Entrance & doors Locker Area Trash Removal Number of Lanes Price Per Square Foot of Cleaning Area Up to 16 Lanes $ to 24 Lanes $ to 32 Lanes $ to 40 Lanes $0.1850

9 Number of Lanes Price Per Square Foot of Cleaning Area Up to 16 Lanes $ to 24 Lanes $ to 32 Lanes $ to 40 Lanes $ lanes x 900 SF per lane = 21,600 TSQF 1/4 TSQF average cleaning area 5,400 SQF of cleaning area 5,400 SQF x $0.19 = $1,026/month $34/day

10 How to Get Started Call Jani-King s National Office to arrange to have a local representative visit your center Don Burleson

11 New Mystery Shop Service PEPSICO, YUM Corp, Whole Foods, Kroger, Subway, Papa John s, Panda Express, PETCO, Sunset Parking $23.00 a shop down from $65.00 a shop 94 questions developed by BPAA Members Detailed narrative comment sections

12 Shops start with phone call and include: 2 Games of bowling with rental shoes Visit & purchase at the bar Visit & purchase at the snack bar Visit to the amusement area Visit to restrooms Parking lot walk through

13 Mike Linck: In the identify your center as a BPAA member and include your center s name and BPAA membership number

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16 BPAA - PEPSI PROGRAM More Than Just a Beverage Program POWER OF PARTNERSHIP

17 National Account Pricing Rebates Bottle and Can Price Protection Frito Lay discounts and rebates Two Rebate Payments 1. P1 thru P6 paid within 90 days to BPAA. BPAA paid within 30 days of receipt. October 2. P7 thru P13 (Ended Dec 25 th ) paid within 90 days to BPAA. BPAA will pay within 30 days of receipt. April following year

18 Fountain Service Program BPAA Service Program (includes) 3 Free Calls per outlet per year Free Small Parts Program ($25 or less) Parts not under warranty are invoiced Pepsi Customer Service Operations Center (CSOC) One centralized hotline thru Pepsi s National Fountain Repair Service Center Service Calls Answered 24 hrs a day Technicians dispatched 6am-11pm, 7 days/week across all time zones Guaranteed 4 hour response time for Reactive Repair Phone Fix Program: Service Agents are trained to troubleshoot call Small Parts Program: under $25 shipped direct to Outlet for FREE

19 Free Music Rocks the Lanes Every Cup Had a Free Music Download Six Grand Prize Winners Trip to ITRC BPAA- Pepsi Centers Received it FREE Free cases of cups Free Cup Merchandiser Free Posters Free Counter Cards Free Vending Snipes Free Media Kit

20 Increase Beverage Incidence while showing your customers that you support our Veterans

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22 BPAA-Sysco Program Two separate components 1. Master Distribution Agreement (MDA) A. Agreement is with Sysco for off invoice savings B. Member must sign a five year agreement 2. Supplier Rebate Dollars A. Agreements are with Food Manufacturers B. Member can get these without five year agreement

23 Master Distribution Agreement I. Low Margin Percentages on Landed Costs - Tiered based on drop size A. 14.5% for drops LESS than $1200 B. 13% for drops more than $1200 C. 10% for drops on $1700+ II. Delivery Surcharge: UP TO THE LOCAL SYSCO HOUSE WITH THESE MAXIMUMS A. $0 - $ NO Delivery has to be made, B. $350 - $ $50 C. $500 - $ $25 D. $650 - $800 $15 E. Over $800 NO delivery Charge $350 Minimum III. Fuel surcharge A. Based on WSJ Index Value No Surcharge Less Than $2.00 B. $5.00 if over $2.00

24 SYSCO BRAND ALLOWANCE SPA Centers receive up to a 1.95% rebate on all Sysco branded products. Centers only need to be linked to the BPAA-SYSCO program to get this SPA rebate Centers do NOT need to sign the MDA, but must be linked to the program to get the rebates Checks come four times a year automatically

25 Manufacturer Rebates BPAA Negotiates rebate dollars direct with food manufacturers. Centers only have to order from the list of products that are eligible for rebates, all tracking is done for them, no coupons Centers receive ONE rebate check a quarter that includes all products from all manufacturers & the SPA Centers do not have to sign the MDA, but must be linked to the National ID to get the rebates and the SPA. All products and specials are housed on:

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28 Credit Card Processing Two Types of Programs 1. Tiered Program Most Common Complicated to understand Many ways to hide extra fees Conceals the profits of the processor 2. Cost Plus Program Exposes the profits of processor BPAA Program

29 Credit Card Processing Tiered Program Qualified The Marketing rate - ex: 1.79% + $0.20 Mid-Qualified - Add 1% to qualified or 2.79% + $0.20 Non-Qualified - Add 1% to mid-qualified or 3.79% + $0.20 Enhanced Bill Backs Add another ½ % Generally discourage Debit Cards Impossible to know what the Processor is making

30 Credit Card Processing Cost Plus Program Pure Interchange or Pass thru = Cost Processor s Charge = Plus Profits of Processor are exposed Very few merchants are offered this program Statements can be overwhelming because they show each card type used in your center and the pure interchange for each

31 Credit Card Processing Cost = Pure Interchange - Set by Visa and MasterCard Pure Assessments - Set by Visa and MasterCard Network Fees - set by networks on debit transactions These are NOT negotiable by ANY merchant ALL merchants pay the same COSTS

32 Credit Card Processing Riddle IF COST is Pure Interchange, Pure Assessments & Network fees - EXACTLY How Much Is It? Answer Hundreds of possibilities depending on three things; 1. Classification of Merchant Bowling is Retail AND Bar/Grill 2. What type of card is presented Debit, Reward, Corporate etc. 3. How the card is processed Card Present, Keyed, swiped

33 Different pure costs for all the different cards & transactions

34 Example of One Common VISA Clearing Rate for Bowling Centers CPS Retail Credit Tier % + $0.10

35 CPS Retail Credit Tier % + $0.10 BPAA- First Data Cost + $0.05 $10 ticket clears at this rate in your center Pure Interchange = $10 ticket x $0.10 = $0.243 Pure Assessments = Basis Points $10 ticket x = $ No Network Fees because its not a debit card COST = $ $ = $ PLUS - First Data = $.05 Total for this ticket rounded to $0.30

36 Same EXACT $10 ticket clears at same pure interchange rate Under a Tiered Program Tiered Program 1.79% + $0.20 Mid-Qualified Rate adds 1% EBB adds ½% Real rate for this credit card 3.29% $10 x $0.20 Total Cost = $0.53

37 $1, Credit Card Processing Average 24 lane center 7,300 transactions a year BPAA- First Data Cost + $0.05 $0.30 Exact same credit card swiped for $10 the exact same way with the two different programs Tiered Program 1.79% + $0.20 $0.53

38 BPAA Rate Trend $0.60 $0.55 Good Street Rate $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 BPAA RATE Today

39 Guess the Total Savings of a 24 Lane Member Center to Win Cash! Closest three guesses TO THE TOTAL SAVINGS without going over will receive $50 EACH at the Smart Buy Round Table Saturday at 4:00PM Name: Center: DROP THIS FORM OFF BEFORE YOU LEAVE THIS SEMINAR! CASH PRIZES WILL BE AWARDED AT THE SMART BUY ROUND TABLE ON SATURDAY 4:00 pm Moore: $ Grainger: $ $ North Pointe SYSCO Rebates: $ Savings $ SYSCO Discount $ Office Depot $ Pepsi Rebates: $ First Data $ Pepsi Savings: $ Music Lic. $