Specialty Coffee Retailer is a publication for owners, managers and employees of retail outlets that sell specialty coffee. Its scope includes best sales practices, supplies, business trends and anything else to assist the small coffee retailer.
Issue link: https://read.dmtmag.com/i/52159
Jack'sBlend Jack Groot owns JP's Coffee in Holland, Mich. He also provides coffee business consulting and training through the Midwest Barista School (MBS). Check out Jack's new blog, "Jack Groot's blog — confessions of a coffee shop owner" at www.coffeegroot.com. Jack can be reached at jack@jpscoffee.com with "Jack's Blend" as the subject line, or at (866) 321-4MBS. H appy 2012. Twelſt h year of the third millennium, leap year and end of the Mayan calendar…and according to them, the end of the world. When I think about that I can't help but chuckle, because I am reminded of the cartoon showing a large circular calendar-rock with two Mayans standing next to it. Th e fi rst Mayan says, "So how come it ends in 2012?" to which the chisel-wielding Mayan responds, "I ran out of space on the rock." One man's mistake is another man's apocalypse. By the time you read this, the celebration of Christmas and New Year's is over. Christmas music is silenced, lights and decorations are coming down, or already down, and winter is in full swing. Crazy busy-ness morphs into hunker-down and let's get through the next few months till warmer weather arrives. It's a time of re- grouping, a time of rest—and it's also a time of opportunity. Th e New Year means diff erent things to diff erent people. Some people make resolutions. Others say, "Phew, that's over." But for most of us it is the simple aſt ermath of selling a ton of whole-bean coff ee, hundreds of giſt cards and a bunch of giſt baskets. We were no diff erent. 2011 was a good year and even though it is over, there are still things we can do to maximize the year for our businesses. One thing I learned many years ago is that as a business owner there is always another bill to pay. Whether taxes or some other obligation, there are no lack of places for my money to go. And January can seem especially painful with the perfect storm of lower cash sales and higher giſt card redemption; extra invoices from holiday merchandise; extra large invoices from coff ee, food and beverage purchases to satisfy the busy holiday season; and Uncle Sam asking for more because we made more. So here are a couple if ideas to help you this January and then even more next January. • Make sure to pay invoices when due – don't get nicked with late fees by using money from one sale to satisfy another invoice. • Take advantage of any discounts off ered – if you are off ered even a 1 percent discount, do everything you can to take it. Every penny counts. • Plan for less cash while still making sales. JP's is usually busy during January, but many giſt cards are redeemed, lowering the actual cash taken in. • Take advantage of slower times to regroup. Get out the toothbrush and scrub the store. Spend time updating your systems and re-training employees. • If you are unsure of your potential tax obligation for 2011, get with your CPA sooner rather than later. You don't need to just get your head above water in April only to have it taken off with an unexpected tax burden. • Get creative with aſt er-holiday sales. Discount holiday merchandise that didn't sell. Better to get rid of it at a break- even or even a loss than to keep it around and try to sell again next year. • Encourage spending of cash in your store during January. "Buy a $25 giſt card, get $5 free" and other specials will bring in needed cash and even out the time of low cash fl ow. • Put together retail opportunities for customers to use their giſt cards at your store in a way that is less costly. Off ering a home barista training class is something that really only costs you time, and people can redeem their giſt cards for it. Also, don't forget that anything you owe in 2011 (giſt cards, free pounds of coff ee, free drinks, etc.) is a debt you may be able to claim on your 2012 tax returns and lower your tax obligation (check with your CPA or tax advisor). And last, check your last few credit-card processing statements. Most small-ticket retailers saw a jump in the fees paid to credit card processors, and you may not know why. Th e Durbin Act is legislation that went into eff ect on Oct. 1, 2011 and was supposed to reduce the fees on debit cards. It did for some, but for anyone with average credit or debit sales under about $11 it raised the fees. You may have seen an increase in your October fees and now you know why. January 2012 • www.specialty-coffee.com | 9