Liquor store chain cheers 14% savings

In recent years, a chain of liquor stores in a Midwest metropolitan area has grown from 13 to 24 stores. It holds a respected position in the retail liquor industry.

Client experienced price creep

Customers of an expanding chain of liquor stores in a Midwest metropolitan area use credit and debit cards for more than $13 million in purchases every year.

Costs for processing these purchases were slowly rising, but the liquor store leadership did not understand why. Management asked Expense Reduction Analysts (ERA) industry experts to find answers and suggest solutions.

ERA Consultants evaluate fee structure, pricing, and customer service

An analysis of the client’s statements showed the processor used a bundled rate fee structure and charged point-of-sale processing fees for each gift card as well as monthly fees per location.

ERA Consultants issued an RFP to obtain a more suitable fee structure and appropriate pricing, given the volume and nature of customer purchases. Based on a combi- nation of competitive pricing, customer service and pricing of loyalty card products, ERA industry experts recommended the client use a new provider.

ERA assisted with implementation, verifying that the new provider was processing debit and credit cards at the correct rates for all 24 liquor store locations.

Credit and debit cards typically involve complex contracts with an array of dues, fees, assessments, network charges and mark-ups.

 

 

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