Ying Sa is the founder and Principal Certified Public Accountant at Community CPA, & Associates in Des Moines, Iowa. Here, she offers tips for accessing capital, even with limited resources.
Recently, I interviewed two local business owners about their journeys towards building the business of their dreams. We talked about what came easy to them and what struggles they faced. Both have found success and spend every day doing what they love – but interestingly enough, neither of them have found a good solution to a big part of their business: inventory management.
It’s a no-brainer that happier employees are more engaged with their work and deliver better customer service, but how can you bring more happiness to your workplace? (Hint: the answer isn’t “just pay them more.”)
Oh hey! That's me, sipping on a Cafe Mocha. I'm not big on coffee, but on an increasingly cold November day in Des Moines, one of these really hits the spot.
I got it from Freidrich's, a small chain of quick-service coffee stands in our area. My Freidrich's mocha made for a nice morning. The staff was friendly as ever, my drink was made quickly, and I was off to the office with hardly a bump in my schedule. Also, it was delicious.
There was one weird thing about my experience, however: I couldn't tip! As someone who rarely carries cash, I had to pay by credit card. As the purchase was under $25, they didn't ask me to sign. Since they didn't ask me to sign for it, and I had no cash, I had no opportunity to tip the kind folks who made my drink.
So somebody didn't get tipped, and I don't get to deduct a $4 coffee that is now totally a business expense. Big whoop, right? Maybe not, if you consider that this probably happens a few dozen times a day at just that stand. I've seen the line a good 15 people deep during the early morning hours and over lunch.
Let's breakdown a hypothetical scenario:
- On a given Tuesday, Between 7am and 8am, 40 people buy an espresso-based drink at an average price of $3.50.
- Based on our current survey results, I can safely estimate that 75%, or 30, of those people will pay with a credit card.
- My barista housemate estimates half of the customers at her shop tip something. The tips vary from rounding up to a whole dollar amount (like $3.50 to $4.00) to a dollar or two or three if they're having a good day. For simplicity's sake, we'll pick an average tip of one dollar per customer.
Are you already doing the same math I am? In a single hour, a server could be missing out on up to $30 in tips. Thirty! I don't know about you, but I'd hate to miss out on an extra 30 bones.
I can understand not wanting to slow down a busy line and have 40 people sign for their morning coffee, but its a pretty unfortunate compromise. Strange checkout experiences like this one fuel our imagination and keep the team motivated while working on Change.
How could you fix this? What if I could hop on a website right now, pull up my order, see the names of the folks who served me, and throw a buck or two their way? What if I could go further and compliment the gentleman who made my drink on the flavor, texture, and temperature? What if I could by my drink without cash or credit and still tip?
What about you? I can't be the only socially awkward penguin out there agonizing over wanting to have tipped and not being given the opportunity. Servers, owners, customers: we want to hear from you. Drop a note in the comments and let's talk about tips!
We received this note recently:
I am thinking seriously about opening a small bookstore. As I look at other small, independent businesses I use, I'm struck by the awkward point of sale. They don't want the expense of credit card fees, so they go backwards to the cash/check only, write-out-the-receipt mode. I'm encouraged by the promise of your business. I hope to make the point of sale very easy for both the customer and me. No loss of sale because a jogger/walker in the neighborhood wasn't prepared to buy, yet saw the perfect thing in my window!Mary P. Cedar Rapids, Iowa
Mary was kind enough to share the above thoughts with us after learning about Change. I liked this phrase in particular: “...I’m struck by the awkward point of sale.” Us too. Unfortunately, many mobile and tablet solutions aren’t much better. I don’t know about you, but I feel pretty goofy handing my iPhone over to someone I’ve never met so they can scan in, say, a 50-cent coupon on coffee. Don’t even get me started on redeeming my last LivingSocial deal. Binders were involved. Binders. Full of paper. To redeem a voucher I bought on the INTERNET. Gosh darn rassin’ frassin’...ahem. Sorry. I got myself going there. Anyway…
Astute observation of the retail experience is a trait we notice in many business owners. They’re curious, empathetic, and pay attention to the little things. They love people, not software and bookkeeping. I have no doubt Mary’s bookstore will have a phenomenal, people-centered checkout experience. We’re building Change for Mary and others like her and I hope she’ll consider being part of our pilot program if her bookstore comes together (and I hope it does).
At Change, we’re immensely curious to learn what others have observed about the checkout experience at their favorite local spots. Our survey for fans and supporters of independent businesses encourages people to share those very thoughts with us.
You can also join the conversation by commenting on this post. We’re listening.