When it comes to Credit Card Processing fees, it’s important for a merchant to look closely at every aspect of a quote before choosing the right processor. Though some fees are set in stone, others can be negotiated or discounted. While even a minuscule amount doesn’t seem like much, most merchants tend to stick with a processor for several years and savings add up to a substantial amount saved. Before joining with CoCard, New Mexico POS was free from any ties with Credit Card Processing companies and learned the best ways for their customers to save a significant amount of money. In the coming blogs, we will highlight and define certain aspects you as a merchant should consider  before signing up with a new processor or maintaining your relationship with your current processor.

Interchange fees are included in every statement, quote, and general statement provided to the merchant. They make up the majority out of all the fees and are often presented as a percentage plus an additional fixed amount. This fee is based on multiple different factors such as:

• MCC (Merchant Category Code) – The way your business is categorized and each transaction processed will effect the interchange and what fees apply to you per transaction. For example, an electron  ic retailer with high $ amount transactions but fewer may pay more per transaction than a quick service with lower $ transaction amount but with greater transaction count.
• Card Type – Ever notice you get a great discount or reap loyalty rewards if you use a store brand credit card? Or if you pay for gas with a credit card instead of a debt, you receive a $ discount per gallon? This is because fees are based off of the card type. Typically, running a credit transaction is far less than running a debt.
• Payment Processing – Processors can monitor how transactions are settled and this can skyrocket the rates or keep them at the lowest possible point. This is dependent on whether the transaction is ran through an EMV chip reader, MAG card swipe, manually input into the terminal, and more.
• Network – Visa, MC, Discover, and AMEX all have their own networks and charge different interchange rates to utilize them.

Though these are not the only fees attached to processing credit cards, these are some of the mandatory charges in which the processor usually has no control over. To lower this rate for the best possible price, make sure your business is processing with the most secure option, running cards as a credit transaction, and keeping your payment processing network secure.

Any questions? Contact New Mexico POS at 505-293-7551 and we will more than happy to help!

Turning a profit in your bar is simple in theory. Having a nice atmosphere, creating tasty cocktails, attracting customers with great food, and catering to customers through fantastic service. But a little time spent calculating numbers and introducing new practices in your business can and will improve your profit margin. Your Point of Sale should be the starting point and will give you fantastic reports to achieve this.

How to Calculate Your Bar’s Profit Margin

Profit Margin is defined as the amount by which revenue from sales exceeds cost in a business. We calculate this by subtracting the COGS (Cost of Goods Sold) from your Revenue. The total of this calculation is your Gross Profit. We divide the Gross Profit by your Revenue and express the number as a percentage.

Let’s calculate the Profit Margin with numbers from our Point of Sale:

• Cost of Goods Sold: 300
• Revenue: 800

(Revenue) $800 – (COGS) $300 = (Gross Profit) $500

(Gross Profit) $500 / (Revenue) $800 = (Profit Margin * 100) 62.5%

Below are different ways to help you automate this equation and raise the Profit Margin.

Analyzing Report Data from your Point of Sale

A big portion of time can be saved by taking certain reports from your Point of Sale. A Menu Mix report can provide you with detailed item sales such as a count of items sold, % of total sales the item makes up, ingredients cost, and sort items by their popularity between a date range. Having this data will be important for reasons as the ability to eliminate items rarely sold to control stock and working with vendors to reduce costs on the ingredients of the most popular items.

Controlling Inventory and Calculating Pour Cost with Optimal Cost

A crucial, if not most important, factor in a bar’s profit is found in the pour cost. Pour cost is a common term to describe the Profit Margin of a bar’s goods. Once the pour cost is found, it’s highly recommended for an operator to compare their Cost Percentages to their Optimal Cost.  An Optimal Cost is determined by the price the item is sold minus cost of ingredients. Listed below are the most common Optimal Costs for alcohol.

• Liquor ~ 15-18%
• Wine ~25-30%
• Draft Beer ~20%
• Bottled Beer ~25%

A while back I met a wonderful women. She tagged with me to many restaurants while I was servicing their Focus POS systems. Being extremely personable my friend inevitably ended up talking to owners who inevitably opened up to her. Early on my friend said, “damn, everyone is stealing from everyone”. Unfortunately she was right. Restaurateurs are dependent upon their employees but not obligated to their employees. Focus POS insures the rules and regulations of the owner are enforced to the staff. Job codes for employees dictate what an employee can do at the point-of-sale and insures staff don’t over step their responsibilities. No other POS system provides the security Focus POS does. As an owner you can feel confident your policies and security is in tack. An investment in Focus POS is an investment in security!

Owners set policies for staff members.  From the dishwasher to the general manager everyone has their job to do.  Your Focus POS system and NM-POS are key tools to enforce your policies which in turn create a well oiled, smooth running and profitable organization.

NM-POS delivers your new Focus POS system programmed with security in mind.  We lock down all negative type transactions: voids, discounts, refunds, transfers, reporting and time clock punches to appropriate job code of authority.  Every Focus POS system comes with 10 manager mag cards for management staff.  Mag cards are used by MOD’s, managers, chefs and GM’s to authorize exceptions for the staff so the staff will never learn the pass-codes.  Safe and secure with policies enforced so owners earn the absolute most income on their sales.

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