November 21, 2018
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!
September 14, 2018
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%
January 25, 2018
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!
November 28, 2017
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.
November 16, 2017
Staying at the forefront and providing New Mexico restaurateurs the best products in the point-of-sale industry, New Mexico POS is proud to announce the addition of QSR Automation Systems exCeed kitchen video automation product line. QSR products are installed in over 70,000 restaurants world wide. Unquestionably the kitchen automation heavyweight, QSR ConnectSmart Kitchen solution will make your kitchen more efficient, provide higher quality food production and increase your bottom line by providing a superior customer experience at your restaurant.
NM-POS has a demo system in our showroom. Schedule a demonstration and see how QSR Automation can move your kitchen up the professional ladder to super stardom.
November 15, 2017
Focus POS is brilliant software. It is brilliant in it’s simplicity and it is this simplicity that makes Focus POS the most reliable point-of-sale system in the industry.
First, Focus POS has no Microsoft Windows installation. It is one folder residing in the root directory of the hard drive and has one executable program. Simple!
Second, Focus POS has no Window’s VXDs, DLLs or any other complexity and Focus POS never touches the Windows operating system. Brilliant!
Third, Focus POS is logical. Installation after installation servers, bartenders and managers tell us Focus POS is the easiest and best point-of-sale system they have ever used. Our twenty years of installation experience insure owner operators painless trouble free POS investment. As a tech, Focus POS is a snap without stress.
I could go on and on about how good Focus POS is to a tech. Here is the bottom line; Focus POS runs like a tank. Day in day out, weekly, monthly, yearly for decades Focus POS runs. That’s what I like about Focus POS as a tech.
Focus POS has set a new standard of value in the restaurant POS industry. Performance and features cheesy cloud tablet systems can’t touch. Full size 15″ color touch POS workstation that includes: touch screen, mag card reader, printer and the best software in the industry ‘Focus POS’. All this for under two thousand dollars and no hideous monthly usage fees. Couple this with New Mexico POS providing all system database programming. installation and our outstanding full year of on-site warranty service and full year free system support. THERE IS NO BETTER VALUE IN NEW MEXICO FOR A POS SYSTEM!
This is exciting – call for a demo today and see why Focus Byte technology is the best value in the Point of sale industry.
Don @ 505-293-7551
What an incredible solution for point-of-sale. Imagine a 10″ true-flat screen color touch ePOS workstation that starts instantly, has no complicated Windows Operating System, never slows down in speed and provides simple inventory for up to 50,000 items without an expensive PC software! The incredible Uniwell HX-1500 is the long-term solution retailers and restaurateurs can count on day in and day out, year in and out. Reliable performance and easy setup are the hallmark of the HX-1500. Best of all the Uniwell HX-1500 is not a cloud based iPad system with expensive monthly fees. You own your system and data.
Check out the impressive features:
- 50000 PLU/SKU items with up to nine price levels and inventory.
- 10,000 Customer records for loyalty, local gift card, charge posting or delivery.
- Supports up to 20 Uniwell Phoenix tableside Android tablet order entry devices.
- Traditional kitchen printers and kitchen video system interface for efficiency.
- Employee time and attendance.
- Scanning with age verification.
- So much more….
The Uniwell HX-1500 is an asset that will provide a long-term investment for your business year, after year, after year after year.
Check out the Uniwell HX series at the link below and call New Mexico POS at 505-293-7551 for a demo.
Changes to the card network regulations are coming. All merchants are required to be PCI compliant at all times. Card networks have mandated that all credit card processors report every merchant’s PCI compliance status starting January 31, 2017. Previously this was only required for the larger level 1, 2, & 3 merchants.
Additionally, merchants that qualify for the Technology Innovation Program (TIP) by processing with EMV or a validated point-to-point encryption solution will not be required to validate their compliance.
Obviously this is the big banks method to completely put the burden of charge backs and fraud on the backs of the merchants. Merchants will pay more to accept credit cards at the point-of-sale. While the banks make gazillions of dollars, merchants bear the burden of ever increasing fees and expenses to accommodate credit card processing all while being completely responsible for any losses do to fraud.
PCI compliance is an impossible standard to accomplish. Even the most dedicated merchant cannot meet the the standard as set by the credit card industry. Now PCI compliance and EMV will be required to keep your costs down and liabilities at bay.
So what can you, the merchant do. First and foremost don’t bear the burden of all the endless fees being imposed upon you. Pass those fees thru your POS system to the card holder. Focus POS can easily add the cost of credit card processing to the customers guest check. New Mexico POS has programmed a number of our Focus POS customers to do just this. Reports from the business owners have all been positive reporting very few complaints from customers and no loss of business as a result of having Focus POS add credit card processing fees on each and every guest check used for credit card processing. Customers just pay the fees!
Here are the numbers. $1,000,000 sales, 80% credit card sales and average 20% credit card tip. Credit card fees, compliance costs and added liability insurance costs average 3% of sales plus tips. The math is:
sales x .8 = cc sales, cc sales x .2 = tips, cc sales + tips = cc total, cc total x 3% = cc fees
$1,000,000 x .8 = $800,000, 800,000 x .2 = $160,000, $800k + $160k = $960k, $960k x 3% = $28,800 fees
Think of what it costs you to pay the credit card industry $28,800 in credit card fees. If you are an extremely well run business and gather a 10% gross profit on your bottom line, you require $288,000 in sales just to pay those fees. Wouldn’t you rather put $28,800 to your bottom line than give it to the big banks?
Focus POS and New Mexico POS with this one feature can put profit back in your business again.
Call for a demo (505-293-7551) to see this beautiful feature of Focus POS!
September 21, 2016
A common trend in breach investigations is the installation and/or maintenance of a POS System accepting credit cards, also known as the payment application, being incorrect. This leaves your business and customer’s at risk for credit card information being stolen. New Mexico POS is now QIR Certified by the PCI Security Council and provides merchants with a safe and secure installation, configuration, and/or maintenance of the validated applications in a manner that supports PCI DSS Compliance.
Because of this, we are able to provide merchants a more insightful and resourceful services in effort to achieve and maintain a secure PCI Compliant environment. When a merchant has a PCI Assessment, these steps taken make the process as smooth as possible.
Do not hesitate to contact New Mexico POS if you have any questions!
Click HERE for a database search of QIR Certified Companies