Archive for June, 2011
Social Media Celebration Series:
Wichita State University Bookstore Partners with their Students for Success
Jun 30th
Today is Social Media Day, a worldwide celebration of the revolution of instant, real-time media. In honor of social media and its influence on the collegiate retail industry, enjoy the last installment of our three-part series of articles focusing on stores that are connecting with their students by using this forum to its fullest!
Click the image to check out Blondie and Jack Buyback in their 2010 debut
With an online following of over 1,000 users, the Wichita State University Bookstore is always looking for ways to keep their social media sites fresh and students engaged. Unlike many other stores, however, they didn’t have a dedicated marketing department. So, to generate new ideas, they assembled their own team.
Including everyone from store employees to students, the team meets weekly to bounce around ideas that fuel their innovative and continually updated marketing campaigns.
“We found that when you put together a group of people with completely different backgrounds you can output some great ideas as a team!” explained Noura Souccane, accounts payable and member of the bookstore marketing group.
It was in these meetings, in fact, that the store came up with a new approach to advertising their buyback through a different medium.
“We wanted to find a way to promote our buyback that was relevant to students,” said Souccane. “Our Buyback Video turned out to be both an attention-grabbing and cost-effective way to get our message out, while also driving traffic to our Facebook Page.”
Rather than relying on outside resources to produce and create the video, however, the store used what they had right in their own store; their students!
“Our student employees participated by acting in the video, and we had a former employee who was finishing her communication degree, film it,” she explained. “She then used the facilities on campus to edit and create the finished product. So, overall, it was very low-cost for us, and she was able to get valuable experience to put on her resume!”
Debuting in 2010, their original video starred Blondie, a WSU student, who stumbles upon Jack Buyback, an amusingly well-spoken pile of talking books in the aisles of the bookstore. Jack guides her through the buyback process and lists off all the reasons that Blondie should sell her books at the Official Buyback of Wichita State University until she’s convinced it’s ‘like, totally the best option.’
“We wanted the video to be very tongue-and-cheek and a little bit cheesy,” Souccane added. “I think it ended up being exactly that; students loved it and thought it was hilarious!”
As a sequel to their original masterpiece, their 2011 Buyback Video again featured the two popular characters who relaxed in the sun after finals with all the cash they received after selling books back to the store.
Blondie shows off her buyback cash in the 2011 video. Click the image to view more.
After posting the videos to their YouTube and Facebook pages, the store was excited to see that both videos generated positive feedback campus-wide.
“We immediately received tons of compliments on the video from students and even staff,” Souccane said. “We were one of the first departments to really experiment with social media marketing and others were impressed with the results. One of the professors on campus even used us as an example in his presentation on the topic!”
Looking again for a way to get students involved, the store also recently implemented a Top Model contest.
“We needed photos of our new merchandise for our website, and we knew we wanted to have students model them. But, because we try to integrate social media into each of our marketing campaigns, we decided to position it as a contest on Facebook, “she explained.
Interested students, alumni, and staff were asked to submit an application and their picture to the store for the chance to be the new face of face of their Spring/Summer Fashion Campaign.
Out of 17 applicants, WSU Bookstore then narrowed it down to three male and three female finalists, based on who they thought would be the best representatives for the store.
Using a third-party polling application, they posted the finalists’ pictures to their Facebook Page and let students vote. The Top Girl and Top Guy whose picture received the most “likes” were then crowned the Bookstore’s Top Model.
WSU Bookstore Spring/Summer 2011 photo shoot featuring their Top Model winners Jordan & Kimberley along with student staff Chelsea, Chris & Erica.
The two winners received an exclusive Top Model Swag Bag full of Shocker merchandise, a photo shoot modeling the latest Spring/Summer Shocker Gear for the University Bookstore, and of course the celebrity status that comes with becoming the Bookstore’s Top Model!
“The contest was a lot of fun, and students enjoyed participating, which was ultimately our goal,” she said. “We try to get students directly involved in our marketing campaigns as much as possible. They know what’s cool and what’s not, which helps us send better messages; plus, they get great experience too.”
In fact, the store attributes much of the success of their interactive social media campaigns to the involvement of their students, who participate in everything from the brainstorming phase all the way through implementation. Based on her experience, Souccane suggests other stores take advantage of the knowledge their students have to offer, as well.
“Use what you have! We’re at a real advantage in the collegiate retail industry because our target audience is easily accessible. Having students involved in your marketing efforts is truly invaluable. Not only are they in-tune with the group you’re trying to reach, but they can also show you how to use up-and-coming technology, such as social media, because many are learning about it in school!”
As for the future, Wichita State University Bookstore has no plans of slowing down their social media efforts anytime soon.
“It’s become a huge part of everything we do,” she said. “You have to get involved to stay ahead of the curve because that’s where all of our customers are now!”
Happy Social Media Day! See how we’re celebrating by checking out our exciting new look on Facebook! For information on how to integrate successful social media promotions into your store’s marketing plan, talk with your MBS representative.
Calling all Volunteers! Share Your Expertise at MBS Systems Users Symposium 2011
Jun 29th
This year’s event will truly be a User’s Symposium with even more focus on you! Because our partner stores value innovation to the same high standard, we want to showcase your winning strategies to others in attendance!
Join the Symposium presentation team to contribute your knowledge and expertise to one of the many sessions that will be presented at the event this fall. You can also participate by volunteering as a roundtable participant, or even suggesting a session on a topic that you are interested in learning about.
Check it out! Here’s the type of sessions we’re planning so far:
- Co-presentations on Maintaining Margins in a Competitive Marketplace for Textbooks, GM and Management – Focusing on the actions and activities that can be integrated to achieve a competitive edge in your marketplace.
- Co-presentations on Practical Guidelines for application usage for Textbooks, GM and Accounting – Focusing on the practical use of the applications used by the departments to maintain and manage the inventory.
- Co-presentations on Focus on Finances for Textbooks, GM , Accounting and Management – Focusing on the formulas, processes and reports that each area uses to ensure accurate financial information for the department and store.
- Roundtable Discussions – Share your innovative strategies! Discuss how you used the various applications to achieve success in the last year. Be able to completely explain the reasons for implementing the product, application or process, how you accomplished the task, and the results of the project.
How to Participate:
Choose a session type and tell us your story. Submit your interest in participating in any of the above session types to Marta Hartman at MHartman@MBSbooks.com by August 1, 2011.
We’re looking forward to featuring your innovation!
Social Media Celebration Series:
Weber State University Bookstore’s
100th Anniversary Campaign
Jun 28th
This Thursday, June 30, is Social Media Day, a worldwide celebration of the revolution of instant, real-time media. In honor of social media and its influence on the collegiate retail industry, we bring you a three-part series of articles focusing on stores that are connecting with their students by using this forum to its fullest.
Celebrating their 100th anniversary this year, Weber State University Bookstore created a creative social media campaign to spark excitement about their monumental achievement. Each month, the store implements a new interactive activity on their Facebook Page to engage students and reward them for participating.
Student Employees rap about the store's many products and services. Click the image to watch!
“We thought this would be a great opportunity to enhance our presence on Facebook and inform our students about what we have to offer,” said Amber Robson, WSU Bookstore marketing manager. “It’s really helped to keep our social media sites going during the summer months because we continually change things up.”
To kick off the campaign, the store, wrote, recorded, and produced their own rap music video, ‘Remember the Name (100 Years),’ which was posted to their YouTube and Facebook Page. Showing off their employees’ talent, the video followed three students throughout the Weber State University Bookstore as they rhymed their way through all of the store’s products and services from buyback to technology.
Each week, students could answer different trivia questions about the music video for the chance to win prizes. For instance, whoever could correctly identify what book was held up in the video and where it was located could choose between Skull-Candy headphones, a WSU hat, hooded sweatshirt, or even a $20 gift card. All who participated, however, were entered into a raffle for the chance to win a $100 drawing at the end of the month, encouraging their involvement.
Last month, the store switched things up by using yet another type of media in their comical Caption Contest.
Winning Caption: "No seriously, someday vinyl will be obsolete."
“We searched through the database at our campus library to find old photographs taken around campus,” explained Tim Sessions, WSU Bookstore social media and digital marketing coordinator. “Then, we prompted students to fill in a caption for a different picture each week. The one that made us laugh the most was chosen as a winner.”
With as many as 18 comments on some pictures, the Caption Contest was a success at generating huge amounts of participation. Better yet, it let students’ true creativity shine and added some humor to the staff’s day, as well!
This slap-watch, laid on astroturf, created a great mystery photo!
This month, the store is once again integrating their innovative ideas into social media with a Mystery Photo Contest! Posting pictures of in-store products from unusual angles, the store asks students to identify what the product is and where it’s located. Following the same format, the first to comment with a correct response wins their choice of designated prizes.
“Every time a student comes to pick up their prize, they always thank me for what we’re doing on our Page and are excited to see what our next promotion will be,” said Sessions, who devotes much of his day to monitoring and interacting on the site. “I think we’ve really reached our goal of making our social media more entertaining and informative.”
Because of the store’s dedication, Robson believes social media has become an extremely effective marketing strategy.
“It’s really become the best communication tool we can use as a University to reach students because they’re on it so often,” she explained. “Their generation has grown up accustomed to an immediate response and, with social media, we’re able to provide that to them. It’s an easy, low-cost and direct way to send our messages.”
Most importantly, however, social media encourages active participants who engage directly with the store, something previous marketing tactics were unable to offer WSU students.
“It’s much easier for us to track and understand exactly who is participating to help us better target our messages and future campaigns,” said Robson. “We’re able to see what works, and what doesn’t by looking at the analytics. It’s definitely rewarding to pull Facebook’s Insight reports every day and see that our efforts are really paying off.”
For instance, the store hosted a competitive egg toss event during Freshmen Orientation and provided students who attended with a marketing piece that had a link to their Facebook Page on the back. Targeted to a group of about 400, this one message generated 51 “Likes” in just an hour, clearly demonstrating the effectiveness of this particular promotion!
Their latest video sends a great message. Click the image to watch it!
Despite their obvious success in the social media arena, Weber State University Bookstore has no plans to slow down anytime soon!
In fact, they’ve already created another well-produced video, “Campus Stores Message to Parents of Future WSU Students,” featuring testimonials from students, faculty, and staff. Offering an array of perspectives, the video highlights several reasons why incoming students should buy and sell textbooks and course materials at their campus bookstore.
“We’re always looking for new ideas and ways to generate further conversation with the students,” added Sessions.
For information on how to integrate successful social media promotions into your store’s marketing plan, talk with your MBS representative.
Social Media Celebration Series:
MSU Bookstore Strengthens School Spirit
Jun 27th
This Thursday, June 30, is Social Media Day, a worldwide celebration of the revolution of instant, real-time media. In honor of social media and its influence on the collegiate retail industry, we bring you a three-part series of articles focusing on stores connecting with their students by using this forum to its fullest.
In order to keep activity going on their Facebook Page during a time they expected to be fairly stagnant, the Montana State University Bookstore created a Summer Spirit Photo Contest.
“We want to make sure we maintain that sense of connectedness between students and the store over the summer months,” said Mark Frisby, director of MSU Bookstore. “By driving more awareness to our social media and website, we also hope to increase our fan base.”
To participate, students simply have to take a fun and creative photo of them wearing any of their favorite MSU gear, including everything from lanyards to t-shirts, and send it to a designated email created for the promotion.
Summer Spirit Photo Entry, Submitted by: Amy Whittle
The store then uploads each entry into their Summer Spirit Album on Facebook where users can vote for the one they most enjoy by “liking” the picture. At the end of the contest, the entry with the most “likes” will be rewarded with a spirited prize package including a Montana State University branded blanket, metal water bottle, and car decal.
To get students excited about participating, the store marketed their contest almost entirely through social media. As a way to gain student attention, MSU Bookstore posted a unique digital postcard to their Facebook wall detailing the rules and submission details, while status updates reminded students to send in their photos.
Hoping to enhance participation further, the store also wanted to use the contest as a way to connect with the incoming freshmen class.
“It was the perfect opportunity for us to encourage future MSU students who are on campus during orientation to find us on Facebook,” explained Janel Huntzicker, marketing coordinator. “We have a 20” QR code in the front of the store that is linked to our Facebook Page, so it’s easy for students to find us and participate in our photo challenge. We will also have it at our freshmen orientation booth.”
Summer Spirit Photo Entry, Submitted by: Kelly Christensen "Bobcats in Thailand"
Though the contest runs until the end of August, the store has already received several entries, including some taken internationally, showing the true reach of their school’s strong spirit!
“We’ve received entries from both students and alumni; there’s been really positive feedback so far, so I would say it’s been a success!” Huntzicker said.
In the future, the store plans to look into similar ways to keep their students engaged.
“Social media has an increasing impact on our store,” added Frisby. “We hope to continue using it to drive more traffic and online business.”
For information on how to integrate successful social media promotions into your store’s marketing plan, talk with your MBS representative.
Social Media Series: Socialize Your Website
Jun 24th
The following article was originally published on Internet Retailer by Allison Enright, Senior Editor. View the full article.
Google Inc. and Twitter released separate tools this week that make it easier for retailers to reach online shoppers. The Google feature lets consumers influence the search results their friends will see on Google, including promoting products they like, while Twitter’s new tool makes it easier for consumers to receive messages from their favorite e-retailers.
Google today made available code that enables any web site to add a +1 recommendation button to any web page. When Google launched the +1 recommendation tool in March, it allowed web users to indicate they like a particular Google search result, similar to the way Facebook members use that social network’s Like button. +1 recommendations are reflected in the search results that other consumers see and are one of the signals used to calculate organic search results on Google.
MBS Systems inSite "Add This" feature lets students share their favorite merchandise across 340 social networks!
Google says consumers will soon see the +1 button on Best Buy and Nordstrom e-retail sites. “With a single click, you can recommend that raincoat, news article or favorite sci-fi movie to friends, contacts and the rest of the world,” Google says in a blog post announcing the expansion of +1.
Meanwhile, microblogging social network Twitter also released web code this week that makes it easier and faster for consumers to start following e-retailers’ Twitter posts. E-retailers that embed a Twitter “follow” button on their sites enable consumers logged into their Twitter accounts to subscribe to the e-retailer’s posts. Previously, to subscribe to a feed, consumers had to visit an e-retailer’s Twitter page and click to subscribe to the feed. Adding the new code makes it possible to bypass that step and keep the consumer on the e-retail site.
“For publishers and brands, adding the follow button to your web site and using Twitter to stay connected with your audience is a powerful combination. People who follow your account are much more likely to retweet and engage with your tweets, and to repeatedly visit your web site,” says a Twitter blog post announcing the follow button.
Webmasters can configure a follow button for their website by visiting the resources section of Twitter.com.
Did you know that adding these new features and other social plug-ins, for that matter, to your inSite page is as simple as copy and paste?
Once you copy the code provided by the social network of your choice, you can paste it within your e-commerce site using the design module of inSite Content Manager (iCM) Design Editor. You can add a like, follow, or +1 button, and even embed the Facebook status RSS feed to display on your website.
Along with this capability, we’ve also embedded our own social feature, “Add This,” within the platform. When enabled, this optional feature allows students to interact with your site by selecting the merchandise they like, and sharing it with their friends.
With 340 available social networking sites to choose from, “Add This” makes it easy to spread the word about your favorite merchandise, products, or services with the click of a button.
Even better, this interactive feature provides analytics to help your store determine its most popular items. To activate this function, simply navigate to the Social Networking Options menu within the iCM Design Editor.
To add any of these features, contact your inSite Client Representative for more information and assistance with making your website social!
MBS Systems Users Symposium 2011: Theme Revealed!
Jun 23rd
Advance your competitive edge with the latest resources for collegiate retailers at our most anticipated event! Combining free education on MBS products, applications, and services, as well as valuable networking opportunities with other bookstores and MBS staff, Symposium is the customer education experience you won’t want to miss!
Get ready for the most interactive Symposium yet, featuring winning strategies for today’s retailer!
Check it out:
•Product reveals and demonstrations
•Exciting guest speakers
•Participation in round-table discussions
•First-class entertainment
Stay tuned for registration details coming soon!!!
Everything You Need to Know
About eBooks
Jun 22nd
In the evolving collegiate retail industry one thing is certain: students are now comparing your store to the competition. To stay ahead, offering options is essential. Along with new, used, and rental, eBooks provide yet another money-saving price point on your bookshelves, as well as a digital alternative that was previously only available from outside sources.
Our UDT program offers free, professionally designed, marketing materials.
Responding to consumer demands, MBS pioneered the first educational eBook solution with the Universal Digital Textbooks (UDT) program in 2005. As the largest provider of educational eBooks, MBS now has over 15,000 titles, a number that is actively added to weekly.
With just under 1,000 partner stores using our UDT program, it’s clear that the trend is growing in popularity. However, through our Foreword Online Feedback Survey, we realized that many stores are still unsure of how eBooks work, and more importantly, how they will affect their bottom line. But no worries — we can walk you through the details!
What is an eBook?
The best place to start is the basics. An eBook is any book that is composed in, or converted to, a digital format for display on a computer screen or hand-held device. Educational eBooks take this concept a step further with advanced capabilities, interactive features, and a platform designed for the needs of students.
How do they benefit my students?
This digital alternative provides several obvious advantages to students. Depending on the type selected, eBooks can include a variety of unique features such as keyword search, highlighting, note taking, note sharing, integrated internet capabilities, and supplemental material such as videos. Together, these features create an interactive learning experience that traditional print versions don’t offer.
Furthermore, students are constantly plugged-in to technology. Making their course material mobile allows them more opportunities to study on-the-go.
How do they benefit my store?
Although there are undoubtedly many benefits to students, the good news is eBooks provide just as many for stores! First and foremost, eBooks keep students active in your store. Digital textbooks allow you to offer a format that your competitors may not.
If you don’t carry eBooks, students seeking this format might go elsewhere. By offering a digital option, you earn the revenue by keeping the sale in your store and your students happy.
As the up-and-coming educational resource, eBooks also position your store to stay relevant from a students’ perspective. Offering the newest trend ensures you maintain a technologically-savvy and innovative image.
Better yet, this digital format eliminates some of the hassle associated with stocking print versions. For instance, there is no need for publisher or vendor returns, as well as ordering, receiving or out-of-stock situations.
Because eBooks are sold using a card, rather than a physical product, your store incurs no shrink as the cards have no value until they are sold. Similarly, your store can earn margin off of eBooks without having to take care of physical inventory.
“Between stocking the shelves, and shipping back unsold product, stores normally touch inventory at least twice,” explained Susan Anno, UDT sales support. “With eBooks, all you have to do is put a label on a card, significantly decreasing labor and payroll costs, as a result.”
How does the process work?
You have 2 options: sell eBooks online through a Virtual Bookstore or in-store if you have an MBS POS system. Bookstores with MBS inSite can offer eBooks alongside new and used textbooks. Either way, though, the process is really quite simple!
For systems bookstores, eBooks are adopted from the MBS database along with the text format. Labels are affixed to a card and the card is authorized through the POS registers. Once that is complete, simply merchandise the cards on the shelf with the corresponding print textbooks so that students are offered a full range of formats and price points. The student receives a code when they purchase the eBook which they use to access the title online by following instructions provided on the digital card.
Virtual Bookstores submit an adoption list to us for eBook matches. We load that list to a dedicated eBook website that we run and maintain. That website is then linked to the bookstore’s site. Once a student is ready to purchase, the sale will run through our dedicated website, mentioned above. The student can then access the content by activating the title online, and following the provided instructions.
If students need help during this process, we’re here! We have an entire support team dedicated and available to provide customer service and information to your students 24 hours a day. Most of the calls are resolved quickly and the issues are typically minor, according to Susan.
What about marketing?
eBook stands make it easy to offer a digital alternative next to existing print titles.
Promoting eBooks is easy! We provide all the marketing and merchandising materials you need, including the UDT activation cards, free of charge! Better yet, all of our materials are professionally designed and printed. In fact, we recently released an updated design.
You can use signage such as informational posters to advertise your new option throughout your store and near your POS. Pass out informational brochures during big events such as freshman orientation to spread the word, or, consider using them as bag stuffers in the weeks before rush.
Try putting our eBook labels on a physical text that also has a digital version available to let students know their options; or even have employees wear them as stickers on their nametags or shirts to draw attention to your new alternative.
We also provide colorful backers that sit in stands to hold eBook activation cards for each title, for those stores who choose to sell in-store. No matter what way you choose to use them, our marketing materials make it nearly effortless to promote your newest format!
What are the best ways to access eBooks?
Once a student purchases an eBook they have several options for reading and interacting with the content. Our UDT Program was designed with students’ technologically-driven lives in mind, so our program ensures that eBooks are completely portable. In fact, Susan stresses the fact that any student can access an eBook with only the most basic requirements.
“PC, MAC, or any device with a web browser and Flash are capable of accessing and reading an eBook,” said Susan. “The iPad and the new NOOK Color will work as well with additional applications,” demonstrating the universality of the product.
How do I get started?
The implementation process is relatively simple, according to Susan, and takes very little effort on the part of the bookstore. She suggests that stores considering the UDT Program contact her for more information in the next month to ensure they can offer students this innovative option during their upcoming fall rush.
To learn more about our UDT program, click here. Explore your options further by talking with your MBS Representative or contacting Susan Anno directly at (877) 292-6432.
MBS Announces New Monthly Marketing Tips!
Jun 21st
Download the 'Quick Print' version by clicking the image. View the Event Planner tab for a link to the high-resolution download.
Our partner stores always amaze us with their innovative ideas, strategies, and events. But we also understand that, sometimes, your schedule can make it very difficult to prepare for and implement these plans.
That’s why we developed our new monthly marketing tips! Beginning this month, we’ll provide you with access to strategies you can easily implement to drive customers to your store, website, and even social media sites.
Complete with step-by-step instructions and customizable templates for marketing materials, this new feature includes ideas for timely in-store events and online promotions that allow your store to engage with students and more effectively gain their loyalty.
You easily view our marketing tips in either of two ways. In this year’s MBS event planner, you will notice a two-dimensional barcode, or QR Code, within each calendar page. Simply scan the QR Code by downloading a ‘QR Code Reader’ to your smartphone, and then holding your phone’s camera over the image to view the exclusive content from your mobile device.
Or, log-on to Foreword Online and click the ‘Event Planner’ tab to display your newest strategy.
As a thank you to our loyal Foreword Online readers, you can get early access to July’s tip!
Click the ‘Event Planner’ tab above to view our detailed instructions for running a unique Scavenger Hunt designed to establish loyalty with the incoming freshmen class!
We make advertising for the event incredibly easy with a poster template you can simply download and personalize with your own store’s information.
Click to Download our customizable advertisement.
Even better, we included a forty-four page Freshman Survival Guide that you can also customize and provide to your students. With tons of relevant information, this booklet educates new students on everything from how to cook gourmet meals in their dorm using only a microwave to the importance of buying and selling textbooks at your store!
Head over to the ‘Event Planner‘ tab to check it out!!
At MBS, we’re committed to continually supplying you with additional tools to become an even better retailer. We hope you enjoy our new monthly marketing tips!
To provide feedback, or offer additional ideas for our marketing tips, please send us a message in the ‘Contact Us’ section!
Retailers React to Swipe-Fee Victory
Jun 20th
This article was originally published on CSP Daily Net. Click here to view the full article.
WASHINGTON – Even casual users of social media could not help but notice the outpouring of thanks to the senators who, last week, helped defeat an attempt to delay the debit-card interchange-fee reforms passed last year. Tweets of victory for retailers of all channels, including convenience stores, part of a long and ongoing fight against banks and credit-card companies, echoed across the industry.
And offline, more than 50 small-business owners from across the country rallied on Capitol Hill last week to thank Congress for supporting retailers and consumers and opposing the Tester-Corker Amendment that, if passed, would have undone interchange-fee reforms that are part of the Dodd-Frank financial reform package.
“For millions of small-business owners across America, swipe fees are the difference between breaking even or going bust. It can mean hiring a new worker–or having to let an old one go. It can mean passing along savings to customers–or losing the sale. For years, unfair and excessive swipe fees have held Main Street back. But not anymore,” said Dennis Lane, 7-Eleven franchisee and national spokesperson for Reform Swipe Fees NOW!.
“It has not been an easy road to get here. The banks and credit-card companies have pulled out all the stops to maintain their cash cow,” Lane added. “When it was time to cast their ballots, our members of Congress stood up to the powerful Wall Street lobby–sending the message that we will not tolerate this unfair and harmful system any longer. And that is a good thing for all U.S. businesses and consumers.”
Last year, Senator Dick Durbin (D-Ill.) championed an amendment to the Dodd-Frank bill that fixed the broken interchange system that allowed credit-card companies to operate without regulation and to charge excessive and increasing swipe fees, said the group, negatively impacting small-business owners and consumers across the United States. The amendment passed Congress and was signed into law by President Obama. As a result, new rules limiting debit-card swipe fees are scheduled to take effect next month, on July 21, 2011.
But over the past 12 months, Wall Street banks and credit-card companies engaged in an aggressive lobbying campaign to undo these critical reforms. For their efforts, Senators Jon Tester (D-Mont.) and Bob Corker (R-Tenn.) proposed an amendment to delay swipe-fee reform, but last Wednesday it was rejected in a full floor vote that failed to garner the required 60 votes. (Click here to view previous CSP Daily News coverage.)
This is good news for U.S. small businesses who, with fair fees, will be able to grow their businesses, offer better pay to employees and pass savings on to their customers, said Reform Swipe Fees NOW.
Before the vote, Sen. Jack Reed (D-R.I.), a senior member of the Banking Committee and a key supporter of swipe-fee reform, said on the Senate floor:
“Senator Durbin proposed this provision because businesses like in my home state of Rhode Island, Cumberland Farms, the old convenience store chain that I grew up with and the quintessential family-owned business, pays almost as much in these hidden fees as it earns each year in profits. These fees roughly equal their profit.
“Now, interchange fees for Cumberland Farms are their second-largest expense. It’s not the milk, not the gasoline, it’s not a lot of things. It is their second-largest expense. Despite the fact that the total number of gallons of gasoline that they sold has remained flat, the interchange fees have increased 237% from $13 million in 2003 to a projected $48 million this year.
“Cumberland’s CEO calls this increase a ‘runaway train.’ When gasoline was $2 per gallon, interchange fees were about three cents per gallon. Now that gas prices are about $4 per gallon, interchange fees have increased to five cents per gallon. So, for the same 15 gallon fillup, the hidden fees increased 63%.
“So the motorists, the local Rhode Islander filling up at the local corner gas station, is paying 63% in their fees on top of increase in the price of gasoline. The actual debit-card services haven’t changed. But because the price of gas increased, the fees almost doubled. That’s a pretty good deal for Visa and MasterCard and banks. Unfortunately as these fees continue to increase, the increase–they increase gas prices, prevent investment, preclude new hiring. The convenience store industry reports overall it pays more in these fees than it’s earning in profits. That’s overall across the board, across the country.”
Some small retailers, such as gas station owners, can pay as much as $2,400 per month in swipe fees, said Kirk McCauley, director of member relations for the Washington Maryland Delaware Service Station & Automotive Repair Association. “This is a victory for the little guy,” he told Gazette.net.
7-Eleven franchise owners launched a petition campaign in 2009, gathering more than 1.6 million signatures, as owners pushed consumers to help them mitigate the fees. “We are thrilled that all of our efforts paid off,” Linda Haddaway, president of the Baltimore Franchise Owners Association, which represents more than 65 7-Eleven stores, told the news outlet.
“Maybe this way, we’ll be able to save money and get on the negotiating table to get the right charges,” Mark Chiochankitmun, president of the Washington Metropolitan 7-Eleven Franchise Owners’ Association, told Gazette.net. He said the savings from the reduced swipe fees could also help him hire two full-time workers to help run his store.
The Maryland Retailers Association also called the Senate vote a plus for consumers and likely to relieve the “tremendous” amount of cost pressure on retailers, president Patrick Donoho told the publication. “It’s too bad that Main Street was fighting. This was a tough vote for politicians,” he said.
Melvin R. Thompson, spokesman for the Restaurant Association of Maryland, described the amendment’s defeat as a “huge victory” for restaurants and consumers. “Because over 90% of our customers now use payment cards when settling their bill, swipe-card fees have become the second-highest operating expense behind labor costs for many restaurants,” he told the news outlet. “Lower operating costs as a result of the new swipe-fee cap will translate into more business investment, more jobs and more value for our customers.”
But the Maryland Bankers Association, which represents 100 banks, argued that the lowered cap will result in higher fees on other consumer bank services; “75% of the costs banks bear for the interchange system, they’ll not be able to recoup,” Kathleen Murphy, president of the association, told the publication. “This will require banks to look at how their accounts are structured to offset those costs.”
She said bankers are “incredibly” disappointed by the vote. “Ultimately, the consumer will be the big loser in this decision,” Murphy said.
“It is proof that Main Street USA can still beat Wall Street,” Channing Smith, the owner of The Corner Store in Inver Grove Heights, Minn., told MinnPost.com in a separate report. “It gives any business out there encouragement to know that there is a better tomorrow ahead for them.”
Ted Brausen, owner of Brausen Auto in Roseville and Blaine, told the news outlet, “Everybody wins because it’s money back into the economy. It’s been a long time since somebody has taken care of small business.”
Lane of Reform Swipe Fees NOW told MonnPost.com, “We cannot put the money in our pockets and run. We can’t take a pay raise. We need to reinvest that money in our communities by hiring more people, by lowering our prices. We need to do the right thing.”
Smith said he might use the savings to sponsor youth sports teams or clubs, or to increase the salaries of his part-time employees.
“For some people it’s survival, for some people it’s hiring more help, but it’s certainly a lot of money back into the economy to help small business and their customers,” Brausen said.
MBS would like to congratulate all the organizations and individuals, including National Association of College Stores (NACS), who worked to make their voice heard on this important issue!
MBS Recognizes the 100th Anniversary of IBM
Jun 17th
As a strong MBS partner for several decades, IBM is a company who upholds innovation to the same high standard. As the only IBM Premier Business Partner serving the collegiate retail marketplace, MBS has invested heavily in training and certifications on the IBM platform.
In fact, many of our internal systems are powered by IBM technology. Beyond our own use, MBS’ ability to standardize on the IBM platform creates streamlined support across our customer base, serving as a benefit to our retail customers.
As a long-standing member of the IBM Retail Advisory Board, the MBS Systems team has developed strong relationships with the IBM Retail team, collaborating to ensure our customers get the right products at the right time.
IBM’s reach goes far beyond our company, however. Because IBM’s retail-hardened POS terminals allow long-term investment protection for the retailer, nearly 65% of the world’s top 100 retailers use their technology. Moreover, IBM Retail Store Solutions is the worldwide leader in POS technology with more installs than the next two competitors combined.
Matching their commitment to quality, IBM Global Services values customer service supporting IBM products around the clock, 365 day of the year, translating to no downtime for the store, if desired.
Recently, IBM celebrated its centennial and one hundred years of innovation. MBS is proud to be a part of the company’s long-term dedication to furthering technology, and congratulates them on their milestone achievement.
Check out the short film they created to learn more about how IBM has shaped the last century and is making the world work better. Featuring one hundred people who each present the company achievement recorded in the year they were born, the film details a whirlwind history that culminates with its prospects for the future.
For more information, please visit www.ibm100.com or talk with your MBS Systems Representative.
