Yesterday I left readers dangling with a “things are looking better, but…” ending. So with commodity costs down, sales down to flat, but profitability starting to tick upwards, why wouldn’t a small business owner want to draw a paycheck? Perhaps the first paycheck in over a year?
Earlier this month, a coalition led by the USDA and the US Senate took actions that resulted in a “Dairy Bailout.” That’s right – a bailout of the American dairy industry. Since dairy prices have sank to 30 year lows, many dairy producers were pricing below operating cost. The government has stepped in to purposely bid higher than market and remove excess inventory, nearly a $350 million price tag to taxpayers. The result? The price of cheese has skyrocketed 25% and is expected to hit 40% by year’s end.
Market forces of our great economy at work? Doesn’t sound like it. When the price of cheese was 2x their current levels in 2008 and pizzerias were bleeding red, was there an equivalent support model? No, and it really never crossed their minds back then. However, I can guarantee small business owners are seeing red having their tax dollars go towards a program that is systematically eroding the profitability that has been so elusive over the past 18 months.
So what does all of this have to do with MVaaS? It comes down to maximizing profitability. While we can’t control the surprising dealings on Capitol Hill that raid the bottom line, we can control the exceptions, variance and negative behaviors at the store level and across the enterprise. MVaaS will help you and your business keep a few more cents for every dollar that goes in the register.