<html><body><div style="color:#000; background-color:#fff; font-family:times new roman, new york, times, serif;font-size:18pt"><div style="RIGHT: auto"><SPAN style="RIGHT: auto">They just need to put one price in the menu, be what it may with new costs, not play games. People don't want a side order of politics with their steak and win<VAR id=yui-ie-cursor></VAR>e. </SPAN></div>
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<div style="RIGHT: auto"><SPAN style="RIGHT: auto">Donovan Arnold</SPAN></div>
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<DIV style="BORDER-BOTTOM: #ccc 1px solid; BORDER-LEFT: #ccc 1px solid; PADDING-BOTTOM: 0px; LINE-HEIGHT: 0; MARGIN: 5px 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; HEIGHT: 0px; FONT-SIZE: 0px; BORDER-TOP: #ccc 1px solid; BORDER-RIGHT: #ccc 1px solid; PADDING-TOP: 0px" class=hr contentEditable=false readonly="true"></DIV><B><SPAN style="FONT-WEIGHT: bold">From:</SPAN></B> Jay Borden <jborden@datawedge.com><BR><B><SPAN style="FONT-WEIGHT: bold">To:</SPAN></B> vision 2020 <vision2020@moscow.com><BR><B><SPAN style="FONT-WEIGHT: bold">Sent:</SPAN></B> Thursday, October 6, 2011 11:12 PM<BR><B><SPAN style="FONT-WEIGHT: bold">Subject:</SPAN></B> [Vision2020] Sangria and Transparency<BR></FONT><BR>
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<div class=yiv1221944903MsoNormal>In a recent “round-table” discussion with a few of my peers on a variety of topics, the opinion of *<B>more corporate transparency</B>* emerged over and over again as what’s wrong with America. (Warning: wine was flowing).</div>
<div class=yiv1221944903MsoNormal> </div>
<div class=yiv1221944903MsoNormal>So… my wife and I went out to a nice dinner last night at Sangria where we saw a note paper-clipped in their menu.</div>
<div class=yiv1221944903MsoNormal> </div>
<div class=yiv1221944903MsoNormal>I forget the *<B>exact</B>* phrasing, but the note said something along the lines of:</div>
<div class=yiv1221944903MsoNormal> </div>
<div style="RIGHT: auto" class=yiv1221944903MsoNormal>“As of September 10<SUP style="RIGHT: auto">th</SUP>, the menu prices listed will reflect a cash price, and a 2.9% surcharge will be added for any order that is paid for by credit card. [Something something about fees]. Please help us fight the evil corporations that want to take money out of Moscow by paying in cash!”</div>
<div class=yiv1221944903MsoNormal> </div>
<div class=yiv1221944903MsoNormal>Again… it’s not word-for-word, but that’s the gist of the message.</div>
<div class=yiv1221944903MsoNormal> </div>
<div class=yiv1221944903MsoNormal>So… interesting notes, since I happen to know a thing or twelve about the credit card industry. </div>
<div class=yiv1221944903MsoNormal> </div>
<div class=yiv1221944903MsoNormal>Sangria has actually raised their prices, but managed to jump on the hate-wagons at large still blame larger “corporate America” in the process.</div>
<div class=yiv1221944903MsoNormal> </div>
<div class=yiv1221944903MsoListParagraph><SPAN>1)<SPAN style="FONT: 7pt 'Times New Roman'"> </SPAN></SPAN>The current “going rate” (cost) to a merchant such as Sangria for a swiped Visa/MC credit card is ~1.5%.</div>
<div style="MARGIN-LEFT: 1in" class=yiv1221944903MsoListParagraph><SPAN>a.<SPAN style="FONT: 7pt 'Times New Roman'"> </SPAN></SPAN>American Express charges 3.5% for their merchant fees, but Sangria doesn’t accept Amex (and also why many merchants don’t accept Amex). </div>
<div class=yiv1221944903MsoListParagraph><SPAN>2)<SPAN style="FONT: 7pt 'Times New Roman'"> </SPAN></SPAN>Since Sangria is only charged ~1.5%, but their surcharge is 2.9%, they are now making an additional 1.4% on every single credit card swipe taken at the restaurant.</div>
<div class=yiv1221944903MsoListParagraph><SPAN>3)<SPAN style="FONT: 7pt 'Times New Roman'"> </SPAN></SPAN>In addition, every transaction that Sangria can push to cash via their little note is now saving (making) an additional 1.5% on every single transaction, since it’s a merchant cost they no longer have to pay. </div>
<div class=yiv1221944903MsoNormal> </div>
<div class=yiv1221944903MsoNormal>Bottom line: on every single transaction, Sangria is now making a little more money.</div>
<div class=yiv1221944903MsoNormal> </div>
<div style="RIGHT: auto" class=yiv1221944903MsoNormal>The part that bothers me isn’t that Sangria is making more money… (as I’ve said before, I’m a “for profit” individual)… what bothers me is that they choose to make a larger enterprise the whipping boy for their own profit. </div>
<div class=yiv1221944903MsoNormal> </div>
<div class=yiv1221944903MsoNormal>In my opinion… they should either drop the dig in their menu insert about helping them stick it to the larger banks… *<B>or*</B> they should make their surcharge only equal to their merchant fees. </div>
<div class=yiv1221944903MsoNormal> </div>
<div class=yiv1221944903MsoNormal>But not both.</div>
<div class=yiv1221944903MsoNormal> </div>
<div class=yiv1221944903MsoNormal> </div>
<div class=yiv1221944903MsoNormal> </div>
<div class=yiv1221944903MsoNormal>Jay</div></DIV></DIV></DIV><BR>=======================================================<BR>List services made available by First Step Internet,<BR>serving the communities of the Palouse since 1994.<BR> <A href="http://www.fsr.net/" target=_blank>http://www.fsr.net</A><BR> mailto:<A href="mailto:Vision2020@moscow.com" ymailto="mailto:Vision2020@moscow.com">Vision2020@moscow.com</A><BR>=======================================================<BR><BR></DIV></DIV></div></body></html>