View Full Version : Lic. agents should get %
Adam Waszak
08-04-2004, 01:53 PM
I believe licensing agents in the state should get a percentage of money or a surcharge to cover costs. Nothing big maybe 25 cents per license or something as I have noticed so many people get LIC with credit cards which hurt retailers who actually lose money every transaction. What do you think?
AW
Ebowhunter
08-04-2004, 02:00 PM
I believe they do. I believe it is minimal. I have been told cash only at one of the small shops I used to frequent.
Adam Waszak
08-04-2004, 02:07 PM
If someone knows for sure please post I would hope so but I heard no
AW
boehr
08-04-2004, 02:16 PM
They do make a small profit. The size of the profit depends on how many licenses they sell. A lot easier now days then it use to be when every license was hand written out.
State Law
MCL 324.43547(4) The department may require persons authorized to issue licenses under this part to purchase or rent equipment necessary for the issuance of licenses. The purchase or lease charge shall not exceed the actual cost incurred by the department in making the equipment available for purchase or lease. However, notwithstanding the equipment rental or purchase charges otherwise required under this section, if the department requires the use of designated computer equipment for the issuance of licenses, the department shall supply each licensed agent who is entitled to retain 7.5% of the fees received with a computer system at no charge to the licensed agent for each location at which that licensed agent sells licenses. A person who is eligible to receive equipment without charge may be required to purchase a service and maintenance contract for that equipment. The cost of the contract shall not be more than $200.00 for the first year of the contract and thereafter the actual cost to the state of maintaining the computer system. Equipment that is supplied without charge to a licensed agent shall be returned to the department at such time as the person is no longer a licensed agent.
(5) A person who is authorized after March 15, 1993 to issue licenses shall pay the full annual rental or purchase fee for equipment required under subsection (4).
(6) A person who on March 15, 1993 is authorized to issue licenses who rents the equipment for the issuance of licenses required under subsection (4) shall pay rent or service and maintenance contract cost, as applicable for that equipment not to exceed 50% of the total of the annual amount the person is authorized to retain under section 43541, or the rental charge otherwise determined by the department, whichever is less.
mparks
08-04-2004, 02:27 PM
Last time I talked to the owner of a small shop he said they lost money because they had to pay for the phone circuit to operate the machine and they didn't sell enough licenses to cover it by the small % they get for each transaction. They didn't let you buy licenses with credit cards because of the cc transaction charges killed any profit from the license.
Pretty hard for the small shops to compete if they can't even draw in customers to buy licenses.
bhntr
08-04-2004, 02:38 PM
mparks I completly agree with you. My local gun shop does it more for a service to their customers. It doesnt make them any money unless the people buy something else. The guy also said it costs more than they make on license sales.
Adam Waszak
08-04-2004, 02:45 PM
Seems like a cost of doing business that is kind of unfair, if you have a sportshop, you have to sell lic no matter what but I think they ought to at least break even on the whole deal afterall they are offering us a service.
AW
I wonder how many people who stop in to buy a license also buy other products?
Neal
Adam Waszak
08-04-2004, 03:07 PM
I realize that draws other business but I also have seen when the doe permits go on sale in some areas the store has a full time person working for 3 to 4 hours straight just for lic. and those people are largely there for only that reason then they leave. This costs the store an employee who cannot service people who need assistance while losing money in the CC transactions at the same time. I remember when the doe permits would go on sale at Meijer for the leftovers and there was a line out to the front of the store. That is a lot of people.
AW
mparks
08-05-2004, 09:39 AM
IMO doe permit time would be great for the shops. The key is getting people in the doors. Once they're inside, they're going to look around and the merchandise and even if they don't make a purchase then they'll know whats in stock and remember for later. I think that is well worth paying someone $7-10/hour for 3-4 hours. The problem is paying for the license machine the rest of the year while its collecting dust.
I'm hurting all of the license agents because I buy everything over the internet. Probably hurting them even more by buying other hunting and fishing stuff over the net.
I think we will be seeing more self serve kiosks, in these stores in the future. Kinda like a ATM machine, slide in your Drivers license, select your licenses, pay with credit card, and be on your way.
Or just get them on line....
Neal
live2fishdjs
08-05-2004, 10:12 AM
:yeahthat:
I agree Neal...heck McDonalds is already trying that in selected markets. Easiest way right now is the on-line deal, and if you get as many licenses as most of us you can get the 15% discount (also available in stores, but easier IMO to sit at the computer and get exactly what I need and not leave a possible mistake up to a license agent).
As for lines coming out of a store...as a past retail manager that is not a bad thing :evil: . Taking advantage of it is what it is all about. While people are standing in line have things available for them to buy-at arms length, so they don't have to get out of line. Items like; ammo, heat packets, face masks, propane heaters, gloves, orange vests, targets, gutting kits, etc., etc. The stores that capitolize on this by having what the consumer needs and makes it accessible will not lose money on CC license purchases...the others, that's another story.
trailwart
08-05-2004, 12:38 PM
i went in to a party store in gladwin county with a fiend 2 weeks ago to do our doe applications and the guy told us he did not have all day to do licenses. we were the only 2 in the store. i dont know how the retailers feel on the situation but me as a CONSUMER i feel if they dont feel like they have the time or its not worth there time they should not even be selling them in the first place. im sure this mom and pops store has it because im sure it attributes to other sales but with comments like the owner made they lost my future bussiness :rant:
east bay ed
08-06-2004, 08:12 AM
the license machine cost each store $7.70 a week. everytime someone uses a credit card or debit card you lose about 3.5 to 5 percent depending on what your credit card deal is. the state gives you 5% of total sales each week minus $7.70. that money is taken from your savings account each week.
we had a license machine for 5 years. we paid over $2000.00 for the terminal. my credit card machine cost me $400.00 same basic terminal.
also figure this out
1600 retail sales outlets
$7.70 a week
52 weeks
$640,640.00 that is how much the state would make if they didn't sell a single license.
the new system is head and sholders above what we had. i just can't affo9rd to lose money like that.
and about 70% to 80% of the people would come in and buy just a license, then some want to give you a check, that isn't going to clear by the time the dnr takes the money, or a credit card.
also back a couple of years ago the state started sending us out k-1's to make sure we declared all that money we were making.
Adam Waszak
08-06-2004, 08:17 AM
That was my point should be a break even at worst scenario because they are doing the work for the DNR and a service to sportspersons
AW
I can see that really hurting the little guy, and agree that there shouldn't be a significant burden on the retail store.
I'll make sure I spend an extra dollar or two, at these stores, each time I buy a license.
Neal
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