OCR Text |
Show Page HILL TOP TIMES 14 June 16, 1978 iMn ?L7G(D DUUU "Maybe you've seen our logo, the AFCOMS Smart Owl, we call it. That's a merchandising gimmick for two things to improve the ouality of signs in the store, but also to call the customer's attention to the fact that we have a discount on that merchandise of at least 15 per cent." Within the next four years, almost every Air Force commissary will be a new store or undergo improvement. Maj. Gen. Daniel L. Burkett, commander of the Air Force Commissary Service (AFCOMS), announced the news during an interview about commissary operations. ? - , General Burkett said AFCOMS recognizes the problems the dollar impact causes for military personnel and families outside the United States. He and his staff are working with vendors and manufacturers to provide better prices overseas Money for the changes will come from the 4 per cent sur- charge paid by commissary shoppers, the general said. "We know that vendors are willing to give us even better prices for special sales. For example, we negotiated a price of six different first-lin- e items for overseas application only. The to run from 22 to 31 per cent on that product. are going savings The surcharge has been in effect several years, but is still one of several aspects of commissary operations many Air Force people don't fully understand. Congress appropriates funds for employee salaries, troop issue items and overseas transportation of commissary items, but not for all commissary operating costs. The surcharge first appeared in the early fifties to cover the additional overhead. The percentage of the surcharge changed periodically, settling at 4 per cent in January 1976. In the early seventies, Congress approved use of the surcharge for construction of new commissaries and renovation of existing facilities. "We do pay our own way In the commissaries. The utilities here in the States. . . all the sacks used, the equipment, display cases everything that's inside the store is paid out of that surcharge," General Burkett said. "Every six months we select a half a dozen or a dozen bases around the United States so we can get a good geographic dispersion of stores. And on each of those bases, we'll conduct a survey of 160 items, taking the commissary prices and comparing them with prices at two local supermarkets." The general said the survey Is a straight assessment of the items that might fill a commissary patron's The surveyors compare prices of shopping cart. can of a specific brand of identical items an not for just two cans of any kind example, green beans, of green beans. Maj. Gen. Daniel I. Burkett Bagger service is required. General Burkett said, because of the number of commissary patrons. AFCOMS surveyed a commercial supermarket chain open longer hours than commissaries and found the average customer count was 64 per hour. ce The December per cent. stores in the Air Force and "We took a look at our top found the customer count was something like 230 an hour. So it becomes essential, I think, to our customers that they have this 10 "This year, we'll take in some $49 million in surcharge money around the world. It costs us about $21 million to run the stores. That leaves about $28 million or so that we can spend on what we call a capital expenditure program," he explained. "For example, we've just negotiated a contract to replace all of our old mechanical cash registers with new electronic registers. Whatever' s left over then in that capital expenditure program goes for new construction or major renovation," the general said. "We have a $159 million program scheduled over the next . . things like 34 brand new stores, 23 major 42 minor renovations." some renovations, four or five years. Starting July 30, commissaries will begin an additional surcharge, called a user's fee, to cover the cost of baggers. The Civil Service Commission has determined bagger personnel are federal employees entitled to minimum wages under the Fair Labor Standards Act. Bagger wages, social security and related costs will amount about $20 million per year, according to General Burkett. He said the commissaries will have to charge a 2 per cent user's fee to generate the additional money. to The fee will be added to the customer's bill at the cash register. There will be at least one lane in each commissary for people to bag their own groceries if they don't want to pay the fee, the general stated. The fee will not be charged in most overseas areas where baggers will continue to be paid by tips. The user's fee will be charged at commissaries in Alaska, Hawaii, Guam and other U.S. territories or territorial possessions. agger pay The 2 per cent fee 1977 survey showed an average savings of 26 Another one of the ways the commissary helps patrons which might not be apparent, the general said, is through increased operating hours. service." The general said tipping will be discouraged when the user's fee takes effect. "We took a look at all the stores and, going back to this trying to provide the best service we can within the budgetary constraints we have, we actually directed these new store General Burkett said the Air Force reformed its commissary operations with the activation of AFCOMS, early in 1976 and gave the organization a to save charter efmore efficient and cost commissaries money by making and to service. fective, improve hours. two-fol- d "The stores that do the biggest volume are going to stay open 48 hours a week as a minimum." Other stores the longest can provide a satisfactory level of service with 40 hours per week and there's no need to be open longer, the general said. "To a lot of people, that looks like a dichotomy to say you are going to save money and reduce the overhead cost of the operation on one hand, and improve service on the other. But that's essentially what we have been trying to do. (AFNS) "We are organized with a headquarters at Kelly AFB, Tex., and four regions around the world. Now that we have a group of experts dedicated just to the commissary operation, I think that hopefully, patrons have already seen improvement in service just in more professional operation of the stores." As an example, the general mentioned about a dozen national sales last year in U.S. commissaries. "We can document that we saved our customers at least $1.5 million in the process of those sales." : - f t. "I think we're setting a higher standard for commissaries around the world," the general stated. "We're insisting on cleaner stores, better merchandised stores. I don't think some things are apparent to the customers, (things) which contribute to their convenience. Air Force Commissary Service (AFCOMS) IB o officials have received numerous questions from employees and customers about the 2 per cent fee to be collected for bagger service after July 30 when bagger personnel will become paid employees. "Some people seem to think we will be collecting three to four times as much as we need to cover hourly wages," said Maj. Gen. Daniel L. Burkett, AFCOMS commander. the base nonappropriated funds management office and the central civilian personnel office," the general stated. required to maintain our present levels of service," said the general. "There will be sick and annual leave, and retirement fund costs for regular full time "The 2 per cent is imply our best estimate of the total that will be required. It can be adjusted as necessary. Also, minimum wage rates vill increase again in 1979, 1980 and through employees. "We 1981. don't know exactly how many customers will use the service because one or more lines in each store will be set aside for customers who prefer to bag and carry their own purchase rather than pay the fee. Also, we don't know exactly how much money will be taken in or the precise number of baggers that will be bagger-carryo- "They obviously have overlooked the cost other than straight hourly wages, such as insurance, social security contributions, workman's compensation, and the salaries of those who will administer the program ut "After we gain a couple of years experience with a bagger pay system, we will have identified all the costs associated with it. Our objective is to hold the line on the fee at 2 per cent and perhaps reduce the fee if circumstances warrant. Either way, we will not charge any more than necessary to cover costs," General Burkett said. I |