Confidential REASONS TO THRIVE IN O5 Confidential Mission Statements Childrens Orchard Mission To...

Confidential

REASONS TO THRIVE IN

O5

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Mission Statements

Children’s Orchard Mission

To redefine and lead the children’s resale category

Corporate Mission

To build prosperous retailers and valuable businesses

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Reasons #5

Controlling the Cube: Using Cache Cards and Gift Cards to Make Us Prosperous

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Purpose

Build your machine through proper handling, accounting, and protection of these valuable tools.

Success isn't a result of spontaneous combustion. You must set yourself on fire. Arnold H. Glasow

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Cache and Gift Card Transactions

30,000+ Transactions!

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Gift Card Transactions

Gift Cards cannot be reloaded

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Gift Cards

Ringing a Gift Card Sale

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Gift Cards

Redeeming a Gift Card

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Gift CardsRecording Gift Card transactions on your

weekly report

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Cache Card Transactions

Recycle your Cache Cards!

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Differentiating the $35/$10 and $30/$10

store credits

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Ringing transactions through the sales register

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Gathering your information

Interactive Buy Register Closing SheetSTORE CREDIT BUYS

Register 1 Register 2

Sellers Name: Sellers Name:Store Credit # Store Credit #

Total Amount of Buy: $0.00 Total Amount of Buy: $0.00Clothes: $0.00 Clothes: $0.00

Equipment: $0.00 Equipment: $0.00
















DAILY BUY REGISTER CLOSING SHEET

DATE:Register 1

ORIGINAL BANKREGISTER TAPE INFORMATION

TRANSFERS TO/FROM + $0.00 Transfer In $0.00SALES REGISTER Transfer Out $0.00

Count Amount Count Dollars

Pennies $0.00 Used Clothes

Nickels $0.00 Play Clothes

Dimes $0.00 Equipment

Quarters $0.00 Add On

Ones $0.00 Store Credit Bonus

Fives $0.00

Tens $0.00 Total Buys $0.00

Twenties $0.00

Fifties $0.00 Buys not accepted, no offer made 0

Hundreds $0.00 Buys Accepted 0

TOTAL CASH IN DRAWER - $0.00 Number of buys 0

= $0.00 Should = $0.00(Number from Tracker) Z Tape (Cash Buys) $0.00

CHECK BUYS + $0.00 Z Tape (Check Buys) $0.00

ST CR BUYS + $0.00 Line 3 Z Tape (Store Credit Buys) $0.00

DROP OFf RUNG + $0.00 Balance Difference

DROP OFF PAID - $0.00 Drawer Total $0.00

= $0.00 Tape Total $0.00

TOTAL BUYS (from z-tape) Balance Difference - $0.00 Balance Difference $0.00

Comments:

<<If this does not match z-tape you have made an error

<< If this doesn't match TOTAL BUYS, you made an error

Save as 05_25_05_buys

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Cache and Gift Card Transactions

Gathering your information Charge Slips

$10 PromoRedeem/Credit

Gift Card Transactions

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Cache and Gift Card TransactionsGathering your information

Interactive Sales Register Closing FormDate:

COUNT AMOUNT Cash Used

Pennies $0.00

Nickels $0.00 Resale Clothes $0.00

Dimes $0.00 FILL IN ONLY YELLOW SHADED New Clothes

Quarters $0.00 BOXES! Resale Misc.

Ones $0.00 New Misc.

Fives $0.00 Coupon $0.00

Tens $0.00 % Disocunt

Twenties $0.00 Tax1

Fifties $0.00 Cust Cnt

Hundreds $0.00 Total Cnt

Gift Cards Sold $0.00

Net Sales $0.00TOTAL CASH IN DRAWER = $0.00

Balance DifferenceLESS ORIGINAL BANK -

Transfer In $0.00 Drawer Balance $0.00TRANSFERRED TO/FROM + $0.00 Transfer Out $0.00 Tape Balance $0.00BUY REGISTER

= $0.00 Total Cash Total Difference $0.00Checks

CHECK RECEIVED* (From Z-tape) + Cash to Cash Box $0.00Credit Cards

VISA + MC + 0V = Store Credit and Gift Card Balance

MC =

DISCOVER + Activate Total S/C from Buy RegisterCredits Total S/C loaded from 35/10 promo

Store Credit Redeems Total S/C from Front RegisterSTORE CREDIT REC + Note: STORE CREDIT REC.* on Z-tape Total Gift Cards Received(From z-tape) = SC Redeemed - SC Loaded Total Gift Cards Sold

*From "Credits" Sheet SCR = $0.00SCL = $0.00 Total $0.00

Gift Cards Total $0.00GIFT CARD RECEIVED + -$ (From z-tape) Balance Difference $0.00

*From "Credits" Sheet

= 0

DRWR TTL (From Z-tape) -

OVERAGE/SHORTAGE $0.00

Commments:

*Numbers from the Gift card Batch Report

<< If this doesn't match DRWR TTL, drawer is off

DAILY SALES REGISTER CLOSING SHEET

CreditsSC Rec # Full Name (no abbreviations) SC Amount

SC Load # Full Name (no abbreviations) SC Amount

GC Rec # Full Name (no abbreviations) GC Amount GC Sold# Full Name (no abbreviations) GC Amount

SummarySC rec $0.00SC loaded $0.00GC rec $0.00GC Sold $0.00

Save as 05_25_05_buys

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Gathering your information

Tracking the results

Week # 18

Date $ Loaded $ of Purchase Date $ Redeemed $ of Purchase 5/15/2005 $10.00 $37.56 5/15/2005 $10.00 $31.765/15/2005 $10.00 $32.50 5/15/2005 $10.00 $32.565/15/2005 $10.00 $38.25 5/15/2005 $10.00 $10.515/15/2005 $10.00 $32.01 5/15/2005 $20.00 $48.735/15/2005 $20.00 $65.76 5/15/2005 $10.00 $26.745/15/2005 $10.00 $40.18 5/15/2005 $10.00 $18.49 Week Totals:5/15/2005 $30.00 $102.22 5/15/2005 $10.00 $29.865/15/2005 $10.00 $31.56 5/15/2005 $10.00 $58.93 Total $10 Cards Loaded: $180.005/15/2005 $20.00 $71.56 5/15/2005 $10.00 $37.865/15/2005 $10.00 $44.21 Total $10 Cards Redeemed: $100.005/15/2005 $10.00 $32.005/15/2005 $20.00 $68.94 Average Ticket for Return Visit: $29.545/15/2005 $10.00 $39.51

$10 Cache Cards Redeemed$10 Cache Cards Loaded

$10 PROMOTION CACHE CARDS

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Protecting Your Cache and Gift Cards

• Minimize employee access• Reconcile to the Batch Report daily• Randomly check authenticity

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Protecting Your Cache and Gift Cards

Date:

COUNT AMOUNT Cash Used

Pennies $0.00

Nickels $0.00 Resale Clothes $0.00

Dimes $0.00 FILL IN ONLY YELLOW SHADED New Clothes

Quarters $0.00 BOXES! Resale Misc.

Ones $0.00 New Misc.

Fives $0.00 Coupon $0.00

Tens $0.00 % Disocunt

Twenties $0.00 Tax1

Fifties $0.00 Cust Cnt

Hundreds $0.00 Total Cnt

Gift Cards Sold $0.00

Net Sales $0.00TOTAL CASH IN DRAWER = $0.00

Balance DifferenceLESS ORIGINAL BANK -

Transfer In $0.00 Drawer Balance $0.00TRANSFERRED TO/FROM + $0.00 Transfer Out $0.00 Tape Balance $0.00BUY REGISTER

= $0.00 Total Cash Total Difference $0.00Checks

CHECK RECEIVED* (From Z-tape) + Cash to Cash Box $0.00Credit Cards

VISA + MC + 0V = Store Credit and Gift Card Balance

MC =

DISCOVER + Activate Total S/C from Buy RegisterCredits Total S/C loaded from 35/10 promo

Store Credit Redeems Total S/C from Front RegisterSTORE CREDIT REC + Note: STORE CREDIT REC.* on Z-tape Total Gift Cards Received(From z-tape) = SC Redeemed - SC Loaded Total Gift Cards Sold

*From "Credits" Sheet SCR = $0.00SCL = $0.00 Total $0.00

Gift Cards Total $0.00GIFT CARD RECEIVED + -$ (From z-tape) Balance Difference $0.00

*From "Credits" Sheet

= 0

DRWR TTL (From Z-tape) -

OVERAGE/SHORTAGE $0.00

Commments:


<< If this doesn't match DRWR TTL, drawer is off

DAILY SALES REGISTER CLOSING SHEET

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Protecting Your Cache Cards

Run the Batch Report

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Reconciling to the Batch Report

Balance Difference

Drawer Balance $12.00Tape Balance $0.00

Total Difference $12.00

Cash to Cash Box $0.00

Store Credit and Gift Card Balance

Activate $128.98 Total S/C from Buy Register 122.22Credits $243.14 Total S/C loaded from 35/10 promo 180Redeems $250.75 Total S/C from Front Register $208.65

Note: STORE CREDIT REC.* on Z-tape Total Gift Cards Received $12.00Total Gift Cards Sold $100.00

Total $622.87Total $622.87

Balance Difference $0.00


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Reconciling to the Batch ReportBalance Difference

Drawer Balance $12.00Tape Balance $0.00

Total Difference $12.00

Cash to Cash Box $0.00

Store Credit and Gift Card Balance

Activate $128.98 Total S/C from Buy Register 122.22Credits $243.14 Total S/C loaded from 35/10 promo 180Redeems $250.75 Total S/C from Front Register $208.65

Note: STORE CREDIT REC.* on Z-tape Total Gift Cards Received $12.00Total Gift Cards Sold $100.00

Total $622.87Total $622.87

Balance Difference $0.00


From Daily Buy RegisterClose Sheet

From $10 PromotionCache Card Sheet

From your Interactive Daily Sales RegisterClose Sheet

DAILY BUY REGISTER CLOSING SHEET

DATE:Register 1

ORIGINAL BANKREGISTER TAPE INFORMATION

TRANSFERS TO/FROM + $0.00 Transfer In $0.00SALES REGISTER Transfer Out $0.00

Count Amount Count Dollars

Pennies $0.00 Used Clothes

Nickels $0.00 Play Clothes

Dimes $0.00 Equipment

Quarters $0.00 Add On

Ones $0.00 Store Credit Bonus

Fives $0.00

Tens $0.00 Total Buys $0.00

Twenties $0.00

Fifties $0.00 Buys not accepted, no offer made 0

Hundreds $0.00 Buys Accepted 0

TOTAL CASH IN DRAWER - $0.00 Number of buys 0

= $0.00 Should = $0.00(Number from Tracker) Z Tape (Cash Buys) $0.00

CHECK BUYS + $0.00 Z Tape (Check Buys) $0.00

ST CR BUYS + $0.00 Line 3 Z Tape (Store Credit Buys) $0.00

DROP OFf RUNG + $0.00 Balance Difference

DROP OFF PAID - $0.00 Drawer Total $0.00

= $0.00 Tape Total $0.00

TOTAL BUYS (from z-tape) Balance Difference - $0.00 Balance Difference $0.00

Comments:

<<If this does not match z-tape you have made an error

<< If this doesn't match TOTAL BUYS, you made an error

Week # 18

Date $ Loaded $ of Purchase Date $ Redeemed $ of Purchase 5/15/2005 $10.00 $37.56 5/15/2005 $10.00 $31.765/15/2005 $10.00 $32.50 5/15/2005 $10.00 $32.565/15/2005 $10.00 $38.25 5/15/2005 $10.00 $10.515/15/2005 $10.00 $32.01 5/15/2005 $20.00 $48.735/15/2005 $20.00 $65.76 5/15/2005 $10.00 $26.745/15/2005 $10.00 $40.18 5/15/2005 $10.00 $18.49 Week Totals:5/15/2005 $30.00 $102.22 5/15/2005 $10.00 $29.865/15/2005 $10.00 $31.56 5/15/2005 $10.00 $58.93 Total $10 Cards Loaded: $180.005/15/2005 $20.00 $71.56 5/15/2005 $10.00 $37.865/15/2005 $10.00 $44.21 Total $10 Cards Redeemed: $100.005/15/2005 $10.00 $32.005/15/2005 $20.00 $68.94 Average Ticket for Return Visit: $29.545/15/2005 $10.00 $39.51

$10 Cache Cards Redeemed$10 Cache Cards Loaded

$10 PROMOTION CACHE CARDS

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Check Authenticity

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5/3 Online Services

https://direct.53.com

User Name

Password

Wanda Korgol1-248-603-0430

Or

Rick Kneller1-513-358-5753

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5/3 Online ServicesReports of interest

Report Program Frequency Description

DM-562 daily All of that day’s transactions for Gift and Cache Cards

CM-560 Program: your merchant ID

monthly Monthly activity for Cache Cards

CM-560 Program:0100 monthly Monthly activity for Gift Cards

CM-561 monthly Monthly Aging and expirations of Cache and Gift Cards

MM-431 monthly Report of Gift Cards that were issued at your location, but redeemed at another location

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Accounting for Cache Cards

No communications from Children's Orchard, Inc. are intended to provide tax, accounting, or legal advice. We suggest that for such advice you contact the IRS and your local state taxing authority and/or hire a qualified accountant or tax attorney to review your questions.

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• Reap all of the rewards of these sales tools by properly recording entries on your books

• In addition to * Driving sales* Increasing cash flow* Raising Average Ticket* Increasing customer purchase frequency* Building customer loyalty...


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• Every $ loaded to a Cache Card as either a Seller’s Bonus or a Promo can be booked as a Non-Cash marketing expense (not part of minimum 3% ad spending)

• Reduces your taxable income

• Your taxes go down without expending cash

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Account TypeStore Credits LiabilityNon-Cash Promo: Expense

Cache Card Promo ExpenseSt Cr Seller’s Bonus Expense

You must have these in your Chart of Accounts:

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Recording a $10 Cache Card issued as part of a promotion:

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Recording a Cache Card issued for a Buy (50% Store Credit Bonus):

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Redeeming a $10 Cache Card (margin = 65%):

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Accounting for Cache CardsDaily Sales Journal Entry will capture Cache, Gift Card sales, redemptions

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Accounting for Cache CardsDaily Buy Journal Entry will capture Cache Cards issued for Buys

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Record Cache Card Promos MONTHLY. Take totals from tally sheets or 5/3 Monthly Detail Report.

Example: Issued 200 $10 promos

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If you’re in the 25% Tax Bracket,

reducing your taxable income by $2,000

could save you $500 in taxes

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Build Your Machine!

Implement proper handling, accounting, and protection of your Cache Cards and Gift Cards.

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Mission Statements

Children’s Orchard Mission

To redefine and lead the children’s resale category

Corporate Mission

To build prosperous retailers and valuable businesses

Confidential

REASONS TO THRIVE IN

O5

Confidential REASONS TO THRIVE IN O5 Confidential Mission Statements Childrens Orchard Mission To...

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