I always feel they need a lot of praise as well as consequences for poor behaviour. It needs balance. I used to be a secondary teacher and we were taught to criticise as part of a sandwich eg praise work, next step, praise work or the child will become demoralised. I don't do that exactly with my dcs but I do look for every opportunity, however tiny it may be to offer genuine and specific praise for good behaviour, achievements, helpful actions et.
If the misdemeanour is big (eg this morning dd refused to get off the bottom step, where she was huffing, to let dh put his shoes on, giving him a, "no I won't" in an angry voice) then they lose the £1 outright. If it is a less serious thing they get a warning, or two, and then that is it. There is a little flexibility.
The threat of no story usually comes in at night time toothbrushing, washing in wash basket, feed the animals time at the end of the day as the impact if virtually immediate. It is more for low level faffing that they just can't stop doing, rather than aggressive or serious misbehaviour.
If one of them loses their £1 early in the day I give them the opportunity to earn it back over the course of the day through good behaviour. If it is a really serious misdemeanour, like dd's this am, though there is no going back.
If they were not likely to get the message after the removal of the £1 early in the day then maybe it needs to be broken down into 20ps or something like that - 5 chances! Or reduce it to 50p a day and give 10p chances. To a 6 year old 50p is a lot of money. Ours is set higher because dd is older and also because they need to save enough for gifts.
If they were in trouble at school it usually results in a serious chat rather than a punishment. School has usually issued the punishment themselves. We would put the emphasis more on getting through to them why x, y or z is not acceptable. Having said that I would be unlikely to let them on the tv, wii, ds or laptop - they are seen as rewards earned.
I would also make sure I was visibly upset and worried. This troubles ds more than any punishment I have ever issued.
At that age it is making mistakes rather than being out and out bad IMHO. (At dd's age they do know better a lot of the time but she has never - touch wood - done anything worse than forget her homework)
Don't worry about questions. Bring it on! It is making me consider and clarify my own behaviour too.
FWIW my dh also uses the back step as a time out zone. If he is cross he gets physically angry rather than shouty (like me) so he gets them away from him. He has never been rough but I think this is how he stops himself if he can't walk away. They are sent outside onto the back step (a minute for every year so ds goes for 6 mins, dd goes for 9). At this time of year it is a highly effective threat! We have to watch they don't take the dog with them though or it becomes quite a pleasant little while playing on the step with the dog.