Liquor Inventory Experts

There are many people who describe themselves as bar consultants, but simply sitting at a bar and ordering a drink does not make us specialized in the field. If you are considering a bar consultant for your business, it is a good idea to understand what they can bring to your company in terms of information.

A bar consultant normally has a background in the nightclub, restaurant and hotel industry. They understand the various facets of the business from the sales, controls, marketing and human resource sides of the business. Before hiring a bar consultant, it is always a good idea to ask them where their strengths lie and of course who they have consulted for.

If you are a large nightclub with multiple pouring stations, a consultant from the hotel or restaurant field might not be suited for the job. Bar consulting must help you take decisions that will have a positive impact on your operations. There are some bar consultants that focus on controls and how to implement liquor, beer and wine inventory procedures. Others are more front of the house bar consultants and focus on service and personnel.

There are bar consultants that will help you with the image of your bar and give you marketing ideas and promotions to help increases sales. When you are in the process of hiring a bar consult, it is maybe a good idea to ask if they work alone or have a team that can cover specific or maybe all areas of the operation that need attention. In the end, proper bar consulting can bring you the added knowledge you may need to improve the overall performance and profitability of your bar.

Inventory count

An inventory count can be best described as a  physical inventory of what is currently in stock in the storage areas, comparing that count to what the liquor, beer and wine inventory count software thinks is in stock, and making any necessary adjustments to get the liquor, beer and wine inventory count software to match the storage area counts.

Taking an inventory count on a regular basis will not only help us have a tighter control over our liquor, beer and wine inventory but also flag us of any discrepancies. Some inventory count software will also make you aware of any product that may have gone missing like a bottle of wine or liquor. Inventory counts will also help you better asses if you are potentially carry to much inventory that can expose you to shrinkage and tie up valuable cash flow.

Inventory counts can also be indicators of low stock levels that could lead to customer dissatisfaction and lost sales. It is important that inventory counts are performed on a regular basis. Precise inventory counts can you give you the valuable information you may need to make some decisions in your business that you may otherwise not have taken.

A perfect example can be volume rebate purchases; if you are inventory count show you are carrying too much of a certain product already, it may be prudent not pursuing a special deal, on the other end of the spectrum, an update inventory count may actually encourage a large volume purchase due to the product popularity and the need to replenish low stock level.

The relationship between cost and price

 A question we often ask ourselves and our liquor, beer and wine inventory consultants is; what should my pour cost percentage be? The answer can be quite simply calculated if we understand and adopt the proper formula.

To start, we need to establish the net cost of our product and divide this by the selling price of the item in our business. The cost percentage portion pays for the ingredients needed to make the drink and the profit percentage is the gross margin we make when a drink is sold. The cost percentage should be in line with the beverage cost percentage that has been established in our budget. Generally, liquor costs run at 20%-25%, while wine and beer can run anywhere from 32% to 50%. Please keep in mind this may not be the right cost percentages for your business. If your establishment is in a high tourism area and you can sell your drinks at a higher price, your pour cost percentage should be lower. Another factor that will have an impact is your cost of goods sold. If you purchase in higher volumes than your typical bar, hotel or restaurant, you may benefit from reduced pricing which will in turn reduce your pour cost percentage.

Here is an examples on how to make sure our selling price and cost percentages are in line with our budgeted expectations.

Selling Price:  Cost divided by Cost % = sales price

                          1.5 oz vodka cost $0.95/15% = $6.35              

When it comes to price mixed drinks, the easiest and most widely used method is using the cost of the prime ingredient. This of course is not as accurate as costing out the whole recipe, but to arrive to a sound price structure, we must look at each drink by itself to establish a cost/price relationship in line with the overall price structure of our business.