Patrons might appreciate it when you let the booze flow, but at the same time your budget will slow to a trickle should costs get out of control. Managing inventory expenses efficiently is key to managing a profitable business and staying in the black. Here are a few methods of liquor inventory control that could be hugely beneficial.
Consult Demand When Managing Inventory
It never hurts to revisit the books and be more detail-oriented. Consult sales and identify which brews or vintages are meeting the lips of patrons regularly. Expensive items that don’t sell enough to cover their ordering expense (let alone make a profit) are equivalent to holes in the bottom of a leaky boat. While it might upset a regular or two that a specific drink is no longer available at your establishment, it could easily pay off should you choose to bring in a new, cheaper product that sells tenfold. Also bear in mind the potentialities of evaporation, spillage, and calculation errors.
Theft is another factor of excess inventory expense. If you turn a blind eye to an occasional disappearance and simply continue to replace what goes missing, you’re sinking your own ship. Locking cabinets and having a clearly visible camera fixed on the bar area will do wonders in preventing employees or patrons from sneaking a drop or two. Regardless of prevalent theft or not, it makes sense to keep a close eye on your investment. Should your establishment be stolen from, address the matter immediately and don’t let sympathy cloud your judgment.
Go Big or Go Home
For better yield per measure, high-turnover liquor is best ordered in larger bottles. If you know what rakes in large profits, don’t be afraid to opt for larger sizes to meet the liquid desires of your customers. Standardized pouring will also be hugely beneficial to cutting down on inventory expenses, therefore lessening the impact made on profits.
Secure Purchasing Procedures
Whether manually operated or tech-reliant, a secure and loophole-free purchasing system is a must for any establishment seeking to minimize inventory costs. Breaches in the form of errors, duplications, allegedly incorrect invoices, and false credit card requests are some of the oldest tricks in the books of deceitful vendors and purchasers looking to pull the wool over your eyes. Minimizing the number of people who handle documentation will assist in protecting your business, but vigilance is a must regardless. Purchaser theft is prevalent throughout the industry, particularly in the form of ordering merchandise for personal use or buying wholesale to make a fast buck.
There’s never an absolute way of eradicating inventory costs. In order to run a successful establishment, you need to order enough to meet customer demand and accommodate for unexpected events. That being said, with these methods you ought to be able to better steer your budget towards brighter horizons with more precise inventory control. Be analytic and detail-oriented, and reap the rewards.