| As I See It...... |
As MMBA travels the state visiting members, a common factor in those facilities not maximizing profitability is a low gross profit (total sales minus cost of sales).
Cities with relatively low gross profits should consider whether the gross profits reflect their intended markup policies. (Remember, there is a difference between mark-up and gross profit. Click Here)
In addition, if gross profits are well below the intended markup of inventory, a number of factors can be in play such as theft, poor inventory control, or damage of inventory.
Good gross profit amounts are in the 24% - 25% range for off-sale and 42%-45% range for combination facilities.
Another common factor is inventory.
Recognizing fluctuations throughout the year, a recent MMBA survey indicated the following average inventory amounts as a percentage of total gross sales:
Metro
10%
Be sure to contact MMBA is you need assistance in these or other areas.
Paul Kaspszak
Executive Director |
| Upselling for Bigger Bar Sales |
One of the easiest ways to raise your bar's beverage sales is by using suggestive selling or upselling techniques.
Upselling on a consistent basis will make a huge difference to your beverage sales.
For example, if 30 people per night switched from a well to a call or a specialty drink with an increase average of $1.50 per drink, that's a $45.00 per night increase times five shifts per week -- $225,times roughly 50 weeks in a year equals an additional $11,250, plus an average of $1,687.50 more in tips for your servers (at 15%.)
Upselling Non-Alcohol Beverages
Think of upselling not just with alcohol but also with NAB's like water. Offer alternatives to tap water when customers order it, so when a customer asks for water you can respond with "would you like Evian, Pelligrino or just plain water?" Just a few takers per day will make a difference because now you have revenue where you wouldn't have had any.
Upselling from Well to Call or Premium Liquor
One of the easiest ways to upsell is from well to call liquor. Whena customer asks for a bar drink, inquire about what kind of liquor they want. For example, when a guest orders a vodka tonic, ask themif they'd like Absolut, Stolichnaya or Grey Goose. Now you've uppedyour sales from a well to a call.
Upselling with House Wine
When a customer orders your house wine, half the time it's becausethey don't want to look at your wine list or ask you about what winesyou have. A simple way to upsell them from house wine to a more expensive glass is by giving them an alternative. So when a customerasks what your house wine is or they order the house wine, say something like "our house white is Walnut Crest, but we're running a special on our Tierra Del Fuego Chardonnay for only $6 a glass, would you like to try that instead?" And while some customers will say no, many customers will say yes to the upsell and will appreciate the added service of your servers' suggestions.
How do you get your employees to do this?
Explain to them the benefits of upselling and train them how to do it. With upselling, your servers and bartenders will have higher guest checks and thus better tips. If you have a reluctant group, show them the benefits in real numbers. As they say, money talks.
Reinstate upselling at your bar and see the sales rise.
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| Free Midwest Expo Tickets Available for MMBA & MLBA Members | |
The 2010 Midwest Expo conducted by the Minnesota Licensed Beverage Association will be held on Sunday, October 3 at Jimmy's Conference Center in Vadnais Heights.
Minnesota Municipal Beverage Association and Minnesota Licensed Beverage Association members are eligible for two free tickets to the event - including dinner!
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| A Chihuahua, a Doberman and a Bulldog are in a Bar..... |  A Chihuahua, a Doberman and a Bulldog are in a bar having a drink when a good-looking female French Poodle walks in and says, "Whoever can use 'liver and cheese' in a sentence can go out with me." So, the Doberman says, "I love liver and cheese." The Poodle says, "That's not good enough." The Bulldog says, "I hate liver and cheese." She says, "Sorry, that's not creative." Then the Chihuahua speaks up: "Liver alone...cheese mine!" |
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You can't know how much shoppers will buy until you've made the shopping experience as comfortable, easy and practical as possible |
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| Future Dates to Remember!! |  |
MMBA Regional Meetings
October 13
Duluth Holiday Inn
October 14
Ramada
(Formerly Best Western) Marshall Inn
October 20
Austin Holiday Inn
October 21
Holiday Inn Metrodome
October 27
Arrowwood Resort Alexandria
October 28
Peppercorn
February 21-23, 2011
Breezy Point Resort
MMBA Annual Conference
May 22-24, 2011
Arrowwood Resort |
| Ask A Director |
Gary Buysse
Rogers
763-428-0163
Bob Leslie
Pelican Rapids
218-863-6670
Brian Hachey
Stacy
651-462-2727
Nancy Drumsta
Delano
763-972-0578
Lara Smetana
Pine City
320-629-2020
Michael Friesen
Hawley
218-483-4747
Virgene Shellenbarger
Hutchinson
320-587-2762
Tom Agnes
Brooklyn Center
763-381-2349
Toni Buchite
50 Lakes
218-763-2035
Bridgitte Konrad
North Branch
651-674-8113
Paul Kaspszak
MMBA
763-572-0222
1-866-938-3925
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| Randall Liquor Revenues Help Keep Taxes Low |  |
Randall mayor Bob Riitters recently told council members that the city's enterprises such as electricity, gas and the municipal liquor store and bar have helped keep taxes low in town. |
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