PRIVATE HOME PARTY SERVICE

FOR OFF PREMISE RETAILERS

Recently, in working with a package store owner, we suggested home delivery service to counteract the problem of customer “trip erosion.” If your customers are coming to you less, why not bring the products to them? Where legal, this can be a saving grace for the small to medium package store. By taking home delivery to the next logical step and by following the directions we lay out here you will be able to create a party service (where legal) that will add positively to your bottom line.

We are simply offering another way to compete with the big boys, without erroneously trying to match their sale prices. Our suggested, value added program is a “home party service.”

By reviewing all the positives offered by the big boys, we can always find some chinks in their armor. It is these chinks which, when uncovered, can lead to methods of taking profitable business from them.

The number of “party events” to target is huge. Birthday parties, sporting events, graduations, showers; the list goes on. By offering a service for these events, you benefit by obtaining the full beverage order for the entire event.

It is easy to enter this area of the business. Review the following list to guide you on your way to your store offering full party service:

1) Determine all legalities regarding this effort.
2) Purchase or arrange to borrow, as needed, a 1-barrel draught box.
3) Create “party packages” for your customers, based on dollar value, type of event or number of people. Print them for easy reading by the prospective party-thrower. Ensure you have a minimum dollar amount for all packages.
4) Develop a relationship with a local bartending school or a local on premise account. Use their people as your bartenders. Ensure they are “legal-drinking aware.”
5) Put together kits, using medium-sized plastic tackle boxes. Include pourers, a sharp knife, a towel, beer coasters and any other items you feel might be useful for your bartender, while working the party.
6) Include spray cleaner and paper towels, for after-party clean up.
7) Utilize plastic soda cases to carry all the necessary items to the event.
8) Include plastic cups for all drinks. This makes clean up easier. Include all these type of items in the total bill.
9) Advertise in your local paper and in your store. Stuff bags with flyers promoting the service. Offer a “bounty” for all recommended parties.
10) Obtain your own insurance or get a rider on your current policy.
11) Ensure the vehicle used to deliver the alcohol is licensed (if necessary) and properly insured.
12) Determine a realistic radius within which you will offer the service.

Of course, your distributors should be anxious to have you utilize their products at these events. Inform them of your plan and let them know what you need. Legally they may be limited, but get all you can...from all of them.

Once all these pieces are in place, this service can bring a great deal to your business. Repeat business, referrals and new customers are all a potential result of this type of program.

Plus, remember one more important thing. The big guys will not usually go after this kind of business, as it is too labor intensive for them.

Good luck and good business!

We appreciate your continued support. Remember, along with our useful tips, we also offer a complete training seminar covering suppliers, distributors, bars and package stores. In times like these, training can help to keep you a step ahead of your competition.

Thank you,

Don Apostolos
The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net

THE HISPANIC CONSUMER

FOR ALL RETAILERS

In order to stay on top of your business, you must be constantly aware of changes to the marketplace. The fastest growing segment in today's marketplace is the Hispanic. No matter where your personal feelings lie and regardless of what happens in the Arizona immigration fight, the smart retailer must acknowledge and pursue this emerging market.

The only way to be # 1 in your field is to learn as much as possible about your entire market. To help you with this task, we offer the following pertinent facts concerning this large, growing consumer base:

1) There are currently over 50 million Hispanics living in the U.S. today

2) This number, if it were representative of its own country, would make it the second largest Hispanic country in the world.

3) Demographically, this group skews extremely young. The average Hispanic male in the U.S. is 30 years of age or younger. Comparatively, the average white male averages 40 years of age.

4) The typical Hispanic consumer is extremely brand loyal. They purchase a brand or visit an establishment and they stay with it. The typical American consumer is much more fickle.

As a player in today's ultra competitive retail environment, one must ensure all possible demographic niches are covered. Your efforts to promote your place and all its attributes must cover all bases. Make sure your marketing, advertising and promotional budgets include efforts to capture and impact the Hispanic consumer. Various newspapers, radio stations and O.O.H. companies offer a great entree to this lucrative market. Investigate them all when planning your promotions and placing advertising buys.

By staying on top of the constantly changing business landscape, you can ensure you will stay at the front of the pack, in your field.

Your comments, questions and suggestions are welcomed. Simply go to the end of any post and click on the word "comments" in comments links to this post. That will take you to a site where you can give us your thoughts.

We also offer training seminars, to keep your people ahead of the curve and to help them to be the best at what they do. Contact us for information on specific details, time lines and costs.

Thank you for your continued support.

Don Apostolos

973.692.9585

dapostolos@optonline.net

MANAGING YOUR BUSINESS WITH AN INTELLIGENT SCHEDULE

FOR ALL RETAILERS

Another idea on the theme of “survival in 2010,” is to have everyone look at maximizing his/her business. One smart way to intelligently manage your business is to review your schedule. Take a page from the major retailers fighting to make all they can during a holiday season.

Look at every major retailer during a holiday. In an effort to make up for soft sales, the Wal Mart, Sears, Macy's and hundreds of other stores extend the days and hours of operation. They realize the only way to make money is to be open, with consumers in the store. Try to take that stance with your place.

Opening on holidays on which you were previously closed can bring in incremental monies. Extending your days and/or hours can also work (where legally allowed). Being the first bar or package store open or the last to close may bring you new customers. These customers may return later and become regulars.

In order to make this idea work, one rule must be followed: STAY OPEN THE ENTIRE TIME YOU HAVE POSTED. Don’t open late or close early. The savings resulting from sending personnel home a few hours early will very seldom result in a long-term positive. If you post an 8:00 am opening with a 2:00 am closing, never stray from these hours. The reason? When a customer is looking for a place to buy a case of beer or get an ice cold one, they know you will be open.

The worst thing for any business is to have a customer try your front door and find it locked. Those people may never return. Conversely, when customers are deciding where to go, knowing that your place is always open for the posted hours makes you the best choice. Remember…everyone is after the same disposable income. The ones who will survive are those who offer consistency to their customers. Be smarter than your competition.

We appreciate your support and welcome your comments, questions and suggestions. It is our hope that these posts will help you to run your operation better and to achieve your ultimate goal...a strong R.O.I.

Thank you,

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net

SUCCESSFULLY COMPETING WITH THE BIG GUYS

IDEAS FOR THE OFF PREMISE RETAILER

In a comment to a recent post, a reader said, “All your ideas are good, but they have the effect of lowering the retailer’s operational revenue.” We discussed it here at Ariston and decided a reply was necessary. Our last post offered ideas for the on premise retailer. Here are some ideas directed at the off premise retailer (please review all new ideas with your local ABC):

As for the off premise, Wal-Mart is showing great numbers too. How can a local package store possibly compete with a Wal-Mart type box store?

A similar exercise will result in answers here too:

Tommy’s Package Store……..Wal-Mart type box store

Variety (more SKU’s)………..........Low prices on featured items
Personal attention……………..........One-stop shopping
Friendly atmosphere……….......….Employees for stocking only
More cold beer selections…….......Limited choices per category
Easy in & out parking....................Huge parking lot
Owner (you) will bring in items for customers
Locally owned…location close to customers
Services available:
- Home parties
- Bartenders
- Large Draught Box
- Knowledgeable staff to help customers
- You can offer to carry orders to the car

Drilling down here too, you can make some intelligent, tactical decisions, enabling you to compete with the big, box stores:

1) Let your customers know you carry a greater variety of items than the box stores do

2) Give your customers personal attention…learn names and brand preferences whenever possible

3) Offer to bring an item in just for a customer

4) Take the time to “teach” your customers about the brands and packages you carry. This added value (not available at the box store) will be appreciated and hopefully create loyalty to your store

By spending none of your operational revenue on your plans, your future is not in your hands. Using some of that revenue intelligently will keep you ahead of the herd. Choose your battles. Never try to meet the box store’s pricing. Go after them where you have the advantage.

Always remember to invest in beer, plan ahead and think outside the lines.

We appreciate your continued support. Feel free to contact us at any time.

Thank you,

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net

A REPLY TO A READER'S COMMENT

FOR ON PREMISE RETAILERS

In a comment to a recent post, a reader said, “All your ideas are good, but they have the effect of lowering the retailer’s operational revenue.” We discussed it here at Ariston and decided a reply was necessary.

Here is part of that previous post:

With this in mind, we offer a few value added ideas for the bar and package store business, to place you ahead of your competition in the New Year. Again, beer is the best item for this (please review all new ideas with your local ABC):

1) Discounted draught specials during specific daily time frames

2) Discounted or free draught beer, tied to meal specials

3) Free draught beer “top-offs” for customers sitting at the bar

4) Free “shorty” samples of newly added draught beers (e.g.: Seasonals)

5) Offering “over-served” customers a discounted, safe trip home. This can be accomplished by establishing a program with a local taxi company. The taxi company will appreciate the incremental, regular business and your customers will feel more confident in having that “one last beer.”

6) Insert an in-store beer coupon into every customer’s bag

7) Insert a beer recipe into every customer’s bag

8) Create a “frequent buyers club” to reward customer loyalty with special programs, discounts and promotions

In attempting to ride out an economic storm, such as we are experiencing today, the intelligent retailer cannot sit back and wait for customers to walk in the door. Marketing ideas must be used to maintain and even increase business.

In dealing with On Premise accounts a great example of the battle faced by the casual dining account today is the Mc Donald’s chain. Mickey D’s just reported its sales for 2008. They were up 80% over 2007! To what did they attribute this huge gain? According to a spokesperson, it was a combination of 3 things. First, the soft economy had customers looking for inexpensive food items. Secondly, Mc Donald’s itself felt they had correctly dialed into the consumer’s head with their newest menu items. Third, and most important to us, they saw customers abandoning the casual dining segment for their restaurants.

The best way to look at fighting a battle in which you are limited in what you can or cannot do is to think exactly about what you do best. Defend your territory.

Draw up a pro beer “Franklin List.” This is a sheet of paper, divided down the middle, listing your strengths on one side with your opponent’s on the other.

In the casual dining / fast food battle, a brief list might look something like this:

Mable’s Bar & Grille……………….Mc Donald’s

Atmosphere……………………………Look-alike stores
Better variety…………………………Consistent, cheap offerings
Comfort………………………………….Quick, in & out
Friendly environment………………Cattle car mentality
Fewer children……………………… Children’s 2nd home
Beer, wine & spirits sold………… Soft drinks only (for the most part)
Open late (serving full menu)……Ronald Mc Donald is the talent
Entertainment available……………Free soda refills (do-it-yourself)
Free “top-off’s” of draught beer

The object is to drill down to see what you can offer that your competition cannot. Also, what can you do better than they? In either scenario, there is always a cost. The idea is to choose the best approach and to spend a reasonable amount executing your plan.

Realistically, any customers you are losing to a Mc Donald’s are probably going there for price and a quick, in & out experience. What can you do to combat them, on your terms? Review the following:

1) You serve beer. A perfect accompaniment for food

2) You have greater variety in your food & drink choices

3) Your customers can sit on real stools and at real, comfortable booths, while being waited on by your staff.

4) You can offer discounted beer tied to a food purchase. While the lower PTC on the beer does cut into your operational revenue, it is compensated for by the food ring and the incremental customer count.

5) Free top-off’s of draught beer, by your people, are a great promotional tool. The cost is minimal and the positive P.R. is over the top. Mc Donald’s free refills must be handled by the customer.

6) Offering entertainment is something Mc Donald’s can’t & won’t fight

Other things can also be done. It just takes some thinking and planning, while evaluating your competition. There will always be an expense of some sort. That’s just a fact of business. You must try to limit your programs to the ones offering the best bang for your buck.

By spending none of your operational revenue on your plans, your future is not in your hands. Using some of that revenue intelligently will keep you ahead of the herd. Choose your battles. Never try to meet the box store’s pricing. Go after them where you have the advantage.

Always remember to invest in beer, plan ahead and think outside the lines.

Our next post will answer this question as it applies to the OFF PREMISE RETAILER.

We invite your comments, questions and/or suggestions. To add one, simply go to the end of any post and click on the word "comment," in the current link to this post. that will take you to a site where you can leave your thought.

Training seminars are available to suppliers, distributors and retailers. Contact us for information on specific details, time lines and costs.

Thank you for your continued support.

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net

COMPETING WITH THE "BOX STORES"

FOR THE OFF PREMISE RETAILER

The off premise retailer in today’s extremely competitive marketplace, can become confused when deciding how to go to market and against whom to compete. Many different types of retailers are after the same consumer as you. It is rough enough competing with your fellow liquor stores, grocery stores and c-stores. But when a box store (club store or mass merchandiser) opens and begins to compete with you, it may cause a major alarm to go off.

Your first thought may be a “knee-jerk” reaction…match the box store’s promoted price. This is NOT the way to go. The majority of package stores do not have either the buying power or the floor space, to go head-to-head with these mega-retailers. This is the time for creative thinking.

It’s hard to believe, but price is not the only element in fighting the competition. Many other factors come into play. The smart retailer weighs all of them before putting a plan into motion.

You must analyze the positives of your establishment vs. the negatives of the box store. Some of these key issues might be:

1) Location

2) Size (as it relates to a “comfortable” shopping experience)

3) Personal attention/assistance to the customer

4) The variety of available brands and packages

5) Your independence as a business owner

Let’s look at each of these points:

1) Exactly where is the box store, with whom you compete? How far does your average customer have to drive to get there? At $2.65 for a gallon of gas, the savings better be substantial. Take a tip from the fast food companies who advertise on roadside billboards, throughout the highway system. They promote, “Easy on / Easy off” access to their stores from the highway. Many consumers are looking for exactly that…something quick and easy. Promote your store in a similar manner. “Why spend expensive drive time going to a store just to save a buck? Come to my local shop and get in and out with no hassles at all”.

2) All of these box stores are huge. To begin with, they have parking lots the size of a major stadium. These stores have some things in common…they are all big, congested and confusing.
It is quite a time consuming hike just to get to the front door.

You start your adventure by hiking from your car to the store. This trip could take a number of minutes, depending on how close to the door you can park.

Once in the door, you have to locate the beer department. Invariably, you are forced to walk past massive displays of everything from toilet paper to snow tires. When you do arrive in the beer department and make your choice, you are forced to wait in a painfully long line, just to pay for your purchase. Let your customers know what is store for them at a box store. Assure them that those things do not happen to your customers.

3) In the box store, the employees are hired mainly to move stock and to keep product available to the shopper. There is usually no one to answer any questions you might have. There is very little personal attention or assistance. You, on the other hand, CAN offer can offer your customers a personal touch. Knowing a name or a favorite item goes a long way in keeping customers happy. And, as we all know, happy customers are loyal, returning customers.

4) The typical box store carries an extremely limited choice of beers. The average is approximately 30 SKU’s (Store Keeping Units…meaning a specific brand and package of a product). Your store probably carries between 100 and 250 beer SKU’s. If a customer wants a product that is not in the box store’s top 10 sales-wise, it will most likely NOT carry it. You, on the other hand, have the ability of carrying a much broader variety of beers, including specialty brands and those hard-to-find items. As an additional benefit to you, these “other” items are not usually “footballed” in ad features, enabling you to make some money on them.

5) Many box stores are clubs. As a club, they charge membership fees. Make sure any of your customers who are venturing to this type of store, are taking this into account, when computing their savings. Add membership fees and the cost of travel to the other aforementioned “issues’” and the decision to shop with you is easily made.

The intelligent retailer takes all the above points into consideration before putting a plan into motion. Don’t look at a box store as an “unbeatable” foe. Remember, price is not your only weapon. Use all the weapons in your arsenal. Take a long look at the positives of shopping at your store. You just might be surprised at what you find.

We invite your comments, questions and/or suggestions. To add yours, simply go to the end of any post and click on the word "comments," in current links to this post. That will take you to a site where you can leave your thoughts.

We offer training seminars to suppliers, distributors and retailers. Contact us for information on specific details, time lines and costs.

Thank you for your support,

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline,net

USING A SMART LOSS LEADER

FOR ON PREMISE RETAILERS

With the U.S. economy beginning to show signs of life, an intelligent on premise retailer needs to do everything possible to bring customers into their accounts. Once there, you must make them happy and keep them there, spending money.

A suggestion we would like to “toss up” is this: OFFER YOUR CUSTOMERS A LOSS LEADER.

All of us have seen and continue to see the grocery store industry use this tactic to gain customers and increase their register ring. If it works for them, why not for you?

Consider this scenario. Whatever medium you use (electronic, print, mailers, etc.) feature one item at a very attractive PTC. In your advertisement you would obviously mention your account’s name and address. List whatever information you would normally include in one of your ads. But this time, feature an item as a loss leader. Choose this item or these items from those items which offer you the best R.O.I.

The first place to look is your draught beers. All of them fall into the high R.O.I. level. Even Imported and Craft beers are extremely profitable on tap. Depending on the market PTR, a 10 ounce glass of draught beer can cost you from a low of $.30 to a high of $.62. This equates to a promotional PTC of $1.00 to $3.00 as your loss leader. The numbers break out like this:


DOMESTIC............. CRAFT....................... IMPORT
DRAUGHT.............. DRAUGHT.................DRAUGHT *

BBL = $59.00....... BBL = $120.00........ IMPORT BBL = $105.00

10 oz. Cost............. 10 oz. Cost................. 10 oz. Cost

$.03 X 10 = $.30........ $.06 X 10 = $.60 ..............$.062 X 10 = $.62

10 oz. Sell................. 10 oz. Sell................ 10 oz. Sell

$1.00................................. $2.00.............................. $3.00

10 oz. Profit.............10 oz. Profit............ 10 oz. Profit

$.70...................................... $1.40............................. $2.38

10 oz. Margin..........10 oz. Margin.......... 10 oz. Margin

333 %.......................... 333 %............................ 484 %

Pretty good profits at these low, loss leader prices. Low enough to bring customers in, but high enough to put money in the bank.

Mix these “loss leaders” with food specials and you will see an increase in customer count, as well as draught beer sales. A $1.00 domestic draught beer, a $2.00 Craft draught or a $3.00 Import draught beer are all attractive draws. The idea is to increase traffic into your account, while increasing your register ring. Go lower if you’d like. It’s up to you.

Try this idea…it makes sense and just might stimulate your business.

*PLEASE NOTE…MOST IMPORTED BBLS CONTAIN ONLY 13.2 U.S. GAL.



THANK YOU FOR SUPPORTING THE APOSTOLOS PRO BEER POST.

Don

Don Apostolos
Ariston Business Concepts


If you would like to contact us, feel free to do so at any of the following:

973.692.9585 (Office)

908.770.6237 (Cellular)



dapostolos@optonline.net