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


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