THE APOSTOLOS PRO BEER POST

PRIVATE HOME PARTY SERVICE

2010-07-24T18:13:00.000-07:00

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

2010-07-08T19:01:00.000-07:00

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

2010-06-25T11:49:00.000-07:00

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

2010-06-17T11:09:00.000-07:00

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

2010-06-07T14:10:00.000-07:00

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"

2010-05-22T17:47:00.000-07:00

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

2010-05-05T17:24:00.000-07:00

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

CHANGING HOW WE TARGET CONSUMERS

2010-04-12T09:43:00.000-07:00

FOR ALL RETAILERS

During a market visit to a local bar/restaurant, I saw some interesting things. I saw coasters, bar napkins, bar caddies and plastic cups. None of that was out of the ordinary. What was interesting was WHO sponsored them. All were sponsored, Brand I.D.’d and paid for by Camel cigarettes. That’s right, Camel cigarettes. Camel cigarette POS in bars where one can no longer legally smoke. An interesting marketing idea. The only obligation by the retailer was the inclusion of small dispensers containing Camel cigarettes, for sale behind each of the involved bars.

While we in the Alcohol Beverage Business are constantly researching our demos and targeted consumers, it seems we are not alone. The Wendy’s hamburger chain targets the 18 to 34 year old consumer. Aside from the 18 to 20 year-olds, that is right in line with us.

According to a recent advertising publication, Wendy’s, along with their media and marketing agencies have decided to target alcohol consumers, while they are actually in the bar. It appears that their research shows approximately 50% of bar-goers are also potential late night hamburger customers (seems like a no-brainer to me.)

In an effort to capture those potential burger-eaters, Wendy’s has teamed up with two companies: Starcom, a computer based juke box purveyor and Ecast, a broadband “touch-screen media network” that provides digital music to bars and restaurants. These two companies have created a new way to penetrate the on premise market. We’ve all seen these 21st Century juke boxes in our favorite watering holes.

The issue here is the programming of Wendy’s ads into these new juke box’s music menu. When touched, the Wendy’s icon opens to a full micro site, including directions to the nearest Wendy’s. That’s all our retailers (and we) need…something to direct customers to leave the bar!

Now, while we can’t stop this new type of marketing, it (combined with the tobacco story) tells me we need to start thinking differently about how best to impact the Beverage Alcohol Market (B.A.M.). We need signs, information and brand recognition in places where beer is not sold, but where members of our target market are found.

The obvious is a place we already cover…other sections of the grocery and c-store. But I’m talking WAY outside the box. Some examples:

1) GAS STATIONS

2) FARM SILOS & BARN ROOFS (RURAL AREAS)

3) FAST FOOD SPOTS

4) BOOK STORES

5) COFFEE SHOPS

6) SIDES OF BUILDINGS

7) LAUNDROMATS

It is obvious we will not be selling alcohol in these places but we can still "inform" the public about our product. Obviously, avoid places which cater to a mostly underage crowd. Begin to expand outside your normal boundaries. If tobacco and fast food can infiltrate our domain, why can’t we repay the favor?

It is the intent of this site to assist the retailer in moving their business forward. One of the ways we hope to accomplish this is by getting the retailer to open their minds. Thinking not only out of the box, but out of their place!

We at the Apostolos Pro Beer Post hope our followers are positively impacted by information we attempt to share. It is up to the retailer to survive the current rough spot in our economic times. By trying something new or different, you just might find that little piece of business you have needed to turn the proverbial corner. We can only inform and suggest. The implementation is up to YOU.

Thank you for your continued support.

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net

A C-STORE DISPLAY TO GET IN THE DOOR

2010-03-30T08:39:00.000-07:00

FOR RETAILERS WITH LICENSED C-STORES

In this extremely competitive marketplace, the convenient store channel may be down, but they still drive significant volume. While not all states allow sales of alcoholic beverages in c-stores, overall they account for approximately 55% of measured beer volume. This number dwarfs the second venue for beer sales…supermarkets. They account for about 30% of measured beer volume nationally. The liquor store ranks third with 11%, followed by the drug channel with 5%.

As we all know, getting a product placed into a c-store chain can be a difficult task. Their coolers are just so big and the number of SKU’s is limited. Things are getting better though, as some of the c-store buyers are beginning to see the benefit of expanding their SKU’s. It is now up to the individual supplier and their respective distributors to make that new placement.

One placement method that has worked in a number of markets around the country is selling in a small display of 6 packs for placement at or near the register. Don’t try to place this product in the cooler immediately. Explain the benefits of the profits generated by these incremental impulse sales. The entire display will take up less than 3 square feet. The 6 pack has a low price point (posted on a price sign, placed close to the display)) and that specific package is less likely to be on sale in other brands, offering a fairly high PTC for the retailer.

If the product begins to sell, the manager/owner will hopefully suggest placing it in the cooler, as a regular item even before you do. Fight for your fair share. THINK OUTSIDE THE BOX, LITERATELY!

We appreciate your continued support. Please feel free to add a comment, suggestion or question at the end of this post.

Thank you,

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585
908.770.6237

dapostolos@optonline.net

IMPROVING YOUR CUSTOMER'S R.O.I.

2010-03-16T13:23:00.000-07:00

FOR ALL RETAILERS

We are all constantly looking for new ways to increase the customer count in our stores, bars and restaurants. At the same time, your customers are looking for a good return on THEIR Investment. That’s right. A good return on the customer’s R.O.I.

We sometimes tend to take for granted the actual customers who come through our doors. These are the people whose purchases pay our bills. I think we need to look at them in a different light.

Placing ourselves in our customer’s shoes, we can see what it is that our establishments have to offer. Look at your place through the customer’s eyes, on the following points:

PRICE / VALUE:
- You must be competitive with your competition, but you don’t have to be the lowest PTC in town. Value-added items are important. Whether it is a related item, such as glassware or a service such as a free bartender, price and value go hand in hand.

SHOP-ABILITY:
- Your product must be easily found. A no-clutter floor in a package store or an easily maneuvered path in your bar, both help the shop-ability of your place.
- Easily found and read pricing is important. Shelf talkers in the package store, menu boards, menus and clean, attractive draught knobs in your bar/restaurant all lend themselves to shop-ability.
- A good variety of items is always a plus for shop-ability.
- Limiting out-of-stocks is another positive to increase your customer’s R.O.I.

CONVENIENCE:
- Is your place easily entered? Is there plentiful/safe parking? Do you offer cross-merchandising efforts to bring more value to your customers?

EMPATHY:
- Is your place clean? Is it a pleasant environment? Would you shop there if you were a customer?

EXPERIENCE:
- Do you offer an experience to your customer? Entertainment? In-store food samplings? In-store Beverage Alcohol samplings (where legal.)
- Have you ever tied your business to a charity? Many consumers look positively on such efforts.
Some establishments make the shopping experience entertaining. Trader Joe’s is a great example of all the above points. While not an on premise account, it is an event for the customer. Stop in and visit one and you will see what I mean.

Thank you for your on-going support.

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net

THE "FAST-CASUAL" DINING PHENOMENON

2010-03-06T03:59:00.000-08:00

FOR RESTAURANTS AND BARS

Many recent articles relating to the on premise segment of our business, have commented on the decline of casual dining. I even authored an article on this very subject, for a national publication.

In that article as well as many others, it seems that, along with the tough economy, the problem facing this segment is cheap competition. I spoke with the owner of three north Jersey restaurants. He told me that he had never seen competition coming at him from so many directions. He told me (I paraphrase), “When times are tough, as they are now, people look long and hard at where they can spend their money. I not only consider other dining places to be my competition, but also Bennigan’s, Chili’s, Mc Donald’s, Denny’s and even the hot dog stands you see around the area. Anyone offering a food experience has to be in my cross-hairs.”

With that as the background, I will now bring up the newest twist to the casual dining scene; In an attempt to fight the soft economic conditions, along with all of the aforementioned competitors, in a more profitable manner, some “outside the box” thinkers are attempting to create a new category…”fast casual” dining.

The idea behind this direction is simple. Take some of the costs out of the equation while maintaining a positive atmosphere for the customers. In any business, two of the top P & L line item expenses are payroll and cost of goods. Knowing this, some intelligent retailers have made changes to the established template for casual dining. They are attempting to alter their business, saving costs where possible, while trying to maintain the same ambiance and positive feel of the original place.

Some suggested changes can be, but are not limited to:

1) A seat-yourself policy (no hostess or reservations).

2) A trendy but limited menu, offering the top selling menu items (or profit-makers) of the current establishment.

3) Cafeteria style food offering, with table service for beverage and clean up only.

4) A limited beverage offering, concentrating on profitability and turnover.

5) A closer look at portion control at the back end of your place. Not reducing portion size, but ensuring consistency.

6) The proper placement of items on your menu. Studies have proven that the customer will spend a greater amount of time looking at the top of the right-hand pages in a menu. Take full advantage of this by placing your most profitable items in these spots.

7) Always post a daily menu on a dry erase or chalk board. Make sure your specials all tie in a beverage at a reduced price. Go one step further and change the board with the meal/time. A lunch board from 11:00 ‘til 2:00; a Happy Hour board (where legal) from 4:00 ‘til 6:00; a dinner board from 5:00 ‘til close. Make sure the customer is aware of the items YOU want to sell.

When analyzing an establishment for this potential makeover, the above points should be reviewed. As the retailer, it is you who must make the final decision on which way to move your business. A great “sounding board” can be your Beverage Alcohol distributors. Beverage Alcohol is the one product that can make the transition to the “fast casual” concept, with the least amount of hassle. It is one of the most profitable categories in your establishment and (with the exception of some wines) it involves very little employee training in order for your wait staff to become proficient in answering customer questions.

Use your Beverage Alcohol distributors to help plan this move to the next hot idea in the on premise segment. These distributors can share with you the sales trends, margin breakouts and support items for all their potential items. They can also help you with promotions and specials tied to food offerings. If this new direction means you must impact new consumers, your distributors can help you to reach them. Consider the distributor as a consultant to you and your business. Their resources enable them to help you with ideas and concepts from different areas. This blog can also assist with ideas and success stories from other markets around the country.

Be aware of all potential avenues down which you can take your business. Making changes to the status quo and staying one step ahead of your competition, can repay you with surprising, long term benefits.

More on this trend in upcoming blogs.

We appreciate your business and support.

Thank you,

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net

THE "CHESS GAME" OF RETAIL PROMOTION

2010-02-20T17:14:00.000-08:00

FOR THE PACKAGE STORE RETAILER

Let’s face it, retail pricing is just one big “chess game.” The difference is this board has three sides. On one side is you, the package store retailer. The second player is your competition. Finally, the third player is the consumer.

Everyone is attempting to win the game. “Winning” is defined differently by each side.

You want the majority of the retail customers to come to your store and buy their products from you, giving you a decent profit on those sales. The competition is looking for the same thing. The difference is in what the consumer is looking for. They want a number of things:
1) A good price
2) A great selection of products
3) A comfortable, friendly place to shop
4) Easy access (including the parking)

Most local package stores run an ad of some type, including the items being promoted at a sale price. Some use mailers, while others use flyers. No matter which medium is used, this is the way to communicate to your potential customers.

In these economically challenging times, the average customer reviews these ads in whatever form they receive. The savviest customers may bring the various ad features along on their shopping trip, comparing prices from store to store.

Here is the ‘chess game” element that can give you a pricing advantage.

Instead of promoting a 6 pack or a 12 pack in your ads (both easily compared with your competitor’s pricing), why not promote a “five” 6 pack deal or a “three” 12 pack deal? I am not insinuating that your customers are “slow”, but there is a “laziness factor’ involved in all shopping decisions. If it is too hard to determine the bottom line savings, most customers will go with what they think is the best deal. Our industry, along with grocery stores, have brainwashed the consumer to look for certain packages and deals. By throwing them a slight curve, you can make it more difficult to compare your promotional prices to your competition.

Try it in your next promotional feature and see if you can “checkmate” your competition.

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

Remember, 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

KEEPING THE CUSTOMER IN YOUR STORE

2010-02-09T18:55:00.000-08:00

FOR PACKAGE STORE RETAILERS

Today’s retailer’s foremost issue has always been getting the customer into his/her store. That has always been and continues to be quite a battle. But the smart retailer knows that is just part of the story. The key is keeping that customer in your store as long as you possibly can. The longer that customer stays, the higher the potential basket ring.

The “destination” customer stops in to purchase a specific item. His/her plan is to buy the item and leave. The smart retailer does a thorough job in keeping that consumer involved in the store, inducing them into possibly making an incremental purchase.

Studies show the “case of beer” buyer will also buy a 6 pack of another brand, or a bottle of wine, if it is made available, in an attractive, approachable manner.

Here are some proven methods of keeping your customers happy and in turn shopping longer:

1) Soft, pleasant music

2) Muted color scheme…light blue tests best

3) Pleasant aromas (popcorn popping, cookies baking, sample items being prepared

4) Non-cluttered aisles. The customer should be able to walk (with a cart) down every aisle, without fearing knocking over numerous displays

5) The proper use of key display areas, to offer “impulse” items to the “destination” shopper. Satellite displays near the beer cooler as well as free-standing displays at the check-out counter are best for driving those extra sales

6) Educated, floor-walking employees to assist customers with their purchases

Obviously, you cannot close down your store to paint, add sound systems, re-deploy your floor plan, etc. You can, however, do a little bit, regularly, over a specific period of time.

Remember, statistics show these moves will help you sell incremental product, by keeping the consumer in your store, shopping longer. A higher basket ring translates into a better R.O.I. for you. It is definitely worth a try.

To read more of my posts, simply click on a month listed in the column to the right of this post. There are a great number of ideas to help you improve your business. Take the time to visit them all.

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

Training seminars are available 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

CONTROLLING THE P.O.S. IN YOUR PLACE

2010-02-01T11:14:00.000-08:00

FOR ALL RETAILERS

We all want to promote as many successful items as we possibly can. That’s just good business. It’s when the distributor or supplier rep begins saturating your bar and table tops with numerous pieces of P.O.S. representing unknown items that you, as a smart owner, must step in.
We have all been in accounts where the table tents and promotional pieces make it hard to put down your beer. In package stores, we have all seen the clutter of too many signs, as well as those which are no longer relevant. That’s not smart marketing. If the consumer is overwhelmed with information, they tend to shut down. That is the exact opposite of what we want, regarding the P.O.S. on the front line with the consumer. How do you handle this issue?

The answer is simple. As the person ultimately responsible for the success or failure of your business, lay down a few basic guidelines. Tell your sales representatives that YOU must OK every piece of P.O.S. placed in your account. Tell your salespeople, there is a limit on the number of pieces you will allow on tables, the bar, the cooler or the windows.

To answer the potential, negative reaction, institute a rotation system with your P.O.S. Make the time limit one or two weeks. At the end of that time frame, salesmen can replace the existing P.O.S. with another piece (approved by you). Additionally, ask some key questions about any new item, before buying it and placing the P.O.S. Is there major media backing the introduction? Are there any “permanent” P.O.S. pieces available? Are there any pieces that do more than just promote the product (chalk-boards, lighted magic marker-boards, etc.)? These are items that you can use to promote your place as well as the new product. Obviously, if an item being promoted by P.O.S. is selling well, keep that item and the P.O.S. piece in place.

By putting a guideline in place, and adhering to it, the result will not only be a cleaner, less cluttered look to your place but the new brands carried, will be limited to those with the best chance of success.

Remember, when all is said and done, you are the person in control of your place. The good distributors will work with you on this subject, as they know the way to win is by working with the retailers, not around them. Control your place. Promote items represented by the distributors who respect you and who work in a reciprocal manner.

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

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

We appreciate your support.

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net

COOLER SETS...WHICH ONE IS BEST FOR YOU?

2010-01-18T16:00:00.000-08:00

FOR PACKAGE STORE RETAILERS

One of the biggest decisions an off premise retailer can make is how to set his or her cold box. There a many ways to do it and most have a specific desired result. We will mention a few of the most popular here, to help you in making your decision.

Before we get started, let’s cover WHY you need a shelf set at all. Some might say if you offer the customer good, fresh, cold product, they will find it and they will be happy. Those of us who have been in this business for a while know that is just not the case.

A few months ago I wrote a piece on “the hardware store” analogy. In it I spoke of the confusion many customers experience when entering a package store. While most of us in the business are comfortable with various layouts, many customers look at the average package store the way I look at a hardware store…with total confusion and mystery.

In order to make your customers more comfortable and to give them a feeling of belonging, it is wise to set your store with a basic plan in mind.

Signs directing them to various parts of the store are a great idea. Even a “You Are Here” type of map on the wall works well. Anything to keep the customer happy and keep them in the store.
When it comes to setting your cold box, there are a number of ways in which it can be done. Here are some suggestions, along with their perceived benefits:

1) SET BY PRICE TO THE CONSUMER, BEGINNING AT THE LOW END …This set enables the customer to begin at the cheaper beers and move to the higher priced ones. The foot traffic pattern encourages the consumer to move down the cooler, checking out the various beers. He or she may see one preferred to their original choice and trade up to it.

2) SET BY PRICE TO THE CONSUMER, BEGINNING AT THE HIGH END…This set enables the customer to begin his trip down the cooler with your more expensive beers. The idea here is to try to catch the consumer’s eye early, with a strong-profit brand. They can, of course, continue down the cooler, getting into the lower end brands.

3) SET BY CATEGORY…This set is arranged by the types of beers offered. Premium domestic would all be together; all light beers would be in one group; all craft beers would be in one spot and so on. The benefit of this set is simplicity and comparison for the customer, as they can go to a section looking for a specific beer and see ALL the beers offered in that specific category. This set has the ability of encouraging the customer to trade up, within his category.

4) SET BY DISTRIBUTOR…This set is usually used to keep distributors from adding new brands and packages. Each distributor gets ca section and it must contain all their products. If a new item is introduced, an existing item must come out. This is not a good set. Its only benefit is to the retailer and that benefit has more down sides than ups.

5) SET BY RETAILER PROFIT…This set is a fairly new one. It is designed to place the most profitable beers in the most easily accessible spots. It is similar to set #2, but the beginning of the customer’s journey down the cooler is filled with different brands and packages. Their only common denominator is a stronger than average return for the retailer.

6) A BOMB WENT OFF IN MY STORE…This set is the “no set at all” version. It can be found in large urban areas as well as rural ones. These retailers are the ones who sit behind the counter and let the customer hunt for their items among disheveled displays and collapsing shelving. Unfortunately, this set is more common than one would imagine. Obviously this is not a recommended set.
____________________________________________________________________________
I hope this information continues to open your eyes to the positives of beer, as the driving force of your business. No matter how you look at it, beer has its place, as the foundation, in your formula for success. Beer is still America’s Beverage of choice.

We invite your comments, questions and/or suggestions. To add your thoughts, 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 leave your comment, question or suggestion.

Training seminars are available to suppliers, distributors and retailers. Contact us for information on specifics, details, time lines and costs. We can help your business.

NOTE: For more of my posts, simply click on the month of your choice, listed to the right of the blog. Visit them all and pick up some great ideas.

Thank you for your continued support.

Don Apostolos

The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net

SELLING LIGHT BULBS

2010-01-12T16:32:00.000-08:00

AN IDEA FOR PACKAGE STORES

One of the most difficult businesses to successfully manage is a grocery store. When operating on just a few percentage points, every decision counts and every possible effort must be given to making the monthly G. P. goal.

With this in mind, these retail experts are always ready with a trick or two, come month’s end.

One of the best is "the light bulb sale." Whether you realize it or not, your friendly grocer seems to always put light bulbs on display near the end of every month.

The strategy is sound and it usually accomplishes the intended goal: incremental sales and profit.
Here is the theory, in a nutshell:
1) Light bulbs are an impulse item. Most customers do not go out looking to buy them.

2) Because they are not an item which is bought on a regular basis, the typical consumer is unaware of their price or what a good, "sale" price should be.

3) The typical shopper sees a display and immediately thinks “sale.”

4) Most shoppers are unaware of their current home light bulb inventory and will nonchalantly toss a pack or two into their cart.

5) By erecting numerous displays of light bulbs throughout the store, the grocer gains sales on an item on which he makes full mark up.

Those of you in the package store business can learn from this idea:
1) Take an item that has brand recognition and is thought of as "main stream" in their mind.

2) Pick a package of this item which is not normally promoted (6 pack NR’s are usually good.)

3) Create displays, in key areas, featuring this item at FULL PRICE. The general public, noting the display, will assume the item is on sale and you will be the beneficiary of an incremental “impulse” purchase, at full price.

Enough of these types of displays and you will see your G. P. improve dramatically, by month’s end.

We invite you to leave your comments, questions and/or suggestions. To add one, simply go to the end of this, or 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.

Remember, we also offer training seminars 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

TAKE A TOUR IN 2010

2010-01-06T08:07:00.000-08:00

FOR ALL RETAILERS

The new year is upon us. 2010 is aligning itself to be better than 2009. It shouldn't’ be difficult…2009 was not a very good year for the majority of industries. With the exception of only a few, the soft economy had a huge negative impact on most of us. Let’s welcome 2010 with open arms, hoping for positive trends, better consumer spending patterns and a return to a bit of prosperity for our industry.

In order to be prepared for whatever 2010 has in store for us, we must be prepared for all possibilities. One key thing for all retailers is to know their competition. January is a great time to take a tour. Visit your competitors. Take the time to actually understand what they are doing.
No matter what the economic environment, it is imperative the small business owner know what his competition is doing. In excessively trying times, such as those we are currently experiencing, it is even more important to “know thy competition.”

Many on and off premise accounts think a mere perusal of the newspaper will inform them as to exactly what other accounts are offering the customers you all share. Nothing could be further from reality.

In the off premise, many of the items designed to impact the consumer are in-store…not advertised at all. These could be the re-alignment of the store, altering the store’s traffic flow. There could be great, creative displays and food tastings in all aisles. While I am not a big fan, there could be a huge wall of holiday baskets.

If you own an on premise account, look for things that stand out. Things that interest you. New brands, new dispensing devices, new and different menu items. Anything that stands out. Look at pricing…everyday prices on the menu as well as promotional prices on table tents, placemat, signs or menu boards. Take it all in. Take notes to help you remember who had what and for how much.

Experiment with the ideas you like. Copy and improve on the best ideas. Be creative.

In order to be the smart retailer, you have to “take a tour.” Decide who your key competitors are and physically visit them all.

This type of tour is done for one basic reason. To copy the good ideas you see and to improve on them. There is absolutely nothing wrong with copying a good idea. Remember, imitation is the sincerest form of flattery. The only negatives are not making this competitive tour or not improving your marketing because of what you find.

Every individual retailer has good ideas. By visiting your major competition you can use the combined creativity of a number of retailers to make your place #1 in 2010.

NOTE: For more Pro Beer Posts simply do one of the following. Either click on the line, "Older Posts" at the bottom of any page or click on a month in the column to the right of the current post. Either one will take you to previous posts.

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

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

Thank you for your support.

Happy New Year.

THE "BOOMER" AS TARGET CONSUMER

2009-12-18T09:11:00.000-08:00

FOR ALL RETAILERS

In my work preparing for my consulting to customers, my training of employees and in my efforts on this very blog, I do a great amount of reading. In order to enable me to read as much as possible, wherever and whenever I can, I carry one of the new book reading devices. It enables me to take numerous publications with me, in my briefcase, which previously would have had to be carried in a foot locker. While I highly recommend them, this is not a commercial for those devices. I am simply pointing out the numerous sources I use in my efforts to offer smart suggestions to the retailers in the Beverage Alcohol Maqrket (BAM).

Here is one of those suggestions. One of the market segments, which has until recently been ignored, is that of the "Baby Boomers." I know what you're thinking..."In the BAM, we target the male and female drinker from Legal Drinking Age (LDA) to 39 or 49, depending on the product being promoted.

Well, I am here tom tell you that there is a push occurring right now, to incorporate these older consumers into the mix. Many large consumer oriented corporations have begun to realize there is a big difference between the old target market and today's new one. The Boomers have something the younger group lacks...they are spending money at retail.

Some large consumer product companies have begun to expand their targets in marketing their brands to these customers. Proctor & Gamble, Johnson & Johnson, New Balance Shoes and Red Bull energy drink are just a few examples of companies that have already begun expanding their efforts with regard to age. They see a group which has been ignored by the huge marketing instruments currently used to determine where to focus for maximum return. They are now recognizing a group that not only has some money to spend, but likes to spend it on name brand items. The Boomers have a significant amount of disposable income (as well as time), especially for the products and services our industry offers.

The Boomer as a shopper, is more of a shopper than the usual retail customer. He or she will spend more time in your establishment, looking for the "Better Beers," or the trendy new bourbons. People know what they like and the older consumer is even more set in his or her ways. They will keep looking until they find whatever it is for which they are searching.

In the package store, this is a great tool to use against the huge box stores. Those guys keep a minimum of alcohol brands in inventory. If an item doesn't move at the rate they feel is correct, that item is dropped. You, as the "neighborhood expert," can carry some items especially for a customer who can't find it anywhere else. This is a perfect fit for working with the Boomers.

As a smart retailer (bar, restaurant or package store), it is up to you to begin to look at your specific, local market from a broader brush aspect. Don't wait for your suppliers to address this subject. Sooner of later, they will. But by that time, they will be addressing it with all of your competitors too. Be the first one out of the blocks on this. Get started today by incorporating the Boomers into your 2010 business plan. It can only add to your bottom line and improve your Return On Investment (ROI).

NOTE: For more Pro Beer Posts click on the line "older posts" at the bottom of any page.

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

Business consulting is offered, as well as training seminars for suppliers, distributors and retailers. Contact us for information on specific details, time lines and costs.

Thank you for your support. Happy and prosperous Holidays to All!

Don Apostolos
The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net

DEVELOPING NEW NICHES

2009-12-05T11:19:00.000-08:00

FOR ALL RETAILERS

In the retail alcohol beverage business, we are always looking for that new opportunity to increase customer count and sales. We are not alone. Every industry from fast food to automobiles is looking for that same opportunity. The thing that makes it harder for us is we are in a highly regulated industry. We are hamstrung when it comes to exactly to whom we can advertise and promote, as well as how we can do it and when.

Here are a few examples of great "niche expansion" ideas. While none are alcohol related, they show how some marketers are "forward thinkers," moving outside the lines to obtain more customers:

- FAST FOOD BRUNCH (Carl's Jr.)...A continuation of their already solid breakfast business, into their big lunchtime segment. This is normally a dead time on their clock. By offering brunch specials they can accommodate two groups of customers at the same time. It also adds dollars (and profit) to those dead hours.

- THE 4th MEAL (Taco Bell)...The intelligent creation of a new meal. Now, at Taco Bell, they have added to the usual breakfast, lunch and dinner mentality. The 4th meal is usually eaten late at night, predominantly by young adults (a key to fast food success) after a night out with friends. A great way to sample potentially new consumers, leading to visits during normal dining hours.

- LATE NIGHT RICE KRISPIES (Kellogg's)...This television ad does a great job of penetrating the long established thought that breakfast cereal is just for the morning meal. By showing a mother offering her daughter a bowl of Rice Krispies before bed time, Kellogg's is attempting to establish and penetrate a new niche...Rice Krispies as a healthy, late night snack. Not just a good idea, but one that is "mother approved."

Having been in the beverage alcohol industry my entire life, I have seen more ideas come and go than most people could ever imagine. When I see an idea that has merit, I feel obligated to pass it on to current retailers. This includes brand new ideas as well as old ones which have been recycled with a modern twist.

Here are a few ideas to consider:

- THE STARTER BUCKET (On premise)...As the waitperson approaches the table, he/she places two items on the table. The first is a carafe of water containing thinly sliced lemons. The second is the "starter bucket." This bucket contains one bottle each of the following:
1) An imported beer
2) A domestic premium beer
3) A domestic or imported light beer
4) A craft beer
5) A seasonal beer
6) A soda, juice or bottled water

While the starter bucket is not free (it must be marked as such), it offers the customers a chance to sample a beer, soda, juice or water they may have never tried. Additionally, it can "get the ball rolling" early, enabling the customer to have a drink before they actually place their order. Obviously, this idea is for tables of proven drinking age. Share this idea with your distributors, asking them to help you with this program. Let them compete to be a part of your creative business.

A SMART APPETIZER (On premise)...Whether or not your place has an Hispanic theme or menu, offer your customers an appetizer of nachos and salsa. The offering is fairly inexpensive and its salt content helps to generate a strong thirst in your patrons. This is perfect for generating incremental cold beer sales.

RECIPE HAND-OUTS AT THE REGISTER (Off premise)...By stacking or stuffing alcohol/food recipes at check out, you can offer your customer a nice, value added piece for their future use. Because these recipes all contain a beer, spirit or wine ingredient, the customer can return to buy that item, in order to complete the recipe. This effort not only gives your customers something extra (at no charge), but it may also lead to plus sales and profit for you.

Try one of these ideas and see if it has the positive impact for you that I have seen it have elsewhere.

We invite your comments, questions and/or suggestions. To offer one, simply go to the end of any post and click "comments," in "the comments link to this post." That will take you to a site where you can leave your thoughts.

We also offer performance audits and training seminars. Contact us for information on specific details, time lines and costs.

Thank you foor your support. Happy (and profitable) holidays to all.

Don Apostolos
The Apostolos Pro Beer Post
973.692.9585

dapostolos@optonline.net

SMART HOLIDAY BUYING DECISIONS

2009-11-24T08:27:00.000-08:00

FOR THE PACKAGE STORE BUYER

The Holiday season is upon us. As we all know, this is the time of the year where most package stores do almost 25% of their annual business. There are, however, a few things to keep in mind with regard to being an intelligent buyer.

As you may have heard in ads on both the radio and television, investment brokers are pushing hard for people to buy in to their funds. The ads all end with a similar statement: "Previous results do not necessarily mean your results will be the same. There is always a risk involved with any investment." This warning also applies to the package store buyer, regarding Holiday buying and the related inventory.

Regardless of whether you are buying beer, liquor, wine or champagne it is smart to think of one bottom line fact...the bills for all the items bought right now will come due in January. The nightmare many people face, is a store full of unsold product on January 2nd.

It is the job of the liquor, wine and champagne salesperson to get you to buy as much of their product as possible. They will use "past performance" to try to justify the deals being offered to you today. Be smart. The intelligent buyer will error on the side of caution. Almost every one of the items left on your floor after New year's Day, will be with you well after you have paid for them. In these tough economic times, one must be realistic when making the holiday buys.

Remember, the only one happy with a store stocked to the rafters with liquor, wine and champagne is the person who sold it to you. Making a 40% margin sounds great, but in order to realize that margin, you have to sell the product. If things do not sell by year's end, the new price necessary to move those items will probably be much lower than 40%.

The bottom line on this subject is simple. Buy the items you need and you feel strongly about the possibilty of them selling before holiday's end. Your January will be more pleasant and your checkbook will stay in the black.

Happy Thanksgiving,

Don Apostolos

973.692.9585

dapostolos@optonline.net

SMART ADVERTISING...IT WILL SHOW RETURNS

2009-11-12T14:51:00.000-08:00

IDEAS FOR BARS, RESTAURANTS AND PACKAGE STORES

In any economic climate, it is always smart to attempt to reach every possible customer, using every possible intelligent, fiscally responsible avenue to impact them. Some of the various advertising media from which to choose are:

- Print (Newspapers, magazines)
- Electronic (Television, radio)
- The Internet (Web sites, blogs, My Space)
- Outdoor (Billboards, banners, window signs, store-front signs, sandwich boards)
- Flyers/Handouts (On poles, windshields, in high traffic areas
- Coupons (Newspapers, local night-life magazines, in-store)

One of the key things to keep in mind is the actual time the typical person gives to the average sign, as they pass it on the road or take it off their car's windshield. A good rule of thumb is a simple one...keep your message short, sweet and easily read. If your sign is too wordy, the reader can get lost. An outdoor sign must be bold, brief and to the point. Large print is a must. The point must be made clearly and quickly. Conversely, a sign in your account can be detailed, containing more information. The customer inside your account is a "captive" one and will spend more time absorbing the intended information.

Almost everyone advertises at some point. The winners are those who plan their efforts and may even ask their best distributor for assistance. Always ensure your money is wisely spent.

Remember, invest your media dollars intelligently and always try to think outside the lines. As an example, earlier this year, The New York Times ran advertising on their front page. Seldom done, but with soft revenues and a distressed economy, possibly a good move. Someone on that staff seems to be thinking outside those lines. Kudos to them!

We invite your comments, questions and suggestions. To add one, 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 leave your input.

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

We appreciate your support.

Don Apostolos
The Apostolos pro Beer Post

973.692.9585

dapostolos@optonline.net

TRAINING...A KEY PIECE OF YOUR PLANNING

2009-11-06T13:15:00.000-08:00

IDEAS FOR DISTRIBUTORS, BARS, RESTAURANTS AND PACKAGE STORES

The current industry standard is to allocate 6% of your gross payroll dollars to training programs for your people. When the economy softens, some companies (including some Fortune 500 corporations) cut out training programs totally. This is definitely the wrong direction to take.

Every company in the 3-tier system (supplier, distributor and retailer) needs to offer solid training programs in order to improve their people. This quality training enables the employee to move up into the new framework required for success in today's changing alcohol beverage business.

Mergers, acquisitions and buy-outs at all levels are currently creating a new paradigm. The old way of dealing with one's suppliers, distributors, retailers and the consumer simply do not measure up in today's "extreme economy."

As a business person, there are just so many things one can control within the business environment. Quality, timely training is one of the things which CAN be controlled. In order to ensure your people are handling themselves properly, at all times and in all scenarios, one must offer strong training programs to stay ahead of the competitive curve created by the marketplace. Long-term, regularly scheduled, well planned training programs provide one with the best possible chance of winning the ever-complicating battle for sales.

Who should be offered training? The answer varies by tier:

THE DISTRIBUTOR

- Upper level managers
- Area managers with Direct Report responsibility
- Brand managers
- Marketing managers
- All street sales people
- Tel-sell people
- Merchandisers

THE OFF PREMISE (PACKAGE STORES)

- All managers
- All clerks who interact with consumers
- All buyers responsible for inventory and budgets
- All Customer Service personnel

THE ON PREMISE (BARS AND RESTAURANTS)

- All managers and buyers
- All hosts and people who greet customers
- Bartenders
- Wait staff
- All Customer Service personnel

On the surface it may seem like any investment in training is too expensive to make it viable to reap significant rewards. On the contrary, it is training that will enable your people to be able to compete in a soft marketplace. Staying ahead of the competition is one of the keys to successfully navigating through a recession or a depression. Training may be the foundation that allows you and your business to emerge from these trying times a winner.

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

ARISTON BUSINESS CONCEPTS
5 Colby Court
Lincoln Park, NJ 07035

973.692.9585 (O)
908.770.6237 (C)

dapostolos@optonline.net

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

Thank you for your support.

Don Apostolos
The Apostolos Pro Beer Post

ARMAMENTARIUM EQUALS SUCCESS

2009-10-28T11:52:00.000-07:00

FOR ALL RETAILERS

ARMAMENTARIUM

I am willing to wager that you do not know the definition of this word. While it is key to the success of every business, most people have never heard the word. "Armamentarium" may very well be the definition of success for your business. It is a point you should drive home with every employee in your organization. Without it, businesses fail every day.

What exactly does it mean? Armamentarium is defined as, "The aggregate methods, equipment and techniques available to one, for carrying out one's duties." In other words, it is what it takes to get the job done.

In the alcohol beverage business it can be the available training, the hardware and software used on a daily basis and/or the relationship with the customer. It applies to everyone: the distributor, the restaurant, the bar and the package store. Without armamentarium your business may be destined to fail.

A great location or a super portfolio are wonderful things to possess. Unfortunately, they can only take you so far. Making sure your people have the necessary training and tools to successfully accomplish their duties can ensure your long term success. This is of the utmost importance when competition is tough and the economy is soft. You need every possible tool to succeed in today's business climate.

We invite your comments, questions and suggestions. Simply go to the end of any post and click on the word "comments," in comments to link. That will take you to a site where you can leave a comment, a question or a suggestion.

The Apostolos Pro Beer Post also offers training to suppliers, distributors and retailers, to improve their operations for success in these difficult times.

We appreciate your support.

Thank you.

Don Apostolos
The Apostolos Pro Beer Post

973,692.9585

dapostolos@optonline.net

THE INTELLIGENT USE OF A SATELLITE DISPLAY

2009-10-21T18:07:00.000-07:00

FOR PACKAGE STORE OWNERS

Recently I stopped into a new package store, to see how it was set up and to determine if i might be able to help the owner improve upon the business.

Like many off premise retailers today, wine dominated the store’s displays. All the beer was stacked in front of the cooler at the far end of the store.

While walking the aisles, I came upon a huge area devoted entirely to high end chips and salsa. There were at least 10 feet of multi-level shelves containing nothing but fancy “blue corn” chips, along with many varieties of expensive salsa.

My mind is always thinking of ways to improve business and to increase overall sales. This one was a no-brainer.

A satellite display in front of these chips and salsa would be perfect. Many brands would work, but the ideal brand and package would be 6 pack NR bottles of a Mexican import. Most customers are used to seeing beer promotions featuring 12 packs or full cases. By displaying 6 packs the retailer can charge full price for the beer on this display. The net result is simple…incremental sales of a full priced product, or a FMD (Full Margin Display). This change could bring in hundreds of extra dollars per week.

ARE YOU A "FORWARD THINKER?"

2009-10-14T04:47:00.000-07:00

THIS POST IS FOR EVERYONE INVOLVED IN THE ALCOHOL BEVERAGE BUSINESS

HOW DO YOU ANSWER THE FOLLOWING QUESTION?

We at the Apostolos Pro Beer Post have always stressed forward thinking…thinking outside the box. As the economy has soured, it has become more important than ever to have the correct mind set, enabling one to do the things necessary to survive.

Thinking in a different manner than your competition will usually pay off in the long run. Looking for solutions in the same places as you have always looked will not get you through these tough times.

With this in mind, we offer a little test, to determine whether or not you have the correct mind set. Read the following story carefully and determine your answer. The forward thinking answer can be found at the end of this post.

You are driving your new Thunderbird through town during a dangerous thunderstorm. You pull up to a stop sign and you see this real life drama. Three people sitting on a bench in the storm. Two of them are attending to an elderly woman, who seems to be in need of immediate medical assistance.

Surprisingly, the person on her right happens to be a good friend of yours, from college. To complicate things, this friend saved your life when there was a fire in the dorm. You owe this person your life.

The person on her left is someone you recognize as a long lost lover of yours…someone who you regret parting with. It would be phenomenal if you could meet and rekindle that old flame.

Here is the question…what do you do? Your car only fits two people…you and one of the people in the storm. Remember to think outside the box. Who do you give the ride to? My answer may surprise you.

ANSWER TO THE QUESTION POSED: You give your college friend the keys to your car. Your friend then takes the elderly woman to the hospital. You walk with your old flame, in the rain, to the nearest restaurant/pub, hopefully re-starting a great romance. Forward thinking.

Remember...we invite your comments and/or questions. To add one, 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 add your comment or ask a question.

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

Thank you,

Don Apostolos
The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net