7 Ways You Can Lose Profits on Draft Beer Sales

11 February 2019
Category:
Bar Management
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draft beer poured into glass
Running any business is all about turning a profit. You can have other motivations as well, of course, but you need to turn a profit consistently if you are going to keep the doors open. As a bar, one of the keys to your ongoing performance is making sure you are maximizing profits on things like draft beer sales. Here at Accardis, we have two great draft beer tools, including a BOS draft beer meter and online draft beer meter. When it comes to better understanding draft beer management, let’s take a quick look at seven ways in which you may be losing profits on your beer sales without knowing it.

#1 – Poor Inventory Habits

Keeping accurate inventory is one of the biggest keys to making money with a bar operation. Understanding your inventory is helpful for a variety of reasons, including making sure you only order new inventory when it is actually required. Guessing as to your inventory status is a sure way to make mistakes.

#2 – The Wrong Offerings

If you don’t have the beers on tap that your customers want to drink, they aren’t going to order very many drinks over the course of the night – and you are going to be stuck with a loss. Be sure to carefully analyze your market so you can carry the beers on tap that your audience actually wants to enjoy.

#3 – Overpouring

This is an entry you knew would have a place on this list. If you charge a customer a set price for a given amount of beer, but actually pour them a larger drink, you are going to be losing money. It might feel like the nice thing to do to give away a little extra beer, but that giveaway is coming directly out of the bottom line.

#4 – Providing an Old Product

You aren’t going to get away with selling old beer out of your taps. If a beer has been sitting too long, it is not going to please the customer – and you are likely going to have to refund their purchase. In addition, this practice is going to give your bar a bad reputation.

#5 – Don’t Toss It Out

This might seem obvious, but one of the fastest ways to lose money on your draft beer sales is to untap a keg before it has actually been used up. You paid for all of the beer in the keg, so you might as well sell as much of it as possible. Make sure your team isn’t removing kegs before they have given all they can give.

#6 – Poor Pricing

It doesn’t matter what kind of business you are in – if you are charging too much for your product or service, you are going to have a hard time making sales. It’s the same when selling draft beer in a bar. If you are priced too high relative to the competition, customers are simply going to start going somewhere else.

#7 – Foam Problems

Too much foam is going to eat into your profits, as some of that foam is made up of actual beer. Since customers don’t want to pay for foam, take steps to limit the amount of foam that is generated in the process of getting the product to your customers.

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