Reduce Costs, Boost Profits: Expert Advice for Beer Wholesalers
Expert advice doesn’t have to be complicated. Simpler is better.
In this post I will share a simple tactic to identify costs to cut in your beer business.
Here’s how it works:
- Run a year-to-date income statement by department with detailed expenses
- Add a column for the variance in dollars and variance as a percentage (increase or decrease from prior period)
- Highlight any expenses that have increased by more than a specific amount (say, $10,000)
- Highlight any expenses that have increased by more than a specific percentage (say, +5%)
This simple approach helps you identify costs that are creeping out of control.
Unfortunately, this is where the work usually stops. The cost increases are identified, heads are scratched, hands are wrung, and nothing is done.
But this is where the work really begins.
Use this analysis as your ‘hit list’ of costs to scrutinize and reduce.
Surely, many costs will withstand the scrutiny and prove to be worthy. But many costs won’t. Your job is to find them, cut them, and prevent them from being spent again in the future.
Do this next:
- Watch the short explainer video below and download the OPEX analysis template
- Join the network of wholesaler owners and managers working together to cut wasteful spending
