Strategies to Reduce Costs

Expense Reduction | June 19

Beer wholesaler costs come in two broad categories: operating expenses and capital expenses.

To reduce costs, it’s helpful to have a strategy to control each of these expense categories.

In the short video below, we’ll cover tips and tactics you can use to reduce and control costs in your beer business.

Control Operating Expenses

  1. Create a financial plan (game plan on paper)
  2. Departmental accountability (share the plan and responsibility)
  3. Hold regular actual-to-goal check-ins (weekly)
  4. Identify variances, close gaps

Control Capital expenses

  1. Build a capital budget (what to buy, when, how much, WHY)
  2. Teach ROI: Return on investment
  3. Ask key questions (lease/buy, keep/replace, actual costs of each)

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