stop bad purchasing habits
TRANSCRIPT
Then comes the bad news.The physical inventory shows how far off
the mark you really were with ordering stock forthe holidays. You already knew you ran out ofsome key stock over the past week but you alsoordered enough of other stock to last throughnext New Year’s Eve. You don’t even want toknow how much money is tied up in this year-end inventory.
You can’t help but think, "Who’s the ama-teur now?"
Whether you’re a self-anointed amateur ofthe New Year or seasoned professional alwayson the lookout for ways to improve, the begin-
ning of the year is the perfect time to makesome changes.
First of all, a physical inventory representsthe stock on hand at a particular point in time.It doesn’t show stock usage over a period oftime, which should be the basis for your stockordering decisions. Ordering liquor only whenliquor bottles are emptied isn’t a good basis,either. For example, you had 2.1 bottles of someliqueur in inventory. Someone must haveordered a frappe or something over the holidaysbecause now you have only two bottles. Do youreplace the empty bottle? Stock usage numberswould have showed that two bottles of this
liqueur should last at least three months.Calculating stock usage for every brand of
liquor, beer and wine and even bar suppliestakes a lot of the guesswork out of ordering fromweek to week and allows you to compare anyperiod in the current year to the same periodthe year before. Use stock usage numbers toestablish and then adjust par values during theyear, which helps keep inventory dollar levelslean and mean while minimizing stock outages.Also compare usage to sales numbers to narrowdown cost-of-sales problem areas.
The accompanying example of an invento-ry worksheet should give you an idea on how to
2004 NEW YEAR’S RESOLUTION:
Stop bad purchasinghabits By David T. Kratt
You made it through all those crazy company Christmas par-ties. Then made it through the granddaddy amateur nightof the year – New Year’s Eve. Now a well-deserved break is
in order as soon as year-end physical inventory is finished.
INVENTORYITEM
VODKAS
Absolut
Ketel One
Stolichnaya
1
PAR
12
3
6
2
INVENT
O/B
5
1.3
6.1
3
PURCHASES
12
0
0
4
TOTAL STOCK
(2+3)
17
1.3
6.1
5
WorkStation #1
1.5
0.9
0.9
6
WorkStation #2
2.3
0
0.8
7
STORAGE
4
0
3
8
INVENT C/B
(5+6+7)
7.8
0.9
4.7
9
USAGE
(4-8)
9.2
0.4
1.4
10
ORDER
AMOUNT
6
0
3
INVENTORY WORKSHEET
Sample of an inventory worksheet to assist licensees with repurchasing needs.
Jan.04 Restocking 12/10/03 11:58 AM Page 1
HANGAR ONE VODKAFROM CRAFT DISTILLERS
• Vodka of the year from 3 magazines – SpiritJournal,Wine & Spirits, Food & Wine.
• Infused with real fruit for spectacular fresh flavor.
• Unbelievable smoothness: no sense of alcohol.
• Made with exotic and expensive ingredients,plus vodka from viognier wine in the Straight.
• Distilled in a one-time military structure on theformer Alameda Naval Air Station.
• European hand methods by Jorg Rupf, world'sforemost distiller of fruit eau-de-vie.
• www.hangarOne.com
MAISON SURRENNE COGNACFROM CRAFT DISTILLERS
• XO-level on your shelf at $35
• Ancienne Distillerie is superb single-vintage 10-year-old petite champagne.
• Brilliant and complex, beautifully made.
• From the rich cellars of Cognac's largest remaining family-owned house.
• Double Gold for XO cognacs at SF Spirits competition.
• BEST BUY selection by Wine Enthusiast and Beverage Retailer.
• BEST VALUE selection from Beverage Analyst.
• www.surrenne.com
ST GEORGE MALT WHISKEYFROM CRAFT DISTILLERS
• Distilled by hand on an Alsatian pot still in Californiaby Jorg Rupf, distiller of Hangar One.
• Barley malt toasting on hardwoods: no peat flavor.
• Sophisticated aging in French, American, and port oak.
• Pure, very clean, rich and fruity with great depth,complexity, and balance.
• Excellent value - $45 on the shelf.
• "Complex, clean, and elegant," New York Times
• www.stgeorgespirits.com
Contact: Ansley Coale at Craft Distillers800.782.8145
www.craftdistillers.com
WHY TO RESTOCK AND HOW TO SELL THESE FINE BRANDS!
RESTOCKING
THIS SECTION IS A PAID ADVERTISEMENT
revamp your inventory worksheet. The formulafor calculating stock usage is as follows:
Here are a few restocking tips to keep inmind for the next busy holiday or special event:
• Stick to the basics Inexperienced purchasers start with the
"A’s" on the inventory sheet and work down tothe "Z’s" and end up overstocking and over-spending.
Experience tells you that there’s a cap onwhat can be spent, even for an upcoming busyholiday. And the dollars add up real quick. Theexperienced purchaser first focuses on high-vol-ume well- and call-liquor, beer and wine andhas an idea of how much they are spendingbefore moving on to the odds-and-ends stock. Ifthey do over order, it’s stock that will be used in
the near future. If there is an outage, it’s withstock that’s not that big of a deal to run out of.
• When there is no substituteCaptain Morgan drinkers, for example,
want Captain Morgan and may not have a sec-ond choice when it comes to what they drink.Ketel One Vodka drinkers, on the other hand,probably may be happy with Absolut orStolichnaya if you do run out of Ketel One.
• Flavors of the month New schnapps and new shot and drink
recipes prepared with new liquors are comingout all the time. Fads come and fads go and youmight be stuck with this stockif you overstock.
So restock lightly, if at all.This also applies
when thinking aboutordering, for example,extra Galliano andSloe Gin for the people
who seem to go out only once a year – NewYear’s Eve – and still think Harvey Wallbangersand Sloe Gin Fizzes are popular.
• Cost of running out What’s the worse that could happen with a
stock outage?Scenario #1 – A customer orders a St. Pauli
Girl. Your bartender says, "We just ran out buthave plenty of Beck’s." The customer says,"That’s fine."
Scenario #2 – A customer says, "You don’thave any vodka?" Your bartender says, "No,we’re all out." The customer says, "Not evenwell vodka?" Your bartender says, "No, but wehave plenty of flavored vodka."
First scenario is not a problem. Second sce-nario is a big problem.
David T. Kratt writes "Behind the Bar" syndicat-ed monthly column. Please send correspon-
dence to P.O. Box 0638, Grand Haven,Michigan 49417 or e-mail to
Inventory opening balance (INVENT O/B)Plus purchases (PURCHASES)Total stock available (TOTAL STOCK)(Less) Inventory closing balance (INVENT C/B)Total stock usage (USAGE)
Jan.04 Restocking 12/10/03 11:59 AM Page 2
ZYR RUSSIAN VODKA• Awarded a 96-100 in April's Wine Enthusiast and 5
stars in Paul Pacult's Spirit Journal.
• "A sipping vodka best drunk neat or on the rocks,"Time Magazine March 2003.
• "ZYR is pure Russian, and pure pleasure whetherchilled or on ice," Robb Report August 2003.
• Crafted from a blend of wheat and rye, grown inthe rich black soil of Russia’s heartland.
• Available in NY, NJ, FL, PA and soon California.
JÄGERMEISTER
• Jägermeister is the country’s most popular shot!
• Made with 56 herbs and spices.
• The 70 proof herbal liqueur is best enjoyedstraight from the freezer.
• Imported from Germany.
914.637.7300 www.jager.com
THE MACALLAN 1841 REPLICA
ENVY
• Luxury Fused Liqueur.
• Imported from France, Envy blends together finecognac and French vodka with natural exotic fruitjuices of passion fruit and guava.
• This beautiful blue elixir tastes sensational on itsown or mixed with champagne, cognac or vodka.
• The sleek frosted bottle and stylish NV logo recent-ly won a gold medal at the 2003 InternationalPackaging Awards in New York.
• For creative recipes and event photos, visitwww.i-envy.com
925.314.0564 [email protected]
SCORPION MEZCAL • Double distilled premium quality 100% Agave Mezcal
Spirit available in 4 varieties: Silver, Reposado, Anejo 1year and Anejo 3 year (all except Silver are aged in Oak).
• Artisan made in a single barrel bottling process inOaxaca Mexico.
• Each 750ml bottle is 80 proof, numbered with a realscorpion placed in the bottle by the master distiller.
• Awarded Spirit of the Year, Best Mezcal, by Food andWine Magazine (Dec. 2003). It drinks very smoothand is “a nicely balanced spirit with no sting at all!”
914.921.6988 www.Mezcals.com
THIS SECTION IS A PAID ADVERTISEMENT
• The Macallan Single Malt scotch is known asthe world's most precious whisky.
• Offers an aged range for all occasions, as wellas a new 1841 Replica.
• All matured exclusivley in oak sherry casksfrom Spain.
• The Macallan 1841 Replica was crafted from acareful selection of The Macallan Casks chosento faithly replicate the style of whisky from1841 and packaged in a style of that era.
Contact: Caspar MaCrae212.399.4200
DANZKA VODKA
• Superior vodka imported from Denmark.
• Unique metal bottle is perfect for the freezer!
• Available in Original, Citrus, and Grapefruit.
• Grapefruit was awarded a Double Gold for BestFlavored Vodka at the 2003 San FranciscoWorld Spirits Competition.
• Available nationwide in February 2004.
www.danzka.comContact your local
Future Brands representative for information & ordering.
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