How can your business save money in 2020 and increase your annual revenue? With price inflation always on the rise, it’s getting harder and harder for businesses large and small to keep their profits up and gather new customers. January is an opportune time to review how your business is spending money and evaluate ways you can avoid unnecessary profit loss.
If wine sales, particularly wine-by-the-glass (WBTG) sales, are a significant part of your business operation, our handy profit calculator is a MUST to show you how much revenue your business might be losing. You’ll also see how much you can save, and how much you can recapture annually using the WineStation’s preservation feature and its perfect pour functionality.
Enter your company’s numbers into the calculator and ask yourself the following three questions…
What’s in your Glass?
With every bit of good news, there is always a little bad news. The bad news is after a 25-year steady rise in U.S. wine consumption that growth plateaued to only 1.2% in 2018 and 2019. The older generations are drinking less wine due to new health trends that recommend drinking less alcohol, and the increasing legalization of cannabis is attracting the younger folks. The good news is, even if the volume of wine sold has leveled out, the dollar value spent on wine in 2018-2019 grew at a rate of 3.7%, suggesting that even if consumers aren’t buying as much wine as they used to, when they do they’re leaning towards more upscale, premium wine selections.
What do these numbers mean for business owners? It’s no secret that Millennials aren’t known for their wine consumption. When the hipster generation goes out to drink, they tend to lean towards craft beer and artisanal cocktails rather than wines-by-the-glass. With the rising student loan debt and job opportunities consisting mostly of unpaid internships, younger consumers are much more frugal with their spending than Gen X or Baby Boomers were at their prime drinking age. Meaning, if you want a Millennial to spend their money, you have to prove to them that what you’re selling is worth the price.
How Does The WineStation Save?
With consumers tightening their belts in this economy, every ounce of wine poured counts! It’s up to business owners to find new ways to save money and increase their customer base. This is where the WineStation can make all the difference, and we’ve got the numbers to prove it!
The WineStation from Napa Technology has a 60-day preservation feature that allows businesses to eliminate risk in opening premium bottles of wine without worrying about spills, over-pours, or spoilage. With 3 clean-dispensing pour options (ranging from .25 – 9oz), customers have the opportunity of tasting the higher end wines before committing to purchasing a half or a full glass (or a whole bottle!). According to the profit calculator, for the increasing number of customers who care more about quality over quantity, this can mean up to $452 of additional monthly revenue for the average bar- just by swapping in a more luxury wine.
How much can the WineStation really save in the long run? We did our own experiment, and according to the profit calculator, if a restaurant is open at least 26 days a month, selling an average of 58 glasses of wine per day at $13 a glass, the restaurant will see a monthly revenue of $19,604 in wine sales alone. That’s a fantastic profit, but remember in most establishments that sell wine regularly lose 15-20% of wine revenue every month due to product spoilage and over pouring. That monthly amount wasted comes out to $3,921, equaling roughly $47,050 of annual lost revenue.
Even if your business doesn’t sell high-end wine, according to the profit calculator, low-cost wines going for $9/glass will still see a loss of $31,320 a year, and more high-end wine bars selling as much as $15/glass are reaching $55,680 in lost revenue. Depending on your business location, the average amount of wine revenue lost every year could equal the amount of an average U.S. salary. Can your business afford to lose one person’s salary every year?
What Can You Save in 2020?
The phrase “you have to spend money to make money” might be an old saying, but when it comes to deciding whether or not to purchase the WineStation, the numbers prove it will increase your profits. As your business can open and serve more premium bottles of wine, the more you can expect to expand your wine-by-the-glass prices and offerings. If frugal spenders have the option to taste premium wine before committing to a purchase, they’re more likely to splurge on high-end wines-by-the-glass. Plus, since the WineStation pours a perfect glass every time, you eliminate waste and increase savings for your business. According to the profit calculator, for a restaurant that sells luxury wine at $20 per glass of wine, your business could recapture up to $6,032 of lost revenue each month, coming to a grand total of $72,384 in savings for the year. Within a single month, your WineStation could pay for itself in recovered revenue.
Imagine what you can use those savings for if your establishment had the WineStation. For a mid-sized business, that’s roughly $31,000-$72,000 in savings each year.
Conclusion
Excellent service and quality ingredients are essential to running a successful bar or restaurant. What’s also beneficial, but sometimes forgotten, is the need for efficiency and control over your inventory. It’s difficult to expand if you’re always playing catch-up against lost revenue. The WineStation is a straightforward way you can recover your money and open your business up to bigger and better opportunities in 2020.
If you’re wondering if the WineStation could improve your company’s profits, type in your own WBTG program information here and let the numbers speak for themselves.
Cheers!