00:00:01,866 this is Barry's make Counting
00:00:03,633 Count video series
00:00:04,800 where we show you how you can use our
00:00:06,100 down to the serving approach
00:00:07,700 to inventory your bar
00:00:09,200 to increase bar profits by 30% on average
00:00:12,566 so in this video we're looking at how we can use
00:00:14,866 achievable cost to optimise our liquor cost
00:00:17,833 by comparing our liquor cost to where it is today
00:00:19,866 with where it should be
00:00:20,766 if we weren't missing a bunch of product
00:00:22,966 let's take a look so here at this bar
00:00:25,433 they're receiving an overall score of basically 84%
00:00:28,566 meaning that they're accounting for 84%
00:00:30,633 of what was poured in the period
00:00:32,233 and they're missing 16% in total
00:00:35,200 they're missing 15 hundred and 71 drinks
00:00:37,866 which compares slightly lower than the last period
00:00:41,000 by moving over to the financial side of things
00:00:43,666 we can see that all of those missing drinks
00:00:46,833 are costing them $1,500 at cost
00:00:49,766 the wholesale loss is over 15 dollars
00:00:52,633 and so
00:00:53,000 that gives us some context around their liquor cost
00:00:55,000 which today was measured at 23.7%
00:00:58,666 rather than comparing that to an industry standard
00:01:01,100 or a typical liquor cost
00:01:03,033 the advantage of the achievable cost shown next door
00:01:05,900 which in this case is 3.6% different
00:01:08,433 is we can compare what the liquor cost is today
00:01:11,900 with where it would have been
00:01:12,833 if we weren't missing a single drop
00:01:14,633 and the reason this is powerful
00:01:16,033 is because it bakes in all the real world
00:01:18,600 factors that affect your liquor cost
00:01:20,633 so if you sell a drink for $6
00:01:22,266 you don't receive $6 because obviously there's tax
00:01:25,800 and then various weeks to weeks
00:01:28,100 there'll be other things like comping
00:01:29,833 maybe discounting
00:01:30,966 you know wind down Wednesdays or things like that
00:01:34,800 and then of course your product mix changes
00:01:36,433 so if you sell a lot of um more expensive
00:01:39,866 higher liquor cost products your liquor cost can jump
00:01:42,033 if you have a big party
00:01:43,033 and that's buying expensive wine
00:01:44,366 it can make your liquor cost rise
00:01:46,166 but the achievable cost accounts for product mix
00:01:49,033 and discounting and all these other strenuous factors
00:01:52,000 so you can truly see where you are
00:01:54,466 against where you should be
00:01:55,566 where your menu pricing and the discounting
00:01:57,700 and things you offer is designed to be
00:01:59,433 and generally when we find
00:02:01,000 while you may never get to 100%
00:02:03,800 in terms of accountability
00:02:04,866 so you're missing nothing
00:02:05,900 if you can score 95% and cut losses to 5% of loss
00:02:10,366 you'll typically see a 1%
00:02:12,366 one full percentage point or less difference
00:02:14,633 so if this bar was to increase up to 95%
00:02:17,300 they would probably be able to shave
00:02:18,366 about 2.6% off their overall liquor cost
00:02:21,966 cut into some of these wholesale losses
00:02:24,466 and of course increase sales at the same time
00:02:26,566 because some of those over poured
00:02:28,566 and not rung up drinks would be sold at full retail
00:02:31,266 thanks for watching
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