00:00:02,433 this is Jamie with Bar I
00:00:03,833 this is the first ever video from the why bar I series
00:00:06,800 where we address some high level questions
00:00:08,366 about why you might consider
00:00:09,900 using a sophisticated bar inventory system
00:00:11,966 like bar I at your bar so in this first one
00:00:14,833 I wanna talk about the fact that you don't magically
00:00:17,566 pour the amount of alcohol that you sell at your bar
00:00:20,366 and actually
00:00:20,800 it's probably 15% and well worth your time to fix
00:00:23,966 so every bar owner knows that because of over pouring
00:00:27,366 and forgetting to ring up drinks
00:00:28,966 and deliberately giving away free drinks for tips
00:00:31,200 they're gonna use more alcohol than what they actually
00:00:33,033 sell but what they don't often do is take the time
00:00:37,200 cause it's complicated and boring honestly
00:00:38,833 it's a lot of uh repetitive work
00:00:41,000 to figure out exactly what that number is
00:00:43,666 um we have been professionally managing and uh
00:00:46,566 measuring this level as in what you sell and pour
00:00:49,166 uh
00:00:49,400 sell versus pour at bars in the US for over 15 years
00:00:52,400 we've done it in more than 40 states
00:00:54,766 and over 30,000 times
00:00:56,200 so we have a depth of understanding on this
00:00:58,466 the reason why bars use too much
00:01:00,766 or more than what they're selling
00:01:02,266 is fairly straightforward right
00:01:03,500 we tend to free pour liquor drinks
00:01:05,600 um draft beer systems waste beer and most importantly
00:01:09,566 bartenders are paid in tips if they give you extra
00:01:13,100 a heavier pour or give you a free drink
00:01:15,100 it typically results in more pay
00:01:17,433 and so those reasons combined
00:01:19,233 mean that you tend to use more than um
00:01:21,766 what you're selling
00:01:22,700 I said we've seen variation around this
00:01:25,033 but we've literally
00:01:25,766 never seen a bar score more than 92
00:01:27,633 on a starting score
00:01:28,800 and most of them average around 85%
00:01:30,633 so they're missing
00:01:31,600 fully
00:01:31,966 15% of everything they poured is being given away
00:01:35,600 if we take the example of a modest uh
00:01:38,033 volume bar that's doing $50,000 a month in bar sales
00:01:41,500 with a 20% liquor cost
00:01:43,300 then what that implies is to get $50,000 of sales
00:01:47,233 they are spending $10,000 per month buying the product
00:01:50,366 they sell for $50,000 um
00:01:52,600 and that then if you apply that 15% loss rate
00:01:55,666 so they're spending $10,000
00:01:57,366 and 15% of that is not actually being sold
00:02:00,100 that's $1,500 a month um the 20% cost
00:02:04,600 which means you sell things for a five times markup
00:02:06,900 implies that could be valued as
00:02:08,800 $7,500 in missing revenue
00:02:11,633 we would suggest
00:02:12,700 you need to be a little bit more conservative
00:02:14,200 because you're not gonna sell every single drop
00:02:16,033 that gets forgotten or over poured at full retail
00:02:18,300 but also you
00:02:19,633 it is more expensive than simply replacing the product
00:02:22,033 so conservatively if you multiply
00:02:24,700 um
00:02:25,033 what 15% of what you spend buying alcohol is a month
00:02:28,866 by the double it
00:02:30,700 that's a good estimate of the the upside here
00:02:33,066 if you do proper down to the serving inventory
00:02:35,633 um for in my example 15 dollars in hard losses
00:02:38,833 that's $3,000 a month uh
00:02:41,033 in upside and the cost for a bar
00:02:43,166 doing that volume
00:02:44,000 for most of our clients is $500 a month
00:02:46,366 which is obviously 1/6 of the 3,000 dollar upside
00:02:50,033 meaning you could get a 6 x return
00:02:52,566 after you've paid off your setup costs
00:02:54,666 on doing down to the serving um inventory
00:02:57,300 so that's why um
00:02:58,433 we think you should stop pretending
00:03:00,566 that it's a small number
00:03:01,666 and start engaging with the fact and
00:03:03,633 and doing something about it thanks for watching
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