The Relationship Between Loss and Real Cost in Beverage Production

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In an ideal situation for people that work in the beverage industry is, the number of products sold in a fixed period and the number of products used at the same time would be correctly linked. However, no product can be as profitable as you think.

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In fact, every time there should be a case of theft, dumping and breakdown. This difference (also known as loss or contraction) is one of the biggest factors affecting the profitability of beverage plans.

Since losses directly increase your flow costs, you should consider the expected price reduction to create a buffer.

If the calculation is based on the industry average, the shrinking rate will be around 20%. This means that in order for you to reach 20% of the industry average dumping cost, you should plan an average dumping cost of 16.66% of the cost of the beverage plan to meet the expected difference.

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As an example

Suppose you set up a new brewing company, and each beer costs 00 1.00. In an ideal world, we could sell beer for $ 5.00 each to save 20% on costs and 80% on profits. However, if we want this method to work in the real world, then we need to consider changes.

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Based on industry differences, we must assume that we will lose one of the five beers we buy. This means we will spend 00 5.00 for 5 glasses of beer, but only sell 4 glass beers for $ 20.00, so our total profit is $ 15.00 or 67%. To compensate for this expected loss, we should increase the price of beer by 20 ((in this case, 1.00.)) To ensure that the flow costs 20% of the cost and 80% of the profit.

Although this is a prime example, please keep in mind that our average return fee is 16.67% of the average, which means that setting the price of all drinks accurately to 16.67% may not work.

Associated sales prices

In order to determine the best average infusion, cost for each category, we must associate your company's sales with different product categories.

Also, just because the industry is on average 20-20 is a loss, doesn't mean your law firm is the same. Specifically, you can calculate the difference between individual bar products.

If your bar loses less than the average loss, you can lower the cost of the drink and keep up to 20% of the cost of alcohol. This will benefit you in the competition.

Bottle filling machine manufacturers have modernized and new-age machines are getting better by the day. The industry is shifting and improving by the day. Soda is being replaced by many different types of beverages and this trend will get better by the year.