Here’s What You’ll Discover By Watching This Video
- The Easiest & Fastest Way To Increase Your Sales – But Why So Many Owners Are Scared To Do This
- How You Can Give Yourself A Big Pay Raise, Even If 10% Of Your Customers Left You
Video Transcript
Welcome to Bar Owner TV, I’m Nick Fosberg your host. 2015 is finally here, the crazy holiday season is over, and for most bars and restaurants – January is a slower time of the year. You know what that means!
It gives us owners and operators the time we need to work ON our business and NOT in our business. Right now you should be thinking business growth. What can I do to increase sales, what can I do to get more customers in the door, and what can I do to get customers coming back more often?
Today I’m going to tell you how to give yourself a minimum of a $21,600 pay raise while losing 10% of your customers. Yes sounds crazy but stay with me. This is important for your goals in 2015.
The easiest way to increase sales and make more money is to increase prices, right? But most owners are scared to death to increase prices because they are worried these customers will leave and go to the competition. Today I’m going to help you get over that fear and help you make the money you deserve.
Think about it. When was the last time one of your beer distributors, liquor distributors, or food distributors raised their prices on you? The last 3 years in a row my vendors have raised their prices, not by a whole lot, but it adds up year after year, bottle after bottle.
Bar owners know they should raise prices, they are just worried of losing customers to the competition over it. I know this because I felt this way years back and now at both of the bars I own I’m higher then 95% of my competitors.
So lets dive into an example here. Lets say you sell on average 8,000 drinks per month, that’s 2,000 drinks a week. If you raised all your beer, wine, liquor, and pop prices by just a quarter you’d make an extra $26,000 a year.
But lets say 10% of your customers just can’t afford that extra $1 they spend on 4 drinks and they go to your competitors bar, which isn’t likely to happen. Now you’d only be serving 7,200 drinks instead of 8,000 drinks which results in a $21,600 increase in sales.
Maybe you serve food? Think about how many orders you serve a month and times that by a year. What if you added $1 to each item and .50 cents to appetizers and .10 to .15 cents for sides. What could that do to your profits.
I know you can do this math, I know I’m not telling you anything you don’t already know, but you’d be surprised how many owners I talk to on a weekly basis who tell me they haven’t raised their prices in years because they are worried about losing customers to competitors.
The truth is costs are going to go up on us every year and if you want to make the money you deserve, you’ll have to increase yours as well. That’s the nature of this business. Losing 10% of your customers is NOT going to happen over a quarter either, that’s a pretty high number, but even if you did, you’d still come out ahead and you’d be making a lot more money.
Have you ever thought what would happen if you increased your customer base by 10% and increased your prices? You know how to raise prices by .25 and now I want to give you a new industry case study I just released about how I was able to help 4 random bar owners add an average of 312 new customers to their business in 57 day or less.
