NOT ALL BUCKETS ARE CREATED EQUAL......

So we are coming into the fall, football season, a great time of the year in the bar business for increased revenue-sales right ? NOT ALWAYS.....

Putting together your game day promos requires some thought not just scribble them down and throw them on Facebook and Instagram. You need to ask yourself what are your real objectives and what is the opportunity cost?

The Beer Bucket price point has to be enticing to the customer but the margins have to be right and that doesn't happen with all mixed buckets.

Say that you post on social media your domestic bucket beer special 5 for $15. The cost of the beers in that bucket must be close if not the same regardless of the brand.

Domestic beer buckets are not all created the same by price point. For example a Michelob Ultra is a specialty beer with a higher cost than Bud Light, Miller Lt., Coors Lt. you must examine the pour cost of mixing domestic and domestic premium beers into one sale.

The Bud, Miller, Coors are roughly $0.95 each cost but the Mic Ultra is $1.12 which is a $0.17 difference per beer. The pour cost of a Bud, Coors, Miller bucket at 5 beers/$15 srp is 31.6% pour cost. Same bucket at 5 beers with Mic Ultra 5 beers/$15 pour cost is 37.4%.

It is fine to do this to drive sales and put butts in the seats but you have to weigh the cost of the opportunity and decide if giving up that profit margin makes sense, is the volume going to overcome the loss in revenue per item?