Increasing Gross Profit Through Cost Reduction

When evaluating brewing systems, it is important to sharpen your pencil and look through the numbers and what impact they will have on your operation.

  • For a quick example, say John sells 700 beers per week at his brewpub. He used to buy his pints from a wholesale distributor (3 tiered system) and typically paid $1.45 for a pint of beer and sold each pint for $5.50. He therefor made $4.05 on each pint he sold. Selling 700 beers per week gave him gross profits of $2,835/week, $147,420/year. Not bad!
  • John switched to an EZBREW system.  He still sells 700 pints per week at his brewpub, however using his EZBREW System, he lowered his cost basis from $1.45 to $0.41. In this case, he is now making $5.09 on each beer he sells.  This translates to in increase to $3,563/week, $185,276/year in gross revenue.
  • His decision was a good one for several reasons.  He is able to offer his clients a unique experience with his own custom crafted, custom labeled artisan beers, he is able to differentiate himself from his competition by brewing in-house, all while increasing his gross profits by $37,856/year while selling the same volume of beer.  Good decision John!