Day 317 – Is There a Minimum Sales Volume?

My first answer is maybe. It really comes down to a cost benefit analysis. The industry average for losses is 20%, due to over pouring, theft etc. Just as an example, if you were to have sales of $1000 per week, the bar owner would experience losses of $200 per week (on average). If you charged $200 per audit each week and were able to eliminate the losses then the bar would break even, which might not be much of an advantage (however, we do provide several other value add services beyond reducing losses). So some would say that would be the minimum, however, if the bar has only 2 beers on tap, 4 brands of bottled beer and just rail liquor, then you can look at other pricing options to make the service more cost effective. Because the sales volume is low, the on-hand stock is low, you could likely audit every 2 weeks or maybe monthly. With such a small bar the audit price could also be lowered because your audit time will also be significantly lower. If the bar is on route to another client, this could also make it more financially viable for you. There will be instances where it just doesn’t make financial sense, but just some things to consider when prospecting for new clients.