Science Archives | Sparkler City

Tap Beer

Maximizing Your Beer Profits

Posted by | Blog | No Comments

Whether you’re running a bar and grill or an upscale nightclub, beer sales are going to make up a significant amount of your total revenue. Even if you’re attempting to capture the cocktail market in a certain area, America loves their beer way too much to convince everyone to throw away their pint glass and try something new (and likely more profitable). However, there is still plenty of profit to be made on your draft beer if you put together your system correctly. There are a lot of things that affect how much money you make from a pint of beer, so being aware of all those things can make a very drastic difference.

It’s also important to note that the profit you make selling draft beer versus the profits from cans or bottles is drastically higher; sometimes as much as double! Beer manufacturers need to pay for the container, the shiny label, and labor to put that all together when they roll out cans and bottles from their brewery, but when they keg their beer instead it is a much simpler and streamlined process. This means you only are paying for the beer in the keg; not the fancy marketing or the container. This is why it’s so important to have a good tap beer program in place and to know what it takes to have customers coming back for another pint of your draft beer.

Proper Temperatures

The most important aspect of selling tap beer is that you need to keep your kegs at the proper temperature. If draft beer is too warm when it comes out of your taps, it will be flat, foamy, and unappealing to the drinker. This means that you’ll be pouring up to 40% of your beer down the drain because the pints come out too foamy, and even worse is that nobody will buy your draft beer and your poor reputation will spread throughout the community.

Proper Margins

Another important thing when trying to make more money off of your beer sales is to price things with the proper margins. Charging the right amount for each type of beer you have in stock is crucial to making profits while at the same time keeping your customers coming back for more. You can offer your draft beer at lower prices than your bottled beer and still have higher margins because the initial cost is so much cheaper. Overall, you should try to price your draft beer to have a profit margin of around 80% and your bottled beer for a profit margin of around 75% to make everything shake out in your favor at the end of the day.

The Right Selection

Lastly, one of the worst things you can do is to have a poor choice of beer selections available for purchase. This is a double-edged sword because you want to have enough variety to bring in the masses but you want to avoid beer going stale and being thrown in the trash. To accomplish this, you need to rely on your sales data. If there’s a beer that isn’t selling well, switch it out for something new or remove it from the menu all together. Your beer distributor should be helpful in this arena as well because they obviously have a vested interest in your bar selling more beer. By balancing quality, pricing, and the right selection, maximizing your beer profits can quickly become a simple science.

Bar or Nightclub

Nightclub or Bar: Which to Open?

Posted by | Blog | No Comments

If you are considering getting into the nightlife and entertainment industry, the two most logical choices that many entrepreneurs consider are nightclubs and bars. Though neither option is completely foolproof and requires a large learning curve without plenty of research and startup capital, there is actually more science involved in which route you choose than you might think. The fact of the matter is that opening a nightclub in the wrong area of town can lead to an almost instant destruction of your business, but choosing an ordinary bar instead can mean that you’re leaving barstools empty and profits on the table. There are some important things to consider when figuring out which option you should choose, and here are some of the most important ones.

What’s the Difference?

For many people who don’t have a lot of experience with the nightlife industry, the difference between a bar and a nightclub can seem subtle at best. However, there are actually tremendous differences that entirely shape the way the business is run. For instance, a bar is dependent on the concept of drinking to get people in the door while a nightclub emphasizes entertainment and sells alcohol as a consequence. That one simple fact should drastically change the marketing and appearance of the establishment you wish to operate.

Traditionally, nightclubs focus more on music and entertainment as well as the aesthetics of the environment. High end seating like plush chairs and couches are very common along with state-of-the art lighting so patrons don’t feel bad about forking out tons of cash for a simple cocktail. In a nightclub, you’re selling an experience more than just selling drinks which means every detail must be top-notch.

A bar on the other hand is all about the drinks and the food. When a typical customer goes to a bar, they’re looking for and enjoyable atmosphere that is more conducive to conversations rather than booming music and intense lighting effects. Value is typically a top priority as well with bar owners needing to focus on more volume and lower margins to bring in the lion’s share of the customers in a particular area.

The Benefits of Each

Both bars and nightclubs each have their own major benefits, and each can be very profitable is setup and run properly by a good staff. The most important factor to consider is opening the right business model for the area you’re in to capture as much revenue as humanly possible. Many people who are interested in starting a business make the mistake of building it up in a fashion that they personally like rather than letting the market dictate what they offer, but this usually ends up backfiring unless they have a really great pulse on the area and they close their doors within a few short months.

Knowing Which to Open

Deciding whether to open a bar or a nightclub should be a pure business decision motivated by the demographics in your area and your target market. If you have a lot of people ages 21 to 35 in your area that have a fair amount of income, then a nightclub could be a great addition to the market. However, you need to make sure that you have enough young people in the area with enough disposable income to make it a viable business model; as well as making sure you don’t have too much competition to capture your niche.

Bars on the other hand are usually viable in any situation provided that it meets the demographics. Usually, if you do the proper research to figure out your target audience and build a bar that is designed to cater to them specifically, you can open a successful establishment. The only thing you want to avoid is opening yet another bar in an area that is already flooded and overlooking the potential that a nightclub could offer the region.

Bottle Service Science

The Science Behind Bottle Service

Posted by | Blog | No Comments

When most owners think of offering bottle service in their club, they are thinking about really fast ways to make a quick dollar without needing to put in too much more effort from their staff. There’s nothing wrong with wanting to increase profits, but it is important to realize that there is much more science behind bottle service than one would imagine. Actually, nearly everything in a bar or nightclub is based on science rather than just personal taste, so knowing the numbers and perfecting the art is something anyone can learn with the right information handed to them. Here are some basic tips to help you get the science of bottle service right for your bar or nightclub.

What Type of Bottles

The most important element of selling more bottle service is to know what your customers want. Though you may occasionally get a request for another type of high-end liquor, most customers will be ordering vodka or champagne. This is an important piece of the science, because you want to know what to offer your customers when you approach them as potential bottle service customers. It is always best to put together a simple and effective bottle service menu to help guide your customers to the right option for their needs, not try to offer them something they don’t want to drink. Vodka mixes well with a variety of items, and champagne stands perfectly all by itself.

Promos Earn Profits

Putting together promotional packages for your high-end spirits will always help you sell more. Consider creating packages that include a full bottle of premium vodka such as Grey Goose or Belvedere coupled with a smaller bottle of liquor such as tequila that is better for taking shots. This type of package allows your guests to mix vodka drinks during their evening and have a few shooters, and you can usually work out combo deals with your liquor distributors. Don’t be afraid to discuss coupling premium vodkas and champagnes with other liquors that your distributor offers in exchange for a volume discount because this is a really great way to earn extra profits without increasing prices.

Make It a Big Deal

When you deliver your bottle service package to a customer, you want to create a massive spectacle so that everyone in the bar or nightclub notices. The science behind this is twofold; to impress the buyer by making them feel important and to sell more bottle service packages. Part of the justification of spending $500 on bottle service is the “VIP status” it indicates to everyone else in the club, and this will have a dramatic impact on the number of packages you sell in an evening.

One of the most classic ways to draw attention to bottle service is to use bottle sparklers to literally direct people’s eyes on the spectacle. Nothing turns more heads than sparks flying everywhere in a dark club, so this is the classic go-to for nearly every hotspot. However, sparklers may not be practical in some bars or nightclubs because of fire codes or local laws prohibiting their use, so another option may be LED wands that create a similar effect. There are several great options out there to draw attention to the bottles as they are being served, so research some options that work for your venue because it is one of the most crucial elements of the science behind bottle service and increasing profits.

Have a Questions or a Custom Order? Feel Free to Contact Us! Contact Us Now