Where you set up a second taproom (or more) can mean adjusting prices for each location. But how do you get there?
Rachel Kesley, the National Sales Manager for Arryved, shared at the Craft Brewers Conference that geographic locations and neighborhoods are not the same and should be treated differently, even if you plan to mimic the look and feel of each location.
“Cities are not the same, there are different reaches that you’ll have,” she explained. “You really want to make sure to know your neighborhood, do your market research, be flexible, be able to change often.”
It could even come down to what sells in each place.
“You might be able to really crush through those fruited sours and barrel-aged beers — those higher price point beers, “ she explained. “In another location, you might need a wider array of offerings to make sure that everybody has something to interact with you in your space.”
READ MORE: Hiring for a Second Taproom Location
That means you need to build a budget for each current operating location.
“Your margin should be driving your price and that should be no different in this other location,” said Mel Smith, the Senior Manager of Accounting Services for Perkins & Co. “Your beers at one location might be the exact same beer but priced differently at your second location because your operating costs is different.”
Having the ability to estimate your production operating costs for each of those spaces needs to be taken into account.
“Maybe you own a building in one area, and you have rent and other significant financial situations in another,” Kelsey said. “Make sure that you know what you’re thinking you’re going to sell through a location and being able to track that and having the ability to hone in between producing too much and not enough can also factor into those pricing considerations.”
Prioritizing profit is going to allow you to not just survive, but to thrive, Smith noted. You need to work at meeting the goals you set financially and know why you are opening a second location in the first place.
“Know your margin, know your costs,” Smith said. “I know it’s kind of a crapshoot going into it because of all estimations, but know that you can alter those if you need to. But that’s the way you should start building in.”
Photo courtesy Adobe Stock
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