Pinkboots pro forma talk FINAL!
Pro forma! Successful Pro forma Cost of goods sold (COGS) Operating costs Sales Projections Cost of goods sold (COGS) Costs associated with producing one salable item Gross margin COGS to sales ratio Monthly COGS Monthly revenue WARNING Math Ahead! Calculating COGS (the math) 7BBL beer requires 365.2 Lbs. of 2 row pale malt, which sells for $28 per 50 Lbs. bag Calculating COGS (continued) 365.2 Lbs. / 50 Lbs. = 7.3 bags and will cost $204.40 (7.3 x $28.00) Calculating COGS (continued) 7 BBL will yield approximately 1116 16oz pints (assuming 10% loss to trub and leaks) Calculating COGS (continued) $204.40 per batch / 1116 pints = $0.18 per 16 ounce pint Calculating COGS (continued) Gross margin = (Retail unit price - COGS) ($3.50 pint - $0.50 COGS) = $3.00 gross profit Calculating COGS (continued) COGS to sales ratio = (COGS / sales) x 100 ($0.50 / $3.50) x 100 = 14% Calculating COGS (continued) ! Monthly COGS = (COGS x monthly sales) ($0.50 x 500 pints sold) = $250.00 Calculating COGS (continued) ! Monthly revenue = (Retail unit price x monthly sales) ($3.50 x 500 pints sold) = $1750.00 Calculating COGS (continued) ! Gross monthly profit = (Monthly revenue – Monthly COGS) ($1750.00 - $250.00) = $1500.00 Operating Costs Utilities Lease Insurance Professional services Employee wages Operating Costs (continued) Marketing Income and excise taxes Equipment maintenance & repairs Credit card service fees Shipping & delivery fees Utilities Electrical = 20-35 kWh / bbl Natural Gas = 2-3.7 Thermos / bbl Water = 6-8 bbl’s water / bbl beer produced Refrigeration = 10-20 BTU chiller capacity / bbl yearly capacity Direct Fired Brew Kettle = 25,000-30,000 BTU / bbl Cast Wort Sales Projections Guess work Soft science Will not be perfect Sales Projections (continued) Brewers Association May / June edition of New Brewer Look for local breweries with a business model and brewhouse size similar to what you want to open Talk to local breweries Don’t hesitate to ask questions Sales Projections (continued) Pints Growlers Taster trays Wholesale kegs 20% 2% 8% 70% Research Resources jvnw.com/beer/ (Per barrel estimates for utility usage) http://breweryinsuranceprogram.com/brewery-insurance/ (List of brewery specific insurance packages) cityfeet.com (Search engine for commercial properties within US) mercycorpsnw.org (Domestic small business educational resources & micro loans) https://www.score.org/resources/business-planning-financial-statementstemplate-gallery (Free templates for building financial projections & business plans)
© Copyright 2024