Announcement

Collapse
No announcement yet.

Sales Cannibal?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Sales Cannibal?

    I doubt this is a unique post so please just point me to any threads that may exist on the topic if they are out there.

    I've got an interesting debate brewing here. We operate a new brewpub and also distribute beer in draft form to bolster our startup revenue stream.

    The central question is how much, if any, of our brewpub sales are being hurt by an ability to walk into a corner bar elsewhere and buy our beer - vs. heading to our brewpub to make the purchase.

    This isn't a critical issue but as I'm sure there are many of you out there that have been operating in such a fashion for much longer than we have - I decided to seek other opinions.

    Personally, I see us in support of other concepts when we distribute our beer and while we contribute to the depth of their offerings, I don't feel that we're hurting ourslelves to be on tap around town.

    As we're new, we have no data baseline to be able to determine if there is any net effect - other than positive.

    Thoughts?

    Paul Kavulak
    Owner/Brewer
    Nebraska Brewing Company

  • #2
    Usp

    I personally think that the beer being offered in a brewpub is their USP. Don't forget that a BP is basically a restaurant with a brewery attached, not the other way around.

    My suggestion: concentrate your time/effort/money on things in YOUR outlet.

    And BTW: don't expect your competition to support your cause by putting your beer on tap.
    Last edited by einhorn; 04-29-2008, 03:49 PM.

    Comment


    • #3
      I have to agree with Einhorn here - focus on your own retail outlet first. I don't think that "cannibal sales" should really have much impact. The bigger problem will be having difficulties getting your product into other retail establishments because you also operate one. If that indeed becomes a problem, be willing to travel further away to distribute kegs to retailers. Sometimes a little distance goes along way towards reducing the feelings of competition.

      Your own pub/tap room is the best place to market your beer to consumers. After you have a following, it will be easier to "pull" your beer through the distribution/retail chain versus trying to "push" it through.

      My brother lives in Papillion, next time I'm there for a visit, we'll stop in for a beer!

      Comment


      • #4
        Additional Info

        Thanks for the insight guys - and Beersmith - let me know when you're heading my way and I'll be sure to be there as well. Not many people have even heard of Papillion!

        Anyway - I probably should have provided additional info when I posted. We've been up and running about 5.5 months now - and we have roughly 50 outside accounts on the draft distribution side. To some extent, we're doing fairly well on the outside. The debate seems to be the question of whether this outside sales activity is denting our internal revenue stream - I don't believe so but that's why I tossed it out for discussion.

        I agree with you guys - the financial model is absolutely focused on inside sales but as we're still attempting to gain some brand awareness, the outside channel appears to be helping.

        Startups take on interesting tangents to help the bottom line initially and at some point, an option would be to shift our focus elsewhere but I was thinking we're probably not all that unique in this initial approach - I have to believe we've got other folks out there that have been there and done that.

        Thanks again guys - I appreciate it.

        Comment


        • #5
          My take is that ANY sales is good sales, and if you're selling beer through other places, that's great.

          Your beer is certainly a draw for you, but nowhere near as much as the total experience a customer has in your place. Folks don't say "let's go down to Tarmadilo's because that's where we can get Tarmadilos beer", they say "let's go down to Tarmadilo's because that place is always a good time, they have the best jukebox in town, and their green chili ROCKS, oh, and yeah, the beer is great!".

          Actually, since I don't have a brewpub, they don't say any of the above, but I was being hypothetical!

          I assume, also, that you offer one beer in kegs for outside accounts, and several different beers in your place, right? That just makes that one beer a good advertisement for your brewing, and the curious will seek out your place to see what else you're doing. It's all upside, from what I can see!

          Cheers, Tim

          Comment

          Working...
          X