I am attempting to project utility costs as part of a business plan for a production brewery. The numbers I have calculated seem very expensive. I am hoping you could let me know if my projections seem off the mark. My projections are based off of the information found at Sound Brewing Systems, Inc.'s website:
Electrical: 10-15 KWH/BBL
Natural gas: 1.3 therms/BBL
Water usage: 3.0-7.0 BBL per BBL of beer sold
First full year of production with 30-barrel system producing 800 barrels:
Electricity
15 kwh per barrel X 800 barrels X local rate of $1.80 per kwh = $21,600
Natural Gas
1.3 therms X 800 barrels X local rate of appox. $14.00 per 1000 cubic feet of natural gas = $1,456
Water
7 barrels H20 per barrel of beer sold X 800 barrels X local rate of $4.55 per 1000 gallons H20 = $790
GRAND TOTAL = $23,846
Tacking on the various delivery fees, it would seem I'm looking at approximately $25k in utility costs in order to produce 800 barrels of beer. That breaks down to about $2,000 in utility costs per month. I'd really appreciate it if you could confirm or pick apart my reasoning.
What worries me is that $2,000 per month in utility costs at 800 barrels per year extrapolates up to $6,250 per month in utility costs at 2,500 barrels per year. Over $6k a month in utility costs really cuts into my projections on our ability to turn a profit.
I really appreciate any information you could offer on what to expect in terms of utility costs. Thanks in advance for any help.
Cheers,
Jeff
Electrical: 10-15 KWH/BBL
Natural gas: 1.3 therms/BBL
Water usage: 3.0-7.0 BBL per BBL of beer sold
First full year of production with 30-barrel system producing 800 barrels:
Electricity
15 kwh per barrel X 800 barrels X local rate of $1.80 per kwh = $21,600
Natural Gas
1.3 therms X 800 barrels X local rate of appox. $14.00 per 1000 cubic feet of natural gas = $1,456
Water
7 barrels H20 per barrel of beer sold X 800 barrels X local rate of $4.55 per 1000 gallons H20 = $790
GRAND TOTAL = $23,846
Tacking on the various delivery fees, it would seem I'm looking at approximately $25k in utility costs in order to produce 800 barrels of beer. That breaks down to about $2,000 in utility costs per month. I'd really appreciate it if you could confirm or pick apart my reasoning.
What worries me is that $2,000 per month in utility costs at 800 barrels per year extrapolates up to $6,250 per month in utility costs at 2,500 barrels per year. Over $6k a month in utility costs really cuts into my projections on our ability to turn a profit.
I really appreciate any information you could offer on what to expect in terms of utility costs. Thanks in advance for any help.
Cheers,
Jeff
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