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Thread: Per Barrel Bonus

  1. #1
    Join Date
    Jan 2004
    Redmond (Seattle), Wa

    Per Barrel Bonus


    Does anyone have any experience with a per barrel produced based bonus or variable compensation? I have heard anything from zero up to 7 dollars/BBL. Obviously the size of the brewery and base salary would factor in. Just looking for more data points. Thank you.

  2. #2
    Join Date
    Oct 2003
    Santa Rosa CA USA
    Many brewpub owners are stingy. I used a system like this before with the idea that an owner would be less inclined to pay what I wanted in the slow months, yet couldn't complain when I was running crazed in summer. It was far better than the evil looks on winter paydays. Even though the owner was quick with all his other bookkeeping numbers, he seemed to never have all the numbers ready at bonus/paycheck time. Perhaps a monthly bonus would be better. Quarterly or yearly bonuses less reflect how hard you work vs. how fat the check.
    You can do some math and figure out what per cent profit is normal on beverages, and what the beer costs including rent/eqpt/ingredients/mgmt, etc, to get some idea what range could be reasonable for labor.

  3. #3
    Join Date
    Mar 2003
    Gorham, Maine


    As a brewpub owner I think a better approach would be profitablility. We all know the profit margin on beer but it takes a whole lot to get it from grain to bright beer but also to get it to the customer over the bar or with a server.

    Costs are the major way for a brewer to control his/her expenses. So if you could implament a monthly beer cost program (similar to Food Cost or liquor cost) and if you are in the window than a bonus would be paid. Look at chemicals, on hand inventories, the biggest labor. Are you becoming more efficient in the brewhouse? These all play into factoring bonus. I think per barrel bonus is good for salsmen but not brewers. Our brewers would rather focus on production than sales. But I also pay their health insurance and this is an invaluable trade off. I hope I can continue to do this in the future!

    Any more feedback would be appreciated

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