LIMIT LOSSES IN YOUR BOTTLE SERVICE AREAS
Most of what I write is geared toward the retailer. That’s where my experience is and it’s where I think I can help the most amount of honest, hardworking people. A huge business that I often overlook is the bard and nightclub industry. While these aren’t my particular cups of tea, the potential for losses here are far higher than your average retail store. Bottle Service, especially, can make a club thousands of dollars per week. Transversely, if abused, they can single handedly shut a bar down.
We all know the pros of a good bottle service. A dedicated VIP area for your high paying clients, where they can truly be treated like royalty. This service of course, comes at a hefty price if you’re willing to pony up for the experience. Selling alcohol by the bottle can see your profits soar to nearly 1000% on a single bottle. A poorly trained bartender can cost you that profit and then some.
Like any high priced item in a retail store, high priced liquor should be protected. If I owned a bar, I would have all top shelf product secured with a bottle lock. This would prevent the booze from walking out with a dishonest patron or employee. Now obviously, this would be on the backstock and not the liquor on the bar. How long would it take for a round of shots if the bartender had to keep taking off a bottle lock before each pour?
As far as the bottle service areas and VIP section, there should be certain rules to follow to limit loses. First and foremost, accept payment first. It’s the same reason you have to pay for fuel first. Also, there have been plenty of stories where credit card companies will deny the high charge, and unless your customer has a few hundred bucks in cash, you could end up waiting days on payment. I actually read a news article on this just a few days ago.
On that instance, a patron was entertaining a few clients at a local bar. They were enjoying the bottle service offered by the club and at the end of the night, the bar ran his credit card. His bank initially declined the $1,000 charge as potentially fraud. Before the patron could make things right, he was hauled off to jail for felony theft. Now this patron has a record he has to work to clear and this club will undoubtedly gain some negative attention. This could’ve been prevented if the club would’ve ran the card PRIOR to beginning the service.
If you own or manage your own bar, you know just how profitable alcohol can be. There really isn’t an item in a retail store that comes close to the level of profitability that a single bottle of top shelf alcohol has. So it’s only natural that you take some common sense steps to prevent losses in your bar. Whether it be a few “best practices” with your VIPs, or a few bottle locks to prevent theft, making a few simple changes can bolster your profits tenfold.
For more information Bottle Service, contact us or call 1.770.426.0547