Author Topic: anyone by chance  (Read 9749 times)

Offline bluesman

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Re: anyone by chance
« Reply #45 on: February 02, 2010, 10:51:11 AM »
Congratulations to you and your wife on your anniversary, Denny!!

+1

Wow...30 years!

That's great.

Congrats.
Ron Price

Offline a10t2

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Re: anyone by chance
« Reply #46 on: February 02, 2010, 12:39:10 PM »
Kansas has the three tier distribution system. This is a huge turnoff. I can't imagine how much is lost in paying the middleman.

If the brewery can make 10% on bottled beer, they're doing very well. (I don't know anything about KS' system, but I bet that still applies.)
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Offline beerocd

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Re: anyone by chance
« Reply #47 on: February 02, 2010, 12:49:27 PM »

If the brewery can make 10% on bottled beer, they're doing very well. (I don't know anything about KS' system, but I bet that still applies.)

You lost me on that number. Ten percent of (wholesale or retail) price is all that goes to the brewery? Or ten percent is NET profit? Just not sure exactly what was trying to be said there.
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Offline dhacker

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Re: anyone by chance
« Reply #48 on: February 02, 2010, 12:56:21 PM »
Way to go Denny on the 30 years! . . My wife and I will celebrate 30 in October as well.

Apparently, brewers are better lovers!  ;D
Just brew it...

Offline Thirsty_Monk

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Re: anyone by chance
« Reply #49 on: February 02, 2010, 01:32:07 PM »
OK, I'll come a little more clean. We are starting with 25K (not counting lease) - and it isn't enough. Our business plan doesn't even have us breaking even for the first 6 months. It's a lot of money and a very scary venture. It's also a blast!
Good luck to you.
I am sure you know it but you might be a little under capitalized.

Once I did the math and the amount of beer I would have to make/sell (as a production brewery) was significant.
7barrel is not enough.
General consensus was if you have production brewery you need at least 20 barrel system.
To turn the profit you need to make 3,000 barrels/year.
And what is the most expensive is your tank space and cooperage.
Then you will think twice about converted kegs.
One more thing that gets overlooked is water usage, waste water, and amount of energy you need to make a beer.

I am on your team and holding my fingers crossed for you.
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Offline a10t2

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Re: anyone by chance
« Reply #50 on: February 02, 2010, 01:55:20 PM »
If the brewery can make 10% on bottled beer, they're doing very well. (I don't know anything about KS' system, but I bet that still applies.)
You lost me on that number. Ten percent of (wholesale or retail) price is all that goes to the brewery? Or ten percent is NET profit? Just not sure exactly what was trying to be said there.

10% profit on the beer. The brewery is generally getting somewhere between a third and half of the cost of the six-pack, of which at most 10% (3-5% of the retail cost) is their profit margin.
Beer is like porn. You can buy it, but it's more fun to make your own.
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Offline majorvices

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Re: anyone by chance
« Reply #51 on: February 02, 2010, 02:02:08 PM »
I am sure you know it but you might be a little under capitalized.

A little under capitalized? You gotta be kidding. That's major under capitalized.  ;) However, I if you did the math on a 7bbl system and you came up short you did your numbers wrong. Not saying it is enough to get rich on but you can break even much smaller than this. I have friends in the brewing industry who are making a profit on a 7bbl system.

I don't have a 7bbl system - not even close. But hope to within a year. I do have a system that is capable of running over 2bbl at a time. That's the crazy part.
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Offline NorthernIke

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Re: anyone by chance
« Reply #52 on: February 02, 2010, 02:08:59 PM »
Where does the $100 profit per barrel number come from?  That make a lot of assumptions around cost of goods sold—and price of goods sold—doesn't it?  I can't imagine this would be a stagnant number, but much more dynamic based on the individual business conditions.

Offline majorvices

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Re: anyone by chance
« Reply #53 on: February 02, 2010, 02:29:24 PM »
Where does the $100 profit per barrel number come from?  That make a lot of assumptions around cost of goods sold—and price of goods sold—doesn't it?  I can't imagine this would be a stagnant number, but much more dynamic based on the individual business conditions.

LOL! You guys crack me up. I guess I should have checked with the forum first before I made business plans.  ;D Actually ... I'm just making this stuff up. Haven't been researching it for over 6 months... I'm just making "assumptions"....    ::)  ;) Seriously, I have met with the local distributor, have talked to local brewers - have even seen the sales numbers for several local breweries and what they sell their kegs for. I have a pretty solid idea what they make off a bbl of beer and what our resources are going to be. The hundred bucks is a round figure I'm throwing out for you guys - there's no need to go into it in detail. Let's just say for the amount of time involved it is not a lot of money. I'm pretty crazy to be doing this - but I'm not totally unprepared.
« Last Edit: February 02, 2010, 03:02:42 PM by majorvices »
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Offline beerocd

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Re: anyone by chance
« Reply #54 on: February 02, 2010, 03:48:25 PM »
How about we build a Public Domain business plan? You know like the legal forms you can buy at Staples or Office Max.
There's engineers, accountants, a couple of brewers, probably one or two guys who talk good and can write stuff gooder than the rest of us. Disagreements can be settled with a poll. Then everyone can open a brewery.
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Offline NorthernIke

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Re: anyone by chance
« Reply #55 on: February 02, 2010, 04:44:12 PM »
Where does the $100 profit per barrel number come from?  That make a lot of assumptions around cost of goods sold—and price of goods sold—doesn't it?  I can't imagine this would be a stagnant number, but much more dynamic based on the individual business conditions.

LOL! You guys crack me up. I guess I should have checked with the forum first before I made business plans.  ;D Actually ... I'm just making this stuff up. Haven't been researching it for over 6 months... I'm just making "assumptions"....    ::)  ;) Seriously, I have met with the local distributor, have talked to local brewers - have even seen the sales numbers for several local breweries and what they sell their kegs for. I have a pretty solid idea what they make off a bbl of beer and what our resources are going to be. The hundred bucks is a round figure I'm throwing out for you guys - there's no need to go into it in detail. Let's just say for the amount of time involved it is not a lot of money. I'm pretty crazy to be doing this - but I'm not totally unprepared.

Wow. Just curious. Thought this was a discussion board...

Offline majorvices

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Re: anyone by chance
« Reply #56 on: February 02, 2010, 05:20:58 PM »
Apologies if I came off too strong. Just sayin' - I've worked my ass off on this thing and ... yeah .... it's a little scary. But I do have an idea what I am talking about and I just think it is funny that someone would second guess that I am simply making assumptions. To a certain extend though, everything is an assumption until you jump into it - sure.
Keith Y.
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Offline roffenburger

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Re: anyone by chance
« Reply #57 on: February 02, 2010, 05:56:47 PM »
I wish you luck, Major! So is the reason for "quitting" your job? Do you have a name for the company yet?
Travis R.

Offline majorvices

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Re: anyone by chance
« Reply #58 on: February 02, 2010, 06:48:00 PM »
I wish you luck, Major! So is the reason for "quitting" your job? Do you have a name for the company yet?
Thanks Roff - my job situation set me up for this. I have a name and will unveil all soon. We are really close.

Quote
Where does the $100 profit per barrel number come from?  That make a lot of assumptions around cost of goods sold—and price of goods sold—doesn't it?  I can't imagine this would be a stagnant number, but much more dynamic based on the individual business conditions.


I agree. Numbers can be run under many scenarios, so to say one profit level applies to all cases, just isn't so..

Obviously I was just giving a white wash answer. I'm not required, nor do I feel compelled to provide all the details. For the beers we plan to start out with we are expecting about 100 bucks per bbl. No where near enough, unfortunately. You may consider my "100 bucks per bbl" quote for illustration purposes only. Obviously YMMV. I do, however, appreciate all the insight.
« Last Edit: February 02, 2010, 06:50:35 PM by majorvices »
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Offline bluesman

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Re: anyone by chance
« Reply #59 on: February 02, 2010, 07:00:36 PM »
I knew you were going for it.  ;)
Ron Price