Author Topic: Selling.....maybe?  (Read 4567 times)

Offline weazletoe

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Selling.....maybe?
« on: May 21, 2011, 08:50:28 PM »
Should I?There's a dude out here in Idaho, older guy than me, he could be my dad, actually....and he is pretty well off. He is pushing me hard to get a license (on hs dime) and set up to sell to resturants, etc.... He's been looking at it pretty closely, and researching. I gotta tell ya guys, it's real tempting. Of course, I'd start real small at fist. Maybe even have to give away a few kegs, from there, charge a small fee. If I get enough room to ferment, I figure I could kick out a fair amount of beer in a few days.
  Let's say 5 gal cost me 15$ to brew...I could sell that 5 gallons for 40$, I'm thinking. There's 40 pints in 5 gallons. So, if they charge 5$ a pint, that's a 160$ profit for the buyer. Pretty good investment, no?
  Am I crazy for even considering this? Should I even try? I mean, I sure have the time to do it. And, despite what I say, and all the trash talking I do of myself, I make some pretty dang good beer. Nothing vertured, nothing gained, right?

  Major? Where are you? Help a brother out here!
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Offline oscarvan

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Re: Selling.....maybe?
« Reply #1 on: May 21, 2011, 08:54:19 PM »
Figure out how much the taxman fed/state/local wants out of that profit estimate. Then your self employment tax fed/state/local plus social security medicare/medicaid. If you're then still in the mood, I'd say go for it.
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Offline weazletoe

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Re: Selling.....maybe?
« Reply #2 on: May 21, 2011, 09:04:05 PM »
Oh yeah, gotta figure that all in, for sure.
A man works hard all week, so he doesn't have to wear pants all weekend.

Offline punatic

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Re: Selling.....maybe?
« Reply #3 on: May 21, 2011, 09:07:34 PM »
Maybe you should join the BA and talk with some pros.  That's what they're there for.
There is only one success: to be able to spend your life in your own way.


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Re: Selling.....maybe?
« Reply #4 on: May 21, 2011, 09:37:07 PM »
A lot of work for not much money, but hey, if you REALLY love brewing (and working your ass off) go for it.

Offline euge

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Re: Selling.....maybe?
« Reply #5 on: May 21, 2011, 10:39:18 PM »
It has it's appeal. Weaze Keith would have the answers for you. I want to work less and have no responsibilities or commitments. So my advice would be useless. 8)
The first principle is that you must not fool yourself, and you are the easiest person to fool. -Richard P. Feynman

Offline punatic

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Re: Selling.....maybe?
« Reply #6 on: May 21, 2011, 11:58:20 PM »
Maybe you should join the BA and talk with some pros.  That's what they're there for.

I've been thinking about it as I've been running a batch of Very Old Dark Kilauea Ale and I can't resist...

All three in one:

Maybe you should join the BA and talk with some pros.  Their advice is what they're there for.   ;D
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Offline Will's Swill

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Re: Selling.....maybe?
« Reply #7 on: May 22, 2011, 08:03:35 AM »
If you take the plunge, I recommend not starting too small, or you'll have to brew around the clock to make ends meet.  I see new breweries open up with 2/3 bbl, or 1 bbl systems, and they just cannot make enough beer to stay in business.  They have to brew so much that it actually becomes work - yuk!
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Offline tubercle

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Re: Selling.....maybe?
« Reply #8 on: May 22, 2011, 10:24:32 AM »
In business there is the 2 x 1/2 rule.

 Sit down and do a business plan. Figure ALL COGS; fixed and variable over head, ingredients, taxes, license, etc.. Then figure profit to be made, gross and net.

 Then plug in the 2 x 1/2 rule.

 In the real world it will cost twice as much as you figure and you will make only 1/2 the profit calculated.

 This is a starting point.
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Offline tschmidlin

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Re: Selling.....maybe?
« Reply #9 on: May 22, 2011, 12:05:20 PM »
Is he going to pay for all of the new equipment and kegs you'll need?  Will he be the owner and you an employee?  Where does the money go and who decides?    Can you legally brew commercially in your backyard brewshed or do you need to find a new location?  Do you really want another job and everything that comes with it?
Tom Schmidlin

Offline denny

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Re: Selling.....maybe?
« Reply #10 on: May 22, 2011, 12:38:18 PM »
Is he going to pay for all of the new equipment and kegs you'll need?  Will he be the owner and you an employee?  Where does the money go and who decides?    Can you legally brew commercially in your backyard brewshed or do you need to find a new location?  Do you really want another job and everything that comes with it?

And do you really want to have to brew when and what the market demands?
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Offline punatic

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Re: Selling.....maybe?
« Reply #11 on: May 22, 2011, 01:24:05 PM »
When starting a business a lot of people will give you a lot of reasons why it won't work.  When it does work it can be very satisfying.  There's nothing like it.  Just do a lot of research and planning before you decide to commit yourself to the business.  

Two words:  Due diligence.
« Last Edit: May 22, 2011, 01:26:03 PM by punatic »
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Re: Selling.....maybe?
« Reply #12 on: May 22, 2011, 04:05:22 PM »
Weaze, you probably need at least $40-80 grand to really get off the ground. Have a vision and insist to your investor that you stick to it. Better yet, find a few guys with a little money who share your vision and take of that way. That's what I did. no investors aside from the core four owners.

Once you get started you will realize that 90 grand is really no money at all and that there is tons of bucks out there. In the words of Sly and The Family Stone - "You can make it if you try".
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Offline weazletoe

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Re: Selling.....maybe?
« Reply #13 on: May 22, 2011, 05:43:59 PM »
  So much to think about, so much research to do. All just a dream right now, but the possibility is there. I was not sure what I would be getting into, that's why I wanted to ask here. The coming weeks, you bet I will be researchuing a ton. I would really love to do tghis at home, if the laws allow. But, time will tell. We all have to have a goal, right? 8)
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Offline bluesman

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Re: Selling.....maybe?
« Reply #14 on: May 22, 2011, 05:55:07 PM »
Research...research...and more research. Make sure you have all of your ducks lined up before you take the plunge. You have my vote, but make sure you really understand what you're getting yourself into before you do it. I've started researching the business and after reading a couple of books my jaw was on the floor.  ;)

It sure does sound appealing. Be careful.
Ron Price