Its that time of year when we find time to check our business costs, new prices will be in effect from Monday 21st January. As a business we need to balance what comes in with what goes out and we haven’t changed our prices since January 2017 (We held back during 2018) as we only factored in Malt & Hop prices, this week we have looked at all our costs and are in the process of updating our beer prices to reflect what things cost us.
When we started this business back in 2015 we set our prices with what costs we knew at the time, now its 2019 and we have had over 3 years of trading we know our costings a little better.
Our Fixed costs include: (These total at least £832 per Brew (110 Brews in 2018) = £91’520 per year)
- Business Rates
- Insurance Rent & Service Charges from our Landlord
- Brewery Insurance
- Water & Trade Effluent
- Phone & Internet
- Plus any other odds and ends that help you run an office and brewery
- Beer Duty *Lots!!*
- Ingredient Costs (malt, hops, yeast etc) (We spent at least £50’000 on Malt & Hops)
- Delivery + Pumpclip (I’m not even looking at the full delivery costs at this stage but a Pumpclip costs about £1) We could probably add a minimum of £10’000 to our Fixed costs for Running the Van, I’ll look into this another week, for the moment we factor in £2.70 for Delivery & Pumpclip for each cask. *Don’t ask about the amount of Van Windscreens we have gone through… its about 5 in a year!!!*
The long and the short of all this is that we are going to re-balance our beer prices, as a rule of thumb beers will be going up approx £2 per Firkin, some beers will stay at the same price, and there are some beers that will drop in price too. Keykeg prices will be the same as Firkin prices so if a 40 Litre Firkin costs £80 then a 30 Litre Keykeg will also be £80.
We hope our customers can appreciate where these small price increases / alterations have come from and reflect these changes to your customers as you check your own business costs.
Cheers 🙂 Who’s idea was it to start a brewery anyway!!!!