Obligatory year end post?
Wishing you a safe and Happy New Year?
The marketing department thought it would be a good idea if I said a few words for this (literally) final post of 2021.
It has taken me a minute to compose my well wishes and pleasantries that are typically expected during this time of year.
My hesitation comes from the realization that… alcohol producers and well wishes are about as compatible as asking a librarian to present the keynote at SpaceX annual conference.
My intention is never to sugarcoat the reality of what is happening in the alcohol space. Every day producers are faced with insane challenges to keep their business profitable.
A few challenges that keep me on my toes:
- DTC here today, gone tomorrow
- Limits on self-distribution
- Wholesaler consolidation
It would be pointless to stew over these for much longer than 30 seconds because they are out of my control. (But it sure would be nice if producers had more flexibility over DTC…)
Let’s talk about what is in our control.
Decisions using data!
LOL… Do you know what the acronym KPI stands for?
K-P-I = Vague, bullshit ratios that make you feel good, but only temporarily.
See that, right there, right there, K-P-I…
I mean every attorney in Billings, MT has a quick ratio of 1, as should you, Jim!!!
Jesus, take the wheel.
Here at SBS we do not speak in KPI’s. Rather, we look at what numbers drive your bottom line. We call these benchmarks: Craft Producer Benchmarks.
And we have a bunch of them… 18 to be exact.
I’m gonna go one step further and say with 99.9% confidence that SBS is the only organization, in the land, with financial benchmarks tailored for craft producers.
This should not be new information; I talk about them, Derek talks about them.
What makes our 18 financial benchmarks distinctive is, they have been developed, vetted, and tested based on revenue streams.
What does this mean?
We don’t care how old you are, where you are located, or even how much you produce.
Our financial benchmarks are based on how you sell the product.
How much do you sell through wholesale channels and how much do you sell through retail channels?
The margin gap between the two sales channels is so wide that we must pay attention to this. Everyone must pay attention to this.
This breakthrough approach is the #1 way you should be looking at your business and how you stack up against the competition.
So here we are, the last day of 2021, and I’ve got mixed emotions.
Feeling grateful and blahh…
If I had to put my finger on it, I would say that this feeling of discontent is coming from the desire to want more.
Yea, I want more.
I want deeper benchmarks for our craft producer community.
What do you think? Could you use more?
To quench my thirst for more and start out 2022 with a bang, we plan to roll out 6 brand new benchmarks during Q1 of 2022.
Yea, I like that idea. It should keep me content for a bit.
Yes, this is ambitious and comes at a time of big growth for our company, but it is my belief that we must continuously go deeper into the industry we serve.
Ok, enough rant for today.
The consulting team is getting first glance of this and thinking, “holy s*it, he’s at it again.”
Happy New Year and talk next week.