Your First Loss is your best Loss

“Your First Loss is your best Loss – How to turn a problem into an opportunity” is our topic today. As you know I help retailers manage their craft categories. Now for most craft beer = expired stock or over stock or wrong stock. I recently started working with a new outlet on the coast. A massive store with R10m retail turnover in December 2016 (no wholesale) – imagine how difficult it is to manage the craft beers in such a busy store. The craft category is big, management knows it gives them a point of difference, but its a big problem. Most of the stock has to be kept refrigerated, expiry dates have to be monitored, some lines are dogs, so many small suppliers to work with… and the boss is on the mangers case to grow this point of difference.

My advice is you need a specialist to run with it…

Your first loss is your best loss. Sell short dated beer at a loss. Sell it for R10. It is not going to impact your GP in a R10m t/o store. But you can use it to start building a community of loyal followers. Don’t punish the suppliers or micro brewers. It is not their fault that you can’t get manage such small brands. Sell the stuff. Post it on Facebook, create a Whatsapp group for your locals and sell the stuff while its still a bargain for someone. You will be surprised how quickly word gets out.

To help my retailers I have created a little promotion which I call #PayBackTime.

This campaign rewards customers. It allows retailers to sign up new members to their loyalty program. All at very little cost.