Calculated COGS for each product line. We started by determining the true cost of goods sold (COGS) for every product, calculating the total cost to brew and package each type of brew (Amber, Blonde, Hefeweizen, etc.) and size (case of 12 oz. bottles, 15.5 gallon kegs, etc.) sold. The COGS incorporated all the raw material costs (grains, hops, yeast, etc.), as well as personnel and packaging costs.
Determined employee utilization rates. Comparing the total cost of each employee to the hours worked that were actually billable to the company’s clients (i.e., revenue generated), allowed us to determine the profitability of each employee. Using this information, the company was able to easily identify employees that were under-utilized, or not profitable.
Know your profit margins by individual product line–not just overall company revenues–in order to:
The Persuader Version 2.4