Strategic Costs in Breweries and Food Craft Businesses

Sorry for the boring title.

All the costs and expenses in a brewery or food craft business have value. These expenses and costs ultimately contribute to your revenue and without them your revenue may not be what it is now. This is why it is so important to view costs as strategic rather than things to reduce. The trap you can find yourself in when you go the route of cutting costs, rather than being strategic, is that your quality can suffer enough to run your customers away. Clearly that is bad for any brewery or food crafter.

This is why I like to frame it in the sense of controlling costs rather than cutting, or being a cost strategizer rather than a cost cutter. When you are controlling your costs you are strategically spending money in those areas to contribute to the overall value you provide your customer. Ultimately the thinking here is that your costs are dictated by your prices rather than your prices dictated by your costs.

Changing the point of view from viewing costs as something to constantly reduce, to being strategic about your costs can be a daunting task. If you are interested in having us help you with this, please contact us here.