Metrics are used in almost every industry to inform a business of progress and areas of the business that need attention. Think of metrics as small bites instead of a full meal to form a good mental picture. Measuring the metrics and studying the results on a regular basis provides a winery business plan assessment to be used to improve your business. In this article, we’ll provide an overview of the most important metrics for a winery and, where helpful, we’ll offer a few suggestions along the way.
1. Gross Sales Revenue
One of the primary ways to measure the progress of your company is found in this metric. To measure the results, total the full amount of one month’s income from sales. Subtract from the total the costs of any undeliverable or returned winery products (including products; not service). The resulting amount is your gross sales revenue.
2. Net Profit Margin
After calculating the gross sales revenue, narrow the perspective by subtracting all costs of the sales expenses from the monthly gross sales revenue. The end results will indicate the net profit margin for your company. These 2 metrics will inform you straight away whether your winery is creating profitability and, if so, how much. These are the numbers you’ll need to see every month in order to track and grow your business.
3. Retention Rate
This metric is invaluable; it tells a clear story of progress within the winery. To measure the metric, calculate the total number of customers at the end of a month and subtract the number of new customers at the end of the same month. This indicates the number of customers who returned during that month.
4. Customer Acquisition Cost
Your winery business probably pays for marketing campaigns on a regular basis. Use the monthly total of that cost and divide it by the number of new customers the winery had in that same period of time. The final measurement is the cost to acquire each customer.
5. Sales per Winery Host
Using the total monthly sales, divide it into a breakdown of the total for each host. Examine and compare the performance of each host to determine who may need encouragement or improvement and who deserves a congratulatory handshake.
Measuring metrics can help keep your winery on track toward profitability and growth. Use them often for a quick look at the performance of your company.