LHBS Inventory

[CodeSection]

@Tony_nc and @Wayne1, I thought you might enjoy one of my neighbors stopping by at 3:56AM this morning outside my walkout basement...

https://ring.com/share/6734251876804743336

 

[Tony_nc]

Wow, I live in the country and see plenty of things. I haven't caught anything on the cameras that big.

 

[Wayne1]

We have had reports of a Momma bear and cub in our neighborhood (Ken Caryl)

 

[CodeSection]

We had a much smaller bear earlier in the spring. This one I'm guessing is a male since it is so large. KC NR here...

 

[Tbagger]

What an interesting idea of the virtual sack. Do customers pay up front or as they go for the punch card?

From what he said, you go in and pay up front for a virtual 55lb sack (or whatever size sack that particular grain comes in) of a specific grain at bulk price, and then you can come in and use said amount in small increments as you need it for batches.

 

[dwhite60]

LHBS charges $8.00 shipping on any order over $25.00. This is a great service as it is cheaper than the drive and the time. So, I am supporting a local shop, saving money, and getting my stuff next day. I usually buy grain twenty pounds at a time so this makes the minimum. Still paying pound prices but for the service it's worth it.

All the Best,
D. White

 

[CodeSection]

Wow, I live in the country and see plenty of things. I haven't caught anything on the cameras that big.

Well, we have been having bears come by practically every other night. Our neighbors have crab-apple trees and a regular apple tree that attracts them. They take a short cut through our yard when they go from one house to the other. Here is a video taken at about 1:30AM today and it is the largest one yet.

https://ring.com/share/6739406340071116968

Back to the original topic. It has been a couple of weeks. Any progress?

 

[mistertinkle]

Just found this thread today. I'll definitely follow this progress. I'm in SW Littleton. It was sad to see a couple LHBS close earlier this year.

Ideally I would like to see selections from local maltsters and yeast shops, and hops in the .5 and 1lb packaging sizes.

Good luck!

Edit: I'm a bozo! I just realized you are in Denver, NC. Too far for me for a Local HBS. Good luck!

 

[VirginiaHops1]

From what he said, you go in and pay up front for a virtual 55lb sack (or whatever size sack that particular grain comes in) of a specific grain at bulk price, and then you can come in and use said amount in small increments as you need it for batches.

Yeah, I would think customers would have to pay for it all upfront or else what's the benefit to the LHBS to bother doing it.

 

[CodeSection]

Yeah, I would think customers would have to pay for it all upfront or else what's the benefit to the LHBS to bother doing it.

Actually, the LHBS could just as easily charge normal pricing on say the first 40 lbs and then adjust the pricing on the remaining 15 lbs. That way, they receive and benefit with full retail pricing in case someone did not want to go through with buying all 55lbs.

However, it is easier for the LHBS to probably take the discounted money up front and keep track of the account and amounts used. Either way, there is extra bookkeeping to perform. In essence under the "pay up front virtual" plan, the LHBS is acting like a storage facility. This may be a good thing since the inventory is probably turning over at a faster pace at the LHBS as compared with the home brewer.

 

[VirginiaHops1]

Actually, the LHBS could just as easily charge normal pricing on say the first 40 lbs and then adjust the pricing on the remaining 15 lbs. That way, they receive and benefit with full retail pricing in case someone did not want to go through with buying all 55lbs.

However, it is easier for the LHBS to probably take the discounted money up front and keep track of the account and amounts used. Either way, there is extra bookkeeping to perform. In essence under the "pay up front virtual" plan, the LHBS is acting like a storage facility. This may be a good thing since the inventory is probably turning over at a faster pace at the LHBS as compared with the home brewer.

The LHBS could do that, but again what's the benefit to them? If they're going to do the customer a big favor by basically storing their grain they would make the customer pony up the money upfront. Of course they wouldn't have to, but I'd bet most stores running that program would. I surely would

 

[Blazinlow86]

Fwiw one of the lhbs here sells full sacks at the normal bulk pricing in advance and then stores them free of charge. Cheers

 

[CodeSection]

The LHBS could do that, but again what's the benefit to them? If they're going to do the customer a big favor by basically storing their grain they would make the customer pony up the money upfront. Of course they wouldn't have to, but I'd bet most stores running that program would. I surely would

I'm not sure the point or points you are trying to make. Obviously, any type of program where the LHBS has a "virtual bulk sale program" regardless how it is accounted for, involves the LHBS storing the grain.

In regards to the LHBS protecting themselves, they can collect their money either all at a discounted price upfront or some fraction like full retail pricing on the first 75% or whatever percentage or figure they feel is necessary. By not requiring the full payment upfront on the 55lbs, some customers may benefit that otherwise would be prohibited from participating. Either way or combination thereof, the LHBS is protected from individuals that may not fulfill their intentions of buying 55lbs. It is that simple...and each LHBS can decide what works best for them and their clientele.

Anytime a business can provide value and great service, is a good thing. You know...goodwill.

 

[mashpaddled]

The benefit to your LHBS to store your bulk grain for you is that you keep coming back to the shop. The more you come to the store the more likely you are to buy something from them when you are there. If you are in the shop or know you have to go to the shop for grain you are more likely to order your hops and yeast at the same time versus another shop or online. You are also more likely to make impulse purchases. Comparably if you buy a full sack and take it home then who knows when you might come back. People who buy bulk tend to shop the best deals and buy infrequently. This turns infrequent and potentially single purchase customers into repeat customers.

Taking your money up front helps them out but regardless of when they charge you they are not really keeping a bag in the back just for you. They are selling you increments out of their general supply at bulk prices. The minor cost of maintaining a spreadsheet with your name and remaining inventory is far, far less than the financial value of your repeat business opportunities.

 

[VirginiaHops1]

Anytime a business can provide value and great service, is a good thing. You know...goodwill.

Storing grain for a customer at bulk price is providing value e.g........goodwill. If they don't want to collect the money upfront good for them but they certainly could and they'd still be doing the customer a favor. And depending on their cash flow situation they may NEED to. So maybe some don't do it that way but I'll bet a lot do. The point is pretty clear and simple but I don't really care to argue about it.

 

[CodeSection]

...The point is pretty clear and simple but I don't really care to argue about it.

But you just did....lol

 

[bucketnative]

Fwiw one of the lhbs here sells full sacks at the normal bulk pricing in advance and then stores them free of charge. Cheers

One the LHBS in Philly sells "virtual grain sacks." Basically, you pre-buy 55 lbs of base malt at the discounted sack price, but the LHBS would just take it out of their inventory for you when you needed it; rather than holding an actual sack with your name on it. The other cool thing about it was that the "virtual sack: was not limited to one grain type; if you bought the virtual premium sack you could get any of the premium base malts (Weyermann Floor Malted, Chateau Belgian Pils, Maris Otter, etc...) versus the cheaper virtual domestic sack. For a city like Philly, where space in a small row home/apartment is at a premium, it worked well for me.

 

[kh54s10]

One the LHBS in Philly sells "virtual grain sacks." Basically, you pre-buy 55 lbs of base malt at the discounted sack price, but the LHBS would just take it out of their inventory for you when you needed it; rather than holding an actual sack with your name on it.

I would expect that most if not all LHBSs that have a grain buy program like this do not store multiple open sacks for individual buyers. That would require too much storage space. Lengthy time for the use would allow the grain to go stale, or loss if never finished. Neither would be a good service to the customer.

If I was the LHBS, it would be discounted price up front for the 50 or 55 pounds. Trying to keep track and get paid each time would be to cumbersome. That would be more like just discounting for all.

I might add an additional discount once a customer goes through x number of virtual bags.

 

[Tony_nc]

Just found this thread today. I'll definitely follow this progress. I'm in SW Littleton. It was sad to see a couple LHBS close earlier this year.

Ideally I would like to see selections from local maltsters and yeast shops, and hops in the .5 and 1lb packaging sizes.

Good luck!

Edit: I'm a bozo! I just realized you are in Denver, NC. Too far for me for a Local HBS. Good luck!

I totally understand mistertinkle,
We have a Littleton in NC also.
The quality of products and customer service may have you thinking different. Maybe check out the website when it goes live and decide then.

By the way its only a mere 24 hour drive or so. Home before the weekend is over lol

 

[CodeSection]

I totally understand mistertinkle,
We have a Littleton in NC also.
The quality of products and customer service may have you thinking different. Maybe check out the website when it goes live and decide then.

By the way its only a mere 24 hour drive or so. Home before the weekend is over lol

I made the same. Here I thought a 14-15 hour drive from AZ to CO in one day was long....

 

[Tony_nc]

Fun fact:
Up until about 1873 we were known as Dry Pond not Denver. With all the expansion going on in Colorado they decided to change the name to Denver in hopes that it would bring new growth to the area.

 

[CascadesBrewer]

The other cool thing about it was that the "virtual sack: was not limited to one grain type; if you bought the virtual premium sack you could get any of the premium base malts (Weyermann Floor Malted, Chateau Belgian Pils, Maris Otter, etc...) versus the cheaper virtual domestic sack.

That is actually a pretty cool feature. I have been trying to figure out a strategy for having multiple base grains, without having to have 3 or 4 large sacks of grain around. I have a few shops that I can drive to and the options are 50/55 lb bags, per lb for over $2/lb, or a limited supply of grains in 10 lb bags.

 

[mashpaddled]

Fun fact:
Up until about 1873 we were known as Dry Pond not Denver. With all the expansion going on in Colorado they decided to change the name to Denver in hopes that it would bring new growth to the area.

This was not a fun fact

 

[Tony_nc]

OK so things are going along well. Ive enjoyed the critique from ever one especially CodeSection, positive and negative. We are shooting for the beginning of 2020. There are many things you have to think about but a good location might be the toughest.

 

[CodeSection]

OK so things are going along well. Ive enjoyed the critique from ever one especially CodeSection, positive and negative. We are shooting for the beginning of 2020. There are many things you have to think about but a good location might be the toughest.

I'm glad you are moving forward! I would encourage you to make sure you have plenty of working capital (over and beyond the purchases of inventory) that you will need for perhaps the first two years.

It is complete nonsense and doomed for failure to setup a virtual bulk sale program and collect all the money up front because you may NEED the cash flow. That is a poor strategy and very poor advice. At best it would raise maybe $3,000-$5,000 as a one shot increase in cash flow while raising your obligation to your customers. If you need the cash flow from such a program, you have bigger problems or issues and maybe you should not open up or stay in business.

As you are aware, the true purpose if you decide to establish some type of virtual bulk sale program is to engage the customers to keep coming back and buying from your LHBS. Thus, increasing sales and generating customer goodwill.

It sounds like you have a great business model of trying to attract customers by providing added value through educational events at the store. I wish you great success and only wish you were in Denver, CO so as I could one day be a customer! Please keep us posted on your progress.

 

[user 263363]

As a somewhat local to you home brewer, I’d love to see a more inviting store front than what’s currently offered in the area. I don’t know if I need to do any name dropping, but the store closest to me is more of a dank warehouse. Also, the help is very inconsistent. One day you might go in and find someone very helpful and friendly, and the next day the complete opposite is there.

Having said that, their inventory is quite good. Especially on a ‘need it right now’ basis.

 

[kh54s10]

I haven't kept up with all the replies, but early on it was suggested that you would keep on hand a good selection of equipment that advanced brewers would use but you would not sell a lot of. I think it is important that you can source these things and maybe in time have some on hand. But, don't tie up your inventory with items that you will sell very few of.

I would rather be assured that you will have the grain I need or the yeast I want, caps, corks, airlocks etc, than the $1000 brew controller sitting on the shelf for a couple years waiting for the right buyer.

But I am sure you have thought of this.

 

[mistertinkle]

OK so things are going along well. Ive enjoyed the critique from ever one especially CodeSection, positive and negative. We are shooting for the beginning of 2020. There are many things you have to think about but a good location might be the toughest.

Good luck and keep us updated!

I too wish you were local to me.

 

[Tony_nc]

As a somewhat local to you home brewer, I’d love to see a more inviting store front than what’s currently offered in the area. I don’t know if I need to do any name dropping, but the store closest to me is more of a dank warehouse. Also, the help is very inconsistent. One day you might go in and find someone very helpful and friendly, and the next day the complete opposite is there.

Having said that, their inventory is quite good. Especially on a ‘need it right now’ basis.

I know what you are talking about and I feel you. I have the same mental picture, I could tell you 100 stories just not in an open forum.

 

[Tony_nc]

I haven't kept up with all the replies, but early on it was suggested that you would keep on hand a good selection of equipment that advanced brewers would use but you would not sell a lot of. I think it is important that you can source these things and maybe in time have some on hand. But, don't tie up your inventory with items that you will sell very few of.

I would rather be assured that you will have the grain I need or the yeast I want, caps, corks, airlocks etc, than the $1000 brew controller sitting on the shelf for a couple years waiting for the right buyer.

But I am sure you have thought of this.

I appreciate it
I have thought about it and I think, in the beginning, my plan is to stick to the 80/20 rule or better known as Pareto's Principle. I demand high standards and I expect to deliver the same to all my customers.