Welcome to the British Institute of Club Management
Stock Issues 
Why Use a Stocktaker?
In the modern commercial world of today, the small business needs all the guidance and help it can get. In the licensed trade the stocktaker can often provide valuable and vital information for the licensee. They can answer that all important question Is someone stealing from me? as well as provide you with the answers to all the following questions you probably frequently ask yourself:-
How much stock are we carrying?
Are we overstocked or are we likely to run out of certain things?
Are we using the correct measures and charging the correct amount?
What about the allowances, are they reasonable or could we be saving
money?
Are we achieving the maximum gross profit?
Are we purchasing our stock from the best source?
2. Invoices - these will need to be checked against the delivery notes to ensure that you are only being charged for goods you have received and that the correct prices are being used.
3. Goods Inwards Book / System this allows the stocktaker to ensure that all goods inwards have been recorded. This can then be cross referenced with invoices and statements.
4. Income Records and Till Readings the stocktaker will reconcile the till or EPOS system readings with the record of business attained and will advise on any discrepancies.
5. Wastage Records - used in the correct way these can be analysed and controlled.
What are the implications of changing from 25ml to 35ml
spirit measures?
When we do Promotions how much do they cost us?
Is the surplus we are / should be achieving satisfactory, should it be
more?
How much do we add to each product line after a cost price increase?
How does the actual gross profit we make equate to our estimated gross
profit? To a trained eye this can often trigger early warning signs of
potential problems.
It is often the case that the busy licensee does not know the answer to the above questions. Only if a major problem occurred would a stocktaker be called in. In a vast number of cases this may well be far too late. We would always recommend that you use a stocktaker, but remember any stocktaker is only as good as the information he or she has to work with. It is imperative that all relevant information is made available to them on the day they carry out the stocktake.
They will require:-
6. Promotions - it is extremely important that accurate records are maintained of any promotions, happy hours or discounting your business carries out.
Our stocktakers will give you advice and guidance on setting up any systems your business requires.
We always encourage our existing and potential clients to participate in the stocktake, that way they can be sure that all stock is accounted for, all relevant paperwork is made available and that the stock is prepared and easy to count. The cost of a stocktake seems to deter some businesses but we urge clients to consider the following:-
Can your business afford to lose money?
A member of your staff helps themselves to a pint of Cola and a packet of crisps every day at a cost of £2.50. This amounts to £912.50 per annum. In many cases this amount exceeds the costs of a regular stocktake over a year. If not, it certainly would be a major part of the costs
In most cases our stocktaking fees are more than covered by ensuring the correct cost prices are being used by your suppliers and that the best possible deals for your business are being achieved.
A 2% change in your gross profit percentage following advice can often relate to thousands of pounds in your net profit (bottom line). This article has been written for the BICM by Barry Walker of D. B. Walker & Sons. D. B. Walker & Sons have been established over 80 years and have three generations of the Walker family working in the business.
For further information or advice, please contact:-
The Route Organisation
2 Winmarleigh Street
Warrington
Cheshire
WA1 1NB
Tel: 0845 217 1811
Fax:0845 217 1812
E-Mail info@routeorg.co.uk