Lesson 8 Sales and Marketing

Lesson 9: Sales and Marketing 9.8 Control and calculation of costs to achieve profit margins (continued)

• Generating costs and sales prices to calculate profits (the formulas)
• It is crucial to update regularly the cost of the goods, which your bar sells to achieve profit margins
• acceptable to the business. (Gross profit method chapter 9 – pp. 180-181 Figure 9.6)
• Calculating your cost price (formula: total unit price divided by the amount of units divided by amount
• per service will equal the cost price)
• Calculate the sales price while excluding the vat price (formula: remove the vat, to do this simply
• divide the sales price into vat level this equals the sales price excluding vat)
• Calculating the gross profit and the gross profit percentage for your stocks when the sales price and
• cost price is supplied or not known (formula: subtract the sales price from the cost price this equals the
• gross profit, then divide this gross profit into the sales this equals the Gross profit percentage (calculating
• your gross profit percentage is also useful for working acceptable profit margin which you would require
• for your individual bar products)
• Calculate the sales price when a gross profit percentage is also required (formula: set the target or
• margin you wish to achieve then subtract it from 100 this equals the cost percentage then multiply the
• cost price by 100 and divide the result by the cost percentage this equals the sales price excluding vat. Multiply the vat level by the sales price this equals the sales price required.

Lesson 9: Sales and Marketing 9.9 The mystery shopper

• Mystery shoppers pose as your normal customers behaving in a certain way to create real life
• scenarios, mystery shoppers at a restaurant may pretend they are lactose- intolerant, celiac or
• unreasonably disruptive. Not all mystery shoppers include a purchase.
• Mystery shoppers provide detailed reports or feedback about their unique experiences to management
• The mystery shopper diagnostic auditing tool for bars - Appendix III pp. 220-221)
• Some of the areas which the mystery shopping team will explore include;
• date and time of the pre-visit phone call, name of the bar visited
• number of employees in the premises on entering
• how long it takes before the mystery shopper is greeted
• name of the employee, whether or not the greeting is friendly
• the questions asked by the shopper to find a suitable product
• types of products shown, if or how the employee attempted to close the sale
• whether the employee invited the shopper to come back to the bar
• cleanliness of the bar and the other service staff, speed of service
• compliance with the agreed company standards relating to service, bar appearance, and grooming/presentation.