Raise a Glass to Our Top 4 Winery KPIs You Should Measure
Posted on 25th April 2017 in KPIs
Written by Freya Hughes
A nice cold, crisp glass of Sauvignon Blanc at the end of the day is, in our eyes, perfection. But what we need to consider as winemakers isn’t just how long the bottle has been in the fridge. We’ve compiled a list of the most relevant KPIs to be monitoring to help your winery flourish.
We love metrics, and our KPI Library has plenty of KPIs ready for you to use in your business. A good wine will take as long as it takes to reach maturation. Much like forecasting, you don’t want to rush the process. If you find yourself making a rush job out of important tasks, use these KPIs to help yourself prioritise what you need to be focusing on. Manage threats and work towards goals – and get that bottle of bubbly firmly in the cooler.
1. Revenue per customer
Here, have a look at how much time you’re spending on each order compared to how much revenue that customer brings into your business. Notice if there are patterns in the numbers – do you need to spend less time on the smaller orders. Perhaps shifting to retail, wholesale or both might increase revenue. Of course, each has their benefits but if sales are down, looking at wholesale might be a good way of raising the efficiency of moving stock. Developing and utilising wholesale can give you a boost when you’re struggling and provide Monthly Recurring Revenue (MRR), which will mean cash you can rely on coming in for a rainy day. If sales are good, however, looking at retail sales would be great for brand awareness, and give the winery a great chance to reach customers previously unable to. Find out more here.
2. Wages to revenue
This KPI measures either the percentage, proportion or amount of revenue which is being generated in relation to a company’s wage costs. In a winery, factors you need to look at include forecasting (in the traditional weather sense) to ensure you’re not in for a drought, or other extreme weather conditions. This will put you in an informed position whether you need to hire for the season or not. Conversely, if you under hire, are you risking some grapes not being harvested at the right time? Forecasting (in the FUTRLI sense) is not only great to spot trouble, but also to guide you solve these potential problems. Calculate this metric here.
3. % of grapes purchased vs sold
You need to be able to compare what you’ve invested in with your forecasted sales to know if your business will survive the season. Having a running dialogue with your figures will mean your chances of making a loss will be reduced, as you’ll be able to fight future fires in the present day. Using actual data to see if you need to alter your operations now, you’ll be able to implement changes to get your business on course for your target. Forecasting is a step towards growing your sales and your business. Create a 3-way forecast (using your P&L, balance sheet and cashflow), from last year’s actuals, in seconds. Once complete, you can start investigating the performance of your sales. If you make no changes for the rest of the year, are you happy with your final result? Discover how Forecasting can work for you.
4. Land investment
What if you win a huge contract that asks for an increased volume of wine? Plans need to be made in case of unexpected opportunities – a large contract could be what it takes to get your business into the next stage of growth so would be a shame to miss out. Putting some thought into where you want to be next is a great thing to measure as it’ll keep the focus on growth in your business. Similarly, you’ll need to know if you’re growing too fast – if you’re aware that your resources are becoming too thinly spread, you can adapt and problem solve before it takes its toll.