While DOMSOM is aware tips on alcohol and wine can vary greatly across the U.S., we are going to use both a 10% and a 20% tip for the following example. DOMSOM’s principle goal is to increase the sale of U.S. wines through education, excitement and knowledge and you are on the front line making it happen! Though use of the DOMSOM tools and the great conversations you will create using them, we are confident you will be ringing up more glasses and bottles of wine than ever before!
What does this mean to your bottom line? Utilizing the $50 retail bottle of wine and the $15 glass of wine in the previous section, let’s break down the math by challenging you to the following as a DOMSOM graduate and DOMSOMer extraordinaire!
SELL 1 (ONE) ADDITIONAL BOTTLE OF WINE PER NIGHT, and;
SELL 4 (FOUR) ADDITIONAL GLASSES OF WINE PER NIGHT
We hope you are thinking “That’s it?, I can do that!” – and we have every confidence you can! So what does that mean to your bottom line? TIPS. TIPS. TIPS!!!
In our example, Alex (fictitious waiter / waitress) typically sells 4 bottles of wine and 8 glasses of wine per night. Sticking to our $50 retail bottle of wine and $15 glass of wine and the 10% tip we introduced above, Alex can assume making the filling in tips each night (prior to any tip sharing of course!):
10% Tip:
$50 bottle x 4 bottles = $200 in sales $200 in sales x 10% = $20 in tips
$15 glass x 8 glasses = $120 in sales $120 in sales x 10% = $12 in tips
Total tips per night = $32
20% Tip:
$50 bottle x 4 bottles = $200 in sales $200 in sales x 20% = $40 in tips
$15 glass x 8 glasses = $120 in sales $120 in sales x 20% = $24 in tips
Total tips per night = $64
If Alex takes on our challenge and succeeds (we have no doubt this will happen!), the following calculations show the increase in tips per night for Alex:
10% Tip:
$50 bottle x 5 bottles = $200 in sales $250 in sales x 10% = $25 in tips
$15 glass x 12 glasses = $180 in sales $180 in sales x 10% = $18 in tips
Total tips per night = $43!!!
Increase in Tip (10%): $11
20% Tip:
$50 bottle x 5 bottles = $200 in sales $250 in sales x 20% = $50 in tips
$15 glass x 12 glasses = $180 in sales $180 in sales x 20% = $36 in tips
Total tips per night = $86!!!
Increase in Tip (10%): $22
So $11 or $22 per night might not sounds life changing, but translate that over a year and you might think differently! Assuming you work 5 nights a week, 50 weeks a year (yes, everyone deserves a few weeks vacation!), the impact to your bottom line can really make a difference:
10% Tip:
Before: $32 in tips per night x 5 nights per week x 50 weeks = $8,000
After: $43 in tips per night x 5 nights per week x 50 weeks = $10,750
Tip Increase: = $2,750
20% Tip:
Before: $64 in tips per night x 5 nights per week x 50 weeks = $16,000
After: $86 in tips per night x 5 nights per week x 50 weeks = $21,500
Tip Increase: = $5,500
You’ve just earned a 34% increase in your tip bottom line simply by leveraging your DOMSOM skills to increase your nightly wine sales! CONGRATULATIONS!