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If you don’t plan and track your gin brand's budget properly, you're setting yourself up for failure.
When we developed our strategy pack for gin brand owners, we saw a lot of gin entrepreneurs struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial sales.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your gin brand's finances around and set you on the path to success!
Get the budget tracker tailored for gin brands
Most gin brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for gin brands
Here is an example of a (very) detailed budget for a gin brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for distillery space | $4,000 | $48,000 |
| Electricity | Power consumption for distillation and operations | $1,000 | $12,000 |
| Water | Water usage for production | $300 | $3,600 |
| Gas | Gas for heating and distillation | $400 | $4,800 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $500 | $6,000 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Master Distiller | 1 | $5,000 | $5,000 | $60,000 |
| Assistant Distiller | 1 | $3,500 | $3,500 | $42,000 |
| Production Staff | 3 | $2,500 | $7,500 | $90,000 |
| Sales & Marketing | 2 | $3,000 | $6,000 | $72,000 |
| Warehouse Manager | 1 | $3,000 | $3,000 | $36,000 |
| Office Manager | 1 | $3,000 | $3,000 | $36,000 |
3. Production Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Botanicals | Juniper berries, herbs, spices, etc. | $2,000 | $24,000 |
| Base Alcohol | Neutral grain spirit | $5,000 | $60,000 |
| Bottles & Packaging | Bottles, labels, corks, boxes | $3,000 | $36,000 |
| Cleaning Supplies | Sanitizers, detergents, etc. | $200 | $2,400 |
| Distillation Equipment | Maintenance and small tools | $500 | $6,000 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $500 | $6,000 |
| Social Media Management | Managing social media accounts | $600 | $7,200 |
| Print Advertising | Flyers, posters, magazine ads | $300 | $3,600 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Special events and tastings | $400 | $4,800 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of distillation equipment | $500 | $6,000 |
| Uniforms | Staff uniforms and safety gear | $200 | $2,400 |
| Licenses & Permits | Distillation permits, liquor licenses, etc. | $150 | $1,800 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $300 | $3,600 |
Some gin brands make 5x more profit than you!
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What are the biggest expenses for a gin brand?
Be mindful of these critical expenses. Here are five major costs every gin brand owner needs to consider, along with some tips on how to manage them effectively.
- Raw material costsThese can significantly impact your budget. You're dealing with botanicals, alcohol, and other ingredients whose prices can vary based on seasonality, supply chain issues, and quality. To keep these costs under control, focus on bulk purchasing, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by buying too much or opting for premium ingredients that don’t add enough value.
- Labor costsYour team is essential, but paying for their wages, benefits, and training can be costly. This expense is always high because you need skilled employees to ensure quality production and smooth operations. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be cautious not to underpay or overwork your team, as this can lead to high turnover and reduced product quality.
- Facility and utilitiesPrime distillery locations come with high rent, but they can enhance your brand's image. Utilities like electricity, water, and gas are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient equipment and lighting. Overspending often occurs when you choose a facility that's too large or too luxurious for your needs.
- Marketing and brandingGetting the word out about your gin brand is crucial, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Equipment and maintenance costsThis includes everything from distillation equipment to packaging machinery. These are expensive because quality equipment and regular maintenance are crucial for consistent production and product quality. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your gin brand?
Here are practical tips to help you, as a gin brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Materials | Source botanicals and other ingredients from local suppliers to reduce costs and ensure freshness. |
| Labor Costs | Utilize scheduling software to optimize distillery staff hours and minimize overtime. |
| Utilities | Invest in energy-efficient distillation equipment and LED lighting to lower utility bills. |
| Marketing | Run social media campaigns for your gin brand and collaborate with local influencers for organic exposure. |
| Packaging | Opt for cost-effective, eco-friendly packaging and offer discounts for customers who return bottles for reuse. |
| Equipment Maintenance | Maintain a log for regular checks and servicing of distillation and bottling equipment to prevent costly breakdowns. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider relocating to a more cost-effective facility. |
| Insurance | Review your insurance policies regularly to ensure they meet your current needs and compare rates annually. |
| Distribution | Partner with efficient distribution networks to reduce transportation costs and ensure timely deliveries. |
| Licensing and Permits | Stay up-to-date with local and federal regulations to avoid fines and costly renewals. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with your inventory management software. |
| Staff Training | Conduct regular in-house training sessions and utilize free online resources to keep your team knowledgeable and efficient. |
| Waste Management | Implement a waste tracking system to minimize waste and explore options for recycling or repurposing by-products. |
| Technology | Invest in multi-functional distillation equipment and utilize software for inventory and order management. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage of raw materials and finished products. |
| Pest Control | Schedule regular pest control services and maintain cleanliness standards to prevent infestations. |
| Events and Tastings | Host events and tastings during off-peak times to attract new customers without incurring high costs. |
| Uniforms | Choose durable, easy-to-clean uniforms for your staff and offer a stipend for maintenance instead of using an external service. |
Copy the tactics of the best gin brands in the world!
There are gin brands that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a gin brand
Yes, some expenses for your gin brand are just unnecessary. They don't contribute to increasing revenue or enhancing customer experience.
| Gin Brand Expense | Reason It's Useless |
|---|---|
| Luxurious Packaging | Overly extravagant packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| High-End Botanicals | Unless you are targeting a niche market, most customers are satisfied with quality but reasonably priced botanicals. |
| Excessive Product Variants | A large variety of gin flavors increases production costs and can lead to more waste. |
| Top-Tier Distillation Equipment | State-of-the-art distillation equipment is not always necessary and can be cost-prohibitive. |
| Traditional Print Advertising | Print ads often have a lower return on investment. Don’t include them in the marketing strategy of your gin brand. |
| Multiple Bottle Designs | Having various bottle designs increases costs without adding significant value to the customer experience. |
| Excessive Staffing | Overstaffing leads to higher labor costs without necessarily improving production quality. |
| Premium Subscription Services | Expensive subscriptions for industry reports or magazines often go unnoticed by customers. |
| Rare Ingredients | Using rare ingredients can inflate costs and complicate supply chains. |
| Costly Promotional Items | High-end promotional items are not always appreciated by customers and can be a significant expense. |
| Custom Printed Labels | Personalized labels are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Sources | Most customers are content with high-quality but reasonably sourced water, making expensive water sources unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Rebranding | Constantly updating branding and packaging can be costly and disrupt operations. |
| Expensive Promotional Events | Elaborate events are often ignored by customers and add to the cost. |
| High-End Glassware | Luxury glassware is prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Team Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Label Designs | Frequently redesigning labels is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Tasting Room Equipment | Specialized tasting room equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your gin brand!
Managing a budget for a gin brand when funds are tight can feel like an uphill battle. It's like being trapped in a maze where any unexpected expense can throw you off course.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more resources to invest in your brand.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of gin brands just like yours. Get them now!
Make your gin brand more profitable
We have studied the strategies of the best gin brands in the world. All their tactics are explained in our pack!
