Calculating the True Cost of Your Wine
Event Type: Trade Show,Seminars and Classes
Description: As a part of the Wineries and Breweries Unlimited Trade Show, Sonoma State is offering seminars that we normally hold on campus, on site in Richmond, Virginia on Friday, March 14.
The reason most small businesses, especially wineries, fail is because they do not know their true Cost of Goods. This class is a must for winery owners and their accounting staff and will demystify the most complex aspect of winery accounting. Knowing the COGs will enable the management team to build a sustainable and profitable business. After attending this class you will be able to calculate the true costs of both bulk wine and bottled wine.
Just as important, you will be able to forecast the actual cost of a finished bottle of wine, even when the release date is years away. With that knowledge you can build a pricing structure and marketing program that will ensure profit at the end of the day. We will show you how to setup your chart of accounts so that you identify the administrative costs and the winemaking and production costs. We will detail what information you need from your winemaker. Then we will show how to merge the financial information with the cellar information on a spreadsheet to run the calculation. In essence you will learn about Capitalized Costs, Overhead Cost Allocation, Cost Pools and Standard Costing, but we will do it using plain, unintimidating language to demonstrate how to calculate both the bulk wine cost and the final bottling cost.