A Year in Review. The Dumpster fire, more commonly called 2020
2020 is a year that many will want to forget. From the global pandemic and US Presidential Elections to the postponing of sports and some cancellations, it is a year filled with many disappointments. But not everything about 2020 was a disappointment. The world saw the speed at which humans can push to develop new vaccines to save lives, and many have found a new love for their home they never knew before. In talking with EasyCheck clients, we wanted to know how good or bad the year was for them. We asked what they had learned from the year 2020 and how they can use that information to better themselves and their business going forward.
The good news about 2020
Many of our large and small clients have seen growth in 2020. When the pandemic hit, many feared a different likely outcome for the year. On average, EasyCheck clients saw an 8% revenue growth in 2020, and all saw an even more significant profitability increase. The best way to describe those who were successful in 2020 was optimization.
Optimization: noun - the action of making the best or most effective use of a situation or resource.
Distributors have optimized their routes while at the same time had their customers optimize their drinking patterns. They no longer were out at a bar, restaurant, or sports venue spending $6 for a single beer or $10 for a cocktail. They were able to buy considerably more with the same money at home. At the same time, many small and even non-profitable accounts for distributors have closed this year. They have been able to reduce the number of stops they are having to make while at the same time increasing the amount of sales per visit they did make. These two optimizations have led to a dramatic increase in sales and profitability.
The bad news about 2020
2020 wasn’t all sunshine and roses; let us not forget. We have seen 1,000s of bars, restaurants, and other retailers close this year due to the lack of traffic and a decrease in sales from COVID-19. In a recent survey, EasyCheck did with our distribution customers, we found that they believe as many as 48% of all restaurants will close due to lack of revenue and no customers. Losing that many customers will be significant for all businesses. Along with the closing of all of these businesses, millions will lose their jobs in this work line. We also asked how long it would take to recover from the pandemic and reopen many restaurants fully. More than 53% said it would take at least five years or more, and another 11% didn’t think they would see a complete return.
How to stay ahead and find success’s in 2021
The EasyCheck team interviewed our clients, looking for pockets of wisdom everyone could use to help them grow their business in 2021, and here are some of our favorite pieces of knowledge.
Don’t forget about your smaller accounts that are still growing
Not every account has to be a rock star the day it opens. With options narrowing for consumers to find their favorite beverages, the consumer is willing to drive out of their way to get what they want. Use this time when in smaller accounts to build up your company’s relationship with the store owners to best position yourself for long term success. If you are willing to help take care of the small account today, how will they feel when they have grown to be large and in charge.
Don’t forget about the brands with the highest profitability
Just because a brand is not your #1 selling item does not mean it does not help you drive significant profits in your business. Take time to understand your most profitable brands better and ensure you are helping them market their products to the general public. You may be able to increase your profitability by adding some simple marketing items into the field to increase brand awareness.
Take a moment and get organized
Now is the perfect opportunity to take a moment and get organized. With the successful launch of the COVID-19 vaccination as of last week, we know there is an end to the craziness we have lived through the previous year. This will lead to stores, bars, and restaurants reopening in mass waves, and you need to be prepared for when the time comes. Have your warehouses organized and ready to roll kegs out the door. Have your POS warehouses cleaned up and prepared to fulfill the orders needed by your customers. It’s time to get ready so that you can launch into 2021 prepared for success.
EasyCheck is here to help
EasyCheck has always been here to help distributors, retailers, restaurants, and companies of all sizes with your marketing asset tracking and data collection needs. If you need help getting organized, figuring out the best accounts to call on, or just want to talk about how you have survived the pandemic of 2020, give us a shout. We want to speak.