Beer Line Installation Costs

[tapcleaner]

I have been a draft line cleaner for 5 years and now would like to get into installation. I have no idea what proper markup is or if I should charge hourly. Could anyone who has experience in this matter please lend some advice or experience . Thank you.

[Scott Zuhse]

Depends on what the market will bear and your sales skills. There are installers who simply hand a piece of paper with a number on it and keep their fingers crossed. Others put a lot of effort into a quote and spend time discussing features and benefits to the potential customer. Quite often they will get the job since the customer is basing their decision on value, not price.

Pricing can be as simple as quoting a certain percentage margin (40%??) over the cost of goods. This would cover install fee and your profit. Others mark up the cost of goods and add an install fee based on the job. This quote may comprise of 20% margin with 20 hours labor @ $80 / hour. the labor would be based on new construction versus replacement (demo fee), trunk line routing obstacles, tower locations, keg stations, number of faucets, etc.

Concentrate on selling systems and upgrades that will assure your customers low pour cost and high resale. A great start would be to attend the Dispense Institute @ Micro Matic.

[tapcleaner]

Reply

Thnaks for the info. Right now I have to bid on a glassware cooler/kegorator/
liquor stands/ and a general bottle/ pitcher cooler. I'm bidding against a very reputable refrigeration Co. Where should I bend on profit/ compared to the service contract?

[Scott Zuhse]

Not certain what your question is. Please clarify.

[tapcleaner]

Reply

Sorry, Should I lower my product prices(Refrige Equip) in order to get service contracts? And How do I properly price out a beer line installation quote?

[Scott Zuhse]

As to your refrigeration equipment bid, I would try to keep your margins as close to your competition as possible while selling the features / benefits of equipment. Hopefully you will get the service contract once you sell the equipment since you will be most familiar with this equipment.

As to the dispensing system, are you familiar with system design and the various components of a system?

[tapcleaner]

Reply

Yes I've been troubleshooting & cleaning draft systems for 5 years, but i'm only now looking into installation. I understand blenders/beer pumps/F.O.B.S./
etc..

[Scott Zuhse]

Great! Then based on your customers' dispensing needs, you would put together a detailed list of components for the system, source and cost them, estimate labor and build a presentation stating features and benefits supporting the value to your customer. Refer to earlier posts to determine your price to customer based on your costs and labor.

Hopefully you will apply the correct components so that the customer can achieve the highest value from your price. You should be able to assure your customer low pour cost due to minimal waste and high resale of their draft product since you have provided a system that can assure a quality product from the keg to the glass.

These are some of the topics discussed in the Micro Matic Dispense Institute's Advanced Draft Workshop. Check out the link for additional information.

[tapcleaner]

Thanks!

It sounds alot simpler than I thought. I've never liked the sales end of things, but I apprieciate you simplifing things for me. Thanks!

[Scott Zuhse]

These steps were never intended to be simple. Notice the comment about applying the correct components. This is not as simple as it sounds. Also, sales can be a tough nut to crack if you are not comfortable consulting with your customer on the features and benefits, thus value, of your design.

Do not go the route other installers have by skimping on parts / components to simply acquire a clear pour temporarily while quoting the lowest priced system.

[Buddy Christ]

Hey Guys, question here I got.
I tool the Advanced training in tampa a few months ago and now I'm finally gonna install a 28 tap system thru a wall to a walking cooler w/a direct draw system. The walking is already there just need to drill 28 holes in the wall and set the equipment up and regulate the gas for proper pour. how much should I get paid to do this job? Considering I install drip trays, all the lines couplers, faucets gas regulators, washers, nipples, kegs the whole nine!!. What is the averge installation salary or fee per installation?

I'm thinking $175.00 per tap.

So 28 taps X $175 = $4,900.

Is this a fair fee for me to charge or is it to cheap/expensive?

[Scott Zuhse]

Depending on if you utilize a shadow box, distance kegs are from the shanks, pressure system ,etc. this can impact the fee. If you can acquire the $175, all the power to you although this could be deemed high. Since there is not a glycol power pack or trunk line to route, you may want to adjust this.

Install fees vary per market area as well as how installers calculate this. With our Food Service group, we compute this based on factors such as number of faucets, dispense locations, trunk line lengths, availability of chases, power packs, demo requirements, etc. to calculate install fee.