Every stocktake produces one number that matters more than most: the variance. It’s the gap between the stock you should have and the stock we actually count. Understanding it is the first step to controlling it.
How variance is worked out
Start with opening stock, add everything you bought, then take away what your till says you sold. That gives you the stock you should have left. We then count what is really there. The difference is your variance.
• A negative variance means you have less than expected
• A positive variance means you have more than expected, which is usually a recording problem rather than good news
What causes a variance
• Over-pouring, free drinks and spillage that never reach the till
• Waste that isn’t written down
• Delivery shortfalls and invoice errors
• EPOS or till buttons set to the wrong product
• Line cleaning, returns and breakages that aren’t logged
• Occasionally, theft
Read the pattern, not the single number
One stocktake is a snapshot. Three or four in a row tell a story. Look at which categories show the gap (draught, spirits, wines, soft drinks) and whether the same products keep appearing. A small gap in total value can hide a big problem on one line.
What to do next
• Check the obvious first: till mapping and delivery notes
• Record waste, comps and line cleans as they happen
• Share the result with your team, without blame
• Stocktake regularly so you can see the trend
If your variance has you scratching your head, we can help you find the cause. Book a free initial consultation on 01733 806330.