A reliable Stocktaker will count all items, usually down to brand level. They will then itemise and record all deliveries of those products over the period of days since their last visit. This can be a month, six weeks or quarterly depending on the arrangements with the licensee. Then, by taking the count at the beginning of the period, adding the deliveries and deducting the closing figures, the stocktaker can produce an estimated takings figure for that period and a host of other information.
The licensee - by comparing this estimated figure to the actual takings for the period - can see if there are any losses in their business. If this is the case then it could be down to wrong measures being served, or the wrong size of glasses being used. Losses can also be attributed to excessive beer waste, allowances not being recorded properly or the most worrying - dishonesty.
By undertaking this exercise the stocktaker can also produce another important item - the Gross Profit. These values and percentages, from the individual brand to the total GP for the business done, will tell the licensee if they are achieving the required profit margins. Many licensees will wait until the end of their financial year to find out what their actual profit margin is. In some cases a large amount of money could have been lost over a year and not be recouped. Regular stocktaking detects problems early and gives the licensee a chance to correct matters.