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Subject: Re: Pricing Drinks
From: lulu
Posted: Fri Sep 12. 2003, 13:07 UTC
Followup to: "Re: Pricing Drinks"  by Gavin  (Fri Sep 12. 2003, 01:10 UTC)
> > My math skills are worse than horrible and could use some help 
> > here.I'm pricing out a new Port Wine List and am trying to figure out 
> > 
> > what to charge.
> > Ex. If a 750 litr bottle of port costs 35 dollars and I am pouring 2 
> > 
> > oz drinks and am working on a 25% liquor cost How much do I charge 
> > 
> > per drink. I need this menu to go to print ASAP Thanks in advance. 
> > 
> > Lorraine
> 
> 75%GP is real easy to work out, other % may need some tweaking.
> Basically multiply your Cost Price by 4. 
> 
> ALL FIGURES ARE ASSUMED NETT
> 
> CP = $35
> 2oz = approx 58 ml so 750 / 58 = 12.93 servings. Round down to 12 for 
> spills etc.
> $35 / 12 = CP per serving = $2.92 per serving
> 4 x 2.92 = $11.68. Now to work it back to check on the actual GP, we 
> use this formula
> 
>  SP - CP / SP X 100
> 
> Selling Price - Cost Price = $Gross Profit (11.68 - 2.92 = 8.76)
> 
> $GP / SP X 100 = %Gross Profit. (8.76 / 11.68 X 100 = 75 %)
> 
> Works out exactly.
> 
> Bear in mind that doesn't include sales tax on the Selling Price, 
> which you would obviously add to the total.
> It's not usually possible to have all of your products work out to a 
> set CP, because obviously you will actually want them to sell, so 
> can't overprice some things, so the high end items you might take a 
> hit on, say 30 CP, (especially on high end wine and champagne) while 
> the low end stuff like post mix syrup will be something ridiculous 
> like 5 CP, or 95 GP. You might have special offers on or happy hour 
> deals where your GP is significantly reduced, so the other high GP 
> items pick up the slack. As long as your bottom line liquor cost 
> comes out to 25, all's well. 
> Although I haven't gone into wastage/comps affecting liquor cost, 
> that also has to be taken into account!
> Now I'm pretty sure my formula is correct, it's been a while(!), but 
> I'm sure if I've made a mistake someone else will point it out.
> 
> Anyway, I hope I haven't confused you even more.
> G

No confusion at all This is exactly what I needed


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