The formulas are great to determine a ballpark figure for prices. I also use
them to show my bosses just where the costs are going. Prices for drinks sold
vary widely by city, county, and state. I strongly urge you to do some legwork
(earwork?) and talk to your local competition. If the guy next door is willing
to lose a little money on some of his booze, your clientele will immediately
notice. Word gets out if your martinis are $10 and next door they are only $8.
Work out a price structure for well, call, premium etc., and try to stick to
it. You will make money on some brands and lose it on others, but some
customers will go crazy if Morgan's is one price and Bacardi is another.
I have been blasted by both sides - the customers griping that the beers are
cheaper down the street and the bosses saying, "just why IS liquor cost 20%
this week?"
It isn't a big deal - it's sort of expected that from time to time bars /
clubs will survey prices around the neighborhood.