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 Message 2958 of 22774 in Behind the Bar
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Subject: Re: Calculate the pour costs, upsell, and get rich quick!
From: zyedgo
Posted: Fri Dec 12. 2003, 14:34 UTC
Followup to: "Calculate the pour costs, upsell, and get rich quick!"  by Dan the Melon Man  (Fri Dec 12. 2003, 06:56 UTC)
> 
> > The well brands are cheap and there is much more profit in selling 
> > 
> > them than there is in more expensive calls. ( your bottle cost might 
> > 
> > be 50% higher or even double but you can't price them 50% more or 
> > twice as high)
> 

> in most cases the opposite 
> is true once you do the maths. 

> To go through an example - 
> 1l well Gin @ $33.00    = 33 shots @ $1.00 each
> 1l call Gin @ $39.60    = 33 shots @ $1.20 each 
> 1l super-premium Gin @ $66.00 = 33 shots @ $2.00 each , cost price.

try real life prices (maybe being in the state makes the difference)

      czarinia gin @ $5.32/bot x 22 shots  ($.22) cost sold at 3.75/drink 
      boodels  gin @  $23/bot x 22 shots  ($1.05)cost  sold at 4.25/ drink
      Bombay shappire@ $34/bot x 22 shots  ($1.54) cost sold at $5 / drink

on the well  we make about $60 profit a 12 to 1 return and on the bombay  
about $80  a return of avout 2.5 to 1  meaning 5 times as much profit 

> Rule of thumb for bar pricing, aim at 20% pour cost, that is, sell at 
> 5x the base wholesale product cost to you.

which means I would be selling  g&t for $1.10 ,boddels @ $5.25 and bombay for 
$7.70

what  we follow is well 1-2 drinks pays for the bot., call 4-5 buys the bottle 
and  prem/ 5-6 pays you cost


> If you succeeed in upselling to the super-premium that's $1 more 
> expensive for us, but that's $4 in the till that wouldn't have been 
> there.

on the call my cost goes up 80 cents  for 50 cents more in the till, and on 
the premium my cost goes up $1.30  for  $1.25  mnore in the till

BUT as you point out

> You are still making hefty profits by upselling. 

> We can now play with the one factor - the liquor quality - and triple 
> the profits in real terms.
> 
> While the till, which was expecting 50c clear at the end of the day 
> has made $1 from that sale - you have, in real terms, doubled the 
> profit for the bar!

not the way I see it

The only time I ppuush  people to up sell is ithe turnover on the higher 
priced brands is  slow enoguh to grow dust on the bottels.

$33 for a well brand LMAO

Dennis


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