Steve- How do you factor in the cost of different sized drinks
Ex. an Absolut & Soda vs. an Absolut Martini or a two liquor drink like a
Absolut Black Russian? Lorraine
>
> The previous two posts are correct. There are a lot of factors that
> go into pricing a drink.
>
> Another simple way of seeting drink prices is based on the cost of
> each ingredient, added together and divided by the desired cost
> percentage consistant with your market. Typcially the cost of a
> drink is 18-25 percent of the selling price, or a 5 times markup.
> Beer and wine run higher at 33-50 percent (3 X markup).
>
> Here's an example.
>
> Say I bought a liter of Absolut at $15 per bottle.
> A liter is 33.8 oz and I'm pouring 1.5 oz in each drink. I'll
> immediately knowck that number down to 32 oz to account for spillage,
> waste and theft.
>
> 33.8/1.5=21.3 shots per liter.
>
> $15/21.3=$0.70
>
> so each shot I pour costs me 70 cents. Add 15 cents for costs of
> miscellanious supplies (i.e bevnaps, straws, garnishes, etc) and that
> comes to 85 cents.
>
> $0.85/.20(my desired pc)= $4.25 per drink.
>
> This is not a science! At most, you'll get a rough estimate of what
> to charge. Every liquor bottle will cost you differently each week.
> Every bar has different expenses and therefore different costs
> agendas. A bottle of Absolut will cost different than a bottle of
> Stoli, yet you'll probably sell them for the same price. I hope
> you're seeing my point here. You just asked for a formula, so I gave
> you one. :-)
>
> Steve
> www.barspooge.com
Current thread (10 messages):
drink pricing - 2004.03.14, 17:44 - Ruth L. MacMullen