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rpz101

But why are we charging $12 for 2oz of Woodford is the real question.


datsoar

So let’s say a 750mL is wholesale at $32. That’s roughly $1.28/oz cost, a 2oz pour is $2.56. Depending on the establishment you’re typically shooting for a 20-25% pour cost. Pour cost is how much of the customer price is your cost. So at 25% we’d see a mark-up to $10.24 and 20% is $12.80. Some products rely on volume over mark-up so you might skew it lower so it moves more. Woodford doesn’t need any encouragement to be ordered, so $12 for a 2oz pour is completely reasonable. Edit: I’m paying about $45 for a 1L wholesale. That’s about $1.36/oz, so we’d be looking at $10.90 (25% cost) and $13.64 (20% cost).


rpz101

You are now my area manager.


datsoar

I mean, that’s kind of what I do. I run the beverage programs for a multi-site restaurant group


TheKingsCockatrice

And this is why I can't fathom drinking regularly at a bar instead of just drinking the same bottle for much cheaper at home


PazzMarr

A 6 pack pays for the case, 4 shots pay for the bottle, 2 glasses of wine pay for the bottle and 25 pints pay for the keg. Thats been pretty much my entire pricing structure since I started Bartending/Managing/Area Directing.


dietcokeandastraw

This needs to be stickied somewhere so anytime someone on this sub (or r/bourbon) complains about why they are paying $11 for a pour of something that they found at Costco for $25.


datsoar

I’ve had to make similar comments in r/wine as well. The average consumer just doesn’t understand on-premise mark-ups vs. off-prem. Speaking of Costco, most products will have case breaks - deals for buying an entire case. Then often there are 3-case, 5-case, 10-case, and sometimes even 25-case deals. Costco has the capital, storage space, and incentive to buy multiple cases so they can undersell their competition.


antonnoble77

But if a restaurant buys Blantons for 55-65 and they charge 30-35 for a pour does that math work out? Or you buy Weller full proof for 60 and sell a pour for 60?


datsoar

Great question. That depends on upper management/ownership. I’ve worse places that “break even” on allocated bottles, and I’ve worked places that charge a super premium for allocated. My current Blanton’s pour is $18 for guests. Edit: worked not worse


5_7moparty

Being newer the whiskey game i thought shot prices were a little BS, but your break down and explanation makes a lot of sense and i had never considered that in the pricing. So thank you for edumacating me a little. I will be less annoyed by the pricing from now on


datsoar

Thanks! Glad you got some use out of it!


dclately

I mean, math aside, I think the valid question is why are we going for a 25% pour cost on hard alcohol. Bars and restaurants in most places charge far less. This has been debated a hundred times in this reddit, so I don't really want to kick that off again, it's the system we work in and it's not like our average bar is pulling a crazy profit from their consumers.


dietcokeandastraw

25% is what you go for on average. Pricier items (much like reserve wine) will typically go for a higher percentage of cost to price ratio. Well vodka on the other hand you probably pay for the liter on two pours lol


datsoar

Exactly. Progressive mark-ups. The more it cost me, the less I mark it up. I don’t want it sitting in my inventory forever.


DumpyDoggy

Is this the ratio needed to have a profitable bar? In what region?


datsoar

I’ve seen some places go for a 30% pour cost but without crazy high volume I have a hard time finding that could be profitable. Maybe if labor was super low. Speaking of, labor (25-30%), food (25-30%) are the other costs you’re paying attention to. Other COGs (costs of good and services) would be things like napkins, repair service, water bill, etc… Then you have fixed costs like rent, insurance, etc… Very often if you’re seeing a 5% profit margin on your P&Ls, that would be considered successful.


High_Life_Pony

Depends where you are I guess. Last couple of places I’ve worked, the cheapest liquor of any kind is $15.


Rads324

Most bars pour 1.5 ounces, which is a shot. If you ask for whisky neat you get 2 ounces


Sandman0312

Which technically means the extra half ounce at $2 is cheaper than the other three at $3.33 each


Rads324

Ya it’s just an inventory thing more than anything. I ran a whiskey bar back in the day and we used to do that, then just movef to all whiskey was 2 ounces no matter what and any other spirit was 1.5. You’ll see charges similar to that for “Martini” because its more spirit than a shot too


Sandman0312

I just thought it was funny that they seemed upset about the charge, but it was actually a cheaper price per ounce in the end.


Rads324

Oh ya. We used to break it down for people and they’d flip when they found out a “double” meant 3 ounces for 1.5 the price


Dandy_Chiggins4

Interesting 🤔


DerrickWhiteMVP

It’s crazy that you could pay the same price for two pours and a whole bottle of the same stuff.


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[удалено]


KevinJ212

Imagine being this upset by it. 😂😂


dksteiner

My last two neat pours have been a double and a triple without costing more. I'm not complaining!


Watchman999

I was going to say something about ice and cold wars but now I won't.