How do you calculate profit margin on alcohol?

How do you calculate profit margin on alcohol?

This step uses the answers from steps one and two and shows you how much money you make every time you sell, say, a pint. Gross profit / selling price X 100 = gross margin (%). This step simply converts the gross profit (answer from step three) into a percentage (or margin).

How much profit should you make on a bottle of liquor?

Gross Profit Targets by Type For instance, liquor should fall around 80 to 85 percent, while draft beer should have a margin of approximately 80 percent. Bottled beer margins can fall around 75 percent, while, on average, wine margins come between 60 and 70 percent.

What is the average markup on alcohol?

The alcohol cost will be the percentage of markup that a bar will give alcohol. For most bars, this is around 20 – 25%. Some bars might set their pour cost based upon the type of drink. For example, wine at a 22% cost, beer at 20% cost, and liquor at a 14% cost.

What’s a good liquor cost percentage?

You might be asking yourself: What is a good liquor cost percentage? In general, most bars and restaurants should strive for a pour cost between 18% and 24%. The average bar has a pour cost of 20%, indicating that every dollar of beverage sales generated costs the business 20 cents.

How do you determine the selling price of alcohol?

The Traditional Method Determine the cost per ounce. This can be done by dividing the cost of the bottle by how many ounces it holds. Multiply the cost per ounce by your pour size (usually 1-1.5 ounces). This will establish your liquor cost per drink.