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theglobalguy
06-02-2013, 17:19
So i have to ask, is there a general rule of thumb as to what a restaurant/bar will charge relative to what the bottle costs? Does scarcity come into play? (ignoring the real tough to get stuff)

A local restaurant/bar seems to vary from very fair $6 for OGD114 (seems fair) to $18 for Maker's 84 proof (wait, what?). Charging more for EC18 than they do for EC20. I understand the idea they can charge what they feel like and let the customer decide....but without getting into the esoteric "what is value" argument what's normal?

Phil T
06-02-2013, 17:30
So i have to ask, is there a general rule of thumb as to what a restaurant/bar will charge relative to what the bottle costs? Does scarcity come into play? (ignoring the real tough to get stuff)

A local restaurant/bar seems to vary from very fair $6 for OGD114 (seems fair) to $18 for Maker's 84 proof (wait, what?). Charging more for EC18 than they do for EC20. I understand the idea they can charge what they feel like and let the customer decide....but without getting into the esoteric "what is value" argument what's normal?

Those prices do seem out of balance. From everything I've read, bar costs on premium liquor should run 20%.

squire
06-02-2013, 17:32
They make their own rules based on what the customers are willing to pay.

Restaurant man
06-02-2013, 17:42
Everyone has their own pricing strategy normally the value increases with the price of the bottle for example a "well" bourbon may be $8 a pour for a bottle that would cost like $17 ish. But a bottle that costs $40 might be 12.50 a pour. The idea being that the more commnly ordered items (lower priced offerings) make up for the beverage cost items. Most bars try to hit a 16%-20% liquor cost. Bottles i buy for $100 are 19$ on my list (a 33%-40% cost roughly) There are 12 2oz pours in a 750 ml bottle (24.5oz) about 16/17 pours in a liter.
I don't put premiums on things I only get 2-6 bottles of but a lot of other people do. When I get pappy 20 year it's 19 bucks a pour till its gone. I could easily get 60 bucks with no complaints but I'm still trying to get into heaven :pope:

Josh
06-02-2013, 17:44
Everyone has their own pricing strategy normally the value increases with the price of the bottle for example a "well" bourbon may be $8 a pour for a bottle that would cost like $17 ish. But a bottle that costs $40 might be 12.50 a pour. The idea being that the more commnly ordered items (lower priced offerings) make up for the beverage cost items. Most bars try to hit a 16%-20% liquor cost. Bottles i buy for $100 are 19$ on my list (a 33%-40% cost roughly) There are 12 2oz pours in a 750 ml bottle (24.5oz) about 16/17 pours in a liter.
I don't put premiums on things I only get 2-6 bottles of but a lot of other people do. When I get pappy 20 year it's 19 bucks a pour till its gone. I could easily get 60 bucks with no complaints but I'm still trying to get into heaven :pope:
You could get $60 but you choose to be nice and charge $19? Go back to Russia, comrade!

MyOldKyDram
06-02-2013, 17:45
Next time I'm in ATL I'm eating at your joint.

squire
06-02-2013, 17:46
Draper may be paying you a visit.

smknjoe
06-02-2013, 17:52
I agree with you RM. Everybody says "free market" this and "captialism" that but when you get down to it over-charging is dishonest and takes advantage of people.

Halifax
06-02-2013, 18:07
...Bottles i buy for $100 are 19$ on my list (a 33%-40% cost roughly) There are 12 2oz pours in a 750 ml bottle (24.5oz)...

So you turn $100 into $228, and a profit of $10.67 per pour. That works out to a 56 point margin... Pretty nice return. Cool.

ebo
06-02-2013, 19:18
It will be a cold day in hell before I pay $60 for a "pour" of anything.

MarkRuck
06-02-2013, 19:20
Here are few pics of the drink menu from the Bourbon Room in the Venetian Hotel in Las Vegas. Price per 'shot', followed by the bottle price. Think they mark up things up a little? But.....it is Las Vegas!

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Trey Manthey
06-02-2013, 19:34
All things considered, those are pretty good prices to buy ORVW10/107 and Lot B from a bar.

MarkRuck
06-02-2013, 19:43
That is true, however, I was more than a little surprised at the JPS 18 prices. I was trying to figure out how to sell of what I have bunkered for $456/bottle.

mbroo5880i
06-02-2013, 19:49
I have never found any rhyme or reason to whiskey prices in restaurants. I just get frustrated by the lack of variety unless you go to a top end restaurant that has a bar. I just can't get up for paying $7 to $10 for a pour of Maker's, JD, WT or Woodford. I have to imagine that the profit margins on those bottles is quite large.

393foureyedfox
06-02-2013, 21:11
fortunately, i dont want my bourbon with a meal. i want it while relaxing at home, or at a party. im not paying over $10 a pour for anything, and even then, only when i want to try something thats too expensive to take a chance on buying a whole bottle of it first

Meruck
06-02-2013, 21:57
I agree with you RM. Everybody says "free market" this and "captialism" that but when you get down to it over-charging is dishonest and takes advantage of people.

Joe your looking at it from the worng direction. It is free market, nothing wrong or dishonest about it. To charge a high price for a pour in a bar is not taking advantage of anyone. Its offering a choice. To show up at the scene of some natural disature and charge $10 per gallon of gas or $20 for a can of soup is "over-charging, dishonest and take(ing) advantage of people".

But If I offer a pur of whiskey for $100 and someone wants to pay it, then thats a choice, if no one does the I have mis-priced the market.


But I'm flying to Vegas tonight to clear that bar out of Pappy and sell to the "ibuypappy.com" guys.

$50 on Red #10......................anyone?

MauiSon
06-02-2013, 23:18
I don't get why anyone would buy a large bottle when the smaller bottles are cheaper on a volume basis. Why buy a liter of MM when 5 200ml are cheaper [and easier to fit into several pockets]?

Flyfish
06-03-2013, 10:54
So you turn $100 into $228, and a profit of $10.67 per pour. That works out to a 56 point margin... Pretty nice return. Cool.
A few years back, one of the chefs on the Food Network did a tutorial on why restaurateurs (of which he was one) just love selling mixed drink. He showed what he paid for a bottle of booze and mixer and then divided that by the number of drinks they represented. Turns out there was a 1000% markup. That didn't account for the cost of glassware and other overhead. Even so, he suggested (against his own economic interests) that it makes much more sense to share a cocktail with friends at home before heading out to dinner. Just be sure you have a designated driver.

Balcones Winston
06-03-2013, 10:54
There's a huge gap in prices in my area. One of my favorite bars charges $15 for Balcones Brimstone (as an example) yet the pub down the street charges only $7.

I order beer anyway though...

Restaurant man
06-03-2013, 13:27
Really high prices on things is also a way to ensure that you never run out of a limited product. That's why you see places guaranteeing to have pappy in stock. They just price it so it lasts till the next allocation. I agree that you can't rip someone off if they know the price in advance. Don't forget when you figure out the gross profit of an item there is a HUGE list of expenses beyond raw product cost. This is why bar/restaurants are one of the most volatile business out there. It's hard to make money after its all said and done

Restaurant man
06-03-2013, 13:28
There's a huge gap in prices in my area. One of my favorite bars charges $15 for Balcones Brimstone (as an example) yet the pub down the street charges only $7.

I order beer anyway though...

It can't be overstated that there are a lot of idiots setting prices out there.

P&MLiquorsEric
06-03-2013, 15:22
Really high prices on things is also a way to ensure that you never run out of a limited product. That's why you see places guaranteeing to have pappy in stock. They just price it so it lasts till the next allocation. I agree that you can't rip someone off if they know the price in advance. Don't forget when you figure out the gross profit of an item there is a HUGE list of expenses beyond raw product cost. This is why bar/restaurants are one of the most volatile business out there. It's hard to make money after its all said and done

Co sign on this. I spent some time in the hospitality industry (actually majored in it at the university of Kentucky) and food/materials expenses are but a fraction of total expenses.

People not in the business have a tough time viewing "costs" as more than what you paid the vendor who sold/delivered it.

And alcohol and food are the two products where cost to the consumer varies greatly from place to place. Lots of costs go into pouring that drink into a glass. Similarly, turning ingredients into a meal, serving it and cleaning up afterwards.

bllygthrd
06-03-2013, 20:31
Have to agree that the establishment can set the price where they want and the decision to buy rests with me. All I ask is 1) let me know the price upfront (if I ask), 2) give me what I order, how I order it, and 3) don't pour me short ... I hate a short pour.

theglobalguy
06-03-2013, 20:45
Co sign on this. I spent some time in the hospitality industry (actually majored in it at the university of Kentucky) and food/materials expenses are but a fraction of total expenses.

People not in the business have a tough time viewing "costs" as more than what you paid the vendor who sold/delivered it.

And alcohol and food are the two products where cost to the consumer varies greatly from place to place. Lots of costs go into pouring that drink into a glass. Similarly, turning ingredients into a meal, serving it and cleaning up afterwards.

Oh i fully expect the restaurant to mark up enough to cover overhead and direct costs, heck if they have good food i'd like them to make enough profit to still be there next time i come back. This started more as a head scratcher on the seemingly random multiplier on some readily available stuff.

Understand Restaurant Man's comment on "price it high enough to last to next shipment" since you neither want to be printing new menus each week or running out of all the higher end stuff and looking like all you carry is entry level products.

deerhuntre
06-04-2013, 15:50
Restaurant prices? What's that? I bring a small flask. I mean, I have a friend who brings a small flask.

bllygthrd
06-04-2013, 20:12
Restaurant prices? What's that? I bring a small flask. I mean, I have a friend who brings a small flask.
What??? Other people do this too??? BTW ... my wife actually brings the flask, I don't carry a purse ...

grantsi
06-04-2013, 21:12
I pay $22 a glass for PVW15 in Chicago....I only buy it when out with a specific few friends. I don't allow myself to consider the mark up, I really don't care. Our local bar charges me $3 for makers on the rocks...it's not the best juice, but $3 for 1.5oz is a good deal.

jakew
06-05-2013, 09:20
Where I am in New York, it generally seems to be that a pour is around 1/5 to 1/4 the price of the bottle. I tend to drink much more at whiskey bars than I do at home as it gets me out of the house and I've made many friends sitting at the bar talking about whiskey. I have a friend who runs a place blocks from my apartment with very fair prices but some of the places out here have astoundingly high markups. Went to a place near me that charges $100 an oz for BTAC pours(!!!). I could only afford Cabin Still that night haha.