Great stuff. To add a bit more profit in your draft beer, you only need to use the per ounce value * the drink size. He got a value of $5.29 with an entire keg of those 24 ounce servings. A 24 oz beer @.06 cents per oz, with the 25% margin he mentioned = 5.76. 32 oz = $7.68 and 64 oz = $15.35. Your PER OUNCE price doesn't change based on number of specific size drinks.
you prolly dont care at all but does any of you know a way to get back into an instagram account..? I stupidly lost my password. I love any assistance you can give me.
@Jordan Darian Thanks so much for your reply. I found the site thru google and Im waiting for the hacking stuff now. Seems to take a while so I will get back to you later when my account password hopefully is recovered.
I really like your content very helpful and to the point. Will be watching more content if it’s all like this. You see too much clickbait out there everybody tries to make a simple question ask situation into a 30 minute video. Keep working hard and stay safe
@@DaveAllredTheRealBarman I've been working on ramping up my own place for about a year now (long story), and you've always given me solid information and everything makes perfect sense. Thanks Dave!
Hey Rey, are you asking if the price per shot should be more expensive than the bottle of the same brand/product (i.e. Jack Daniels)? Or are you asking if a shot of liquor should be more expensive than a bottled beer? Not sure what bottle you are asking about exactly.
Hi Dave, I'm having trouble figuring what to charge for drinks with multiple mixers. Obviously, the first mixer is free, but we have people looking for multiple mixers off the gun, and sometimes adding grenadine, bitters or syrup...? It gets complex, so is it appropriate to add .25 - .50 for additional mixers? Or more?
Hey Sabda, it's the same process. You can do it with anything, including your food. Just determine the total wholesale cost of the cocktail (what it's costing you as an owner) and divide it by the desired cost %.
Those prices are really high. I've been saving a lot of money with the stay at home order. Twenty five percent cost on tap beer is crazy. If I'm going to pay a bar 4x the cost for a beer, they better give me something in return. Like a great atmosphere, and hot bartenders who are friendly. The bartender better thank me when she puts my change on the bar for the drink. If they just slap the money down and walk away, like many of them do, no tip for you. A tip is earned, not a given. So many places don't even have music going, and besides paying for overpriced drinks, they charge you a dollar for every fucking song in the jukebox. Screw that. I think many people are realizing now, by staying home, just how much money they blew at the bars. Many people are turning their garages into mancaves with a bar, and having their friends over.
You are correct, Jamie, it is the business's job and the bartenders' job to create a great atmosphere and great service to justify the higher prices you pay by going out. I fully agree. However, just so you (and other people) are aware, everyone assumes that because bars & restaurants have big mark-ups that they are making a killing, but it's simply not true. Bars and restaurants, on average, after they pay everything and BEFORE taxes, make about 3 - 6% profit. That means if they sell $1 million in a year, they make $30,000 - $60,000. Pretty pathetic profits. So give them a bit of a break. They're doing what they have to just to survive. But with that said, bartenders are also usually unaware of how hard it is for the owner to make money and so they walk around like they own the planet, which is just plain sad. Thanks for stopping by. Let me know when your man cave is finished and I'll stop by for a drink. Cheers.
@@DaveAllredTheRealBarman I was thinking like Jamie M when I saw the profit margins you were using. I was wondering if they were realistic or just being used for the example calculations. If they are realistic, that's 70% to 80% profit margins on alcohol. I know retail space rent is stupid high but Damn that's a high profit margin.
@@peecmkr45 rent is definitely high but labor is the highest by far. Also prices on food fluctuate a lot every week. Cases of avocado go between 30 to 90 dollars and the meat as well changes a lot. Restaurants can't change prices every week to account for that. And food also has a small shelf life. Not to mention taxes. Its a hard business and most times the drinks are what makes the difference between annual profits or losses.
@@peecmkr45 leave out utilities, etc and focus on bar staff. If the bar has 2 bartenders that are average, they should be making $12 / hour or so X 2 = $24/hour regardless if you buy a drink. Now throw in a bartender who has show skills, can serve fast, accurate, may has a bit of flair and a great personality, he is probably making $15-18 an hour because he brings in customers & keeps them happy. Doesn't sound like much VS 80% margin, but now pay the $500+ electric bill, rent, matching taxes for FICA, water & sewer, liability insurance, broken glasses, spillage, comped drinks, etc and as he stated above, margins shrink quick.
Hey Jett, you are welcome to factor those things in. The point is to determine your desired cost % and then use that number to determine pricing. If you want a lower cost % to account for those things, then that's what you need to do. Just know that the lower the cost % goal you have, the higher the price you need to charge, or the cheaper your products need to be. Hopefully that makes sense.
@@nwouso1 This depends on what metric you'd like to use. 15.5 gallons = 1,984 oz. 58.75 liters does = 1,986.57 oz. but these keg numbers are directly from the distributor. I didn't make them up. In addition, the difference between the two is 0.1% so no matter which one you choose, there is going to be no discernible difference. I hope that makes sense.
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Just got promoted at the bar and expected to do beverage costing. Having never had that responsibility, this vid was very helpful. Thanks!
Awesome, glad it helped. Cheers.
Thank You ! I do all the ordering for alcohol and it's harder than it sounds !
Thank u so much. I honestly understood it perfectly. Now u got my brain working. Couldnt explained it better. Ur the best.
Thank you, buddy. this was great
Thank you very much Sr
Hello, awesome video man. What spillage rates do you use on your liquors, beer, and mixers?
Appreciate your videos!
Thank you sir
Great stuff. To add a bit more profit in your draft beer, you only need to use the per ounce value * the drink size. He got a value of $5.29 with an entire keg of those 24 ounce servings. A 24 oz beer @.06 cents per oz, with the 25% margin he mentioned = 5.76. 32 oz = $7.68 and 64 oz = $15.35. Your PER OUNCE price doesn't change based on number of specific size drinks.
you prolly dont care at all but does any of you know a way to get back into an instagram account..?
I stupidly lost my password. I love any assistance you can give me.
@Jordan Darian Thanks so much for your reply. I found the site thru google and Im waiting for the hacking stuff now.
Seems to take a while so I will get back to you later when my account password hopefully is recovered.
@Jordan Darian It did the trick and I actually got access to my account again. Im so happy:D
Thanks so much, you saved my account!
@Christopher Lukas happy to help :)
I really like your content very helpful and to the point. Will be watching more content if it’s all like this. You see too much clickbait out there everybody tries to make a simple question ask situation into a 30 minute video. Keep working hard and stay safe
Thanks Patrick. Appreciate that.
@@DaveAllredTheRealBarman I've been working on ramping up my own place for about a year now (long story), and you've always given me solid information and everything makes perfect sense. Thanks Dave!
Hi Dave. Great stuff. Question-should price per shot be more expensive than per bottle price?
Hey Rey, are you asking if the price per shot should be more expensive than the bottle of the same brand/product (i.e. Jack Daniels)? Or are you asking if a shot of liquor should be more expensive than a bottled beer? Not sure what bottle you are asking about exactly.
Should you charge tax on liquor or just add that into price
Hey Tim, even though it works out the same, technically it's best if you can add the tax on to everything you sell so you can track it properly.
Hi Dave, I'm having trouble figuring what to charge for drinks with multiple mixers. Obviously, the first mixer is free, but we have people looking for multiple mixers off the gun, and sometimes adding grenadine, bitters or syrup...? It gets complex, so is it appropriate to add .25 - .50 for additional mixers? Or more?
Those are called cocktails, why do you have a bar if you don’t know what a cocktail is?
Can you do cl version? Cl/liter
Also thanks for a great course
So basically I should stick a certain desired percentage for all the drinks?
how about cocktails pricing?
Hey Sabda, it's the same process. You can do it with anything, including your food. Just determine the total wholesale cost of the cocktail (what it's costing you as an owner) and divide it by the desired cost %.
Isnt 1:3 or 1:2,5 pure standard like 100 years now.
Those prices are really high. I've been saving a lot of money with the stay at home order. Twenty five percent cost on tap beer is crazy. If I'm going to pay a bar 4x the cost for a beer, they better give me something in return. Like a great atmosphere, and hot bartenders who are friendly. The bartender better thank me when she puts my change on the bar for the drink. If they just slap the money down and walk away, like many of them do, no tip for you. A tip is earned, not a given. So many places don't even have music going, and besides paying for overpriced drinks, they charge you a dollar for every fucking song in the jukebox. Screw that. I think many people are realizing now, by staying home, just how much money they blew at the bars. Many people are turning their garages into mancaves with a bar, and having their friends over.
You are correct, Jamie, it is the business's job and the bartenders' job to create a great atmosphere and great service to justify the higher prices you pay by going out. I fully agree.
However, just so you (and other people) are aware, everyone assumes that because bars & restaurants have big mark-ups that they are making a killing, but it's simply not true. Bars and restaurants, on average, after they pay everything and BEFORE taxes, make about 3 - 6% profit. That means if they sell $1 million in a year, they make $30,000 - $60,000. Pretty pathetic profits.
So give them a bit of a break. They're doing what they have to just to survive. But with that said, bartenders are also usually unaware of how hard it is for the owner to make money and so they walk around like they own the planet, which is just plain sad.
Thanks for stopping by. Let me know when your man cave is finished and I'll stop by for a drink.
Cheers.
@@DaveAllredTheRealBarman I was thinking like Jamie M when I saw the profit margins you were using. I was wondering if they were realistic or just being used for the example calculations. If they are realistic, that's 70% to 80% profit margins on alcohol. I know retail space rent is stupid high but Damn that's a high profit margin.
@@peecmkr45 rent is definitely high but labor is the highest by far. Also prices on food fluctuate a lot every week. Cases of avocado go between 30 to 90 dollars and the meat as well changes a lot. Restaurants can't change prices every week to account for that. And food also has a small shelf life. Not to mention taxes. Its a hard business and most times the drinks are what makes the difference between annual profits or losses.
@@cujero facts
@@peecmkr45 leave out utilities, etc and focus on bar staff. If the bar has 2 bartenders that are average, they should be making $12 / hour or so X 2 = $24/hour regardless if you buy a drink. Now throw in a bartender who has show skills, can serve fast, accurate, may has a bit of flair and a great personality, he is probably making $15-18 an hour because he brings in customers & keeps them happy. Doesn't sound like much VS 80% margin, but now pay the $500+ electric bill, rent, matching taxes for FICA, water & sewer, liability insurance, broken glasses, spillage, comped drinks, etc and as he stated above, margins shrink quick.
But your not calculating cost of employees, rent, insurance, electricity ect?
Hey Jett, you are welcome to factor those things in. The point is to determine your desired cost % and then use that number to determine pricing. If you want a lower cost % to account for those things, then that's what you need to do. Just know that the lower the cost % goal you have, the higher the price you need to charge, or the cheaper your products need to be. Hopefully that makes sense.
Calculation is wrong... Try .75 to 1$ beer
Hey Khoda, not sure what you're referring to. Which calculation is wrong exactly so I can correct it?
@@DaveAllredTheRealBarman 58.75 liters equal 1986.5738; not 1984
@@nwouso1 This depends on what metric you'd like to use. 15.5 gallons = 1,984 oz. 58.75 liters does = 1,986.57 oz. but these keg numbers are directly from the distributor. I didn't make them up. In addition, the difference between the two is 0.1% so no matter which one you choose, there is going to be no discernible difference. I hope that makes sense.
Don't you all wish you understood the metric system 😅
I'm with you cottage. Metric system is so much more logical.