15
Nov
This will establish your liquor cost per drink. Then add up the cost of all the ingredients.
The pour cost for the month of November would be 349.
How to calculate liquor cost. Lets take a look at the liquor cost formula how to use it to manage your spend and find cost savings opportunities for your business. Do The Math Managing your liquor costs begins with knowing the formula for calculating COGS. First you need to find out your Cost of Liquor Sold.
This takes some math due diligence and a week of business. Track the numbers in this equation over the course of a week. Standing Inventory Amount Cost of Purchases - Closing Inventory Amount Usage Amount.
Usage Amount Sales Revenue Cost of Liquor Sold. Calculating your liquor cost is accomplished by dividing the value of the product used by the sales of that product for a particular time period. The typical time period most bars use for calculating liquor cost is one month although 1- and 2-week time periods also work well.
A shortcut way to get an estimate of your liquor costs by including all inventory purchased as a cost instead of a fixed asset is to just utilize your total purchases within a period divided by the total sales. 15000 Inventory Usage in 40000 Cost of Product Sold x 100 375 Pour Cost Percentage Liquor cost is 375. That means it costs the business on average 375 of a drinks sale price to make it.
The average pour cost that most bar operators strive for is generally between 18 and 24. Liquor Cost Calculator Instructions Bottle Size. This should be the actual invoiced bottle cost you pay.
Include any service fees sin-tax etc. This is the total sales tax rate you pay in your county city state. For example a 7 sales tax is.
How to Price Bar Drinks Calculate the liquor cost. You can use the following formula to help get to this number. Bottle Price Ounces in Bottle.
Calculate the pour cost or beverage cost. You can use the following formula to help get to this number. Cost to Make the.
Calculate the drink price. A shortcut way to get an estimate of your liquor costs by including all inventory purchased as a cost instead of a fixed asset is to just utilize your total purchases within a period divided by the total sales. Calculate the Cost of Liquor per Drink Multiplying the cost per ounce by the amount of alcohol in the drink will calculate the value of the liquor per glass.
Typically drinks will have between one to one and a half ounces of liquor. Using the sample from above this would give a cost of 80 120. 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 1-15 ounces. This will establish your liquor cost per drink.
Multiply your liquor cost per drink by 4 or 5 to cover all the other variables. Round the price to the nearest quarter. Liquor Cost Formula.
Opening Inventory Purchases Closing Inventory Product Use. Divide Product Use into Sales and youre left with the liquor cost. For this example lets say that its early morning on March 1st and Marks Bar needs to take a monthly inventory in order to calculate their liquor cost.
Beverage Cost Cost of alcohol sales Total alcohol sales You must first establish a specific time period for analysis. The beverage sales and costs should be generated during a set accounting time period of at least two weeks or more typically every 28 days or monthly. Calculating alcohol beverage cost.
Our Free Liquor Cost Calculator provides a quick and easy way to calculate liquor cost for your entire bar by entering your inventory values purchase amounts and sales. In addition you can use the second tab of the free tool to calculate the liquor cost of specific drinks. Multiply your cost per milliliter 00507 by 30 to find out how much the liquor costs you per ounce.
00507 30 152 per ounce Repeat Steps 1 and 2 until youve accounted for all your ingredients. Then add up the cost of all the ingredients. Liquor and Drink Cost Calculator Free Spreadsheet Download A simple pre-built Excel spreadsheet template with pricing formulas to make running your bar a little easier.
Complete the below form to be emailed the free drink price calculator spreadsheet. Use BevSpots free online drink pricing tool to make sure you are setting the right prices for all of your drinks and getting the profits your bar needs. Liquor cost or pour cost is the amount of the drinks price that it costs to make the drink.
A drink with a pour cost of 15 has a profit margin of 85. Learn how to become your own liquor cost calculator. The average bar industry pour cost is between 18 and 24.
Inventory reveals that 12275 in product was sold during the month of November. Bar sales for November were 35125. The pour cost for the month of November would be 349.
12275 35125 349 Most professional bars seek a pour cost of between 18 to 24 so 349 would generally be considered quite high.