# Pricing a Drink

It is not difficult to figure out how to price a drink – it is actually fairly easy. All you need is a formula to figure out the price and the PC – (Pouring Cost)

Below you will find the formula for figuring out what the price of a drink should be, and another formula for figuring how much your PC will be at the price you are charging for the drink.

Keep in mind that the formula only accounts for the liquor that is poured into the drink. It is not including the cost of any extras that are in the cocktail, such as juice, soda, whipped cream any garnishes etc. Adding at least a fifty cents to the final formula price helps make up for the high costs of the extras.

#### Example:

**Vodka Shot = $4.00**

**Screwdriver = $4.50 **A Screwdriver is made with Vodka and Orange Juice – add an extra 50¢ for the Juice and Cherry Garnish.

You can figure the exact formula for every drink sold. I don’t know about you, but I did not want to spend hours in front of a computer doing all that figuring. I just added the extra 50¢ or so to the price of the drink to compensate for anything that may be added to the drink other than the liquor. It may sound silly to add to the drink price but trust me — soda, juice and fruit garnishes are extremely expensive. (Have you purchased a case of lemons or limes lately? How about a box of soda syrup? These things are crazy expensive!) This is why you really need to compensate for things like that so your pour cost (PC) doesn’t go through the roof.

I put a 25¢ key and a 50¢ key on my cash register so the bartenders knew to add the appropriate amount to any drink that had extras added to the cocktail.

Are you ready for a little math lesson? You should already have your list of all the alcohol that you buy and sell in an Excel Spreadsheet (recommended) or listed somewhere convenient. OK Ready ??? Here we go !!!

# Pour Cost and How To Price A Drink

First of all – You need to know the size of each bottle – most liquor bottles have the size written on them.

#### Below are two of the most popular sizes of liquor bottles used in a bar.

#### The formulas below are figured in ounces.

**Liter = 33.8 oz**

**750 ml = 25.4 oz**

Look below at the formula to find out what you should be charging for a drink made with Jack Daniels that is a 750 ml Bottle (25.4 oz.) and cost $25.00 a bottle. (I know this isn’t the correct price for a bottle of Jack Daniels — just using that amount to show you how to do this!)

**Jack Daniels – $25.00 (750 ml) = 25.4 oz.**

**$25.00 ÷ 25.4 oz. = $0.98**

**Bottle Cost ÷ bottle size in ounces = Cost per ounce**

**$0.98 x 2 oz. = $1.96**

**Cost of one ounce x a 2 ounce pour = $1.96**

**$1.96 ÷ 22% (your desired PC) = $8.94 — drink price $9.00 — rounded**

**Price of 2 oz. pour ÷ by the PC percentage = Price should be for a 2 oz. shot of Jack Daniels — round to nearest quarter.**

This shows that a 2 oz. pour of Jack Daniels should be priced at $9.00 — if you want a PC of 22% and the bottle of Jack Daniels cost $25 for a 750 ml (25.4 oz.)

Therefore an ounce of Jack Daniels with a 22% PC should cost half of that. 1 oz. pour would cost $4.50.

Keep in mind that you need to add the 50¢ where appropriate. That all depends on what is in the drink. Examples — Juice is costly, so add 50¢ to any drink with juice added or maybe cola is added to the drink, add an additional 50¢ to compensate for the cost of the Cola. Anyway, I am sure you get the idea. All those extras are not free, they need to be paid for.

#### Below are some formulas for different size bottles and different size pours

#### The first formula is the same as the one above.

**Jack Daniels — $25.00 – 750 ml = 25.4 ounces**\

**$25.00 ÷ 25.4 oz. = $0.98 (cost per oz.) x 2 oz. (Size of pour) = $1.96 ÷ 22% PC = $8.94 — ($9.00) rounded price for a 2 oz. drink pour.**

**Jack Daniels $25.00 ÷ 25.4 = $.98 x 2 oz. = $1.96 ÷ 22% = $8.94 $9.00**

#### Below the Bottle cost is different with the same size bottle and the size of the ounces poured are changed on each formula. The PC is same as above.

**Jack Daniels $35.99 ÷ 25.4 = $1.42 x 2 oz. = $2.84 ÷ 22% PC = $12.91 $13.00**

**Jack Daniels $35.99 ÷ 25.4 = $1.42 x 1.5 oz. = $2.13 ÷ 22% PC = $9.68 $9.75**

**Jack Daniels $35.99 ÷ 25.4 = $1.42 x 1 oz. = $1.42 ÷ 22% PC = $6.45 $6.50**

#### Below the PC is changed – notice the price difference from above.

#### Also — The lower the PC is — the higher the price will be.

**$35.99 ÷ 25.4 = $1.42 x 2 = $2.84 ÷ 16% PC = $17.75**

**$35.99 ÷ 25.4 = $1.42 x 1.5 = $2.13 ÷ 16% PC = $13.31 $13.50**

**$35.99 ÷ 25.4 = $1.42 x 1 = $1.42 ÷ 16% PC = $8.87 $9.00**

#### Below the size of the bottle is larger and the PC is changed.

#### I just want you to see the difference in price when the PC, size of the liquor bottle and the size of the drink pour all change.

**Jack Daniels $35.99 ÷ 33.8 = $1.06 x 2 = $2.12 ÷ 20% PC = $10.60 $10.50**

**Jack Daniels $35.99 ÷ 33.8 = $1.06 x 1.5 = $1.59 ÷ 20% PC = $7.95 $8.00**

**Jack Daniels $35.99 ÷ 33.8 = $1.06 x 1 = $1.06 ÷ 20% PC = $5.30 $5.25**

#### What Your PC Should Be At The Price You Are Charging

#### This is how to find out what you should be charging for your desired PC

#### Notice the difference in your pouring cost (PC) at **$5.00** and **$6.00**

**Jack Daniels —- 25.00 ÷ 25.4 = .98 x 1 = .98 ÷ $6.00 = 16% PC**

**Jack Daniels —- 25.00 ÷ 33.8 = .74 x 1 = .73 ÷ $6.00 = 12% PC**

**Jack Daniels —- 25.00 ÷ 25.4 = .98 x 1 = .98 ÷ $5.00 = 19% PC**

**Jack Daniels —- 25.00 ÷ 33.8 = .74 x 1 = .73 ÷ $5.00 = 14% PC**

# Draft Beer Prices and Desired PC

#### DRAFT BEER KEG SIZES

**1/2 Barrel Keg — 1984 fluid oz.**

**1/4 Barrel Keg — 992 fluid oz.**

**1/4 Slim Barrel Keg — 992 fluid oz.**

**1/6 Barrel keg — 661 fluid oz.**

**50 Liter Keg — 1691 ounces**

**30 Liter Keg — 1014 ounces**

**20 Liter Keg — 676 ounces**

**$95 — Price of Keg** **÷** **1984 — Total ounces in Keg ****= .0478 x 10 oz. (size of glass or pitcher) = .478 Can round this up to 48¢ ****÷** **16% (your desired PC)** **= $2.99 $3.00 rounded to nearest 25¢**

#### The formulas below are done the same way as above.

$95** ÷ 1984 = .0478 x 10 oz. = .478 ÷** 16%** = $2.99 **$3.00

**$90 ÷ 1984 = .045 x 10 oz. = .453 ÷ $1.75 = .259**

**Rounded = $90 ÷ 1984 = .045 x 10 oz. = .45 ÷ $1.75 = .259% 26%**

**$90 ÷ 1984 = .045 x 10 oz. = .453 ÷ $2.00 = .226**

**Rounded = $90 ÷ 1984 = .045 x 10 oz. = .45 ÷ $2.00 = .226% 23%**

**$90 ÷ 1984 = .045 x 60 oz.= 2.72 ÷ $15.00 = 18%**

**$90 ÷ 1984 = .045 x 32 oz.= 1.45 ÷ $8.00 = .18% 18%**

# Bottle Beer

#### Below Bottle Beer is figured the same way and you will find that your PC runs much higher for bottled beer and wine.

#### First 3 examples below — is for a PC of 25%

**Bottle Beer $20 a case ÷ 24 bottles = .83 x 1 = .83 ÷ 25% = $3.32 $3.25**

**Bottle Beer $25 a case ÷ 24 bottles = 1.04 x 1 = 1.04 ÷ 25% = $4.16 $4.25**

**Bottle Beer $30 a case ÷ 24 bottles = 1.25 x 1 = 1.25 ÷ 25% = $5.00**

#### 3 examples below — is for a PC of 20%

**Bottle Beer $20 a case ÷ 24 bottles = .83 x 1 = .83 ÷ 20% = $4.15 $4.25**

**Bottle Beer $25 a case ÷ 24 bottles =1.04 x 1 = 1.04 ÷ 20% = $5.20 $5.25**

**Bottle Beer $30 a case ÷ 24 bottles =1.25 x 1 = 1.25 ÷ 20% = $6.25**

#### Notice the lower your PC the higher the price of each item will be. (The lower the PC the better for you – but don’t over price to the point that you have no customers.)

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