©Copyright 2016 Draft Price Calculator. The profit margin for bottle beer should be around 75%, while the profit margin for draft beer should be about 80%. Works for Corn Sugar (Dextrose), Table Sugar (Sucrose), Dry Malt Extract (DME), and variety of priming sugars. Your craft beer prices and your markup strategies depend on the products you offer, your barâs expenses, and what people will pay. Book a free demo with us and weâll walk you through how BinWise Pro can help you manage your craft beer program more effectively. Most successful bar managers shoot for a liquor cost of 20% to 30% on their bottled and canned beer. Some bars have a higher overhead charge, and higher prices for their craft beer, because of their upper-scale locations. If you manage a bar, restaurant or beer store, you likely deal with a wide variety in shape and size of packages and serving vessels for beer. This adds an overhead service charge, say either 50¢ or $1, on top of the wholesale multiplier to get the menu price. Sean has been in the Nightclub & Bar business since 1985 and has worked for and owned many bars and restaurants. Wholesale Cost x (2, 2.5, or 3) = Menu Price Simply round up the result to … Draft Beer Profit Calculator The draft beer profit calculator compares profit levels of up to three unique products based on cost, your retail price, keg size, and glass size. Simply round up the result to the next nickel, dime, or quarter, for the final price. The draft beer profit calculator compares profit levels of up to three unique products based on cost, your retail price, keg size, and glass size. You'll also need to account for spillage, spoilage, and over-pouring also known as pour cost. And that goes for liquor pricing and wine by the glass pricing, too. Note: The draft beer profit calculator assumes that space left in every pour due to head foam exactly negates any spillage. In most cases, 2 is for higher-cost beers and more than 2 for lower-cost ones. Website Design and Development by VIEO Design, Website Design and Development by VIEO Design. For example, if Budweiser costs an establishment 50¢ per bottle and is sold for $2.00 per bottle, then the potential cost percentage is $.50/$2.00 =.25 = 25%. But it depends on the type of beer and the type of establishment. Alternately, craft beers can be quite expensive to buy wholesale, so bars don't mark them up as high. It is more fun to do a mix. Developed by TECJAUNT. To calculate the menu price for craft beer, multiply the wholesale cost of goods sold per can or bottle by 2, 2.5, or 3. Note: The draft beer profit calculator assumes that space left in every pour due to head foam exactly negates any spillage. Includes the residual amount of CO 2 present in the beer due to fermentation. Over the years Sean had struggled to find a better and easier way to keep the profits up and the costs down all while trying to give the right price to charge for a draft beer. Using this method, you'll sell a 12-oz bottle of craft beer that you bought for a wholesale cost of $1.27 for at least $3.50. 4 of the 5 liter mini kegs. But the pricing strategy for draft beer is the same as canned and bottled beer: try to hit a liquor cost of 20% to 30%. Ensure your markup is enough to cover lower price times like happy hour. But we recommend having higher overhead charges or markup numbers for draft beer. Here are a few things that you should keep in mind when pricing your craft beer: The average markup on beer is about 200% to 300% when beer pricing for bars. This tool is designed to simplify profit calculations for you. Calculate Profit and Margin with Set Price, © 2020 Eagle Distributing. For example, if you get $3.32, round it to either $3.35 or $3.50. C. Determining an operation's potential bottled beer cost percentage is just a matter of dividing a bottle's cost by its selling price. Always strive for a balance between profit and customer satisfaction to price your craft beer intelligently and reasonably. This tool is designed to simplify profit calculations for you. This is because installing and maintaining a draft system equipment can be quite costly, from weekly line cleaning to frequent keg changing and accurate beer keg tracking. To bottle 5 gallons of home brew beer: 54 of the standard 12 oz bottles. Over the years Sean had struggled to find a better and easier way to keep the profits up and the costs down all while trying to give the right price to charge for a draft beer. Draft Beer Drink Cost Breakdown in Practice We’ll walk through the pricing breakdown of a basic drink to provide a visual of the calculation above. Use drink menu engineering to maximize your profits. per bottle = $0.88 per ounce The packaged beer profit calculators determine a suggested retail price based on a set operating margin, or your profit margin based on a set retail price. Liquor cost: $22 purchase cost / 25 oz. In most cases, 2 is for higher-cost beers and more than 2 for lower-cost ones. From a hands on bar and restaurant operator comes Draft Price Calculator. Donât be afraid to try a combination of these strategies and figure out which works best for yourself. 10 of the 64 ounce (half gallon) growlers. It's similar to wine bottle pricing but there are more profits in the wine industry. Sean has implemented this tool with all of his managers so they can keep the profits up and costs down at both of his Sacramento, CA locations - Der Biergarten and River City Saloon .He hopes it can help you too. Beer Profit Calculator If you manage a bar, restaurant or beer store, you likely deal with a wide variety in shape and size of packages and serving vessels for beer. This app comes to you to keep your profits up and your costs down. From a hands on bar and restaurant operator comes Draft Price Calculator. To calculate the menu price for craft beer, multiply the wholesale cost of goods sold per can or bottle by 2, 2.5, or 3. That means if you're paying $1 wholesale for a beer bottle, it'll have a menu price of $3.35 to $5. Use BevSpot’s 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. All rights reserved. Some bottles and cans of macrobrew can be marked up to 500% because they're so cheap wholesale. The general cost-per-ounce for beer in kegs is 40 to 45% less than if it comes in cans and bottles. From a consumer perspective, beer drinkers can save almost 80% on macrobrews like Budweiser if they buy a keg. To start, we’ll say that a 25-ounce bottle of liquor costs $22. Sean has implemented this tool with all of his managers so they can keep the profits up and costs down at both of his Sacramento, CA locations - Der Biergarten and River City Saloon .He hopes it can help you too. Those happen more often when serving draft beer than with canned and bottled ones. Beer Priming Calculator Calculates how much priming sugar to add at bottling time for home brewed beer. This method is sometimes more convenient because you have fewer markup numbers to keep track of and can quickly adjust prices when necessary. This app comes to you in hopes that it will keep your profits up and costs down. The popularity of craft beer is rising. Draft Price Calculator is developed by long time bar and restaurant operator Sean Derfield from Sacramento, CA. Not only that, but you will also need to purchase CO2 and Nitrogen regularly to best serve your beer. If you find this article helpful, there's more where that came from. 38 of the half liter (16.9oz) bottles. 30 of the 22 ounce bottles. From half kegs to pony keg sizes, the profit potential is always there. Offering your customers a wide variety of optionsâcraft and notâcan be a huge win for your bar profitability. Therefore, draft beer prices in kegs are sold for a much higher profit. Another beer pricing method for bars is using a fixed markup number for all canned and bottled beers.