How much do mixed drinks cost

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The markup on liquors, for instance, is typically higher than on beer or wine. Customers prefer it. It's unlikely you're setting your prices in a vacuum. If you set a 20 percent pour cost, giving you 80 percent profit, but your competition is happy with 30 percent, it can undercut you on price. Survey the market and make sure you're not pricing yourself out of it.

It's not necessary to check out every bar in town. Instead, focus on your niche. If your business is a sports bar with big-screen TVs blaring the latest game at the customers, you're probably not competing with the elegant martini bar farther down your block. A sports-bar happy hour may settle for a 30 percent pour cost — 70 percent profit on the drinks — but an upscale bar offering premium liqueurs may be able to achieve 18 percent, or 82 percent profit. Find the sweet spot between losing to the competition and not being able to cover payroll.

After you've been in business for a while, review your sales revenue and your pour cost. If you sell 50 percent beer, 30 percent liquor and 20 percent wine, calculate the average pour cost for each category. Even if that means a higher pour cost.

The bars that get this right test their pricing strategies all the time. Ever heard of psychological pricing? Our friends over in the retail industry came up with and perfected it.

But many of its principles are applicable to bars, restaurants, and menus. Even your a la carte menu , table d hote menu , or prix fixe menu can be manipulated in this way. Check it out and use some mind power! How much you can realistically sell a drink for affects its price. Wine by the glass and a wine bottle price work a little differently. A beer pricing strategy is its own animal, too.

But figuring out current and target pour costs is the most important factor to a profitable alcohol pricing strategy. This also incentivizes your bartenders to upsell and maximize your profits.