Monthly liquor inventory costs?

[markchr]

Greetings all,

Many thanks to all of you wonderful mentors who have taken the time to help us novices out.

Can someone please give me some direction/pointers on determining what I can expect my liquor costs to be (on a monthly basis)? Maybe some ratios that you have used, or contacts, or...?

The club will fit approx. 300 people in the city of Seattle.

I've guesstimated approx. 1,500 bar guests per week (averaging 2-3 drinks), so a total of about 4,000 drinks per week. I have no idea of the ratio of liquor vs. beer, and not being in business yet, these are the best estimates that I could come up with. Any feedback would be most welcome, thanks!

[markchr]

I got a price list for a washington state liquor board & can figure this out myself. Well sort of... with distilled spirits differing so much in their costs... how do folks gauge their prices... an averaging method of some sort I would imagine... but any good formulas out there?

[David]

We use a formula called Pour Costs.

Pour Costs have been estimated at 20% for liquor, 28% for bottled beer and 33% for wine. (Cost of Goods divided by Retail Sale Price equals the Pour Cost).

[markchr]

Awesome, thanks David!

[avenuecardiff]

Or heading towards percentage markup, except the £GP over the £cost. x100%

[Estefon]

Don't forget your standing inventory either. Pretty simple.

Beginning inventory
+ Purchases
- Ending Inventory

= usage

usage / sales = PC.