what in the hell is pour cost % and how to calculate it

What in the Hell is Pour Cost

Percentage?And How to Calculate It

From Dave Allred, Founder/CEO Barpatrol.net

What is Pour Cost Percentage Exactly?

Pour cost % measures the gross margin of profit on your products and goods.

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And What in the Hell Does THAT Mean?

• That means if your pour cost % for your beer, liquor and wine is 21%, that the bar made 79% in gross profit from those products.• In kindergarten terms: At 21% pour cost, for

every $1 you sell, the bar gets $0.79.



Got it? I Hope So…

Or you should stop managing bars, or be allowed to participate in society as a citizen in general anymore.

Yeah, I said it. Stop looking so shocked…Find out more cool tips at

Barpatrol.net


Why is Pour Cost % So Damn Important?

• Business, no matter what business, is all about margins. • If your bar sales are $1 million per year and

you improve your cost percentage by just 1% in one area, you will make an extra $10,000.



Consider This…Let’s say you can improve your cost percentages for all three—bar, food and labor—by 3% each, you will have an extra $90,000 per year.

Lower percentages mean higher profits. THAT’S why it’s important.Find out more cool tips at

Barpatrol.net


Formula For Calculating PC% For a Single Product• The formula for figuring pour cost

percentage for a single product is simple:

Wholesale Price of Bottle/Keg _______________________________________

Retail Price of Container x 100 = Pour Cost %



For Example…GREY GOOSEBottle Size = 1 Liter (33.81 oz.)Portion (Shot) Size = 1.5 oz. Shots per Bottle = 22 (33.81 ÷ 1.5)Retail Price = $9 per shotRetail Bottle Price = $202.50 (22 x $9)Wholesale Price = $38



Grey Goose PC%

The MathWS Price ÷ RT Price x 100 = PC%

$38 ÷ $202.50 x 100 = 18.77%



How to Figure Monthly PC%

The formula for figuring overall pour cost % via your monthly inventory is:

Beginning Inventory + Purchases – Ending Inventory x 100

__________________________________________Monthly Bar Sales



In Simpler Terms…

Your monthly wholesale usage____________________your monthly sales



For Example…

• June 1st You take a full inventory of beer, wine and liquor and the wholesale value = $12,743

• During the month of June, $11,500 worth of products are delivered

• July 1st You take another full inventory and your wholesale value = $12,158

• Monthly Sales for June = $50,649Find out more cool tips at Barpatrol.net


The MathBeg. Inventory + Purchases - End Inventory

Total ________________________________

Sales x 100

$12,743 + $11,500 - $12,158_________________________$50,649 x 100 = 23.86%Find out more cool tips at

Barpatrol.net


Make Sense Now? Are You Stoked? Awesome!Now You Know All About PC%

Visit us at Barpatrol.net for more cool tips and better ways to systemize your bar.
