Do you measure the success of your business by the profit you make or the profit you should make?

The cost price percentage can allow managers to measure the difference between their actual profit and their target. This result will allow them to judge performance and whether improvements are necessary.

1. Calculate your cost per serving. You need both the size and the price of the bottle.

Ex: $ 25 and 1 liter. (1 liter = 35 Oz Imp. Or 34 Oz US)

Cost per Oz. = $ 25/35 = 0.714

For a shot of 1 Oz Imp. = $ 0.714

2. Calculate your percentage of the cost price

Sale price (excluding tax): $ 6.50

Percentage of cost price: $ 0.714 / $ 6.50 = 10.9%

What can you do with it?

* If you sell several shot sizes, the percentage of sales for each will be necessary but the calculations are the same. The use of an Excel spreadsheet will facilitate the calculations.

Let's say that in July, you calculate having served 20 bottles of this brand.

$ 25 X 20 = $ 500

$ 500 / 10.9% = $ 4587 is the optimal sales figure if you sold the 20 bottles to the last drop.

This turnover is your goal. The closer you get, the more successful you will be!

If your report says sales in July for this product are $ 3950.

$ 4587 - $ 3950 = $ 637 in sales difference

As the target amount in the glass (1 Oz) does not change,

$ 637 X 10.9% = $ 69.43 alcohol cost.

$ 69.43 / $ 25 = 2.77 bottles X 35 Oz.

96.95 Oz = 97 missing shots

The question you need to ask yourself: Where did all this alcohol go?

- A quantity has been lost in the drip tray or glasses have been overfilled.

- How much will you allocate to glasses served not ordered in your POS system?

Is it 10% or is it 70%? Who knows?

At 10% you could add the income of 9.7 shots for July or $ 65

Multiply by 5 if you think it's closer to 50% (50 shots) or $ 325 for the month.

You can repeat for all brands!

Our liquor control system will help you improve your results as close as possible to your target every day of the year!

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