1. What is the Shot Price Formula?

The Shot Price Formula calculates the appropriate price for a drink based on the cost of ingredients and the desired pour cost percentage. This helps bars and restaurants maintain consistent profit margins.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Cost \) — Cost of ingredients (in currency)
• \( Target\ Pour\ Cost \) — Desired pour cost percentage

Explanation: The formula divides the ingredient cost by the target pour cost percentage (expressed as a decimal) to determine the optimal selling price.

3. Importance of Pour Cost Calculation

Details: Proper pricing ensures profitability while remaining competitive. Typical pour costs range from 18-24% for liquor, 20-25% for beer, and 14-20% for wine.

4. Using the Calculator

Tips: Enter the total cost of ingredients in your currency and your target pour cost percentage. Both values must be greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What is a good pour cost percentage?
A: Industry standards vary, but most bars aim for 18-24% pour cost for liquor to maintain profitability.

Q2: Should I include labor costs in my calculation?
A: This calculator focuses on ingredient costs only. Labor and overhead should be factored into your overall pricing strategy separately.

Q3: How often should I update my prices?
A: Review prices whenever your ingredient costs change significantly or at least quarterly to account for market fluctuations.

Q4: What if my actual pour cost differs from target?
A: Regularly track actual pour costs and adjust either your prices or inventory controls if there's significant variance.

Q5: Should I use the same pour cost for all drinks?
A: You may want different targets for premium vs. well drinks or for different categories (liquor, beer, wine).