Craft beer, local brews, and even old reliables on tap are getting more popular by the day. While the bar landscape will always be the same at heart, there are many elements of the beer market that are constantly changing. No matter what kind of vibe you’re trying to bring to your bar, it might be helpful for you to familiarize yourself with the newest bar beer pricing guide to keep you on the right track to success.
Bar Beer Pricing Guide
Your Southern California Beverage Company pros have arranged a short pricing guide to help you understand the market and get more used to some changes that are going on in the bar scene. Let’s talk markups, macro brews, and major discounts!
New Markups
Pricing beer for your bar is a lot different than pricing out beer for retail customers. Currently, average markups on beer are between 200% and 300%. Interestingly enough, restaurants are seeing a similar markup with wines, but profits are measured differently for wine than for beer.
The cheaper the beer, the easier it will be to mark up. Macro brew bottles and cans can be marked up by almost 500% in some bars. Some bars are still choosing not to mark them up as high since wholesale prices are still expensive. It’s important to make sure that your markups earn you a profit and don’t lose your earnings during happy hour prices.
How to Price Your Draft Beer
Kegs are currently being priced 40% – 45% less per ounce than they used to be. Draft beer pricing for kegs should be different than for specialty beers. The best advice is to try and hit a liquor cost of 20% – 30%. Setting drink prices can be tricky depending on your equipment and system needs. Not to mention, with beer comes CO2 and nitrogen costs, which come with their own rates of inflation.
Running a bar business will give you a lot of margins for error. Spillage, messes, unexpected cleanups, and over-pouring could make your previous calculations moot. Other factors like keg and glassware size can determine how you’ll price your kegs.
Bottled Vs. Craft Beer
Pricing craft beer is always going to be more difficult because there are so many great varieties of beer to choose from. Because there are a lot of similarities and differences between craft beers, there are a couple of pricing guidelines that you should follow:
- Always understand your liquor costs and calculate what it would take to achieve them based on your craft beer pricing.
- Add more variety to your pricing. It’s okay to sell mainstream beers at a different price than your specialty local crafts.
- But keep your canned, bottled, and draft beers at the same price.
A good way to achieve these goals is to calculate your menu prices for draft beer and then follow suit with your bottled and canned selections to meet your profit goals.
Think About the Products You Offer
Do you offer wine by the glass? Do you offer beer flights for interested parties? There may be different strategies involved depending on the different types of products that you are selling at your bar. Margins are constantly changing, but adjusting your pricing to reflect these goals can help you remain afloat.
Learn More with SC Beverage
Whether you are starting a new bar or investing in new systems, you can benefit from the wide range of top-notch Los Angeles beer dispensing equipment that we have to offer. By keeping up with the latest pricing trends, you will be able to stay on track to meet your profit goals without having to constantly juggle new price points. Call us today and consult with our specialists to figure out the perfect beer pricing points for your own bar venue.
