The Neat Profit

How Much Should a Bar Charge for a Drink?

There's no one-size-fits-all answer, but there is a formula. Here's how to calculate exactly how much to charge for every drink on your menu.

The Basic Formula

Start with the pour cost formula:

Ingredient Cost / Target Pour Cost % = Menu Price

At 20% pour cost, you multiply ingredient cost by 5 to get the menu price. At 25%, multiply by 4. The lower your pour cost target, the higher your margin.

Pricing by Drink Category

  • Well liquor drink: 15-18% pour cost. Cost: ~$1.20. Price: $7-8
  • Call liquor drink: 20% pour cost. Cost: ~$2.00. Price: $10
  • Premium cocktail: 22-28% pour cost. Cost: ~$3.50. Price: $13-16
  • Craft cocktail: 25-30% pour cost. Cost: ~$4.50. Price: $15-18
  • Wine by the glass: 20-25% pour cost. Cost: ~$2.50. Price: $10-12
  • Draft beer: 20-25% pour cost. Cost: ~$1.50. Price: $6-8

The Neat Profit calculates exact costs for every recipe and suggests prices based on your target pour costs. Try our free Pour Cost Calculator to test scenarios. See our guide on cocktail pricing strategy for bars for more.

Factors Beyond the Formula

  • Location: A Manhattan cocktail bar charges more than a rural pub
  • Ambiance: Upscale settings command premium prices
  • Competition: Know what nearby bars charge for similar drinks
  • Portion size: Larger pours justify higher prices
  • Brand prestige: Named spirits (PatrĂ³n vs well tequila) command premiums

Happy Hour Pricing

Happy hour discounts should still maintain profitability. Target 25-30% pour cost during happy hour (vs 20% normal). A $10 cocktail at 20% pour cost can be discounted to $7 at 29% pour cost—still profitable, and it drives traffic during slow periods. Learn more about bar cost control strategies.

Frequently Asked Questions

How much should a bar charge for a drink?+
Use the pour cost formula: Ingredient Cost / Target Pour Cost % = Menu Price. For 20% pour cost, a drink costing $2 to make should be priced at $10. The Neat Profit calculates this automatically for every recipe.
How do I price well drinks vs premium drinks?+
Well drinks should target 15-18% pour cost for maximum margin on high volume. Premium drinks can sustain 25-40% pour cost because gross profit dollars are still high. The Neat Profit's AI Price Optimization recommends category-specific pricing.
Should I round cocktail prices up or down?+
Round to psychologically appealing numbers ($9 instead of $8.35). The Neat Profit calculates exact costs and suggests rounded prices that maintain target margins.
How do I price happy hour drinks?+
Happy hour pricing should still maintain profitability. Target 25-30% pour cost during happy hour (vs 20% normal). The Neat Profit shows margins at different price points so you can choose discounts that still profit.

Price Every Drink Perfectly

Automated drink pricing with The Neat Profit.

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