Quote:
Originally Posted by retiredguy123
I don't know anything about whiskey, but I had to do the math.
You can buy a 750 ml bottle of Johnny Walker Blue Label at Total Wine for $230, which will yield about 17, 1.5 ounce shots.
17 shots x $60 = $1,020
$1,020 - $230 = $790 gross profit
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All business owners wish it were as simple as that calculation. From that $790 you need to deduct the the direct labor costs (which unfortunately have been very high to attract labor from a shrinking pool), percentage of overhead costs (including rent, utilities, insurance, maintenance, taxes, etc), percentage of fringe benefits (health, life, 401k, if any of these apply), and percentage of general and administrative costs like business management, hostess, etc. There is always a higher profit margin in alcohol sales, but the profit surely ain't $790 per bottle of whiskey. And, I'm certainly not suggesting $60 for a shot of whiskey is reasonable. I wouldn't pay that no way, no how. Precisely why I don't drink
