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Craft Draft Pricing

Discussion in 'Beer Talk' started by otispdriftwood, Feb 6, 2013.

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Which Craft Draft pricing structure do you favor?

Poll closed Feb 13, 2013.
  1. Same sized pours, different prices

    45.0%
  2. Different pours, same prices

    55.0%
  1. maltmaster420

    maltmaster420 Savant (450) Oregon Aug 17, 2005

    If you're pouring mostly "standard" craft beers you can get away with using the same margin for everything, but that doesn't work when you get into the realm of high-end craft and imports. For an extreme example, I'll use the keg of Black Albert that we received on Tuesday. The wholesale price was $7.67/pint. If we used the typical "take the wholesales price and multiply by 4" routine that many bars use, we'd have to charge over $30/pint.
     
  2. ABisonEgo

    ABisonEgo Savant (290) Illinois Jan 31, 2012

    World of beer carries most styles of glasses: american pint, english pint, snifter, pilsner flute, lambic flute, hefe glass and belgian tulips, and goblets for all their pours
     
  3. If only I was lucky enough to have one by me... a guy can dream though.
     
  4. ThickNStout

    ThickNStout Savant (495) Georgia Mar 8, 2011

    Fair enough and I can see the logic.

    I guess it's good that I very rarely drink in bars...
     
  5. Bottom line... Enjoy beer and bars. When you get the tab, choose if you will go back.
     
  6. that Palo Santo sits longer because its freaking $6.50 for 10 ounces. lololol no thanks
     
  7. Flashy

    Flashy Advocate (555) Vermont Oct 22, 2003

    Some of these babies shouldn't ever be in a large glass. Had Goose Island Bourbon County on tap and only fool would drink 16 oz of that (maybe I am wrong- but that is some strong sh@t).
     
  8. luisfrancisco

    luisfrancisco Savant (275) Mexico Dec 1, 2009

    I'd happily drink 16 oz of Bourbon County. I can assure you I am not a fool. <-- I know this for a fact.
     
  9. I love what Haymarket in Chicago does. Each beer is available in a 4oz, 12oz, and sometimes 16oz and 20oz (limited quantity beers tend to be only 4 and 12, higher gravity sometimes limited to 12 or 16), price per ounce is the same across all available sizes (so, say, $1.50 for 4oz, $4.50 for 12oz, $6 for 16). They do the same for the guest taps, not just their own brews.

    My other preference is to post the price and size and preferably have it be in the correct glassware. Putting it in correct glassware is probably tough if you are doing same price/different size, and impossible if you do same size/different price.
     
  10. Flashy

    Flashy Advocate (555) Vermont Oct 22, 2003

    Alright, a liter of Bourbon County would be out of line- perhaps. I once drank two growlers of Ramstein Winter Wheat while watching football and realized my folly the following day.
     
  11. luisfrancisco

    luisfrancisco Savant (275) Mexico Dec 1, 2009

    Yeah I hear you. Drinking too much beer never seems foolish until the next day comes.
     
  12. drocpsu

    drocpsu Savant (255) New Hampshire Dec 25, 2006

    I Agree with this! I just like when bars clearly list all of their prices for their craft beers on tap. It lets me make my own decision.

    That way, if I dont like the price of something, I can choose a different beer. For example, my favorite local beer bar had Unibroue La Fin Du Monde on tap for $10.50/glass! That is shockingly expensive for a glass of a beer that's readily-available at ANY store in the area. This is not a rate or limited release beer. I love the beer, but it is definitely not worth that price. It was odd, since the bar usually has pretty fair prices for their beers. This one seemed way out of line. So, I chose something else.
     
  13. I'm not surprised Hayden doesn't like beer :)
     
    tectactoe likes this.
  14. Thank you. Hell all of my pricing is less than the World of Beer a couple of miles away and they don't even serve food!
     
  15. I don't know if things have changed, but back in the day when I worked in the bar/restaurant industry I don't believe we ever paid a keg deposit. Bottom line was if we didn't return the keg, we were charged for it and didn't get any more beer. It's different from an individual going into a distributor to get a keg and the distributor doesn't know if he'll ever see that person again, hence a keg deposit. With a business, you have a standing relationship with your distributor and if you piss him off, well I don't think I have to go into detail.
     
  16. beertunes

    beertunes Poobah (1,120) Washington Sep 24, 2007

    This is another area where things are going be different, depending on location. At least around here, every keg sitting in every bar has a deposit on it. At least $50, and sometimes more. And if you're a bar with 30+ taps, and a couple things ready to be put on each tap when a keg dies, that's a lot bucks tied up in barrelage. My basic point was that, like any retail store, bars can't buy new product without money, and if you've got a lot of cash tied up in slow moving inventory, you need to get some kind of premium on that inventory.
     
  17. emannths

    emannths Savant (425) Massachusetts Sep 21, 2007

    Have bucks tied up in inventory costs you no more than your % profitability.

    Suppose you have 30 draft lines and you have a backup keg for each one. You've got a deposit of $50 per keg, and each keg costs $150. So that's $200 x 60 kegs = $12,000 of capital tied up in inventory at all times.

    Suppose your restaurant makes about 10% profit per year. So if you could repurpose that $12,000 tied up in kegs, you could make an additional $12,000 * 0.10 = $1,200 per year. Alternatively, you could think about taking out a loan to cover the cost of the kegs. If the interest rate is a conservative 10%, again, your cost is $1,200 per year. Pocket change!

    Seriously guys, the net cost of keeping kegs in inventory is SMALL!
     
    beertunes likes this.
  18. beertunes

    beertunes Poobah (1,120) Washington Sep 24, 2007

    But, when you move a keg of beer A every day, and a keg of beer B takes 2 weeks to empty, you're not getting the same rate of return on turnover. And any retailer will tell you, turnover of inventory is key.
     
  19. emannths

    emannths Savant (425) Massachusetts Sep 21, 2007

    Maybe we're seeing eye-to-eye here and just using different terminology, but...

    It's a question of opportunity cost, not holding cost as many seem to be trying to frame it. If you could replace that slow moving keg with something that will kick in a day and won't canabalize sales from your other tap linez then yes you're making less money if you don't price it at a premium.

    However, I'd wager that putting up a third IPA isn't going to get more customers in the door, and instead it will simply take sales away from your other taps. But put on a slow-moving, specialty beer and you'll have the potential to draw more customers and new sales. In that case, you're actually making more money by putting the slow moving keg on. And if that's the case--if the shift from fast moving beer to slow moving beer results in an increase in revenue and profit--why do you need higher margins on that product? If you're not thinking about things as a way to maximize revenue, you're missing the forest for the trees.
     
  20. Flashy

    Flashy Advocate (555) Vermont Oct 22, 2003

    The next day I ALWAYS appreciate the lighter pour. Went on a ski trip to Utah and though we hated the light beer at night (Wastich?)- we loved it the next day- never skied once with a hangover (my problem).
     

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