Originally Posted by
jbsay
What do you mean? Retail and wholesale pricing may differ significantly, but they're highly correlated. Sure, United is paying a way less than $50 for Jordan cab, but there's no way United is buying it for $8 to $10 a bottle in bulk. I've been involved in purchasing hundreds of cases direct from wineries for large events; an 80% discount off retail pricing is all but unheard of. United is probably paying $20 to $30 per bottle of Jordan cab.
again for everyone in this thread: pricing strategy for Bars/Restaurants & retail stores like binny's/safeway,osco,walgreens etc differ
Bars/Restaurants
By the Glass - typically these wines are priced on their list for about what they pay for them. Sometimes less, sometimes more, Jordan Cab is $15 on the list at United. I have seen it for $20 & $25 at other restaurants. I would bet that United is actually charging less than they pay for this one as it is their TOP DOLLARS BTG pour, most accounts know where the law of diminishing returns is.
By the Bottle on wine lists - typically restaurants will charge 2-2.5 & sometimes 3x what the paid for the bottle. I typically see this wine from $75-$110 on a wine list.
Retail
Typically works 18-30% Gross Profit Margin, sometimes even more - If binnys has Jordan Cab retailed for $45, say they bought the wine for $25 per bottle, they are making 44% Gross Profit Margin