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Thread: Include Sales Tax or No?

  1. #1
    Join Date
    Apr 2012
    Location
    Bainbridge Island, WA
    Posts
    124

    Include Sales Tax or No?

    Thought experiment. Let's say I want a pint to be $4.50 at peak price. Our state has fairly high sales tax and people just always assume it's added on. Is it better to include it in the price and make the pint $4.50 even, or make the pint $4.25 and add the sales tax after (totaling about $4.60)?

    I'm a fan of round numbers, but an accountant advised adding tax after. True, something in the primitive little knot at the top of our spines tells us "$4.25 = better deal!". What do you all do?
    Russell Everett
    Co-Founder / Head Brewer
    Bainbridge Island Brewing
    Bainbridge Island, WA

  2. #2
    Join Date
    Jan 2012
    Posts
    142
    I too am interested in this - subscribing...

  3. #3
    Join Date
    Aug 2010
    Posts
    35
    My years of bar experience have shown me that people like beer prices that end in only quarters as change. Because of my cash register I would charge $4.50 for the beer and then back the tax out with my accounting software. At other bars I have charged $4.21 for the beer and with tax it hits $4.50, and at yet another We again charged $4.50 and the POS system figured out all the taxes in the end of the day report.

    In the end I prefer to have the price as an even $4.50 and then back the tax out later, but that is just my preference and it works for me, my data sheets, and accounting software.

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