OK, bear with me here and please tell me if I am off base (I know market prices are different based on region).
We all know about the increased cost of brewing beer. The consumers have been mostly conditioned to accept it. So I was looking at the numbers and kinda scratching my head. It seems like we have increased our prices to offset the cost and retain our margins, as we should. When you look at the retail side of this, it would appear they have taken this situation and used it as a golden opportunity to increase their margins.
Average beer example:
Pre-hop meltdown keg price to account: $105/110
Now reality price to account: $120/125
So this would be an increased cost of goods for the account of about $15.
Pre-hop meltdown pint price at retail account: $4.25/4.50 (Seattle)
Now reality price at retail account: $4.75/5.00
"Those brewers increased their keg prices, Joe Pintglass drinker, we had to raise our prices too!"
OK, let's look at again:
1 keg (15.5) = 140 short pour shaker glasses (typical under sized bar glass)
All things being equal here from before and after (waste/shrinkage/ect.)
Increased cost of keg: $15
True per pint COGS increase: $0.11
Actual pub price increase: $0.50
Publican increases their margin and blames it on the hop crisis and the brewer. I know retailers are dealing with cost increases and such but to truly say your prices are increasing because of brewers is a bit misleading. And I know you don't just raise your price $0.11 but wouldn't $0.25 be more appropriate than $0.50? Anyone find this a bit frustrating?
-Beaux
We all know about the increased cost of brewing beer. The consumers have been mostly conditioned to accept it. So I was looking at the numbers and kinda scratching my head. It seems like we have increased our prices to offset the cost and retain our margins, as we should. When you look at the retail side of this, it would appear they have taken this situation and used it as a golden opportunity to increase their margins.
Average beer example:
Pre-hop meltdown keg price to account: $105/110
Now reality price to account: $120/125
So this would be an increased cost of goods for the account of about $15.
Pre-hop meltdown pint price at retail account: $4.25/4.50 (Seattle)
Now reality price at retail account: $4.75/5.00
"Those brewers increased their keg prices, Joe Pintglass drinker, we had to raise our prices too!"
OK, let's look at again:
1 keg (15.5) = 140 short pour shaker glasses (typical under sized bar glass)
All things being equal here from before and after (waste/shrinkage/ect.)
Increased cost of keg: $15
True per pint COGS increase: $0.11
Actual pub price increase: $0.50
Publican increases their margin and blames it on the hop crisis and the brewer. I know retailers are dealing with cost increases and such but to truly say your prices are increasing because of brewers is a bit misleading. And I know you don't just raise your price $0.11 but wouldn't $0.25 be more appropriate than $0.50? Anyone find this a bit frustrating?
-Beaux
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