Well, I'm getting your point, Rextract. Mostly, I see where the straight percentage markup policy in a bar can limit sales of higher priced items, and it's a good insight.
You're proposing a markup policy that's not percentage based: If it's costs a bar 3 bucks to serve a pint of your beer, and they need to make a buck of profit per pint, they could tack 4 bucks on to cost of that beer, and leave it at that...regardless of what the cost is.
The only downsides to the method are:
1. Doesn't factor in higher cost for spillage.
2. Doesn't consider higher working capital costs for pricier items.
3. Doesn't make simple enough sense to an industry that's been doing it the other way for generations. Certainly a tough sell for the small brewer trying to get their beer on tap!
But I still like it better. As a brewer and a consumer.
Cheers,
Scott
You're proposing a markup policy that's not percentage based: If it's costs a bar 3 bucks to serve a pint of your beer, and they need to make a buck of profit per pint, they could tack 4 bucks on to cost of that beer, and leave it at that...regardless of what the cost is.
The only downsides to the method are:
1. Doesn't factor in higher cost for spillage.
2. Doesn't consider higher working capital costs for pricier items.
3. Doesn't make simple enough sense to an industry that's been doing it the other way for generations. Certainly a tough sell for the small brewer trying to get their beer on tap!
But I still like it better. As a brewer and a consumer.
Cheers,
Scott
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