Why does your drink cost so much?

YankeeFan · Dec 15, 2014

Deadspin takes a look at bar pricing and margins:

In my never-ending quest to make us all the best boozebags we can be, I recently badgered several Boston-area bar managers into explaining where drink prices come from. (Boston is a relatively expensive city, but the underlying percentages and equations that inform the final price to the customer are similar around the country.) I also combed through some invoices. I learned a few things, and now you can learn them, too.

The first thing that jumped out at me is that bars don't get as much of a volume discount as you might expect. The percentage varies from market to market based on how distribution licenses are doled out—i.e., is it a closed-up mob scenario or is there actual competition?—and even within the same market, the biggest places are going to get the best prices. And that's about the last caveat I care to issue before we get down to the math. These numbers are drawn from a medium-sized neighborhood bar in Boston.

http://deadspin.com/why-the-hell-does-your-drink-cost-so-much-1454231900
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Why does your drink cost so much?

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Why does your drink cost so much?

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