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Simple Calculation, please help (pub trade)

  • 17-01-2011 9:00pm
    #1
    amn88
    Closed Accounts Posts: 36 ✭


    If you have margings of 65% in a pub, when vat is added would you really only have 30-40% of your takings to cover everything else?

    Say if I have takings of 600,000 in 2010 in a bar. And i have margins of 65%, Can someone tell me how much my purchases and my vat bill would be?

    Also i estimate 60,000 in wages. 1 full time employee (the owner) and 6 part time staff! Can anyone give am approximate figure on Prsi/pension contributions or anything else the pub would have to pay in tax?


Comments

  • #2
    sijoco
    Registered Users, Registered Users 2 Posts: 24 ✭sijoco


    Contact Vintners Federation, if you're a member they will send you out a fairly comprehensive guide that allows u work through to establish profit margins etc.
    It explains the breakdown with mathematical examples! Quite simple.


  • #3
    betterman
    Registered Users, Registered Users 2 Posts: 63 ✭✭betterman


    hi
    when you are doing your pricing 1 you add your 60% profit on that than with that figure you add your vat.
    the way i run my buisness is that i put my vat money in a notice account so when it comes to pay your tax you are not stuck short.
    your staff costs traditionally should be bout 26% but in a time like this you should try to reduce that to as low as possible


  • #4
    thebooxttt
    Registered Users, Registered Users 2 Posts: 20 ✭thebooxttt


    Your more or less looking at these ball park figures, if your turning 600,000

    30% wages.................180k
    10% utilities/renewals...60k
    35% stock costs..........210k
    Vat liability(below).........70k

    Vat on sales @ 21%......120k,
    less Approx vat on
    purchases & utilities.......50k

    Leaving you with a healthy 80k for yourself...of course this is only ball park numbers & in an ideal world & before income tax & before any major renewals or leases...but it also can be more if you streamline wages, overheads & utilities in year 2. Also if there are good food sales in the 600k the vat liability would be less.

    Good Luck


  • #5
    91011
    Closed Accounts Posts: 1,383 ✭✭✭91011


    Margin shoul be calculate after vat has been deducted

    so say gross turnover is 600,000
    net of vat turnover is 496,000 (assuming its all drink @ 21% and no food)

    Your gross margin is then the percentage of the 496000 that is left after costs of product is taken off.

    A good pub should be able to get 55% margin (unless you're in a city centre), so assuming this, your gross profit will be circa 273,000

    If you're a heavy seller of basics such as Guinness & Smithwicks, the margin will be lower as these 2 drinks are the lowest margin drinks in the bar.

    This is what you have for rent, rates, staff, utilities, heat (expensive), entertainment, cleaning, marketing.

    Whilst business is not nearly as good as it was, entry & operating costs are a lot lower.


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