Advertisement
Help Keep Boards Alive. Support us by going ad free today. See here: https://subscriptions.boards.ie/.
If we do not hit our goal we will be forced to close the site.

Current status: https://keepboardsalive.com/

Annual subs are best for most impact. If you are still undecided on going Ad Free - you can also donate using the Paypal Donate option. All contribution helps. Thank you.
https://www.boards.ie/group/1878-subscribers-forum

Private Group for paid up members of Boards.ie. Join the club.

Wine mark ups?

  • 12-08-2008 11:53AM
    #1
    Guvnor
    Closed Accounts Posts: 448 ✭✭


    Just wondering if there is an average mark-up on wines in hotels and restaurants etcetera?

    I've read online of 300% being standard and in some cases 500% - these articles were a few years old. I was wondering what it would be now?

    Even 300% is scary on a €20.00 bottle - what did it cost when it left the vineyard etcetera?!
    Tagged:


Comments

  • #2
    JIZZLORD
    Closed Accounts Posts: 3,484 ✭✭✭JIZZLORD


    i suppose wine would be where the money is made. the margins on food probably isn't great as it spoils etc but wine is a money spinner. generally not a wine fan what really gets my goat when i'm out for a meal is poor choice of beer.


  • #3
    muckety
    Registered Users, Registered Users 2 Posts: 724 ✭✭✭muckety


    I have often observed a c. 100% mark up on the retail price of the wine - so a bit more than 100% on the wholesales price. Sometimes 200% (but I don't order these!). The problem here I suppose is that there is so much duty slapped on wine that it is already expensive when the restuarant buys it!


  • #4
    the beer revolu
    Registered Users, Registered Users 2 Posts: 18,017 ✭✭✭✭the beer revolu


    Reasonable restaurants have a 50% mark up. Many people read this as 100%

    Let me explain.

    For simplicity's sake let's ignore VAT.
    A restaurant buys a wine at €10 per bottle and sells it for €20.
    half of the selling price is profit, hence 50% mark up.

    Using this system off licences have about 25% mark up
    Restaurants around 50%
    And pubs, typically, 40% - 50%

    Pubs do tend to want a higher margin on premium products, though. Greedy!


  • #5
    Guvnor
    Closed Accounts Posts: 448 ✭✭Guvnor


    Cheers lads!

    Good to see more modest mark-ups out there.


  • #6
    ibarelycare
    Registered Users, Registered Users 2 Posts: 58,456 ✭✭✭✭ibarelycare


    the beer revolu wrote: »
    Reasonable restaurants have a 50% mark up. Many people read this as 100%

    Let me explain.

    For simplicity's sake let's ignore VAT.
    A restaurant buys a wine at €10 per bottle and sells it for €20.
    half of the selling price is profit, hence 50% mark up.

    Using this system off licences have about 25% mark up
    Restaurants around 50%
    And pubs, typically, 40% - 50%

    Pubs do tend to want a higher margin on premium products, though. Greedy!

    :confused::confused::confused:

    Sorry but I don't get this. Mark-up is calculated on cost, not selling price. If the bottle cost €10 and the mark-up was 50% then the selling price would be €15. If the selling price is €20 then mark-up is 100%.


  • Advertisement
  • #7
    Cameraman
    Registered Users, Registered Users 2 Posts: 484 ✭✭Cameraman


    the beer revolu wrote: »
    Reasonable restaurants have a 50% mark up. Many people read this as 100%

    Let me explain.

    For simplicity's sake let's ignore VAT.
    A restaurant buys a wine at €10 per bottle and sells it for €20.
    half of the selling price is profit, hence 50% mark up.

    Using this system off licences have about 25% mark up
    Restaurants around 50%
    And pubs, typically, 40% - 50%

    Pubs do tend to want a higher margin on premium products, though. Greedy!

    I think what you're describing here is the margin - not the markup.

    In the example you've given, the margin is indeed 50%, but the markup is 100%.


  • #8
    enda1
    Registered Users, Registered Users 2 Posts: 5,165 ✭✭✭enda1


    muckety wrote: »
    I have often observed a c. 100% mark up on the retail price of the wine - so a bit more than 100% on the wholesales price. Sometimes 200% (but I don't order these!). The problem here I suppose is that there is so much duty slapped on wine that it is already expensive when the restuarant buys it!

    I think the duty is a per bottle price of something like 2 or 2.50.

    So the more expensive the wine the lower the duty (as a percentage).

    Also a restaurant I worked in in Dublin had a mar-up of €10 per bottle fixed price so not everywhere works on a percentage scheme.


  • #9
    melekalikimaka
    Moderators, Education Moderators, Music Moderators Posts: 10,686 Mod ✭✭✭✭melekalikimaka


    its alot less than that, i know fir a fact smaller off licences have as low as 20 or 30 on common wines, more on exclusives


  • #10
    chahop
    Registered Users, Registered Users 2 Posts: 89 ✭✭chahop


    In Restaurants the general rule is price-vat * 2 + vat ( €10- vat = 7.9*2 =15.8 + vat = €19.12) aprox more expensive wines lower % margin but higher cash margin. Now some places are higher mainly hotels also there are extra costs associated. Eg if you want a better choice, bigger list, cost gos up.


Advertisement