The fixing of the tariffs is essential for the perenniality of your company. It allows you to establish a margin on your sales, but also to challenge the competition. Les Grappes offers you some advice on how to set the prices of your wine list. We will discuss both bottle and glass prices, as this practice tends to be widespread.
First of all, you have to look at the logic of your card. Indeed it must offer a certain complementarity in its prices by mixing appreciated wines, top-of-the-range wines and more accessible wines.
So try to propose a low price offer, for example to accompany the lunch formulas if you are a restaurant owner: one or two glasses of wine should be suitable for these formulas, by a rather accessible price.
You can also offer a few more expensive wines, perhaps more appreciated, to give panache to your menu and to stimulate the greed of your customers by the quality of the wine you serve. For example, a restaurant with an average ticket price of around 15€ including tax will offer wines by the glass between 4,50€ and 7,50€. A restaurant of average ticket around 25€ TTC, wines by the glass between 7,50€ and 12€ and a restaurant of average ticket around 40€ TTC, wines by the glass between 12€ and 20€.
Finally, if you are a restaurant owner, you must keep a certain logic in your menu by matching the prices of the wines with those of the dishes you serve. There must be harmony in the prices.
To determine the prices of your menu, you must take into account the quality of the products you offer to identify the representative price of the range of wines. Thus you must pay attention to these data which are a guarantee of the quality of the wine:
To establish the prices of your wine list, you have to calculate the cost price and deduct the margin you will be able to take. To do this, it is necessary to determine the cost of acquisition beforehand:
The acquisition cost consists of the agreed purchase price, the ancillary costs (transport costs, etc.) and the additional costs of returning the acquired bias to a state of consumption or to storage.
Now comes the time of costing: it is the full cost of the product at the final stage. It represents the break-even point: in other words, it is the minimum selling price in order not to make a loss.
To calculate it, we take into account the acquisition price to which we add the cost of the administrative function, the financial function and the distribution function. That is to say, the price must include the acquisition of the wine, its transport, storage, service and the framework of the service. You will then reach the break-even point and will then be able to build up a margin.
This step being completed, you must proceed to the setting of the selling price. It must necessarily be higher than the cost price in order to make a margin and make your business profitable.
We propose you this calculation to determine the minimum selling price: it is a question of using a multiplying coefficient :
Depending on your sector of activity, you can use a multiplying coefficient to know at which price to sell at least. This is particularly the case for the sale of goods (e.g. shoes) or the processing of raw materials (e.g. catering). For bottled wine, this multiplying coefficient corresponds on average to 4.5. Thus, a bottle of wine bought 5 € HT will be resold with a coefficient of 4.5 to customers at :
(5 x 4,5) x 1,2(taxes)= 27 € TTC.
The tax administration counts on a usage coefficient of 3.5 excluding tax, which translates into a multiplier of 5, given VAT of 20% and service of 15%. Thus, a bottle bought without tax 10 € will be resold around 50 € including VAT to the customer.
For wine by the glass, the calculation is simple: one bottle can serve six 12cl glasses. It is generally advisable to increase the price by 5 to 10% compared to the price of the bottle.
Now that you have the average selling price of wine, you must also take into account in your price the proposals of the competition, and choose either to align yourself with the prices, or to differentiate yourself by selling your products more or less expensive.
In conclusion, the ideal price has the following characteristics: it must be accessible to the public you are targeting, take the competition into consideration, and must be profitable for your business.
Build an inimitable wine list and save a lot of time when ordering.