Pricing is crucial to the sustainability of your business. 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 yourwine list. We will discuss both prices by the bottle and by the glass, as this practice is becoming more widespread.
First of all, you must consider the logic of your wine list. Indeed, it must offer a certain complementarity in its prices by mixingappreciated wines,high-end wines andmore accessible wines.
Try to propose a low-price offer, for example, to accompany lunchtime formulas if you are a restaurant owner: one or two glasses of wine should be suitable for these formulas, with a rather accessible price.
Also offer some more expensive wines, perhaps more appreciated, to give panache to your menu and to arouse the greed of your customers by the quality of the wine that you serve. Thus, a restaurant with an average ticket around 15€ TTC will offer wines by the glass between 4,50€ and 7,50€. A restaurant with an average bill of 25€ including tax, wines by the glass between 7,50€ and 12€ and a restaurant with an average bill of 40€ including tax, 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 wine list, you must take into consideration 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 guarantees of the quality of the wine:
To establish the prices of your wine list, you must calculate the cost of production and deduct the margin you can take. To do this, you must first determine the cost of acquisition:
The acquisition cost is made up of the agreed purchase price, the ancillary costs (transport costs, etc.) as well as the additional costs of making the acquired bias ready for consumption or storing it.
Now comes the moment of calculating the cost price: this is the complete cost of the product at the final stage. It represents the break-even point: in other words, it is the minimum selling price to avoid making 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. In other words, the price must include the acquisition of the wine, its transport, its storage, its service, and the service framework. You will then reach the break-even point and be able to build up a margin.
Once this stage is over, you must proceed to set the selling price. It must necessarily be higher than the cost price in order to make a margin and make your business profitable.
We suggest this calculation to determine the minimum selling price: it is to use a multiplying coefficient:
Depending on your sector of activity, you can use a multiplier coefficient to know at what price to sell at the minimum. This is particularly the case for the sale of goods (shoes for example) or the processing of raw materials (restaurants for example). For bottled wine, this multiplication coefficient corresponds on average to 4.5. Thus, a bottle of wine bought for €5 excluding VAT will be resold with a coefficient of 4.5 to customers at :
(5 x 4.5) x 1.2(taxes)= €27 including tax.
The multiplier observed is generally 5. The tax authorities count on a coefficient of use of 3.5 before tax, which translates into a multiplier of 5 given the VAT of 20% and the service of 15%. Thus, a bottle bought without tax at 10€ will be sold to the customer at around 50€ including tax.
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 the 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 distinguish yourself by selling your products more or less expensive.
In conclusion, the ideal price has the following characteristics: it must be accessible to your target audience, take into consideration the competition, and must be profitable for your business.
More knowledgeable and curious, wine aficionados are becoming more numerous and their demand is evolving. Wine consumption trends are changing and your menu must reflect this, in terms of the type of wine but also and especially in terms of price.
For example, the attraction of organic wine is also apparent among the younger generation (under 25), who are prepared to pay more for a certified organic wine*. At the same time, there is a growing demand for wines from winegrowers, which are not found on every wine list. This demand is accompanied by a more ethical vision of wine consumption, which includes fairer remuneration for winegrowers. Thus, customers are often ready to pay more for a bottle of wine if it has a story (the story of those who make it!). Generally speaking, the price of wine is still the 2nd most important criterion for choosing a wine (behind the grape variety), but it is falling in 2021.*
Les Grappes is an online platform for the sale of wines from winegrowers, for professionals. We assist cafés, hotels, restaurants and wine cellars in their choice of wines, but also in the creation of tailor-made wine lists! From prices to design, we help you to choose the best wines, among more than 800 winegrowers, in short circuit. Sign up for free and our team will contact you! For more information, visit our website https://www.lesgrappes.com/vin-professionnel.
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