Margin vs. Pour Cost
Pour cost % keeps you honest. Margin in dollars pays the rent. Both numbers tell a different part of the story.
Updated October 2, 2026
Pour cost is a ratio. Margin is dollars. They answer different questions, and treating one as a substitute for the other is how good bars price themselves into trouble.
The two views
Pour Cost %
What share of revenue gets eaten by ingredients. Lower is better, all else equal.
Margin ($)
What you actually keep on a sale. Price minus cost. Higher is better, full stop.
When each one wins
Pour cost % is the right lens for category targets, week-over-week trends, and benchmarking against industry norms. It scales: a 20% target works whether the drink is $8 or $18.
Margin in dollars is the right lens when you're deciding whether to carry a premium spirit, whether a happy hour discount makes sense, or which cocktail to feature on the menu. Volume times margin is what fills the deposit at the end of the night.
The classic trap
A bar manager forces a 20% pour cost on every drink. The premium mezcal pour ends up priced at $40 because the bottle is expensive. Nobody orders it. The bar runs a clean pour cost on paper and a mediocre profit in practice. Pour cost looks good. Margin dollars tell the real story.
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