Reference

Glossary

Quick reference for the vocabulary PourCost uses, and the other names you may have heard for the same ideas.

Core Concepts

The main profitability metrics

Pour Cost

The cost of a drink expressed as a percentage of what you sell it for. Most bars target 16-20% on cocktails; beer usually runs 20-25% and wine 25-30%.

Example $2 cost ÷ $10 price = 20% pour cost.

Cost %Liquor CostBeverage Cost

COGS

Cost of Goods Sold: what it costs to make one drink or dish.

Example $2 in ingredients to make a cocktail that sells for $10.

Cost of GoodsBeverage COGS

Margin

What you keep after paying for ingredients. Margin = price minus cost.

Example $10 price minus $2 cost = $8 margin.

Gross MarginProfit Margin

Markup

How much you raise the price over cost, as a multiple or %.

Example $2 cost × 5 = $10 price (400% markup).

Prices & Sizes

What you sell and how much of it

Retail Price

What the customer pays for a pour or cocktail, before tax.

Menu PriceSell Price

Suggested Price

Price PourCost calculates from your cost and target pour cost %. It tells you what to charge to hit your goal.

Example $2 cost at a 20% target = $10 suggested price.

Product Size

The container size you buy: a 750ml bottle, a 12oz can, a case of garnish.

Container SizeBottle Size

Pour Size

How much you pour per drink. Standard spirit pour is 1.5oz; wine is 5-6oz; a dash is roughly 1/32oz.

Serving Size

Behind the Numbers

Per-unit breakdowns that feed the top-line metrics

Cost / Oz

What one ounce of the product costs you (product cost ÷ container ounces). Useful for comparing products across sizes.

Example $25 bottle ÷ 25.4oz = $0.98/oz.

Cost / Pour

What it costs to make one pour (cost/oz × pour size). The ingredient cost of a single drink.

Example $0.98/oz × 1.5oz = $1.47 / pour.

Variance

The gap between what you should have sold based on inventory and what actually rang up. High variance often points to overpouring, spillage, or theft.

Shrinkage

Total Alcohol

How strong a drink is, said as ounces of a standard 40% (80 proof) spirit. Two ounces means the drink holds as much alcohol as a 2 oz pour of vodka or whiskey, however it's built.

Example 2 oz of 40% gin + 1 oz of 16% vermouth = 0.96 oz of pure alcohol = 2.4 oz at 40%.

Alcohol ContentSpirit Equivalent

Pre-Dilution

Water added to a batch ahead of time. Ice adds 20-25% water at service, so a batch served up or chilled (no ice) needs it added, or the drink comes out too strong. Leave it out for batches served over ice.

Example 10 drinks at 3 oz = 30 oz, plus 20% water = 6 oz.

Batch Dilution