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.
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.
Margin
What you keep after paying for ingredients. Margin = price minus cost.
Example $10 price minus $2 cost = $8 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.
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.
Pour Size
How much you pour per drink. Standard spirit pour is 1.5oz; wine is 5-6oz; a dash is roughly 1/32oz.
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.