$27.00 (USD) QBA? I'm confused

This particular wine is $14(USD) wholesale in my area. Almost a 100% markup! Don't even get me started on restaurant markups. I have a few QBA's that I paid $11 after case discount and the same wine was on a wine list for $26!

Sounds like the local shop is pricing a bit high. The other winesearcher Oregon shops with their $21-24 prices are more the norm. 50% markup (33% margin) seems reasonable to me for a rather low-volume "hand sell" wine.

People will throw things at me here for saying this, but I personally wouldn't complain about a wine at $26 that retails for $12-13 (assuming your case discount is 10% or so). I'm generally happy with 2-2.5 times retail for lower end wines. An extra $12-15 for the convenience. stemware, etc seems pretty fair to me. I don't tend to order expensive wines at restaurants, but 2.5X is a bit less reasonable to me if the wine retails for $100.

This particular wine is $14(USD) wholesale in my area. Almost a 100% markup! Don't even get me started on restaurant markups. I have a few QBA's that I paid $11 after case discount and the same wine was on a wine list for $26!

Michael, as Rashaan says, that sort of wine list markup, while not desireable from a consumer's standpoint, is quite normal, even moderate. Markups vary regionally and between restaurants but 2-3 times retail (in other words 3-4.5x wholesale) is the norm. In my experience, most fall toward the lower end of that range, those at the upper end and beyond don't get my business, occasionally you'll find a more enlightened establishment at 1.5x retail or even lower. But if the wine you mentioned was $13 at retail, discounted to $11 when you bought the case and $26 in the restaurant, that's twice retail. That's a completely conventional restaurant markup.

Mark, Dale & Rashaan,
I spent close to 10 years in the restaurant business in a couple of fine establishments as a waiter, wine captain and Maitre D. I am very aware of the pricing schemes of restaurants and retailers. I was just voicing my displeasure with the system of gouging the consumer, which seems to get worse all the time. Shame on them for their greed.

Michael

I spent close to 10 years in the restaurant business in a couple of fine establishments as a waiter, wine captain and Maitre D. I am very aware of the pricing schemes of restaurants and retailers. I was just voicing my displeasure with the system of gouging the consumer, which seems to get worse all the time.

So your markups were below 200% from retail?

Nice.

I had many discussions with upper management about beverage pricing when I was the position to be the wine buyer for the restaurants. My main point was that your best profit margins were with spirits and beer. I tried a method that worked for me but not the management. I would price wines at 50% above wholesale. I liked to see people enjoying wine not wincing at the wine list prices thus scaring them off to buy the house wines. Needless to say after the pencil pushers got wind of what I was doing my days in the restaurants started to wane.

Michael

So your markups were below 200% from retail?

Nice.

Rashaan, just to make sure we're talking the same mathematical language, if a wine wholesales for $10, retails for $15 and sells in the restaurant for $30 - a pretty normal setup in my experience - I'd call that restaurant mark-up 200% from wholesale or 100% from retail. Is that what you meant by 200% here or are you talking about a restaurant price of $45? As I said before, that's the sort of establishment I try to avoid

I had many discussions with upper management about beverage pricing when I was the position to be the wine buyer for the restaurants. My main point was that your best profit margins were with spirits and beer. I tried a method that worked for me but not the management. I would price wines at 50% above wholesale. I liked to see people enjoying wine not wincing at the wine list prices thus scaring them off to buy the house wines. Needless to say after the pencil pushers got wind of what I was doing my days in the restaurants started to wane.

Michael

Michael, you were indeed part of a rare breed in restaurant wine. What you're saying is that you were selling wine in the restuarant at the normal retail price. I've run into restaurants like that but only rarely in my adult life, which goes back further than I'd like to admit Most of that has been on the West Coast, where I've always thought of twice retail (for a mid-range wine) to be "normal". Worse than that, I feel had. When I run into 1.5x retail, I feel I've made a real find. Pricing at retail is very rare indeed.

just to make sure we're talking the same mathematical language, if a wine wholesales for $10, retails for $15 and sells in the restaurant for $30 - a pretty normal setup in my experience - I'd call that restaurant mark-up 200% from wholesale or 100% from retail.

Yes, I meant 2-3x retail as a reasonable markup.

Not that I like it.

I still prefer to open bottles at home afterall.