Prices Right - Margin Blending for High Volume Bars

Margin Blending is defined as a combination of higher and lower margin products to achieve an overall margin figure.

Margin blending can be helpful in the high volume bar setting to increase efficiency and increase sales. Margin blending is simple, you simply group similarly priced liquors together to one price level. To gain your overall desired margin, you will make a little more on the lower priced items in the group, but a little less margin on the higher priced items in the group.

Most high volume bars will have four or five price levels. To make things even faster, factor the tax so the total amount due is a whole dollar amount (or at least to the quarter). This will allow your bartenders to spend more time making drinks and less time making change, thus increasing capacity, efficiency, and revenue. It will also help you as a manager. You won't need to supply the bar with change every five minutes. Customer's also appreciate not getting a handful of pennies back with their gin and tonic.