Many bars and restaurants offer a wide selection of alcoholic drinks, including beer, cider, wine, and spirits. While we’ve written extensively on exactly how to price your craft beer selection, finding the right price for your liquor drinks is a different game. Liquor prices that are too high could turn customers away while prices set too low could affect your bottom line. Because of this, a business owner needs to find a sweet spot in order to retain guests while simultaneously making a profit.

Mastering the pricing calculations of liquor drinks is an art because many factors go into determining the price, including how you serve your drinks, drink pour size, the competitors in your market, and your customer demographics. However, there’s also a science to pricing liquor drinks, and that’s what we’ll cover in this article.