Purchase cost × multiplier = menu price.
See what that price really leaves you once UK VAT (20%) and the wine cost are taken out.
Menu price (nice number): GBP
| Calculated price | |
| Effective multiplier () | × |
| VAT (20%) | |
| Wine Cost | |
| Wine Margin | GBP (%) |
This changes a lot: ×3 pre-VAT on a £10 wine gives £36, ×3 post-VAT gives £30. Most restaurants apply the multiplier pre-VAT, so when the VAT rate changes nothing has to be reworked: the multiplier stays the same, only the new price with VAT is recalculated.
It depends on the bottle. There is no single right number for a whole list: a ×3 that works on a £7 wine turns a £35 bottle into a £126 price most guests will skip.
With a regressive multiplier, the multiplier goes down as the purchase price goes up: for example ×3.5 on entry wines, ×2.5 in the middle and ×2 on premium bottles. Guests trade up more easily, and every premium bottle still earns more pounds than an entry wine.
A nice number is the calculated price rounded, usually to a whole pound: £47.35 becomes £47. From £100 up it is rounded to the nearest £10, so £134.20 becomes £130 and the price looks less scary on the list. The effective multiplier shows what that rounding really does to your markup.
Read more on markup vs margin, check single bottles with the Wine Bottle Margin Analyser, or estimate what a flat markup costs you with the Wine Profit Leak calculator.