Selling By The Glass, Bottle and Retailing in a Wine Bar

[Jason]

The formulas you are using are guidelines and must be adjusted for individual bottles. Some of the more corporate places use strict formulas and don't buy anything that does not fit into that formula. Hence, crappy wine lists at most big chains.
The better way to do it is to look at every bottle and consider what the market will accept. For instance, if you have a low production cult chard you can charge a premium for it. But, if you have something like Forest Glenn Chard you better be competitive, because the consumer can get it anywhere and will find somebody who is willing to take a very small margin on it.
Lets use your Norman example. Since it is new to your area the importer's rep is around cutting deals to get market share.
He'll sell a larger place 10 cases and will probably give them at least 1 cs no charge as an intro special. That brings his cost down to $11.59/ bottle. Suddenly that $17 suggested retail looks pretty reasonable.
Your formula for on premise is high and way high for retail. You need to think in terms of volume and market share, especailly since you are brand new.
As far as glass price I would suggest $5.95. You still are at 42% cost but the price is far easier to swallow. Wines by the glass lists are an exercise in balance. You will have wines that will be 40-50% cost, but you can balance it out with high volume less expensive wines such as your house selections. In most places the house wines subsidise the rest of the program and allow you to offer some cherries while still making money overall.
If you would like more info feel free to email me, as I am also familiar with the distribs in your area.