by the glass

[MRM]

Now charging me $6.50 for a glass of $7.50 a bottle retail wine is profitable, while charging $85 for a $60 bottle of Sans Cervelle is cool but way past being my dinner beverage of choice. In my side business, if I do not mark up 3 times what I paid for an object I do not make money. As far as I know this is true in all businesses dealing in tangible objects. In a restaurant (especially here in Monterey, CA, where lettuce retails at 39 to 59 cents a head year round) putting 25 cents worth of ingredients and 1 minute of time into a salad and charging $6.50 is a profitable move. A plate of pasta that does not contain both lobster and truffle does not cost more than $2, so charging $12-$18 will generate a profit. Selling a $20 bottle for $55 does generate even more profit dollar wise but is not as profitable as the salad in the long run. Unless everybody buys wine. Which is the crux of this discussion, I believe. People who don't cook do not know the costs of food, and you do have to pay for the artistry of the chef, the dish washer, and all the other costs of doing business, we all understand that when we go out to eat. But Joe Six Pack saw the Beringer's end rack at the Safeway when he was waiting to check out. He now knows it retails for under $10 and a restaurant charging $30+ for the same bottle is something he can understand, he understands it is way too profitable for his blood, he'll have coffee, thank you.