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Gross Profit Calculator

*****Now displays results for Vat at 17.5% and VAT at 20%*****

Free to Download and Use.

Knowing and understanding your Gross Profit (GP) is a vital part of ensuring that you make as much money as possible from your sales.

 GP is a measure of the relative profit made per sale of each individual item of your stock. It is normally expressed as a percentage of sale price. Knowing your GPs helps you to promote the right products and alerts you to a product that is being sold too cheaply.

  •  If you have 2 alcopops, both priced at £2.95 per bottle, but one is achieving 55% GP and the other 63% GP you make 20p more ‘real profit’ by selling one than the other. The amount that goes in the till is the same, but more of it is profit.

GP does not include all the overheads associated  with the sale: rent, wages, utilities etc. It just measures the raw profit on the sale. A good stock taker should leave you with a list of the GPs of all your items after a stock, and should be advising you on which prices need altering, but being able to find the GP on any give product quickly and easily is a great benefit, so we have created this simple GP calculator.

 When using the GP calculator you will be asked for a few basic pieces of information about the product:

  • Cost Price. This should be taken from a brewery invoice and should not include VAT. If you are buying wines or spirits from a supermarket (naughty!) you will need to divide the price on the receipt by 1.175 to get the required ex VAT price.
  • Unit size. This is the size of the unit to which the cost price applies. Number of gallons in the keg, number of bottles in a case or the size of the bottle.
  • Service size. This is the volume that you sell the product in, for draught the system assumes that you sell in pints as a standard, but it allows you to specify the size of wine glass or spirit measure that you choose to use.
  •  Sale Price. This should be the actual till price (including VAT) that you sell a single measure of the product for.
    • This is enough information for the system to tell you the GP achieved on the product.
  • Target GP. If you know what GP you are hoping to make from each product, type the target in this box and the system will tell you the price that you need to sell that product for in order to make your target GP.

The system separates out different types of product as the calculations required vary slightly.

  • Draught includes any draught product sold by the pint.
  • Bottles can be alcoholic or soft drinks. This can also be used for crisps and snacks. It assumes that the sale unit is one bottle/pack.
  • Wine and Spirits allow you to enter different sale units to account for your choice of how you serve them.
  • Food assumes a complete dish as served from the menu. For cost price add the cost of all the ingredients that go to make up that dish.

Most common buying sizes are:

  • Barrels: 9g, 11g, 18g and 22g. 50ltr kegs are equivalent to 10 gallons.W
  • Wine: Nearly always 750ml bottles.
  • Spirits: Normally 700ml bottles, magnums are 1500ml, some liqueurs come in 500ml.
  • Fortified wines and aperitifs can come in 700ml of 750ml bottles.

If you are unsure what GPs you should be aiming for, the following is a list of typical GPs achieved on various products. You should always aim for the highest GP you can achieve without pricing yourself out of the market....

  • Draught – 42% to 48% for fully tied, 65% to 70% for free trade.
  • Spirits – 55% to 70% tied, 65% to 75% free.
  • Soft drinks – 60% to 80%.
  • Bottled alcoholic drinks – 50% - 65% tied, 65% to 80% free.
  • Food – 55% to 60% for ‘value offering’, 70% to 75% for gastro.
  • Wines and snacks will always vary enormously, just try to promote the products with the best GPs and steer people away from the poor ones.

We hope that this tool is useful to you. If you have any comments or feedback to make, we’d love to hear from you. Likewise if you need more help in using this tool, please email us via the ‘Contact Us’ page on this website, or from the ‘Help’ button on the GP calculator.

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