For Subscribers

The Macallan Index

The price of a Macallan single malt across the country

If there's such thing as the default setting for a business drink, it's a hotel bar and a glass of Macallan 12-year-old scotch, the single malt that's a natural for soothing anxious partners or convincing uncertain investors. But depending where in the country you're sipping it, Macallan can seem like a bargain or a hideously expensive luxury. Not surprisingly, it's priciest with a view of Central Park. But more than twice what it goes for in Portland?

How do they price a pour, anyway? "We base it on the cost price of the bottle," says Pradeep Raman, director of food and beverage at The Peninsula, Chicago. "Depending on our equipment cost and the cost of the labor, we have a percentage markup." (Equipment=Glass. Labor=Pour from bottle to glass.)

Raman says the hotel pays $42 for the bottle. At 1 1/2 ounces per standard pour, you get 17 pours per bottle at a cost of $2.47 each. "On this our margin is 500 percent," he says.

Only 500 percent! If the Oak Bar is also paying $42 per fifth, its margin is 890 percent. Wait--why aren't we in the bar business?

Continue reading this article — and all of our other premium content with Entrepreneur+

For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:

  • Digestible insight on how to be a better entrepreneur and leader
  • Lessons for starting and growing a business from our expert network of CEOs and founders
  • Meaningful content to help you make sharper decisions
  • Business and life hacks to help you stay ahead of the curve

Related Topics

Editor's Pick

The Dark Side of Pay Transparency — And What to Do If You Find Out You're Being Underpaid
Thinking of a Career Change? Here Are 4 Steps You Can Take to Get There.
A Founder Who Bootstrapped Her Jewelry Business With Just $1,000 Now Sees 7-Figure Revenue Because She Knew Something About Her Customers Nobody Else Did
Everything You Need to Know About Franchise Law
Business News

Amazon Is Starting to Let Customers Know What Products Are Returned Often

The e-commerce giant has begun flagging certain items that were frequently sent back.

Starting a Business

How To Sell on Etsy in 2023: A Comprehensive Guide

Want to start selling your handmade goods online? This article outlines how to start and grow your business using Etsy.

Marketing

International Marketing: How To Maximize Your Global Reach

International marketing can be a massive project and intimidating at first. Read this article to explore the ins and outs of the process and learn how to take your brand global.

Business Ideas

55 Small Business Ideas To Start Right Now

To start one of these home-based businesses, you don't need a lot of funding -- just energy, passion and the drive to succeed.