I just got approached by the good people at LVMH, offering half bottles of Krug for a BTG placement. Though it's not perfect for my cost, I settled on $99 for two glasses, and I think that's pretty good for the higher-end steakhouse where I work. My boss, on the other hand, thought it was "obscenely expensive" and will only let me list it at $59, which hurts big time for my percentage. Ouchie.
What have you seen price-wise for Grande Cuvee? There's a little Italian place in Boulder that does $40 a glass, but I haven't seen it anywhere else. Help me.
I was pouring it a couple years ago for $40 a glass. Granted I was taking a hit on cost % but my guests were able to drink Krug on the cheap. I feel it’s good to make those friends and adjust margins on something else, but ultimately it’s up to the boss.
They have been pushing the half bottle "Krug for Two" program pretty hard. $99 for two glasses is a solid price. WIne.com sells a half btl for the same price. Don't sacrifice your margins to an extreme extent just to have Krug btg because btg margins is what gives us the freedom to play. M&H does good pricing for Ruinart BdB 375ml usually and you have the name, it's sexy and people love those bright fresh bubs. If you do decide to pour two glasses of Krug at $59 just let me know where you're located and I'll bring my wife for a date night and we'll crush some Krug!
1) You can't take margins to the bank. If the product sits there and doesn't move, it does you no good.
2) How much champagne do you really move? If you're moving enough to where a $15/glass price difference significantly impacts your margins, then you're moving a lot of Champagne and perhaps you need to start ordering by the pallet ...
3) Personally, I think your bubbles should be priced at a hit to your margin so you can move a more than just a token amount and appear to be generous to people in the know. Your other BTG options should be more than enough to make up for it. Your focus on having great margins should be on products like BTG Sauv Blanc, Pinot Grigio, Cab, etc ... fast movers where even small changes in your costs will end up making a huge impact on your P/L at the end of the period.
4) If you're really worried about the cost, advertise the fact that you're doing this promotion, then charge off some of the cost of each bottle to your company's marketing budget ... there's more than one way to get the $ for your product ...
5) Having said all that, if I saw a half bottle of Krug for $59, I'd take two please. For myself.
I'm selling it for $38 a glass in Chicago which is the lowest I've seen. A steakhouse here is also pouring it BTG at $75.
I sell it currently for $50 a glass (and sell plenty of it), and have worked with it up to $65. It does very much depend on your spot, but there is no issue with $99 for two glasses in my mind for that wine...
Where? May have to stop by..
We currently sell Krug Grande Cuvee BTG for $65 - we have offered it for just over a month now, with great success. I’m situated in a restaurant that sees a huge amount of celebratory dinners (birthdays, anniversaries, business accomplishments, etc.) so sparkling wine is a significant category for us. We offer 4 sparkling options that hit different price points and appeal to different audiences.
We do it for $54.40. We sell a lot of it too. I think it all depends on how fast you can move through. It is always my biggest concern that pouring high end Champagne will either get tossed in the drain or ends up as unauthorized shift drink.
Pops For Champagne
My cost in PA for a half bottle of Krug is $79.99 plus tax, so all of these prices seem amazing. I wouldn't be able to make any profit at those prices!
Must be nice! $170/half, $300/bottle here in Ontario.
I think you are better off just selling it as a half bottle, and can list it in your by the glass offerings. We sold half bottles of it at EMP for $125, and I would assume they still do. We listed it with our other BTG bubbles and put it on the champagne cart, but didn't sell it by the glass. For me, the half bottles have always shown with a touch less energy and brightness than the full bottles, and I doubt you are pouring 6 ounce glasses of champagne. It doesn't pay to waste your time saving 2 ounces from each bottle to put into the next order, only for it to have gone half flat in 2 hours.
If it is hurting your KPI's that much, just show your boss the numbers. Make them take it out of your GP reporting if they insist on making such a small margin.
Back in the day, Union Sq Cafe was selling the half bottles for $65. It was a great offer. Just spread the word that you are doing it, and make Krug flow like the Colorado River.
The place I used to run the program for in Vancouver called Vij's is a Krug Ambassador Restaurant. They have a private Krug room for special events and functions and sell glasses of Grand Cuvée for $76 Canadian. So roughly $58 US. The cost on a bottle of GC is $273 so our cogs was 90%. It was never meant to make money, only to give people the option to try something incredible that they otherwise wouldn't take a shot at.
Alex Ring Let's go after work!
Points 2 and 3 are so important! So easy to get tunnel vision with pricing but that sheet of top 10 items sold is going to rule your cost percentage, not your high end champagne BTG
If Krug is on that sheet congrats!