The Mistake of Pricing Wine with Just a Multiplier
Multiplying cost by 2.5 or 3 is quick, but it creates unbalanced wine lists, unsellable wines, and wasted margins. Here's what to do instead.
Introduction
Many restaurants price their wines in a seemingly logical way: they multiply the purchase cost by 2.5 or 3. Done. No analysis, no strategy, no thought about the diner. It's such a widespread practice that it has become the norm. But it's a mistake that could be costing you sales, margin, and rotation without you even realizing it. In this article, we explain why the flat multiplier doesn't work, what problems it creates, and what you should do instead. ---
Why It Seems Like a Simple Solution
The multiplier has one thing going for it: speed. - Speed: no thinking required. Cost × 3 and done. - Habit: "it's always been done this way" is the most common justification. - False sense of control: it seems like you maintain a constant margin across the entire list. But the reality is that a constant percentage margin is not the same as a profitable wine list. And much less a list that sells well. ---
What Problems It Creates
1. Entry-level wines are too cheap If you buy a young wine for €3 and multiply by 3, you sell it at €9. That's a margin of only €6. It sells a lot but barely contributes to profitability. 2. Premium wines become unsellable A wine that costs €25, multiplied by 3, ends up at €75. For many diners, that's an impassable barrier. The wine doesn't rotate, it takes up space on the list, and it distorts the overall perception. 3. There are no price steps With a flat multiplier, the gaps between price ranges are proportional to cost, not to the diner's perception. This creates "dead zones" where there are no options between €25 and €45, for example. 4. You compete with yourself If you have three wines priced between €20-€24 and nothing between €25-€35, the diner will always choose the cheapest of the three. You're cannibalizing your own list. ---
What You Should Do Instead
Regressive markup The most effective method is the regressive markup: the more expensive the wine, the lower the multiplier. | Cost | Multiplier | PVP | Gross Margin | |------|-----------|-----|-------------| | €3 | ×3.5 | €10.50 | €7.50 | | €8 | ×2.8 | €22.40 | €14.40 | | €15 | ×2.3 | €34.50 | €19.50 | | €28 | ×1.8 | €50.40 | €22.40 | Result: every wine is sellable. The gross margin per bottle increases as the price rises, but the sale price doesn't scare off the diner. Price ladder strategy Structure your list in price ranges with enough options in each: | Range | Role | Percentage of list | |------|------|-------------------| | Under €15 | Entry, high rotation | 20-30% | | €15-30 | Sweet spot, best balance | 40-50% | | €30-50 | Premium exploration | 15-25% | | +€65 | Aspirational reference, doesn't need to rotate much | Anchor wines Place anchor wines at strategic points on the list. A slightly more expensive wine at the beginning of the mid-range makes the next one seem like a good choice. It's pricing psychology in action. Wine mapping Wine mapping lets you visualize your entire list on a price × style map. This way you can detect: - Where too many references cluster - Where there are gaps that the diner notices - Which wines compete with each other without adding value ---
Example: Flat Multiplier vs. Structured List
List with ×3 Multiplier | Wine | Cost | PVP | Gross Margin | |------|------|-----|-------------| | Young Verdejo | €3 | €9 | €6 | | Ribera Crianza | €8 | €24 | €16 | | Rioja Reserva | €15 | €45 | €30 | | Gran Reserva | €28 | €84 | €56 | Result: the Verdejo sells a lot but leaves little. The Gran Reserva never sells. The restaurant depends on the mid-range. Structured List with Regressive Markup | Wine | Cost | PVP | Gross Margin | |------|------|-----|-------------| | Young Verdejo | €3 | €10.50 | €7.50 | | Ribera Crianza | €8 | €22 | €14 | | Rioja Reserva | €15 | €34 | €19 | | Gran Reserva | €28 | €50 | €22 | Result: the Gran Reserva is now sellable. The mid-range generates more margin. There's a price ladder without abrupt jumps. The diner has clear options and the restaurant earns more in every range. ---
How Winerim Helps
Winerim analyzes your wine list and shows you exactly where the problems are: - Detects gaps in the price ladder that prevent the diner from moving up in range. - Identifies duplicate wines in style that compete with each other without adding value. - Proposes pricing adjustments based on data, not intuition. - Generates a visual wine mapping so you can see your list as the diner sees it. You don't need to be a sommelier or a pricing expert. Just upload your list and let the tool do the work. ---
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