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Imagine you could sell one beer for a day and take home 100% of the profit.
Which beer would you purchase? In the hypothetical example below, you might decide to buy PBR because it has a lower cost.
PBR Draft
Delirium Draft
Cost
$0.50 per beer
$2.40 per beer
Price to Customer
$3
$9
Beer Cost
16.7%
26.7%
Contribution Margin is the amount of $ profit of selling the beer.
 
 
Customer Pays
Beer Cost
Profit per beer sold
PBR
$3
$0.50
$2.50
Delirium
$9
$2.40
$6.60
 
Back to the original question.

If you could sell one beer and keep the money yourself would you want to make $2.50 or $6.60?
Tap Room feels the same way! We want to have high contribution margin beers on tap, but we do not want to sacrifice quality.

Behold, the Beer Finder:
The beer finder tool below will you give you a guided “matrix” of beer to order to insure we have enough high quality beers on tap as well as enough beers for profitability.