Paradigm Karaoke said:
this is interesting. never thought beyond if he pas me $150. and an extra $150.00 goes in the till, i'm covered and anything else is profit for the bar.
got a lot to learn
Well not quite that simplistic....
The $150 he give to you has costs associated with it. If he hands you $150 that came from customers, those drinks alone had a wholesale cost (let's call it 1/3rd just for argument's sake) that means that he's spent $50 of that on "costs" and now has to make up that $50 difference. Now, 2/3rds of how much will make up the $50 difference? And that is $75. So right now, he has to receive $175 from customers just to pay for the drinks and pay you.
That doesn't include, lights, water, insurance, employees, heat, disposables, etc. yadda, yadda, yadda, yadda... which are now ongoing hourly expenses that has to come out of the $175 and yet again, be made back up in order to hand you $150
It's an avalanche of costs that most people don't realize has to happen to make any night successful.
