What We Spend on Booze
I realize it’s morning, but let’s talk about booze for a second. Lam Thuy Vo has been doing a bang up job illustrating how Americans spend on things like food, and this time, Vo is taking a look at booze. Apparently, $1 out of every $100 we spend goes to booze, and that hasn’t changed in 30 years, except booze has gotten cheaper at the store, but more expensive at bars and restaurants.
That’s a shame for social drinkers like me, because I’d say 95 percent of my boozing happens at a bar or restaurant. I’m not the sort of person who drinks at home, and I never drink alone. I do keep liquor at home for guests, but a lot of it is bottom shelf stuff because of this experiment I did for The Awl. I’d like to say it’d be cheaper to invite friends over for drinks instead of going out to a bar, but knowing me, I’d spend a lot of money on snacks, and worry too much about whether or not everyone was having a good time. So, to the bar it is! Who wants to go after work?
Using mint.com for a few months has been interesting in this respect. I have a special budget break out for wine and spirits because I’ll totally overspend on wine if I don’t watch it.
I’d rather have one good cocktail than two mediocre ones when out at a bar, so that keeps the bar spending reasonably in check. We have a decent stock of nice booze at home, we don’t drink at home that often. But boyfriend makes his own spiced brandied cherries and killer rye Manhattans when we do.
whiskey > dollars. i will totally drink all of the manhattans and a few of the old fashioneds with you, mike dang.
Working in the booze biz, and having done my fair share of retail and service jobs all across the spectrum, I was and still am amazed at the low margins for retail alcohol, especial spirits and beer. Wine starts at 33%, then goes down with specials, even further down with half and full case discounts, and even further down at Costco, where I believe it’s a 7% margin. Try working a retail wine shop and someone telling you how much you jack up your prices because we’re at the normal 33% markup rather than selling it at wholesale pricing. Beer and liquor – forget it. So little money to be made, retail wise.
Would be an interesting conversation on our culture of sales and discounts, and how difficult it is to make money in one industry where the markup isn’t even half of other retail industries, because all are expected to discount at the same rate, lest people think they’re being ripped off.
And this frustration leads me to the bar….circle of life
About six months ago, the bf and I decided we wanted an amazingly fancy home bar. We went out and spent about $100 on mixers and flavored liquors to add to our Costco-supplied hard liquors. It all looks very pretty.
Unfortunately, we still mostly drink beer and wine. He got me a small beer brewing kit for Christmas which we’re going to set up soon. But I was examining our collection the other day and kind of amazed. We have brandy! I tried it for the first time last week and found it to be delicious. When we go on vacation this summer we are bringing all the liquors.
When I examine my budget I get this mixture of surprise, disbelief and a touch of pride when I see how much of my discretionary spending is on alcohol. There are a few weeks where I’ve spent more on booze than food, though I can rationalize these larger purchases as gifts or for parties. I travel a lot for work and as a big fan of local microbrews I tend to pick up a couple six-packs whenever I travel to other states. As such I spend most of my money on alcohol at stores since I can’t very well pop in for a beer while I’m driving around.
“I’d like all of the manhattans please and maybe a few old-fashioneds”
Seconded.