Let’s say you have a reason to celebrate, and you’re considering getting bottle service at one of your favorite venues in the city. Many people experience sticker shock when they see the prices on the bottle menu. The most common question is, “Why does a $50 bottle from the liquor store cost $400 in the club?” Let’s break it down.

Bottle service prices are generally based on a simple formula. Most venues purchase one-liter bottles of alcohol, which contain 33.8 ounces. If the venue charges $18 per shot or drink at the bar, and each standard shot or drink has 1.5 ounces of liquor, we can do some math. Each one-liter bottle should yield about 22.5 standard shots or drinks. Bar math tells us that if the venue sells 22.5 drinks at $18 each, they should make around $405 per bottle. Using this formula, each ounce of liquor is valued at $12. Therefore, you can expect the menu price of this bottle to range between $400 and $450.

So, while it might seem like a steep markup, the pricing reflects the club’s business model. They’re not just selling you alcohol; they’re also charging for the exclusive experience, premium service, and prime real estate you’re enjoying for the night.

Now, bottle service isn’t for everyone. But if you’re looking to make a milestone memorable, it’s a lavish, albeit pricey, option. Understanding the math and business behind the pricing can help you make an informed decision.

As for those $25 drinks? Well, that’s a whole other story.