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Old 02-07-2013, 05:50 PM   #1
Sween
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Default What's your beer "worth"?

Just for fun I applied the model I use for my business to a bottle of my brew...

Cost of ingredients +
Cost of bottles/caps +
5% (EDITED) of the cost of equipment used to make the batch +
My average labor wage over the total time invested +
The cost of gas/mileage if I used the LHBS

Then divide by # of bottles in the yield...

$6.65/bottle for my last IPA.

(Even though every drop is priceless)


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Old 02-07-2013, 06:10 PM   #2
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Out of curiosity, what were you "paying" yourself...it may not be fair to "pay" yourself for brewing what you make vocationally/professionally...
Also, 10% of the equipment cost? I'd be surprised if any commercial brewer broke even on their equipment after 10 batches!

Overall, though, I'd have to agree that it's hard to put a price on the satisfaction of homebrewing! (Definitely priceless...)


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Old 02-07-2013, 06:14 PM   #3
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Yeah, I'd use a percentage more indicative of how many batches you want to break even on the equipment. I've sunk several hundred into equipment all together, but that includes kegging supplies, stir-plate, etc. At this point I've brewed probably 200 gallons of beer, though.
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Old 02-07-2013, 06:23 PM   #4
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Given your formula my last batch, an Oaked Aarogant Bastard clone, cost me roughly $6.25 per pint.

Like was said above though, your equipment depreciation seems really high. I have about $1000 invested in total. I dont see that being payed off over the course of 10 batches. Also, Ive used my professional wage in my calculations but no brewery in the world would pay me that based on my level of expirience.
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Old 02-07-2013, 06:25 PM   #5
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10% of equipment is steep, I would consider 2-3% a more realistic ballpark but still a hair high.
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Old 02-07-2013, 06:30 PM   #6
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If you consider home brewing a hobby...you would not include a labor cost! haha.

If homebrewing is a chore to you, you should just buy craft beer from the local brewery, it's cheaper!

For homebrewing to be worth the investment of time you have to enjoy it. People play golf as a hobby...they don't think about the wages they could be making if they were working vocationally with that time, do they? And what do you get at the end of the golf outing to show for it? Maybe a sunburn and a damaged ego.


Personally now that my savings have paid for my equipment my IPA's are only costing me about 60 cents / bottle....oh and I didn't count the fact that because I homebrew I do not pay for cable TV at home because I'd never use it....or how much I'm saving by not driving to the store and paying 4-5X as much per bottle for craft beer.
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Old 02-07-2013, 06:30 PM   #7
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Old 02-07-2013, 06:36 PM   #8
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I use 10% of equipment as that is the industry standard that we use for equipment loss in the pro audio equipment rental business.

You're right though... Pots and buckets last longer than DJ speakers.

That said I can knock a few pennies off.

My time is worth at least $30/hour.

Let's just say I'm not opening a brewery anytime soon.... This was mostly for fun, but wanted to know the "value" of it. It IS a hobby, but it still has a value...
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Old 02-07-2013, 06:38 PM   #9
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Depreciate on a fixed time scale like a business would.

I'd recommend a 10 year flat-line depreciation, or "useful life", whichever is less.

How many batches will the equipment make in 10 years, or before it is expected to fail?
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Old 02-07-2013, 07:09 PM   #10
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Its a fun exersice.
In my business, digital print, we do a flat line depreciation over 4 years.
Id say thadius is close at the 10 year mark for brewing equipment.
Given my level of expertise I wouldnt expect a brewery to pay me more than minimum wage.
With these parameters my new cost comes to about $2.50 pint.
A much more managable number for SWMBO to digest.


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