I'm working on a proforma and would like to know what others are realizing when it comes to distributor margin requirements in non-controlled states. Back in 2010 Will wrote about distributors requiring in the range of 30-35% with occasional agreements dropping as low as 25%/case. His rule of thumb was 33% therefore:
"So, let's work backwards: Let's say MSRP is $40, and let's guess that "street price" will be $35. $35 * .66 = $23.10 - this is the price the retailer wants to pay for the product. $23.10 * .66 = $15.25 - this is the price the wholesaler wants to pay for the product."
My question is, what is everyone else seeing as the norm in 2014? Is 33% still a good figure to work with?
Cheers,
Matt