Jump to content

2014 Typical Distributor Margins


HWY 101

Recommended Posts

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

Link to comment
Share on other sites

Can't say on the margin, but I believe your math is off...

price to wholesaler: $19.79 + 33% = $26.32

price to retailer: $26.32 + 33% = $35.00 (retail)

Nevermind, you even said margin, not markup. Serves me right to post before coffee...

Link to comment
Share on other sites

  • 7 months later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...