Hi All,
I'm fairly new here so please forgive my levels of education when it comes to the spirits business!
My question is in regards to margins (mark-ups, gross profits) when it comes to a craft distillery product going to market in a 3-tier state. We are prodicing a few products, and thinking of partnering with someone for local distribution who can concentrate on our products mostly.
I'd like to know if anyone could help explain the margins in a 3 tier dtste, what they normally are and what to anticipate on each tier for an artisan spirit locally produced..
Example; how much is the cost to produce the spirit -> how much the distillery marks up (or makes % wise on margins, standard practice..50%? 100%) when selling to the distributor -> how much the margins are usually, standard for the distributor to make on each product -> what the margins are from the wholesale cost that the retailer pays the distributor to end retail price.
I greatly appreciate any and all help that you can give..I love the industry and am looking forward to diving in, of course homework always comes first.
Thank you all in advance,
Cheers!
-Jon
