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POTATO VODKA DISCUSSION


AKBIGK

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Our upcoming distillery will be using alaskan grown potatoes, and we are trying to come in at an affordable pricepoint. We are trying to combat the high prices with our low price potatoes, higher volume goals, larger equipment, bulk bottle purchases, etc. What else can we do to keep our prices low? What are the least expensive potato vodkas worldwide?

We have already eliminated all salaries from our business plan for the first year, maybe the second, or however long it takes....

Thank you for any suggestions/information!

Kyle

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Our upcoming distillery will be using alaskan grown potatoes, and we are trying to come in at an affordable pricepoint. We are trying to combat the high prices with our low price potatoes, higher volume goals, larger equipment, bulk bottle purchases, etc. What else can we do to keep our prices low? What are the least expensive potato vodkas worldwide?

We have already eliminated all salaries from our business plan for the first year, maybe the second, or however long it takes....

Thank you for any suggestions/information!

Kyle

WHY WOULD YOU START A DISTILLERY THAT WILL NOT MAKE ENOUGH MONEY FOR YOU TO DRAW A SALARY?????????

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Given that potato vodka is inherently more expensive to make than grain, you have to work from the materials forward, not from the cost of the final product backward. With the economy of scale NOT on your side, you have to find some way of figuring out how much product you get from a given amount of ingredients. Then you have to figure how much it cost you to get that, then pad it a little and work out your final price from there. It makes no sense for the little guy to try to compete price-wise with large facilities. Worry about better, not cheaper.

That said, keep an eye on "Blue Ice" vodka. That could serve as some sort of benchmark for you.

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We enjoy what we are doing, and have the success of the distillery in mind, it's a project to provide local Alaskans with a product they can afford, and work from there. Financial gain is secondary until we have established ourselves in the local market. We have not yet determined that we won't make money off of our product, we just find it beneficial to reinvest our earnings.

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I must not be coming across correctly here. We spend day in and day out, crunching numbers. Looking at options, talking about production volume, market feasibility, cost of goods sold, looking at used equipment, judging taxation implications, working out bottle costs, lawyer fees, energy options, waste output, excavation requirements. We aren't shooting from the hip, we are in the process of doing our math, and our extensive business plan.

My original question was what are some of less expensive potato vodkas, and does anyone have any ideas on cost cutting?

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We plan on getting on shelves at under $20 a bottle. Selling about 1000L a month at first. We will be self distributing at first until production outpaces us. We will be producing in Palmer, and distributing in Anchorage about 40 minutes away. The potatoes are in Palmer, and we don't want to move our product until it's sold. We hope to get in at a lower price point for our locals!

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Curious AKBIGK ~ is it your positioning strategy to place your product on the shelf in the realm of Monarch & Popov Vodka (i.e. bargain barrel)?

You mentioned it being more expensive to produce vodka from potato than grain, what extra costs are you factoring into your equation (is it a difference of equipment, waste disposal, ?)

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Our price of Alaskan potatoes is in the 20cents a pound range, needing 15-18 lbs of potatoes per 1L bottle. Our shipping costs are a little more for anything in Alaska, including equipment and bottles. Our labor will be a little higher, due to extra cleaning steps in the potato vodka process, and bulk leftover removal.

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  • 3 weeks later...
Our price of Alaskan potatoes is in the 20cents a pound range, needing 15-18 lbs of potatoes per 1L bottle. Our shipping costs are a little more for anything in Alaska, including equipment and bottles. Our labor will be a little higher, due to extra cleaning steps in the potato vodka process, and bulk leftover removal.

Kyle,

If you are paying 20 cents per lb of potatoes, then your cost of raw materials is a little higher too... almost 5x more than what bulk potatoes are going for in Maine. Just a heads up if you are aiming for value pricing.

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