Thanks everyone (bluefish, Indyspirits, glisade) for letting me know about the markups and margins. So, basically the $24 I stated was a very common local Vodka. In order for a distillery to be profitable in a 3-tier system with 30% margin (42.86% markup) on distributor and wholesaler, you should be definitely produce well below $11.75. Based on your experiences in different states, what is the reasonable cost of vodka produced per bottle (750 ml), including all the fixed and operating costs?
Costs include property rental, equipment purchase with a 5-year service life, equipment operating maintenance, ingredients (grains, fruits, water, yeast, etc.), energy costs (electricity, natural gas, etc), TABC tax, all other costs. Please kindly state your assumption of what you're including and what you are not including.
Thanks and best regards,