Self Distributors: delivery charge?

[AdirondackVodka]

Looking for feedback from those in self distribution states (particularly New York) on whether you charge a delivery fee to bars / liquor stores and if so, how much.

Steve

[Jonathan Forester]

I haven't heard of anyone in NY charging for self delivery. Those are the distilleries costs. Remember since you are not using a distributor your profits from self distribution are 30% greater since you cut out the middle man.

[bluestar]

I haven't heard of anyone in NY charging for self delivery. Those are the distilleries costs. Remember since you are not using a distributor your profits from self distribution are 30% greater since you cut out the middle man.

Assuming 30% margin for the distillery, profits are about 41% greater. But I understand your question: the distributor would normally charge their 30% margin in addition to delivery and/or warehousing costs. In some ways, this is more of an issue of who do you want to defer to: the retailer, that can sell with higher margin or lower price, or any other distributor you are working with, that would prefer not to be undercut in price when you do a direct sale.

[phillizard]

I own and operate 2 bar restaurants in Brooklyn New York and get bottles from 2 distillerys in Brooklyn and we are not charged for delivery, also at net 30 days.

[Ralph at Tuthilltown]

We began our sales in 2006 and never did charge a "delivery" cost to customers. I'm unaware of distributors charging for "delivery" of an order to their accounts. When starting out we made it a practice to go out of our way, at our expense, to get the goods on a shelf, any shelf. Sometimes it meant driving an hour or more to deliver one or two bottles. But that's in the nature of starting out a new distillery business with "self distribution". I think tagging a "delivery charge" onto an invoice is a risk.

[Roger]

I was going through the invoices at a bar we are buying and both major distrubutors in Jefferson County tacked a $5.00 delivery charge on each delivery. That being said, the deliveries were usually for $1,000+each, so the $5.00 was a small percentage, vs what it will be for a small single source order.

I did however notice that every bottle from all brands were whole liters, not .750. Has anybody received any pushback from bars for selling smaller bottles, or are you raising to 1 liter ?

[Scott @ Twenty2Vodka]

Has anybody received any pushback from bars for selling smaller bottles?

Yes. Bottles over 750ml is a standard request/pushback/assumption in search of sourcing the liquid contained for the lowest cost/oz possible. It (the pushback) for larger volume bottles has no other purpose than to lower the operating costs of the serving establishment.

[Scott @ Twenty2Vodka]

On that note, delivery fees will be factored into your final cost per fl oz by any establishment running like a true business. $5 delivery fee for 8 cases will only affect the $/oz (if 6pk cases and 750ML bottles) by $0.004 (less than half a penny per fl oz)....But in this world crowded with fees and taxes, not charging a delivery fee, and then calling specific attention to that fact, will probably go a longer way with your customers, than the $15 energy surcharge you were considering tacking on...

-Scott