Jump to content

Self Distributors: delivery charge?


AdirondackVodka

Recommended Posts

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.

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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 ?

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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

Link to comment
Share on other sites

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...