ALearned Posted March 30, 2013 Share Posted March 30, 2013 First off, this is my first post and I want to thank everyone for the insight I've learned by casually reading for months. This really is a helpful community. My question is whether I need to plan on a 40-45% retail markup when I sell directly to bars? I’m in a non-control state and we’re HOPEFULLY getting rid of our three-tier system before I open. On the same note, does the 40-45% contain the distributer mark-up or if I’m selling this directly out of my car can I safely lower that percentage? Also, for those of you established 2-3 years, what percentage of your customers comes to you to pick-up their product? I’m a pessimist by nature so I doubt it happens, but eventually there has to be good news right?! Thanks again for all of your help! Andrew Link to comment Share on other sites More sharing options...
pressure9pa Posted March 30, 2013 Share Posted March 30, 2013 If I were in this situation, I would assume the same margins exist like a 3 tier system and then "pay myself" for being the distributor. For every dollar you get in selling a 750 mL bottle to a distributor, a bar will charge about $.62 for a single drink. They will pay about $1.62 for the bottle to a distributor, so I would plan on being around the same price. (You probably also inherited the state excise burden, which a distributor is now paying.) Link to comment Share on other sites More sharing options...
Kristian Posted March 30, 2013 Share Posted March 30, 2013 Andrew, charge the price a distributor would charge them. If you get to the point where you can't manage the sales/distribution, you're going to lose accounts when you raise the price on them to cover the cost of a distributor. Link to comment Share on other sites More sharing options...
eli Posted March 31, 2013 Share Posted March 31, 2013 Hey Kristian - fyi the link to Dancing Pines' Facebook page in your signature is broken - in case you're using the wrong link anywhere else I thought I'd mention it... Here's the one that seems to be your official page - https://www.facebook.com/pages/Dancing-Pines-Distillery/301887483095 -Eli Link to comment Share on other sites More sharing options...
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