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Retail markup when selling to bars?


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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

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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.)

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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.

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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

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