3 Tier Distribution. Product Mark Up? (NC)

[jdlev]

Hi guys,

Trying to put together a business plan that can give me an idea on cash flow for our prospective microdistillery.

I called the North Carolina ABC pricing & auditing division, but have yet to hear back.

We are looking at producing some high quality rum, flavored vodkas, and whiskys.

I was hoping people would share their experiences with having to use distributors what type of profit margins they're seeing per bottle (750ml)?

Any tips or advice would help give me a mile high view of what to expect. Thanks!!!!!!

[revival]

I am NC also working on a distillery. If you just go to the NCABC website you can find the pricing worksheets a distiller must submit to the state, it tells you just about everything you need to know.

[Brothers Vilgalys Spirits]

Two things that might help--

Here's the ABC pricebook. Under various brands you can see the retail price as well as the case price (what ABC pays for it).

http://abc.nc.gov/pricing/pricebook.aspx

Also on this page (which has basically everything you'll need at the state level) there's a price filing quotation form. Somewhere this is also a spreadsheet you can download.

http://abc.nc.gov/pricing/new_companies.aspx

Out of curiosity, where in NC are y'all located?

[John D]

Walking around the local NC ABC stores looking at priceing I really don't know how justify my plan. Shelves full of 750ml flavored vodka for $7.80 and store manager said always restocking. I understand get what u pay for but in a poor times the price does matter. It did get me down but not out. I just have a hard time running the numbers to make any since. It seems like I need an $50.000 still to run the amount I need to sell, but I can't see selling that much for 2-3 yrs. when I run the numbers I can't seem to get my cost per bottle under what they are selling it for. I really do love makeing it from grain to jar but DAM where is all the help for the SB start ups.

Ok I will stop crying.