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2014 Typical Distributor Margins

HWY 101

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I'm working on a proforma and would like to know what others are realizing when it comes to distributor margin requirements in non-controlled states. Back in 2010 Will wrote about distributors requiring in the range of 30-35% with occasional agreements dropping as low as 25%/case. His rule of thumb was 33% therefore:

"So, let's work backwards:
Let's say MSRP is $40, and let's guess that "street price" will be $35.
$35 * .66 = $23.10 - this is the price the retailer wants to pay for the product.
$23.10 * .66 = $15.25 - this is the price the wholesaler wants to pay for the product."

My question is, what is everyone else seeing as the norm in 2014? Is 33% still a good figure to work with?



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Can't say on the margin, but I believe your math is off...

price to wholesaler: $19.79 + 33% = $26.32

price to retailer: $26.32 + 33% = $35.00 (retail)

Nevermind, you even said margin, not markup. Serves me right to post before coffee...

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  • 7 months later...

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