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Margins and Laid in Costs

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Base on distributor margins - Is the general markup your seeing before or after laid in costs?   Example - Distributor requires a 30% margin.  - retailer marks up 40 points.

Mfg Wholesale  = $10.00  - Wholesaler marks up 43%,  (30% margin) = $14.30   - Retailer marks up 40% (29% margin) = $20.02 or $19.99 shelf price


Mfg Wholesale  = $10.00  - Wholesaler adds .75 laid in costs  marks up 43%,  (30% margin) = $15.37   - Retailer marks up 40% (29% margin) = $21.52 shelf price.

What's the bottom your seeing a distributor willing to go on a minimum margin or per case price after laid in cost?

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Stillcreek, we have found anywhere from 28% to 35% between us and the distributor and between them and the retailer. It is very market dependent. I have one state with 4 different FOBs and the same shelf price. Our goal is to keep the shelf price the same across different markets. In order to do this, we have had to sacrifice in some markets on our margins.  We have found that the smaller markets require less of a margin and are easier to negotiate with than the larger markets. Hope this helps. Cheers, Winston.

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