Yep, we're new in the industry. We priced our kegs according to websites prices posted on other local breweries and reduced it by 10% for our tap accounts. Out of 5 tap accounts,one of them is asking for a deal like : every 5 kegs we want one free. We talked to another local brewery and they refuse to give out deals and we agree as well. Start with one and it never ends. If customers are asking for your beer, then the tap is making money. Plus, if we go in that bar and order 5 pitcher of beer will the 6th one be free? No way.
So, that same tap account is saying we charge them too much for the keg, again the only one out of the 5 we have at this time. They pay 2.50$ per 20oz and they charge 7.50$ to their customer for the same 20oz. They keep saying that with such price on our keg it is hard for them to make a 30% profit. I guess my calculator is defective, in my book buying at 2.50$ and selling back at 7.50$, to me and my calculator this is 200% profit margin!!
We are providing our tap accounts, free glassware and marketing material. We prefer this by far than giving them a buy 5 get the 6th free type fo deal.
What I'm I missing here? Any thoughts?
Thanks!
So, that same tap account is saying we charge them too much for the keg, again the only one out of the 5 we have at this time. They pay 2.50$ per 20oz and they charge 7.50$ to their customer for the same 20oz. They keep saying that with such price on our keg it is hard for them to make a 30% profit. I guess my calculator is defective, in my book buying at 2.50$ and selling back at 7.50$, to me and my calculator this is 200% profit margin!!
We are providing our tap accounts, free glassware and marketing material. We prefer this by far than giving them a buy 5 get the 6th free type fo deal.
What I'm I missing here? Any thoughts?
Thanks!
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