wholesale pricing

[rich24]

Hello,

New nano-scale brewery just getting on its feet in the New England area. I am currently filling sixtels, and the occasional cask.

Since my quantity is low, I can self distribute for now, and am looking to keep my prices reasonable. From research that I've done online, the going price for 5 gallon sixtels is about $70. I can do this price, since my overhead is under lock and key. Does $70 sound right to you guys, in your professional opinion?

On that note, I've already received requests for filled firkins - roughly 10 gallons. Logically, I'd double the price since I'm aiming at selling the sixtels for $70. So $140 per cask conditioned firkin?

Just curious how this sits with anyone coming across this thread.

Your feedback would be very much appreciated. Thanks.

[Dailybeer]

pricing

In the Midwest our pricing is lower. Closer to 60 percent of what you listed. It may be regional, it may depend on ABV or IBU: the higher, the higher.
If you can get a premium price, do it.
We tend to model after Sierra, Sam and NB.

[thatjonguy]

Always easier to lower pricing later than raise it.

[uptown brothers]

when I had my place in Denver, a $70 sixtel had to be something premium. Oak Aged Yeti, IIRC, was only ~$60. IIRC, Boulevard's Tank 7 was about $65, and I could sell 12 oz pours of that for $5.50 or $6.00, all day. Used to beg them to bring it to our market in 1/2 bbls, maybe they have by now. Port's Old Viscosity may have hit the $80 mark, can't remember, but look what a bomber of that costs retail.

Would I have paid $70 for a sixtel? sure, but it would have to have some geek love factor, not just "Bill's Brown Ale", when I could get, say, Avery Elle's or Moose Drool for $105 a half barrel. Or a Scottish Ale like Bristol's Laughing Lab or Odell's 90 Shilling, for similar prices.

[Ted Briggs]

I think it helps to think more of markup in terms of %. After figguring your cost/BBL mark up you % and in your distrubution contract the wholesale markup should be specified along with the retail markup. This allows for independent pricing of each beer. I am told the national average markup for beer wholesalers is 25-27%. You could also do the math backwards and start with your target sale price and arrive at the distrubuters and brewerys price.
Also note that the AB's forum does not allow for talk of specific $ amounts or even %'s. This could be seen as collusion and price fixing....

[flatrockbrewing]

Pricing bottles

How would you price bottles say 12/22 ounces just divide the number of bottles pulled from a 5 gallon keg?

[roc-craven]

We sell our 12/22 cases to our distributor for $45.00 per case. I'm in Florida.

[rich24]

I appreciate your feedback on this guys. I did come up with pricing, and the few accounts that I have were satisfied with them.

[kererubrewing]

Regarding pricing - my experience has been if people grumble a bit, but still keep ordering and paying then you are not charging too much. If they too readily agree to your pricing then you may be a bit low. As others have mentioned it is always easier to lower (but I would be careful about discounting too readily and offer them as one-off events) than to raise prices.

At the nano end of the scale your unit cost is going to be quite high.

If you haven't done it I'd build a decent spreadsheet that helps you to see where your breakeven point is. You might be surprised to see how the numbers stack up.