Hi all!
I could use some good advice here :
I'm negotiating with a local brewery, about brewing my brand at their facility.
I got a price offer which in my opinion is way too high.
I say way too high because according to my calculations, they are asking a price per bottle which is 2.5 times more then their gross cost. In gross cost I calculated ingredients, bottles, labels, electricity, water and taxes. I didn't calculate work, rent, depreciation etc.
So to make it simple, if it costs them 1$ (gross) to produce a bottle, they offered me to buy it for 2.5$.
We are not in the states, so the taxes are "per liter produced" here and I'm
pretty sure I can estimate their gross costs accurately.
Is that a reasonable margin?
Would very much appreciate any info\opinion you can share.
Cheers!
I could use some good advice here :
I'm negotiating with a local brewery, about brewing my brand at their facility.
I got a price offer which in my opinion is way too high.
I say way too high because according to my calculations, they are asking a price per bottle which is 2.5 times more then their gross cost. In gross cost I calculated ingredients, bottles, labels, electricity, water and taxes. I didn't calculate work, rent, depreciation etc.
So to make it simple, if it costs them 1$ (gross) to produce a bottle, they offered me to buy it for 2.5$.
We are not in the states, so the taxes are "per liter produced" here and I'm
pretty sure I can estimate their gross costs accurately.
Is that a reasonable margin?
Would very much appreciate any info\opinion you can share.
Cheers!
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