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Cost of distribution (distributor/retailer markups)

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  • Cost of distribution (distributor/retailer markups)

    I've heard that 25% is a typical mark-up for distributors, and 30% for retailers. Am I correct in thinking that those are typical numbers?

  • #2
    I'd like to know that too.

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    • #3
      Originally posted by tstorm View Post
      I've heard that 25% is a typical mark-up for distributors, and 30% for retailers. Am I correct in thinking that those are typical numbers?

      Depends on the format of the beer (can/bottle, 1/2 keg, 1/6 keg)- but I would add 10% to each of your numbers. The retailer will be the least predictable - we see our cans around down anywhere from $11-$15 (always $11 at taproom and priced in a way we would expect to see about 11.50-12 around town).

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      • #4
        If you use 30%, you will be within 2% for both retailer and wholesaler. Don't confuse markup with margin. They work on margin. It's different math.
        Sell your case to a wholesaler for $21 (don't add shipping in this, you will likely pay that in addition), you should be $10 on the shelf for a 6 pack. Good luck.

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