Here is how my keg sales are looking in my business plan:
(I can't self distribute in my state)
½ Barrel Kegs of Beer 1 = $70 (to the distributor)
Raw ingredients cost to make ½ barrel of Beer 1 = $26
Profit Margin = $44
½ barrel Kegs of beer 2 = $80 (to the distributor)
Raw ingredient cost to make 1/2 barrel of beer 2 = 32.70
Profit Margin= 47.30
Now, when I say profit margin, I am obviously only taking into account the cost of raw ingredients, not any other costs. What other things should I take into account when figuring this stuff? And, do these numbers look too low or too high?
(I can't self distribute in my state)
½ Barrel Kegs of Beer 1 = $70 (to the distributor)
Raw ingredients cost to make ½ barrel of Beer 1 = $26
Profit Margin = $44
½ barrel Kegs of beer 2 = $80 (to the distributor)
Raw ingredient cost to make 1/2 barrel of beer 2 = 32.70
Profit Margin= 47.30
Now, when I say profit margin, I am obviously only taking into account the cost of raw ingredients, not any other costs. What other things should I take into account when figuring this stuff? And, do these numbers look too low or too high?
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