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  • Sales to Retail

    We are going to self distribute and have been comparing number that distributors are selling craft beer. Please give me your opinion if the cost to retailer is to high, low, or just right(East Coast).

    Between 6-7.5 ABV
    Case (six packs): 29.00 (rec retail 8.99 / six pack)
    1/6 Keg: 75.00 (rec retail 95.00)
    1/2 Keg: 130.00 (rec retail 163)
    Case 22 oz bottles of seasonal: 58.00 (rec retail 6.00/bottle)

    Thanks
    Last edited by SharkTank; 08-31-2012, 11:32 AM.

  • #2
    six packs 9.99-10.99
    1/6 keg 100-110
    1/2 keg 180-200
    22oz 6.99-8.99

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    • #3
      Thank you...those are retail sales...do you have an opinion on my prices to the retail outlet (from brewery to retail sales outlet)? Thx

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      • #4
        Subtract 26 to 28 margin (that is NOT 26-28 %) on retail price and you get your wholesale price.

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        • #5
          Better yet, and it depends on your market: divide your wholesale price by 0.7 to get the normal retail cost.

          Example: your beer costs $29 to retailer. Your six pack costs him $7.25. His sell will be 10.49-10.99, frigate has already stated. Most craft beer retailers are rounding up, not down.

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          • #6
            Same sort of question here...

            I'm in the same place as SharkTank. I'm experiencing a hard time figuring out what the "industry standard" is for markup in TX. Yes, everyone is different and everyone has different P&L, COGS, but how to remain competetive in the cost side is frying my mind a little.

            I guess I'm looking for understanding the markup of a 15 brix IPA vs a 12.5 brix Blonde. Where the blonde isn't going to be as much to make, the IPA will have a larger grain bill and hops addition, etc.

            Without understanding what other breweries cost to make theirs, this "industry standard" seems to be the same whether it be lower or higher. I certainly wouldn't be able to sell a Belgian Quad for the same amount that I'd be able to sell a Blonde.. I've talked to breweries non-stop and bar owners/managers.. Nobody really wants to say too much, which I can understand.

            Again, I know that it all boils down to what I want to set for my own P&L....but is there a standard that I'm missing?

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            • #7
              Originally posted by BrewDrum View Post
              Without understanding what other breweries cost to make theirs, this "industry standard" seems to be the same whether it be lower or higher.
              Here in CO the "standard" is for most breweries to have tiered wholesale pricing, and most liquor stores to have flat-rate pricing. I don't know about the wholesale end of things elsewhere, but uniform pricing is liquor stores is certainly common.
              Sent from my Microsoft Bob

              Beer is like porn. You can buy it, but it's more fun to make your own.
              seanterrill.com/category/brewing | twomilebrewing.com

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              • #8
                Originally posted by BrewDrum View Post
                I guess I'm looking for understanding the markup of a 15 brix IPA vs a 12.5 brix Blonde. Where the blonde isn't going to be as much to make, the IPA will have a larger grain bill and hops addition, etc.
                Depending on how you're calculating your costs (variable vs absorption, process vs activity-based, standard vs normal, etc.), that IPA and that Blonde could end up "costing" nearly the same.

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                • #9
                  I think you guys are just trying to confuse me now.

                  I appreciate the help!

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                  • #10
                    Just a quick heads-up: discussing specific pricing in these forums is technically against the law. It's considered collusion.

                    But generalizing is OK. The standard markups already mentioned are pretty accurate.

                    As far as how to price an IPA vs a Blonde, I haven't come across very many breweries who price their beers according to actual production costs. If that were the case, our Pilsner would be almost twice as expensive as our IPA due to the extra tank time it requires. It's more according to market perception. Higher ABV + Higher IBU = Higher Price.

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