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?
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Cost of distribution (distributor/retailer markups)
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Originally posted by tstorm View PostI'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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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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