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Contract brewing Charges

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  • Contract brewing Charges

    Hi all,
    Im having a hard time trying to figure out how to charge consistently for contract brews. We have a brewery we contract for but they provide the raw materials. There hop costs are very high so after subtracting their contribution we have very low margin on heavy hopped beers but if we brew a Blonde we have great margins. We charge a per keg flat fee but with subtraction of their ingredients the margins always change. I could figure out what it costs us to brew it. Labor, gas,elect,ect But then what would I mark that up to? Would a flat brewing fee be a better option?
    Thank you for any and all feedback

  • #2
    Why do you take their contributions out. You should be charging based on your costs to do the work, plus some margin. It's not your problem if their margins will suck because their hops pricing is high. If they have the ingredients, you should be charging a fair fee for what you provide, regardless of their cost of ingredients.

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