Originally posted by joebrew
Originally posted by wunderbier
Originally posted by joebrew
As the old saying goes "Liquor & Beer pay the bills, Wine makes you rich."
You will usually see anywhere from 10-15% on domestic macro stuff, as well as SN and such. Specialty stuff usually runs from 35-45% over cost. When you are talking wine you easily see 70-80% margins.
90-100% markup on wine? That’s f’ing ridiculous! Everything from $5 to $250 in my store is at 30% markup.
70-80% and then sale priced at 30-50%. Wine has that huge margin for huge sale discounts. IE cost 105.00/case= 8.75 cost. 15.99 reg price = 46%. Sale price 10.97 = 26%. Put a beer at 20% off you are not making any profit. That was my point. Sorry for not elaborating.
Still seems insane to me, but I’m sure it could happen in more densely populated parts of the world. We give wine case discounts of 10% (mixed or solid) and that brings it down to a 20% markup, still leaving a decent margin. But that’s about the only ’sale’ that occurs. We’ve also run beer (Bud suitcases) at a $0.01 markup before, but that was to kill competition. |
I feel you on the Bud thing. We ran it at 1.4% for almost two months to boost sales and kill competition across the street. I then had a guy come in and ask if he bought 40 cases if he would get a discount. He left when I told him no, and recommended buying a keg for that amount of beer. |
Originally posted by HighGravity
Generally speaking a single bottle 12oz, 500ml, 750ml, etc the markup is 1.5 * cost. Which means that a beer that wholesales for $4 will retail for $6. With 6 packs the formula is 1.35 * cost and cases 1.25 * cost. If a retailer does it right the profit from beer is much higher than liquor or wine, but the total dollar sales of beer is much lower.
Even on more expensive beers? These days, a good liquor store will have a nice selection of beers that range in price between $10 and $18 which is about the same cost to consumers as a decent wine or basic bottle of liquor. |
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Also our rent is unbelievably high, and the margins I am taking about are strictly bottle cost as to sale price. Rent, electricity, etc, are not figured into these numbers. I guess I should have mentioned that. All in all, after our case discount (the same as yours) we make that 25-35%, I thought we were talking straight margins. And you were right, beer makes more money per item, but wine by the numbers makes you rich. |
Originally posted by jjpm74
Originally posted by HighGravity
Generally speaking a single bottle 12oz, 500ml, 750ml, etc the markup is 1.5 * cost. Which means that a beer that wholesales for $4 will retail for $6. With 6 packs the formula is 1.35 * cost and cases 1.25 * cost. If a retailer does it right the profit from beer is much higher than liquor or wine, but the total dollar sales of beer is much lower.
Even on more expensive beers? These days, a good liquor store will have a nice selection of beers that range in price between $10 and $18 which is about the same cost to consumers as a decent wine or basic bottle of liquor.
Yeah but for every one $14 beer you sell, you sell a dozen $12-14 bottles of wine. |
Originally posted by joebrew
Also our rent is unbelievably high, and the margins I am taking about are strictly bottle cost as to sale price. Rent, electricity, etc, are not figured into these numbers. I guess I should have mentioned that. All in all, after our case discount (the same as yours) we make that 25-35%, I thought we were talking straight margins. And you were right, beer makes more money per item, but wine by the numbers makes you rich.
Ah. In my head, margin takes into account all operating costs where as markup is stricly a multiplier from single unit cost. |
Originally posted by wunderbier
Originally posted by joebrew
Also our rent is unbelievably high, and the margins I am taking about are strictly bottle cost as to sale price. Rent, electricity, etc, are not figured into these numbers. I guess I should have mentioned that. All in all, after our case discount (the same as yours) we make that 25-35%, I thought we were talking straight margins. And you were right, beer makes more money per item, but wine by the numbers makes you rich.
Ah. In my head, margin takes into account all operating costs where as markup is stricly a multiplier from single unit cost.
In other words we are both right and wrong saying the same thing but not the same thing at the same time  |
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Originally posted by joebrew
Originally posted by wunderbier
Originally posted by joebrew
Also our rent is unbelievably high, and the margins I am taking about are strictly bottle cost as to sale price. Rent, electricity, etc, are not figured into these numbers. I guess I should have mentioned that. All in all, after our case discount (the same as yours) we make that 25-35%, I thought we were talking straight margins. And you were right, beer makes more money per item, but wine by the numbers makes you rich.
Ah. In my head, margin takes into account all operating costs where as markup is stricly a multiplier from single unit cost.
In other words we are both right and wrong saying the same thing but not the same thing at the same time
Let’s just think of it as, we’re both right in our own worlds. That way, no one has to be wrong.  |
Not making any accusations, just curious...
Question: is price fixing ever practiced? Perhaps inadvertantly? Specifically on high gravity singles. Locally, hi-grav beer is exactly the same retail price at every liquor store, and unlike wine & liquor, never goes on sale. Retail for <6% beer (1/6/12/24)varies as one would expect, by store and sale price, and seems independent of the store’s size or "yuppiness." Grocery store, that is.
Or, perhaps due to the comparitively low volume, it’s not worth the effort to reprice?
In the nearest large city (same state, different distributors, tax laws, etc), I observe the same hi-grav singles retail for a dollar less, pretty much across the board.
??? |
standard here when I knew straight from stores was usually 25% |
