Retail Markup. Whats commom..

[Creggor]

Hi Guys.. I know the topic of mark ups has been discuss in the past.. My question is this. Typically i a Store owner here in Florida is selling say Four Roses Single Barrel and the MSRP $39.99 Typical price in my area.. What does the local distributor charge the store owner.. Are the store owners paying $20, $25, a bottle.. Can a store owner mention what the typical mark up is from there distributor.. Thanks. Creggor

[bigmzungu]

It varies based on state (and sometimes even county). I am in OH, where liquor is state controlled, and I was told by a local store owner there is a maximum retail markup of 6% here.

[Creggor]

It varies based on state (and sometimes even county). I am in OH, where liquor is state controlled, and I was told by a local store owner there is a maximum retail markup of 6% here.

Wow max mark up 6%.. Not much room for profit in your state.. Here in Florida ABC Wine & Spirits gives you a 5% discount on 3-5 bottles and 10% discount on 6 bottles or more.. I used to drive up to Kentucky a couple of times a year many years ago.. I have sisters living in the Covington Ky area.. I would always stop at the Party Source and load up.. I always cot a 10% discount.. I also stopped quite often at Cork & Bottle.. Back then Brain Hue was my go to store to get 16 & 20 Year Hirsch.. Brian always was able to get Eagle Rare 17 Yr, Sazarec 18 Year Rye and I think 19 Year Weller.. I would buy 2-3 3 bottle caese.. I remember the white tissue paper the bottles were wrapped in back then..

[wadewood]

Depends on the brand and volume. One reason craft distillers products cost so much is they are low volume - in a typical 3 tier state like Texas craft distiller to wholesaler at $25, wholesaler to retailer at $50, and retailer sells to you for $75.

[AnotherCigarGuy]

Hi Guys.. I know the topic of mark ups has been discuss in the past.. My question is this. Typically i a Store owner here in Florida is selling say Four Roses Single Barrel and the MSRP $39.99 Typical price in my area.. What does the local distributor charge the store owner.. Are the store owners paying $20, $25, a bottle.. Can a store owner mention what the typical mark up is from there distributor.. Thanks. Creggor

I don't think it's anywhere near that here in Florida. I think they pay low $30's for a $40 retail. They "only" make $6-$10, give or take, if

they adhere to MSRP.

[Josh]

Michigan is a control state that sets minimum prices, but even when selling at the minimum (which most retailers do), there's a built in profit.

For instance, a licensee in Michigan pays $11.87 per bottle of Evan Williams and has to sell it for at least $13.99.

For OGD 80, a licensee pays $13.56 and has to sell it at $15.99.

You can do the math (because I can't).

[Lost Pollito]

A recent thread that may be of some use,

http://www.straightbourbon.com/forums/showthread.php?22634-Retail-price-mark-ups

[callmeox]

It varies based on state (and sometimes even county). I am in OH, where liquor is state controlled, and I was told by a local store owner there is a maximum retail markup of 6% here.

Wow max mark up 6%.. Not much room for profit in your state.. Here in Florida ABC Wine & Spirits gives you a 5% discount on 3-5 bottles and 10% discount on 6 bottles or more.. I used to drive up to Kentucky a couple of times a year many years ago.. I have sisters living in the Covington Ky area.. I would always stop at the Party Source and load up.. I always cot a 10% discount.. I also stopped quite often at Cork & Bottle.. Back then Brain Hue was my go to store to get 16 & 20 Year Hirsch.. Brian always was able to get Eagle Rare 17 Yr, Sazarec 18 Year Rye and I think 19 Year Weller.. I would buy 2-3 3 bottle caese.. I remember the white tissue paper the bottles were wrapped in back then..

Ohio is a special case when you talk about retailing. The 6% mentioned by the retailer isn't markup.

The liquor in the state controlled warehouses belongs to the distributors until delivered to a retailer or restaurant when it becomes property of the state liquor control board.

Prices are set by the state and will differ based on the county tax rate or special taxes.

The liquor on retail shelves belongs to the state and is sold on a consignment basis by the retail license holders. The retailers never own the booze, they just keep a roof over its head.

So, the 6% figure is most likely what the state pays the retailer for the transaction and isn't "markup" since the state sets the price, though it is included in the markup.

If you could make 6% selling a product when you have zero dollars tied up in inventory, that's a pretty good deal especially when you can sell other goods that you own in the same retail space.

That's why retail liquor licenses in Ohio are sought after.

[TheOakMonster]

I live in central New York and work in a mid-size retailer (although large for our market). Our standard liquor mark-up is 25%. So, for example, Bookers costs us $48/bottle on a 6-bottle case and we sell at $60/bottle. We have better prices than most stores outside major metro areas. Smaller stores probably charge closer to 30%, but are often even more expensive because that cannot afford to purchase the higher quantity discounts.

[Creggor]

Ohio is a special case when you talk about retailing. The 6% mentioned by the retailer isn't markup.

The liquor in the state controlled warehouses belongs to the distributors until delivered to a retailer or restaurant when it becomes property of the state liquor control board.

Prices are set by the state and will differ based on the county tax rate or special taxes.

The liquor on retail shelves belongs to the state and is sold on a consignment basis by the retail license holders. The retailers never own the booze, they just keep a roof over its head.

So, the 6% figure is most likely what the state pays the retailer for the transaction and isn't "markup" since the state sets the price, though it is included in the markup.

If you could make 6% selling a product when you have zero dollars tied up in inventory, that's a pretty good deal especially when you can sell other goods that you own in the same retail space.

That's why retail liquor licenses in Ohio are sought after.

Thanks for that information.. So the markup are much smaller over all that I was thinking.. Creggor