Selling mead commercially

[GreyCranium]

hi, i am in the process of setting up my own commercially meadery, im trying to figure out the sums. I will be selling to other businesses due to the volume i will be producing but im struggling with the price i should be offering.

Say for example, i value one bottle of mead is worth £12.99 on the self, how much should i be selling it to the business?

Tell me what you think.

 

[hunter_le five]

Not trying to be unhelpful, but this may not be the best place to ask that question... Maybe try Pro-Brewer?

On a more helpful note, your post doesn't really give enough information to give you any kind of reasonable answer. For instance, what is your estimated cost per bottle at your given volume? What are your competitors prices? What is the standard markup in your industry in your country?

 

[GreyCranium]

I am currently researching that now, i was just trying to get an estimated projection. Thanks for you help.

 

[moviebrain]

Your best bet is going to be figuring your cost per ounce for the mead figuring in production, labor, storage, and losses. Then add on packaging, marketing, and breakage. Then add 20%.

Then you might start breaking even.

 

[moviebrain]

Also in most places you tell the state the wholesale price you are going to charge as part of the ABC/TTB process and the price the retailers then charge is out of your hands. Don't worry about retail sticker prices, make sure your price keeps you profitable. There really isn't much you can do about crazy high markups, and in some states you are prevented from disclosing businesses who do it, or even showing a preference for one retailer over another for your product.

 

[fatbloke]

Also in most places you tell the state the wholesale price you are going to charge as part of the ABC/TTB process and the price the retailers then charge is out of your hands. Don't worry about retail sticker prices, make sure your price keeps you profitable. There really isn't much you can do about crazy high markups, and in some states you are prevented from disclosing businesses who do it, or even showing a preference for one retailer over another for your product.

He's in the UK so its a rather different set up. HMRC have very big teeth and aren't afraid to use them.......

Your first post is very good though MB, excellent suggestion to crunch the numbers.....

He'd also have to factor in additional cash flow to allow for the back and forth of VAT payments (they're quick to demand it but not always too quick to refund.....)

edit....always forget something (stupidity on my part)......if the OP checks out the commercial forum at gotmead, it'd be US biased (where most of them are) but for kit etc thats likely needed and so on...... ?