Once the bottle of wine leaves the winery it goes on one hell of a journey until it is finally drunk by some lucky consumer. At each turn of its journey it increases in price – as middlemen add their cut, and can get to its final destination via a number of different routes.
Understanding how all these pieces of the wine trade fit together is an important first step to being able to practically support sales and properly target market segments. Each component of the chain has a different purpose and makes a different margin – this guide examines who does what, how they do it and for how much.
Pricing techniques also vary, with many on premise customers adding a margin to their cost of goods, while off premise customers generally look at the gross profit as a percentage of total price. Winery representatives find it easy to ‘walk the walk’ in the wine trade because of the quaint stories about vintage, blending and family history they can tell. But it is vital to understand a customer’s pricing structure if you are to ‘talk the talk’ in the trade as well.
This guide provides:
Detailed trade map showing the various routes to market a wine can take.
Complete guide to all the middlemen, from distributors to supermarket chains to cafes, including their needs, how to approach them and how much margin they expect to make.
Full off premise pricing guide, showing what margins retailers target and how to work them out
Full on premise pricing guide, showing what mark ups the different on premise venues target.
The complete Mark Up and Gross Profit Table – used by the best sales reps – detailing the sell price of any wine at different margin levels.
Note: This guide is designed for the Australian domestic wine market
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