Mark up in Wine

Discussion in 'General Business Forum' started by Carla Uruguay, May 16, 2009.

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  1. Carla Uruguay

    Carla Uruguay UKBF Newcomer

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    Hello!! I was wondering if anyone knows what would be the normal mark up that wine importers put on the wines they sell to wholesalers/distribuitors?

    And what would be the mark up that a wholesaler will add when selling to the on-trade?
    I am working on my pricing (I am going to start importing wine from Uruguay) and want to be competitive!!
    Thank you!!
     
    Posted: May 16, 2009 By: Carla Uruguay Member since: Mar 3, 2009
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  2. tony84

    tony84 Contributor

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    I live in a pub and we buy about 40 bottles a week at about £3 a bottle plus VAT.

    Its not wine like Blossom Hill etc (I cant remember the names at the minute).
    Im not sure how they can buy and import the wine for much less than that but hey...thats not for me to worry about.
     
    Posted: May 16, 2009 By: tony84 Member since: Apr 14, 2008
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  3. dsigner

    dsigner Contributor

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    Wine is worth what the public think it is. Yours is not the name on everyone's lips (sorry couldn't resist that) so you are probably going to have to be competitive unless you have a strategy for raising the profile. I sold quality Greek wine but it was an uphill struggle as customers thought it was taverna retsina.
     
    Posted: May 16, 2009 By: dsigner Member since: Jun 6, 2008
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  4. Carla Uruguay

    Carla Uruguay UKBF Newcomer

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    Thank you for your replies..

    Tony84 - that is really cheap wine, is it any good?? From which country? Do you sell it by the glass? What is your mark up..if I may..

    Dsigner - I am aware of the lack of knowledge about my product, and the idea is to change that, I am actually setting up a company which is going to specialize in uruguayan wines and dedicate to promote it in the UK. But I would like to know what is the mark up that a distribuitor is going to put on the top of my price, and the same with the on trade. I have different figures, some sources are talking about 20% as normal margin for a importer, same with a wholesaler, but the information about the on trade goes from 60-70% to a 300%!!
    And I need to know that, so I put my mark up right, and the final customer gets a fair price for the product.....
     
    Posted: May 16, 2009 By: Carla Uruguay Member since: Mar 3, 2009
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  5. tony84

    tony84 Contributor

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    I cant remember who its by, i think its Chilean wine but could be Australian, eiter way its definately new world (Do i sound like i kno what im talking about?)

    Mark up is probably about 200-300%. Wine is a big profit maker for us but we dont sell much of it in comparison to Spirits, beer etc.

    If the price was increased to say £5 a bottle we would probably go looking for a cheaper one. We had a bit of a tasting session with some of the regular wine drinkers and got them to decide on which they liked most out of about 10. We then got the top 3 and chose the cheapest. We sell by the bottle or Glass depending on the customers choice.
    As for being any good im not a wine drinker i cant stand the stuff but ive never had anyone say blurghh, they have all asked for a glass/bottle after trying it.
     
    Posted: May 17, 2009 By: tony84 Member since: Apr 14, 2008
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  6. dsigner

    dsigner Contributor

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    Carla,
    Markup figures are all over the place. Suggest you go to a food wholesaler and look at the wine section. They give suggested retail as well as wholesale. Getting product into there may be an objective for you. Are there any London restaurants for Uraguayan cuisine (Is it like Argentinian?) They will charge 3 - 5X their buy price but expect top of the range stuff anyway. point is they are a potential trend setter.

    Import markup depends on quantity. It also matters whether it come in to EU in barrel or bottle. Remember duties are not something you can vary to suit yourself.
    This subject is just to complex for a simple answer in this forum. You are going to need to build a whole marketing strategy and build markups into that. Be prepared for at least a 10 yewar haul to make it into the public view.
     
    Posted: May 18, 2009 By: dsigner Member since: Jun 6, 2008
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  7. DBMark

    DBMark Contributor

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    I've heard good things about this company:

    http://www.thewinesociety.com/

    There are others like Laithwaites. May be worth contacting them, and seeing how well your wine goes down on a special batch. If they think they can sell your wine based on their feedback, they'll probably tell you what kind of mark-up they'll be prepared to pay. Good luck.
     
    Posted: May 18, 2009 By: DBMark Member since: May 7, 2008
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