Is it common practice to negotiate on direct sale prices with retailers?
It’s my first time dealing with them in this sort of manner and I want to understand some common practices.
Also what sort of price should I be expecting to get? I know they have their margins as well but I can’t help but feel like their
offer was egregiously low. ( 60% of the lowest listings on wine searcher )
Thanks for the help.
Assume everyone wants to make a 30% profit and also have in near the lowest listings on wine searcher.
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In California, which permits direct sales from producer to retailers in lieu of a distributor - the standard guideline is ‘wholesale cost’ being approximately 67% of your retail price. That would be your ideal starting point for pricing if you’re selling direct.
I think it’s okay to negotiate, but it create a bad relationship I think if you’re always trying to undercut them. What we do is ask for case discounts because that’s normally how they can lower the price or if there are pre-orders. It’s also the store’s job to price wines correctly to make a reasonable profit. We carry very very small rare natural wine producers (~1,000 bottles produced annually) and we’ll mark up the wine that reflects the work we believe the wine is worth. This should allow you to buy more wine from these distributors which will be beneficial to your relationship with them.
Are you a producer selling wholesale or a collector looking to sell some of your cellar?
What states are you trying to sell in? Some states require price posting so everyone gets the same deal.
Should the 67% of retail include the cost of shipping/delivery from the producer to the retailer?
Yes
This very intresting…
Perhaps someone has a standard contract?