Page 7 - Beverage MasterAprMay 2021
P. 7
Legal & Marketing
BREWERIES:
How to Price Your Beer
By: Kary Shumway, Craft Brewery Financial Training
I recently bought a book called Priceless, So, how do you price your products?
The Myth of Fair Value. The book is 300+
Waukesha
2085/10 pages long and provides great information You can look at what everyone else is charging and
about pricing and the role of human psy-
follow suit. You can take a wild guess and hope it
Centrifugal Pump chology in how purchasing decisions are made. will work out profitably in the end. Or you can go
along with what your beer wholesaler suggests for
While the book contains a lot of interesting stories, pricing.
studies, and research, it doesn’t do much to help
with the fundamental question: How should you Regardless of how you may have priced your beer
price your products? in the past, today we’re going to talk about how you
can price your products profitably for the future. To
Ideally, to price your beer, you would deter- make the concepts easier to understand, we’ll use
mine the costs, add a healthy markup, and sell hypothetical pricing numbers and examples. And
it to your wholesaler (or retailer) at a fat profit. we’ll walk through a template you can use to make
Unfortunately, the market forces and your competi- pricing easy. Best of all, you don’t have to read a
tors have some influence here. 300-page book to find the answers.
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