Page 7 - Beverage MasterAprMay 2021
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               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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