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Legal & Marketing

               and realize a net profit.


                 In the example above, the total costs of the pack-
               age are $14.80. The PTW, price to wholesaler is $25,
               and the brewery margin is 40.8%.

                 The next step is to understand the required mar-
               gins for the wholesaler and retailer and expected
               price to consumer.






                 In the example above, the wholesaler sells to the
               retailer at $36 per case. The retailer then sells the
               case in four units (four six-packs) at $12.99 each.
               This is the price to consumer.


                 The pricing model takes all the variables involved
               in setting the price and combines them into an
               easy-to-use spreadsheet. Simply enter a few num-
               bers and you’ll have the information to get your
               beer on the shelf at a competitive price.

                          Wrap Up + Action Items


                 Read and understand the pricing terms - Price to
               Wholesaler (PTD), Price to Retailer (PTR) and Price
               to Consumer (PTC). Know that everyone needs to
               make money at each step in the sales cycle. The
               wholesaler needs to make their margin, and so does
               the retailer. Most importantly, so do you, the brew-
               ery owner.


                 Don’t guess or follow the herd when it comes to
               pricing. Use the pricing model to properly price your
               beer and achieve profitability. Your income state-
               ment will thank you.

                 You can download a copy of the pricing model at
               www.CraftBreweryFinancialTraining.com


                Receive a special $50 discount off of the Craft
               Brewery Financial Training annual subscription.
               Visit http://www.craftbreweryfinance.com – Use
               the discount code beveragemaster at checkout to
               claim savings.











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