Working in the booze biz, and having done my fair share of retail and service jobs all across the spectrum, I was and still am amazed at the low margins for retail alcohol, especial spirits and beer. Wine starts at 33%, then goes down with specials, even further down with half and full case discounts, and even further down at Costco, where I believe it's a 7% margin. Try working a retail wine shop and someone telling you how much you jack up your prices because we're at the normal 33% markup rather than selling it at wholesale pricing. Beer and liquor - forget it. So little money to be made, retail wise.
Would be an interesting conversation on our culture of sales and discounts, and how difficult it is to make money in one industry where the markup isn't even half of other retail industries, because all are expected to discount at the same rate, lest people think they're being ripped off.
And this frustration leads me to the bar....circle of life
On What We Spend on Booze
Working in the booze biz, and having done my fair share of retail and service jobs all across the spectrum, I was and still am amazed at the low margins for retail alcohol, especial spirits and beer. Wine starts at 33%, then goes down with specials, even further down with half and full case discounts, and even further down at Costco, where I believe it's a 7% margin. Try working a retail wine shop and someone telling you how much you jack up your prices because we're at the normal 33% markup rather than selling it at wholesale pricing. Beer and liquor - forget it. So little money to be made, retail wise. Would be an interesting conversation on our culture of sales and discounts, and how difficult it is to make money in one industry where the markup isn't even half of other retail industries, because all are expected to discount at the same rate, lest people think they're being ripped off. And this frustration leads me to the bar....circle of life