Kegland

[wide eyed and legless]

I'm not sure kegland is making friends with the retailers they are calling trying to get wholesale business by undercutting them.

It has been a strange set up from the start, buggered if I know what their aim is.

 

[dibbz]

I think he's just pissing on everything like a dog to let keg-king know he's back

 

[Drewgong]

Well it was a tie between Kegland Kegking ordered parts last Monday so it was 8 days total for postage and that's including 2 public holidays and the weekend.....just waiting on Ibrew now

 

[pcmfisher]

I doubt if many retailers have anything to do with kegland, I've heard they give even less margin than keg king.....

 

[MHB]

It has been a strange set up from the start, buggered if I know what their aim is.

Easy - they want to keep all the money!

 

[brewgasm]

I doubt if many retailers have anything to do with kegland, I've heard they give even less margin than keg king.....

That's apparently true, wholesale prices are apparently 10% lower than the price for retail customers. So the margin is smaller.

 

[wide eyed and legless]

If you are retailing you must aim for 100% mark up minimum, wages rent and other overheads can soon overwhelm small profit margins.

 

[theSeekerr]

If you are retailing you must aim for 100% mark up minimum, wages rent and other overheads can soon overwhelm small profit margins.

Doesn't happen for a lot of consumer electronics etc. Pretty normal for a TV or laptop to only net 10% for the retailer

Apparently Kegland think that's the kind of business they have, although they have made noises about the pricing being unsustainable. They should probably fix that sooner rather than later if they want to have any wholesale customers...

 

[wide eyed and legless]

All white goods/electrical goods work on a different system, they (the retailer) do get kickbacks I believe, annually.
It isn't wholesale customers KegLand are interested in I think you may have meant retail, I certainly would never take anything on without a absolute minimum of 100% profit margin.

 

[Mat B]

I'm pretty sure that's not a retail rule. You can have a business model with lower mark-up and higher volume. Factors that determine whether a business turns a profit or not are not limited by the mark up percentage.

 

[MHB]

As someone who ran a HBS for 20 years, I can tell you for free that 100% markups are very thin on the ground.
Part of why retailers love it when our suppliers sell direct to the public.
Mark

 

[wide eyed and legless]

I'm pretty sure that's not a retail rule. You can have a business model with lower mark-up and higher volume. Factors that determine whether a business turns a profit or not are not limited by the mark up percentage.

You can, they are called a petrol station or Bottle shop, high volume will not attract 100% mark up, as for LHB's they have to try and make the 100% they can't import themselves because they could not sell the amount they are importing so have to rely on a body that imports, hoping that will give them a profit, believe me there is not a good income to be earned being a LHB shop, there are the stand outs like Grain and Grape, but to many equals to much competition.
Some will think by undercutting the opposition they will make more money but the sales have to be huge, it doesn't work that way.

 

[Coodgee]

When I bought my KK kegerator a few years ago, a home brew shop here said they wouldn't sell them with the taps they came with because they were inferior quality. So that might be true, but it was a way for them to make some margin on the taps and font etc. and then all the other bits like line and gas bottles and CO2 etc. On the other hand you have good old Annerly homebrew who has been in business since forever!

 

[Roosterboy]

You can, they are called a petrol station or Bottle shop, high volume will not attract 100% mark up, as for LHB's they have to try and make the 100% they can't import themselves because they could not sell the amount they are importing so have to rely on a body that imports, hoping that will give them a profit, believe me there is not a good income to be earned being a LHB shop, there are the stand outs like Grain and Grape, but to many equals to much competition.
Some will think by undercutting the opposition they will make more money but the sales have to be huge, it doesn't work that way.

I would listen to MHB , there are very few things that have a 100% margin and they wouldn't be items with a high price. If you aim for 100%
margin on most things , you wouldn't sell much. You can maybe survive on a modest income but you won't survive with no income.
Retail is a hard game and I'm not basing this on speculation. My worry about home brew is that there will be little investment in new technologies
because companies won't get their money back. I wish quality was more or as important as price in buying a product.

 

[Roosterboy]

You can, they are called a petrol station or Bottle shop, high volume will not attract 100% mark up, as for LHB's they have to try and make the 100% they can't import themselves because they could not sell the amount they are importing so have to rely on a body that imports, hoping that will give them a profit, believe me there is not a good income to be earned being a LHB shop, there are the stand outs like Grain and Grape, but to many equals to much competition.
Some will think by undercutting the opposition they will make more money but the sales have to be huge, it doesn't work that way.

There is another important factor why LHBs don't import straight from China , warranty claims.

 

[brewgasm]

^ the beauty of the the LHBS is most of will replace what is faulty and will help you to with advice ect

 

[Sidney Harbour-Bridge]

It's a bit off topic now but I love my local shop (Greensborough home brew), I hope their margins are big enough to keep them going, I wouldn't want to see them close.

Some of the things I enjoy about the shop are;

They are local and if I need something I can buy it and have it home in under an hour.

I like Dave, he is honest, friendly, welcoming and always has time for a chat, if I remind him a few times he will order in bits of kit he does not stock.

Dave is extremely knowledgeable and offers good advice even if it means not selling something he has in stock, because of this I would always send a newby there to get started.

They keep a very large range of malts and hops and their turnover is rapid so they are fresh.

There is a band of regular customers who are also friendly and welcoming who have knowledge they are happy to share.

I buy everything I can from them to make sure they stay in business.

 

[wide eyed and legless]

Its naive to believe that 100% + mark ups are rare, I imported, wholesaled and retailed, when you go into a business the sole aim is to make money, if you can't make more than what you would earn working for someone else then you are wasting your time. The reason most LHB stores don't import is space, and unless they can wholesale the amount of goods would be to great to move quickly.
As for warranty claims the importer who brings the goods in would take photo's and get a credit from the manufacturer.
I live in between 2 LHB stores and I try to visit equally, I'm not against anyone making money, though when I know how much something is worth as to what I am paying it sometimes takes a few seconds to release my grip on the dollars.
I have attended a few expo's in China and the Brewing and Beverage Expo coming up in October in Shanghai, if you want to drool over manufacturers prices its well worth a visit.

 

[pcmfisher]

What's wrong with calling 100% mark up 50% GP like it should be?
Not as impressive?

 

[Mat B]

It's a bit off topic now but I love my local shop (Greensborough home brew), I hope their margins are big enough to keep them going, I wouldn't want to see them close.

Some of the things I enjoy about the shop are;

They are local and if I need something I can buy it and have it home in under an hour.

I like Dave, he is honest, friendly, welcoming and always has time for a chat, if I remind him a few times he will order in bits of kit he does not stock.

Dave is extremely knowledgeable and offers good advice even if it means not selling something he has in stock, because of this I would always send a newby there to get started.

They keep a very large range of malts and hops and their turnover is rapid so they are fresh.

There is a band of regular customers who are also friendly and welcoming who have knowledge they are happy to share.

I buy everything I can from them to make sure they stay in business.

My local shop too. Agree Dave is very friendly and it's a nice little shop. I only wish you could put in grain orders same day. Sometimes my brew is a last minute decision (usually if the wife and kids head off for the day). I'm usually told that I needed to have my grain order in a few days before. I understand his reasons, but I rarely have that planning luxury. This usually means I end up going to Home Make It in Reservoir (which is also a great shop, and Cade is a top bloke) where a grain order can be placed by phone, crushed and purchased within 20 mins of closing time. It's a shame because Greensy HB is about 3 blocks from my house.