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Retailers mark up and what is a fair hit?

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bruce86

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Just curious what is a general mark up on products from the states for a retailer?
I looked into getting barrels last year and saw that the price in aus was too high for my budget i found a place in the states which looked the goods before they decided not to email me back about my query.
I started this thread because as you know there is this new add and the barrels are as expected quite expensive however they look just like the ones from the american site i found and even the info sheets seem similar.

http://www.barrelsonline.com/Default.aspx

Now I'm not trying to start a shit storm just generally interested in how this works. But from what i worked out off the sites buy vs sell its a 400% mark up (give or take) Now i get that there are things like import taxes and gst but i am also aware that if a company is a supplier then they would not be paying the same rates i worked out.

Disclaimer: I also realise that in fact these could not be the same barrels and this retailer could be paying more for theirs it is more about the concept.

Are we getting ripped off by SOME of our retailers in Australia. As i would love to support the Aussies.
 

barls

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im going to ask did you happen to get a quote on shipping to over here so you could do a comparison.
 

bruce86

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I did email them a while back and never got a reply I expected for a single barrel it would be quite costly.
I also realise that a cooperage here the cost of creating these would be a lot higher than the states and hence the price tag. That i can understand even if i cant afford to pay it.
 

Online Brewing Supplies

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There are some Croatian Oak barrels sold in the Swan valley. Cant give you a price but the seller was Purely barrels.
Bloody retailers trying to make a profit , what next ,you expecting wages for the work you do :huh:
Nev
 

bruce86

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Hahaha nev not trying to have a dig mate was just interested. I know you need to do a mark up and I understand it would most likely be over 150 percent due to running cost and all that that. Don't stress I'm still going to but my grain and other bits and Bobs from you :) not going to start a coo.
 

yum beer

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Its not about mark up, its about the retailer selling a product at a reasonable price.
If the locals retailers price is too high in comparison then they may lose business to the few who will buy online.
At the end of the day it is the customer that will drive the sell price and hence the mark-up.

I know a retailer who sells a product he buys at $70 to his door from the states for $600...customer pays and is happy.....
 

dth

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*coup

Sorry, I know English is a bastardised language, but even when we are attempting to use le Francais we could at least try to use it correctly.
 

Nick JD

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If Aussie retailers' markup puts their price above the cost of shipping it from overseas and paying tax/duties on it - then they are charging too much and relying on the ignorance of the shopper for a chunk of their profit.

It's no longer a viable business model. Used to be, but now people have Google and a credit card. And forums to establish credible overseas retaliers' reputations.
 

eamonnfoley

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Blame the government - high cost economy due to growth funded on overseas debt, and using real estate as a tool to create false wealth.
 

manticle

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dth said:
*coup

Sorry, I know English is a bastardised language, but even when we are attempting to use le Francais we could at least try to use it correctly.
Then use a cedilla.

Pots and kettles, etc.
 

tricache

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Working in a company which major business is importing parts from the US we see a lot of people buying it themselves just to cut us out (mainly because it does work out cheaper in some areas)

To give an indication to how big a shipment we do every 2 weeks :- We air freight from 15 different companies which usually is about 1.5 - 2 tonne of parts, it is then consolidated and shipped, we then have to pay shipping charges & tax when it arrives (due to size and cost of shipment) and then we have to pay the poor slob (me) who has to unpack and distribute the parts. Some parts we make a lot money on because we can but some we don't make any on (we make money on the parts which are needed to go with them, hull needs a motor ect)

The major thing to look at though, is the company you are dealing with getting a good deal themselves on the items you are looking at. If they are just paying a few percent below retail US then by the time they ship and land them here they are going to be overpriced. Shipping is going to be your biggest hurdle and obviously if your order is over $1000 you will be stung with GST when it arrives and will jack up the price.

Just my 2c before everyone goes and jumps on the "They are ripping us off" bandwagon ;) and yes I do order my hops from the US but I also buy my malt and yeast from my local HBS even though its a bit more expensive.
 

pmastello

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I think the volume of sales in Australia also plays a big factor. The size of the market in the US is much bigger, hence they can afford a lower margin.
The number of Oak barrels you will sell to the Australian homebrewing community is going to be minscule, hence, you need to make it worth your time and effort to do so.
 

tricache

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Gingerbrew said:
I think the volume of sales in Australia also plays a big factor. The size of the market in the US is much bigger, hence they can afford a lower margin.
The number of Oak barrels you will sell to the Australian homebrewing community is going to be minscule, hence, you need to make it worth your time and effort to do so.
Exactly right...its worth a retailer bringing in 10 if they get the demand but 1s and 2s are not worth it.
 

Paul H

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Socialists must still be in bed :p

:icon_cheers:

Paul
 

Spiesy

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I work in wholesale (not brewing wholesale)... our margins and those of our retailers are NOWHERE near 400%.

I know a lot of retailers in my sector make around 18-20%GP.
 

hsb

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I don't know anything about retail or logistics or markups or cooperage, but I do know that I wish barrels were a third of the price they are, might buy one then.
Spoken with total ignorance of the practicality of making them and running a business off it and costs involved, not implying anything or criticising anyone, just noting that they're out of my league as things stand, maybe one day my desire/resources and the cost will meet somewhere in the middle.
 

Nick JD

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I think a mention of Allens / Billy Hyde Music deserves being said here. You went in there on a Saturday and there were 50 people in there all trying out products.

No one at the cash register. If there was, it was someone saying, "I can get it online for this ... can you match it."

Almost their entire range was 25-75% more than buying it online and paying shipping.

They are no longer.

Would they have been able to shift enough stock at US (+ shipping) prices to stay in business? I say yes.

But they were working to a business model that treats the consumer as a fool. Consumers are not fools - people who are working with receivership lawyers/acountants are.

2013. If you cannot compete on an international market you'd better either be the sole retailer (like Craftbrewer is with NZ hop board) or cheap enough to shift a lot of stock.
 

bum

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Bought by Gallins and still trading. I'm sure your point is still awesome though and the fact that there were attractive enough for someone else to purchase does nothing to counter your well reasoned and informed FACTS.
 

Nick JD

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How much of the company did they buy again?

EDIT: 7 out of 25.

Check out the online store:

http://gallinsmps.com.au/abh.html

WHAT! It's not up yet and is being redesigned? Wanna bet they are going to be matching US prices...

Come on bum, they were "attractive enough" for someone to rip the whole company to shreds, get their stock for nix and only leave open the well-established high-traffic stores.
 

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