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re retailers free to set whatever price they want on their beer? Or is it regulated by the brewery or something? For example, I’ve seen stores in Ohio sell Three Floyds beers at much higher than regular retail prices. And I recently saw a New Glarus Red on the shelf for $22. I assume the retailer bought them at retail prices and threw some on his shelves, with an increase in the cost.
I wasn’t sure what the rule/etiquette was on that, if any.
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There is a certain percent we go off of in regards to beers. The Macros percentage will differ from the craft percentage. Stores don’t make much from selling a 6-pk of Bud, but they sell alot of it, so Macros are the bread and butter...At my store, all craft beer has the same mark up and all micros have the same as well. Now at times stores get a "Deal" from the distributor if they buy so much, which lowers their cost and what they sell it for.
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Also, another thing to point out is that some States (at least mine) has some say so in it as well.....for example, we are not allowed to give "Deep Discounts" on kegs or give them away for free (we got in trouble once for it).
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Also, at least in the State of Texas, it is illegal to "re-sale" alcoholic beverages. It is illegal to even give refunds on beer, even if it turned out to be bad. It is up to the store at that point on the coarse of action to take. Ther4e is this 3 tier system that has to be followed-Brewery-distributor-retail outlet. Very small breweries can distribute their own beer with a certain license from the state. Here in Texas, you can’t even buy beer at the brewery which is odd because you can buy wine from the vineyard.
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Depends by the state. There are alot of differences across the country. State run, state minimums, 3 tier system, etc...not sure if there are any laws on price caps though.
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Thanks for the replies. Good info.
I’ve seen it before where retailers are basically "scalping" these beers that can’t be found locally. In my case, Three Floyds and New Glarus are not available in Ohio. But this specific retailer got a hold of some and is charging almost double the regular price.
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I know some states have state minimums like Ohio there is a certain price that you can not sell the beer under.
In Florida i am not sure of the laws here but i mark up most beers with the same % except some of the higher priced beer i use a slightly less mark up.
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99% of all my craft/micro/specialty beers enjoy the same mark-up as everything else (liquor, wine, etc). macros usually end up being sold for less than the usual markup because 1)they are macros and 2)i’m right next door to Publix whose prices i could never beat, but at least i can come close to being equal.
on a very rare occasion will i slightly markup a very rare bottle/release etc, but never more than a $1 over what it’d normally be. and then there are those which are sold for a wee bit less just because.
in the long-run, it all averages out to about the same.
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Without being familiar with Ohio laws, more than likely those retailers are selling the beers illegally. Since they did not come in to the state through a wholesaler (which means state taxes were not paid) there is probably no legal way they can sell those beers. In many states they would be running a major risk as it could mean a substantial fine, or even a license suspension.
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If that’s the case at the OP’s store, he should go in and ask for the "I’ll drop a dime if I don’t get a discount" discount.
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Normally in Michigan - Wholesale cost to retailer from same distributor on normal items (not distibutor closeouts) is the same to all retailers that the distributor services. State law requires that retailers sell the beer for no lower than retailer pays for it. And distributor/brewery must notify state of wholesale cost. No ceiling on mark up. Note: Some distributors may charge a delivery fee to smaller accounts.
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