How much are you willing to pay the importer in profit?

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How much are you willing to pay the importer in profit?

Postby Birger Vejrum » Thu Sep 25, 2008 12:49 pm

I may be in trouble for this but never mind, this is crazy.

During our holiday in Italy I visited a producer. The producer know I am a wineimporter. I would like to buy some wines and the producer asked me if I want the private or the importer pricelist, I naturally aksed for the importer pricelist.

The top product at the producers cost 21.90€ ex vat at the importer pricelist at the cantina. The same wine and the same vintage is at the Danish importer 48,96 ex. vat. Shipping and tax is approx 1,5€ to Denmark, that means 47,46€ this means that the profit for one bottle is 25,56€ :roll:

Same producer and Danish importer:

Another wine, again same vintage 12,50€ ex. vat at the producer 28,69€ ex. vat at the Danish importer!!

Well if you do not know what the importer bought it for and you are willing to pay that price at the importer, I quess we are all happy.

I think it is crazy.

Ciao
Birger
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Re: How much are you willing to pay the importer in profit?

Postby Daniel Rogov » Thu Sep 25, 2008 3:01 pm

Birger, Hi.....

A large part of the question deals with precisely how wines are purchased. Even if purchased directly from the winery and only shipment is involved, one has to take into account that the wine undergoes VAT payment at least three times in the transaction - the importer to the winery (plus VAT on the shipment itself), the store to the importer; and then the customer to the store. One also has to keep in mind that in addition to the profit made by the importer, the store itself must make a profit.

And that is the simplest method. Imagine if you will the three tier system of the USA where the importer has to deal with a distributor, the distibutor with the store and the store with the end client.

To add to that, each and every one of these steps along the line has overhead expenses (salaries, store rental, office rental, distribution expenses, etc, etc.....) and those costs get built into the cost of all of the products that they are selling.

Everyone is entitled to a reasonable profit. It is true though that when the winery, the importer, the distrbutor or the store (or any two or more aloing the chain) become greedy prices become truly outrageous.

God bless us, every one ......but the greedy, although blessed, may be going straight to Hell.

Best
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Re: How much are you willing to pay the importer in profit?

Postby Eli R » Thu Sep 25, 2008 5:21 pm

Hi,
Here in Israel, the shipping distance is very short. Nevertheless, the price of a bottle of wine at the winery door, (according to several winemakers), is about 50% from its recommended list price, This is why prices can be reduced by 20% and more on special sale days, and everyone is still making a profit.

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Re: How much are you willing to pay the importer in profit?

Postby Stephen W » Fri Sep 26, 2008 2:35 am

This is similar to paying corkage in a restaurant. I always try to take my own wine and pay the corkage because of the huge profits the restaurants add to the wholesale price or even the retail price. In Israel I pay between 30-40 sh. provided the venue agrees to bringing your own wine to start.
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