If the cost to produce a bottle of wine is $14.89: what is the suggested retail price for this product, how much will the retailer pay the distributor for this product, and how much will the distributor pay the winery for this product?
16. Distributors of wine want to make a profit, so they will frequently want a 25% margin for representing. Of course, the retailer also wants to make a profit and generally expects at least a margin 30% of the retail price or 35% for wines that retail for more than $30. The winery also wants to make a profit. Wines that retail under $20 a bottle, margins can be as low as 30%. For more expensive wines the margins need to be higher, typically around 40%
If the cost to produce a bottle of wine is $14.89: what is the suggested retail price for this product, how much will the retailer pay the distributor for this product, and how much will the distributor pay the winery for this product?
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