Sommeliers Choice Awards 2022 Winners

The Numbers Behind Success: How Does Pricing Affect Your Gross Margin?

Pricing your product rightly is the key to success in the US market. Are you doing it right? Do you know the appropriate margins to be kept at each tier to ensure profits and a workable structure for all parties? Read on to know how to price your product correctly.

Photo for: The Numbers Behind Success: How Does Pricing Affect Your Gross Margin?

In the beverage market, pricing can be one of the most complicated hurdles you face. Price your product too low and you won’t make enough margin. If it’s too high, however, you’ll price yourself right out of the market.

Pricing can be the magic lever that helps elevate your business, making it more profitable. In order to figure out your ideal price, you need to understand how it affects your gross margin (and vice versa).

3 Factors That Affect Price

Coming up with the correct price is paramount to your company’s success. Also crucial are factors that help build value in your company. Three of the most important factors that will drive your company forward and have a direct impact on your pricing are brand image, gross margin, and velocity. Let’s examine these in detail.

BTN Premium Content

BTN Premium Members, please Log In to access the complete Webinar.

Not a member? Please Sign Up now and choose your Premium plan.

BTN membership gives you full access to articles and webinars on BTN + other benefits like:

  • Full Access to BTN Consultants
  • Full Access to Buying Leads
  • Post Unlimited Brands
  • Full Access to all Articles and Webinars
  • Full Access to BTN Live conferences presentations and speaker sessions
  • Discounted rates to exhibit at major partner events and conferences
  • And Much More...

Your BTN Membership will reduce your trial and error time: Why experiment with your branding and distribution when you can fast-track your time to success? Get 'How to do it' content which will help you improve your sales and grow your distribution. Just one article can help you make better decisions and improve your distribution strategy. View Plans Now

2024 London Wine, Beer and Spirits Competitions Is Now Open. Enter Wines, Beers and Spirits Today and Get A Boost Globally.

More articles


10 Factors in Your Press Release That Will Catch the Media Attention

Operations and management

Every spirits brand is vying for the media’s attention. But, what does it take to get noticed? And how do you tell your story to make your spirits brand shine? BTN talks to Gregg Glaser, Publisher & Editor of the Modern Distillery Age, a weekly e-newsletter/magazine for the U.S. spirits business about ten factors in your press release that will catch the media’s attention.
Read More