What profits are made on beer sales?

william webster

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Jan 16, 2009
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Profit margin lesson

Marking a product up 20%doesn't yield a 20% profit.

Sales are reported at retail...120 in this case.
Profit is that 20 mark up divided by the retail .... 20/120=16.66666 (recurring)

Just saying..... hate to waste the knowledge and education

Slim margins

Oh, that's gross profit, before expenses.... different altogether 
Some retailers go broke on volume
 

LTSteve

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Jul 9, 2010
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From what I know, my brother-in-law marks up everything 20% in his colmado so maybe we can assume 20% profit at the very least.

That might be fine for can goods but I doubt he is marking up beer at the same percentage. I'm sure he is probably trying to stay competitive with other stores in the area.
 

Casino127

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Jan 13, 2012
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In the country side where i live colmados are making around 23 % From the sale of oignons, screws, pampers, baseball bats, and whatsoever including beer and cigarettes. If i don t make mistake Ambev owns president and is number one in sale in the world on beer product.
In the country side ( campos ) colmados in small villages are more expensive than La Sirena and the central fresh food and poultry market.
 

NALs

Economist by Profession
Jan 20, 2003
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In the country side ( campos ) colmados in small villages are more expensive than La Sirena and the central fresh food and poultry market.
The major supermarket/hypermarket chains are able to buy very large quantities of any given product at once, in the process getting a bigger discount on a per unit basis.

Little stores have a much more limited purchasing ability (both in terms of cash at hand -which shouldn't be used to buy merchandise- and credit available -which should be used in purchasing merchandise and hopefully selling the stuff before the debt is due-), so the discount isn't as great.

That explains a very big part of the difference in pricing ability.

To put it bluntly, most colmados can't possibly have a higher profit margin than the big chain stores.
 
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sanpedrogringo

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Still waiting on a valuable contribution from the only active Dominican Republic bartender/bar manager/bar-back within this forum to add his in-house professional opinion to the thread. He probably has the best answer.
 

Derfish

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Still waiting on a valuable contribution from the only active Dominican Republic bartender/bar manager/bar-back within this forum to add his in-house professional opinion to the thread. He probably has the best answer.

BUt he is just the bar tender, may not have any idea of the profits the house makes.
 

irishpaddy

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Sep 3, 2013
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BUt he is just the bar tender, may not have any idea of the profits the house makes.

I am sure anyone who actually works in a bar ...can have a look at the last delivery docket ...check the price and report back and give us all the elusive answer to the original question
 

RDKNIGHT

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if the stores don't know how much they make on selling the beer they should'nt be in business/ that's business 101......HELLO
 

dv8

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big chunk of beer price is taxes. alcohol taxes are based on volume so beer pays less than rum but still, quite a lot. cerveceria dominicana is one of the 10 companies "maintaining" dominican fiscal system.
you'd be surprised how many companies/people participate in that 100 pesos cost: production and recycling of bottles; production of labels/boxes/caps; transport; distribution; marketing.

money here is made purely on volume. the producer may only be making a handful of pesos on each bottle but they sell millions of units. it all adds up.
 

Fulano2

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Jun 5, 2011
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Ok dv8 but Cerveceria nacional must have a very big margin. The fact only that a can of german beer has the same price or lower than Presidente is enough to assume that. Everything in Germany or Belgium is more expensive, not to speak of transportation to the island. And why can I buy 650 Ml. Bohemia at half the price of a Presidente?
They make big $$!! 
 

Timotero

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Feb 25, 2011
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Ok dv8 but Cerveceria nacional must have a very big margin. The fact only that a can of german beer has the same price or lower than Presidente is enough to assume that. Everything in Germany or Belgium is more expensive, not to speak of transportation to the island. And why can I buy 650 Ml. Bohemia at half the price of a Presidente?
They make big $$!! 



Where is this store where I can by German beer for the same price as Presidente, and Bohemia for half the price? I'd like to go there and stock up.
 

Fulano2

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In Gaspar Hernandez, ask close to the bridge for AMADO. 24 bottles of 650 Ml. Bohemia at 1500 pesos. This is a special price but you just tell him you know Pery, then that will be your price.  The German 500 Ml. at 75 pesos Jeannette in Cabarete.
 

Manuel01

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Apr 1, 2009
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N othing !

I buy a large Presidente at for 100 pesos. How much profit do they make?

a mid size bar or colmado pays (incl.tax) between 90 and 106 Peso depend on the season.
Sometimes, colmado or bar owners purchase their presidente at big supermarket chains because of special discounts.
 

Manuel01

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Apr 1, 2009
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Nothing !

I buy a large Presidente at for 100 pesos. How much profit do they make?

a mid size bar or colmado pays (incl.tax) between 90 and 106 Peso depend on the season.
Sometimes, colmado or bar owners purchase their presidente at big supermarket chains because of special discounts.
 

Mauricio

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Nov 18, 2002
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If it's really that important I can find out what my brother in laws pays for presidente in his restaurants in the capital. 

What I do know is that the tax on presidente light is lower than on regular presidente (because of lower alcohol promillage), but that the sales price is the same....that seems to be why Presidente Light is pushed much more than regular.

BTW, Cerveceria Nacional Dominicana's brewer might be owned by Amber, the logistical part of the company is still controlled by the Leon family. It would be interesting to find out how profit is distributed there.
 

sanpedrogringo

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Ok dv8 but Cerveceria nacional must have a very big margin. The fact only that a can of german beer has the same price or lower than Presidente is enough to assume that. Everything in Germany or Belgium is more expensive, not to speak of transportation to the island. And why can I buy 650 Ml. Bohemia at half the price of a Presidente?
They make big $$!! 

Maybe we should start an Everything Beer thread. Hmmm.
To possibly answer your question, my experience within the Dominican Republic is not within tourist or ex-pat locations. Within regular Dominican communities, Bohemia as well as Brahma (and their respective lights) are looked down upon by locals as cerveza barata or cheap beer. Not just in price, but quality. Yes, I know, to each their own, especially with beer preferences, but this is just what I have experienced over the years. There are certain labels attached to certain products. Sort of like Pabst Blue Ribbon or Keystone Light in the US. Being that Bohemia and Brahma aren't that popular, they don't sell that much, and have to be discounted in price to move the product. Many Dominican establishments will have specials, sort of like a Happy Hour in relation to Bohemia and Brahma products. You'll usually see people who are trying to pinch every peso drinking these items, especially the Jumbos. Whenever I've seen people drinking the Jumbos of these products, it's usually met with side jokes (by the locals) as to why they are drinking it. Presidente Light has been force fed down everybody's throats for years, so normal Presidente is viewed as for the older crowd. Those that want to come across as cultured, or work in an establishment will have a Corona, because there is a higher profit for the boss. I myself am burnt out of Presidente, and have found a distributor where I can buy Stella Artois and Franziskaner by the case.
 

Fulano2

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My question was retoric. But thanks for the effort. The fact stays the same. Presidente better than Bohemia? No, and with me most of the germans. Are the ingredients for Presidente more expensive ? Don't think so. So the difference between P and B is profit.

By the way...Stella Artois is belgian's Bohemia :) Jupiler and Maes and Duvel are the brands.
 

sanpedrogringo

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So if I pour a Stella Artois and a Bohemia side by side in the Dominican Republic, you're telling me they are the same beer?