What are typical retail markups and margins for spirits and wine?

Retail margins vary significantly by retailer type and product category. Premium retailers target higher margins, while convenience stores work on smaller margins to drive faster turnover.

**Key principles:** - Distinguish between markup and margin — retailers focus on margin (cost less selling price, divided by selling price), not markup - Margin varies by product value: premium spirits (e.g. Louis XIII) generate larger cash margins despite lower percentage margins; entry-level products (e.g. Remy Martin VSOP) often have higher percentage margins but smaller cash returns - Wine typically attracts higher percentage margins than spirits - Rate of Sale inversely affects margin — faster-moving products command lower margins

**Typical ranges:** - Spirits: Around 30% margin as a rough benchmark - Wine: Higher percentage margins than spirits

**Tools to calculate margins:** - **thinkMargin** — a dedicated app with handy calculators for margin, cost, and price - Custom integrations with **Xero** and **Zoho Books** are available if you need bespoke solutions

**Note:** The exact margin your retailer will accept depends on their business model, the cash margin they'll make per unit, and how quickly your product is expected to sell.