What margin requirements do duty-free and airport retailers typically demand?
Duty-free and airport retail channels operate on significantly higher margin expectations than standard retail.
**Margin requirements:** - **Duty-free/airport retailers** typically require 65–70% margin on RTD products - **Dublin Airport** specifically requests 70% duty-free margin and 35% DP (distributor price)
**RRP considerations:** - Recommended Retail Price must be positioned at approximately 40% lower than the market average to remain competitive in duty-free channels
**Context:** These are demanding channels that require both high-margin products and aggressive RRP positioning. Members confirmed these figures are standard expectations when approaching duty-free distribution.
Was this helpful?
This answer was distilled from the Kindred Collective community.
Got a question of your own?
Join the Collective to ask the community directly and unlock the full directory.
Join Kindred Collective