What wholesale discount structure should craft drinks brands offer to UK retailers and online wholesalers?

Members suggest working backwards from RRP (ex VAT) and assuming the retailer takes a margin, then offering a wholesale discount that leaves them room to trade profitably.

**Discount levels:** Members reference several anchor points— - **20% discount** off RRP (ex VAT) as a starting point; one member noted this allows the retailer a 20% margin and is used as an opening negotiating position - **25% discount** mentioned as a possibility for online and offline retailers combined - **30% discount** suggested as a "normal" wholesale level for premium lines

**Key dynamics:** - You cannot dictate final retail pricing—only recommend it. Retailers will undercut if it suits their strategy. - Dual-channel partners (wholesalers who also sell direct to consumers on their website) create tension: one member reported their wholesale partner was buying at 20% discount but subsequently undercutting them online, compressing margins as volumes grew. - Larger online retailers (e.g., The Whisky Exchange) may push for steeper discounts (22% margin, or ~30% off RRP) to drive volume, which can trigger complaints from MOM (Members of the trade) if list prices collapse. - Buyer relationships matter: new buyers may be less flexible on pricing and margin protection than predecessors; consider relationship-building alongside negotiation.

**Caveat:** Price increases on the back of cost inflation are a separate conversation, and communicating these to consumers and trade partners requires careful handling.