Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What is a standard export pricing margin per bottle when selling to importers ex works?
There is no fixed standard margin for ex-works export pricing to importers; the margin depends on several factors and should be worked backwards from retail selling price (RSP) and in-market wholesale prices. **Key factors to consider:** - **Margin baseline** — Members typically work with around 60% margin, though this varies significantly by customer type and channel - **A&P reinvestment** — Budget 30–40% of margin back into advertising and promotion, particularly when selling through distributors - **Customer type** — Margins differ depending on whether you're selling to a distributor or direct to retailer; retailer sales will depend on proposed marketing investment expected from them - **Competitive positioning** — Understand your competitive set and the full value chain before setting price; work backwards from RSP and/or in-market wholesale price rather than forwards from cost - **Minimum threshold** — Ensure the margin is sufficient to support your brand investment, especially in new markets **Approach:** Rather than applying a standard percentage, map out the full value chain, understand what competitors charge at each tier, and ensure your ex-works price leaves enough headroom for distributor/retailer margin while allowing you to fund brand support adequately.
What pricing strategy should I use when launching products in new export markets?
Members recommend setting your ex works export list price within 15% variance of your UK bonded pricing, with any additional deals or A&P (advertising and promotion) support layered on top. Before finalizing pricing, ask your importer for the pricing of competitor brands in that territory—this gives you a realistic benchmark for where you need to be positioned competitively. Your final price should also reflect how aggressively you want to pursue volume in that market; higher volumes may justify lower margins. Members also highlight the importance of understanding the full value chain for each territory, as this can significantly impact optimal pricing structure.