Ask the Collective

What margins do independent pubs and on-trade retailers typically expect when purchasing spirits and drinks?

Independent pubs typically look for **60–75% margin**, with **70–72% gross profit** being the standard expectation. It's important to note that this margin is calculated relative to the per-serve price they sell at, not simply as a percentage of the purchase price (e.g., 10 serves × 6 = 60 vs. the purchase price of 20). Margin expectations vary by channel: - **Independent pubs**: 60–75% margin / 70–72% gross profit - **Wholesalers**: 10–25% depending on product type - **Off-trade**: 25–40% - **Promotional products**: Around 30%, potentially lower if positioned as a footfall driver Members have also asked about specific major retailers (DDC, Majestic) but concrete margin data for those chains was not shared in the discussion. The **Gross Profit app** (iOS) was recommended as a practical tool for calculating margins more easily.