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 are realistic retail margins for premium spirits, and how do Ocado and other retailers calculate them?
Retail margin differs from markup: margin is calculated as (Sell Price − Cost) ÷ Sell Price, expressed as a percentage of the retailer's selling price (not your cost). Retailers focus on margin because it represents actual cash profit. **Ocado premium spirits expectations:** Members report **25–30% point of sale (POS) margin**, though this varies. However, margin negotiation is often secondary to the retailer's rotation targets—retailers care more about how much you'll invest to drive sales velocity and cashflow than the percentage alone. **Key margin factors:** - **Margin percentage inversely correlates with rate of sale.** Faster-moving products command lower margins; slower-moving premium lines can sustain higher margins. A retailer will accept a lower % margin on high-velocity Rémy Martin VSOP than on ultra-premium Louis XIII, because the absolute cash margin on Louis XIII is much larger. - **Wine margins are typically higher than spirits margins** (percentage-wise), reflecting different retail dynamics. - **Product value determines cash vs. percentage trade-offs.** A 20% margin on a £1,000 bottle generates more cash than 40% on a £50 bottle, so premium retailers prioritize cash margin over percentage. **Tools:** Members recommend **thinkMargin** app, which includes handy calculators for margin, cost, and price conversions to avoid confusion between markup and margin. When negotiating with retailers, be prepared to discuss your investment in driving rotation as much as the margin percentage itself.
Which importers and distributors are recommended for premium spirits in Singapore?
The community recommended two main distributors for the premium bar scene in Singapore: - **Six Eight Distribution** — praised as reliable and effective for premium spirits placement - **Dyspatchr** — member-owned distributor carrying major portfolios including Sazerac - **La Maison Du Whiskey** — mentioned as an option in the premium market Members suggest reaching out directly via DM for introductions and specific placement opportunities.