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Mtl_zack's avatar

What are the specifics of buying beer in bulk for my small business?

Asked by Mtl_zack (6778points) March 23rd, 2009

I’m starting a business with my friend, which consists of delivering beer, specifically microbrew. We’ve done a lot of research for competitors, distributors, the current demand, prices, and everything else you can imagine. We’re in the process of getting an alcohol distributor license from our province, and we’re doing great so far, considering our lack of experience.

However, it is now time to talk to distributors who will sell us beer in bulk, so we can re-sell it. We came across one business that has a wide variety of beers, and the in store prices are very low, however, neither me nor my partner are that good at negotiating.

So, when it comes to buying beer in bulk, what’s a good price range and how much percent of our profits should we give to our distributor? We’re trying to start off with a MINIMAL investment, and we’d like to start off with around 700–1000 bottles, but spread out over a variety of brands, weighted of course. When/if we run out, we’d invest more and let the business grow, but in the case that it fails, we don’t want to have to chug 1000 bottles of beer, although that would be very cliche.

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5 Answers

steve6's avatar

It’s tax deductible as a business expense.

asmonet's avatar

I might just sabotage the whole thing so I can have 1000 bottles of beer on my wall, and in my tummy.

steve6's avatar

999 bottles of…

samaurikitten's avatar

Make sure you check with your local governments liquor laws. Depending on where you are, special permits may be required for reselling; especially if your provider also sells to the public. Good luck…sounds like a fun biz.

Garebo's avatar

You said you or your partner are not great at negotiating price, then I would find someone who is, which I am sure is not economical option at this point, but long range that would be my goal. I think there are always people that can do things better innately for a specific goal. Also, I recommend reading John Asaroffs, The Answer, I believe it will improve your situation. Look foward to buying your beer!

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