Markup Guidance

Generally speaking, the standard mark-up of alcoholic products by a Florida Distributor is 33%. Depending on the product, a commission of approximately 2%-4% from the 33% is paid to the Distributors Salesman. Under the Fee Distribution System, the Importer/Manufacturer is conducting the marketing and sales of the product so the Distributors Mark-up should be less by a factor of the Salesman commission.  Royal Beverages removes as much as 10% from the standard 33% mark-up leaving plenty of margin for the sales and marketing of a brand.

The price that your product is sold to a Licensed Florida Retailer should consider the following:

    1. The full cost of the product inventoried at its shipping point
    2. Mark-up the cost to deliver the product to Royal Beverages warehouse
        (consider warehouse charges)
    3.  Mark-up Importers/Manufacturers gross profit
    4. Mark-up Florida State Tax
    5. Mark-up Distributors gross profit of 23%

Royal Beverages will subtract 23% of the full face value of the invoice followed by the amount of the Florida State Tax. The remaining balance is the purchase price of the product by Royal Beverages. The purchase price will be promptly paid to the Importer or Manufacturer on the first calender day of each month.

Although the Manufacturer/Importer is responsible for conducting the marketing and sales of the brand, Royal Beverages, upon request, will include your products in its portfolio which is made available to our current Retail Clients on a monthly basis. If a sale is generated by Royal Beverages without any input from the Manufacturer/Importer, then Royal Beverages will subtract the standard 33% from the face value of the invoice followed by the amount of the Florida State Tax. The inclusion of your products in Royal Beverages portfolio must be requested by the Manufacturer/Importer.

You may change the price by submitting the List Price form. It is your responsibility to notify a Retailer of a change in list price. Changes in list price will be effective on the first calendar day of each month.

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