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March 2003
Understanding Distributor Profit
Part One: Pricing and Mark Up Structure
by Veronica Barclay
The current environment of the wine industry has generated fierce competition as well-known and emerging brands compete for distributors to help them gain exposure and increase sales. Before approaching a distributor to help sell your wines, it helps to understand how your brand will contribute to their profit levels. Part One of this two-part series will define the components of pricing formulas and mark-up structure of the traditional three-tier distribution system. Part Two will review progra...
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