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General bar pricing question: Markup
May 3, 2006
2:21 am
Alan
Columbia, MO, USA
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Hello all,

This question goes out to all of you retailers (or anyone else who knows) that sell high-end bars such as Domori, Amedei, Cluizel, Pralus etc.

What is the markup on these bars? I know that in many non chocolate related product categories 100% markup is not unheard of, but I can’t imagine that an 8$ Pralus bar (chocosphere) was purchased for only 4$

Does anyone know what the markup for these high-end bars is.

Thanks,

Alan

[url="http://www.Patric-Chocolate.com"]Patric Chocolate[/url]
May 3, 2006
9:38 am
alex_h
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i’d say your 100% is pretty dead-on (luxury goods?).
the wholesale price for a box of domori san jose is around 44 euro in germany, retail anywhere between 69 and 85 euro.

May 3, 2006
11:20 am
Domenico
Budapest, Hungary
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December 12, 2005
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I copy. Depending on the shop’s location, ethics, and the enthusiasm (or craze) of the owners, the markup is usually in a spectrum of 30-100% (net prices). So the situation you describe can be real.

May 3, 2006
11:29 am
alex_h
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(of course) pralus will be more expensive in the states than in europe. i pay around 4.50 euro for a bar in munich.

May 3, 2006
11:47 am
Masur
Stockholm, Sweden
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quote:


(of course) pralus will be more expensive in the states than in europe.


Pralus is expensive in Sweden like many other real chocolate brands. Aprox. $8 for a 100g bar from Pralus. The German consumer price you pay, Alex, might be lower than the Swedish wholesale price.

“Porcelana: The Holy Grail of Pure Criollos” (Maricel E. Presilla)

"Porcelana: The Holy Grail of Pure Criollos" (Maricel E. Presilla)
May 3, 2006
12:37 pm
alex_h
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whew! i guess i’m lucky :)
i would not be willing to pay that much.

May 3, 2006
4:33 pm
Alan
Columbia, MO, USA
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Thanks for the feedback everyone. It’s very interesting. I didn’t expect the markup to be that high.

Live and learn.

Alan

[url="http://www.Patric-Chocolate.com"]Patric Chocolate[/url]
May 9, 2006
10:55 pm
Hans-Peter Rot
USA
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After working in a chocolate store, I learned that markup is often around 30% but this depends on the importer and company that’s producing the products. And also, the retailer might have some say-so, considering the location, clientele, and the likelihood with which they sell the bars.

Also, it’s important to note that scale of production also influences price as well and might result in a higher mark-up than other manufacturers. So the ultimate decision doesn’t entirely rest with the retailer.

May 12, 2006
1:35 am
Andrea
Poulsbo, USA
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I know places that it is standard to mark up 50% or a bit more, I go lower than that because I prefer to have people feel like they can buy more than ‘save up’ or budget for a few special things. From the distributor lists I have I think chocosphere is 50%.

May 12, 2006
1:42 am
Alan
Columbia, MO, USA
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Ok, so taking Chocosphere as an example with a 50% markup, here is the question…

What is the distributor’s cut?

If I am looking at a $9.75 Amedei bar, and I know that the retailer is only paying $6.50 for that bar from the distributor, then what is Amedei really likely to be making? They can’t be making the full $6.50. What is markup on the distributor’s end? What is the “normal” cut?

Anyone?

Alan

[url="http://www.Patric-Chocolate.com"]Patric Chocolate[/url]
May 12, 2006
2:34 am
Andrea
Poulsbo, USA
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I can ask my sales rep for the bulk chocolate that I get, probebly not till I see him in a week or so though. I suspect 10-20% markup for the distributor. I also have another rep for a regular candy distributor that I can ask. That will be interesting as they sell Chuao and I have bought directly from Chuao. I went to their factory too. It’s hard to tell looking at invoices since there seems to have been a rise in the cost over the last month or so, which I was warned about last year.

quote:


Originally posted by Alan

Ok, so taking Chocosphere as an example with a 50% markup, here is the question…

What is the distributor’s cut?

If I am looking at a $9.75 Amedei bar, and I know that the retailer is only paying $6.50 for that bar from the distributor, then what is Amedei really likely to be making? They can’t be making the full $6.50. What is markup on the distributor’s end? What is the “normal” cut?

Anyone?

Alan


May 12, 2006
3:46 am
Alan
Columbia, MO, USA
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April 20, 2006
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quote:


Originally posted by Andrea

I can ask my sales rep for the bulk chocolate that I get, probebly not till I see him in a week or so though.


That would be great. Thanks!

It really interests me to see how much of my $10 spent for each bar is actually going into the pocket of Amedei (or any other price/company comparison as the case may be, i.e., Domori, Valrhona, etc.).

Alan

[url="http://www.Patric-Chocolate.com"]Patric Chocolate[/url]
May 12, 2006
3:53 am
Masur
Stockholm, Sweden
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August 6, 2006
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13

-

"Porcelana: The Holy Grail of Pure Criollos" (Maricel E. Presilla)
May 12, 2006
9:12 am
alex_h
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14

what’s with felchlin, masur?

it would be interesting to see how the price of a bar breaks down… all the way to the person being paid for cutting the pods from the trees.

May 12, 2006
9:34 am
Masur
Stockholm, Sweden
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Sorry for the confusion. I was tired this morning and posted in the wrong topic.

“Porcelana: The Holy Grail of Pure Criollos” (Maricel E. Presilla)

"Porcelana: The Holy Grail of Pure Criollos" (Maricel E. Presilla)
May 12, 2006
11:44 am
alex_h
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16

;)

May 26, 2006
6:59 am
chenddyna
Bangalore, India
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April 16, 2005
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Hi, I posted this in another topic, wanted to compare prices . In India we r buying Callebaut 811 and 823 for 12 euros per kg. and the 70-30 for 18 euros per kg. How does this compare ti your prices. this is wholesale from the distributor.
chenddyna

June 10, 2006
9:10 pm
Andrea
Poulsbo, USA
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Forum Posts: 7
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May 12, 2006
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18

quote:


Originally posted by Alan

quote:


Originally posted by Andrea

I can ask my sales rep for the bulk chocolate that I get, probebly not till I see him in a week or so though.


That would be great. Thanks!

It really interests me to see how much of my $10 spent for each bar is actually going into the pocket of Amedei (or any other price/company comparison as the case may be, i.e., Domori, Valrhona, etc.).

Alan


June 10, 2006
9:19 pm
Andrea
Poulsbo, USA
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May 12, 2006
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19

What I found out from two different sources is that the distributor markeup is between 6%-11% depending on what they negotiate. I imagine that the closer they are to the source the higher the % would be. I do know that distributors have to sell alot of volume or they drop brands really quickly. I hope this answers some of what you are looking for.. I am so excited I am getting Cluizel bars in next week! yea[:D]I can’t wait to taste them[:p]

quote:


Originally posted by Alan

quote:


Originally posted by Andrea

I can ask my sales rep for the bulk chocolate that I get, probebly not till I see him in a week or so though.


That would be great. Thanks!

It really interests me to see how much of my $10 spent for each bar is actually going into the pocket of Amedei (or any other price/company comparison as the case may be, i.e., Domori, Valrhona, etc.).

Alan


July 6, 2006
10:26 pm
Martin Christy
London, United Kingdom
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July 31, 2006
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On quality products it’s never 100%. Anything from 20% to 80% is possible, depending on the circumstances and how hard it is to get hold of. Some retailers can charge what they like, on the web here it’s a bit harder to hide!

Martin Christy
Editor
http://www.seventypercent.com

Martin Christy Editor www.seventypercent.com