OK so I want to open a local home brew shop. Very unhappy with the one we have here.
Problem I’m running into is wholesalers like BSG or LD Carlson want you to actually have a store front location before they give you pricing and ect. This is posing to be difficult.
How can I calculate start-up costs and profit margins if I don’t know what I am paying for supplies? I need a solid business plan and that can’t be done without this info.
I’ve reached out to another brew shop (not local) and an online retailer in hopes they could shed some light. But they wouldn’t help either.
I don’t understand the secrecy.
I am really hoping someone here can help me. I need at least some rough idea on brewing ingredient costs. Typically what you pay for the average grain, hop, yeast, brew kit and ect.
I don’t really understand why they don’t give you the info. Who would randomly open a store front and then apply for wholesale? Sounds like putting the carriage before the horse.
Your grain cost will range from 60 cents to over a dollar a pound depending on brands, base or crystal for 50 or 55# bags. It will depend on how much you order. Hops I think start around a dollar per ounce packaged in 1 ounce bags, the more popular the hop the more it will cost. Looking at Northern brewer take their prices and divide by 3 and that is close approximation to what your costs will be, works for the grain anyway.
I would recommend contacting a member of S.C.O.R.E. It’s a society for retired executives that volunteer to help entrepreneurs develop business plans and provide advice.
Getting an advisor is a good idea Ellismr. However, they won’t have a pricing sheet on beer supply products and that is what I need for calculations. Sure they can help make a plan but without actual numbers that plan won’t be sound.
I will definitely think about reaching out to them once I solidify my business plan with actual numbers.
And it specifically says you don’t need a location yet:
[quote]You must provide your Federal Tax ID notice, billing address, and either your established shipping address(es) or the general area of your planned retail location(s). You must also provide a state Sales & Use Tax certificate(s), if required by any state in which your business operates.
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Unfortunately not 100% true. Already filled it out and spoke with 2 of their reps. There are other requirements I am trying to meet without the store front so I can get the pricing.
I do need to make a note though that an awesome shop owner in Denver is helping me with pricing. This would be much more difficult without him.
This thread is not as important any longer now lol
This was something that started a few years ago in the midst of the homebrewing boom. Too many people were getting together and placing bulk orders directly from wholesalers and shops were complaining about losing business. So the wholesalers restricted sales to shops and pro breweries. The wholesalers realized homebrewers would create fake store names and borrow shipping docks to receive drop shipments so they’ve set a high bar to entry.
In addition to a friendly local shop, breweries should have at least the info on grain and hop pricing that they may be willing to share.
