There\u2019s a common mistake we see made by brands that are new to the U.S. or are managing sales from the home country. It has to do with \u201cPricing for the transition to a distributor.\u201d <\/p>\n\n\n\n
We recommend that brands look at importing as a two-phase\nproject. <\/p>\n\n\n\n
Phase 1 is to start with a service\nimporter such as MHW Ltd. or Park Street. \nThis allows a brand to launch in the U.S. quickly, but still preserve\ntheir options as they develop a business case.<\/p>\n\n\n\n
Phase 2 is when they look to\nattract a \u201cforever\u201d importer.<\/p>\n\n\n\n
When price structures are created for launch through the service importer\u2019s distribution license, keep in mind that they don\u2019t charge a traditional importer or distributor margin, per se. Rather they have a menu of service offerings with costs associated with each.<\/p>\n\n\n\n
Brands need to factor in that at some time in near future they will get a
“forever” importer or “traditional\u201d distributor that will charge a markup\/take a margin for their services.<\/p>\n\n\n\n
So when the initial price structure for distribution in each state is set up, it\u2019s imperative that the calculations build in that future importer & distributor margins. If you do the price structure based on the actual <\/em><\/strong>costs of using a service importer, more than likely you\u2019ll end up with a selling price that will be significantly lower than a traditional importer–Distributor–on\/off-premise structure would command<\/p>\n\n\n\n So what? Well, what\nwill happen is the new distributor will use their system to calculate a price,\nfactor in their standard margins, and the product that you may have been\nselling to retail at $14.99, now comes in at $19.99. Ouch! <\/p>\n\n\n\n And what usually happens then is when the on- and off-premise retail customers you got during Phase 1 (Service importer phase), find out that your price just went up (to them, and in turn to an MSRP), they will be unlikely to reorder. And that\u2019s being nice.<\/p>\n\n\n\n So, get smart. Make sure\nthat when you\u2019re doing pricing in the U.S. you\u2019re factoring in \u201cnext\u201d along\nwith the \u201cnow.\u201d<\/p>\n\n\n\n And a caveat: If this\npoint isn\u2019t absolutely crystal clear<\/em><\/strong> to you. That\u2019s a sign you need help. So, give me a call. That\u2019s what I do: help brands NOT make the same mistakes other\nbrands have made before them, again, for the first time. You\u2019ll find that covered in detail in the\nchapter titled \u201cPrice Structures Illuminated\u201d on pp 118-121 of my new book: How\nto Get U.S. Market Ready<\/a>. So head on\nover to Amazon.com<\/a>\nand buy a copy today. I guarantee you\nwill find that it was the best $30 you ever invested in the U.S. market.<\/p>\n","protected":false},"excerpt":{"rendered":" There\u2019s a common mistake we see made by brands that are new to the U.S. or are managing sales from the home country. It has to do with \u201cPricing for the transition to a distributor.\u201d We recommend that brands look at importing as a two-phase project. Phase 1 is to start with a service importer […]<\/p>\n","protected":false},"author":1,"featured_media":2424,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[421,420,179],"class_list":["post-2421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-price-structure","tag-pricing","tag-wine","et-has-post-format-content","et_post_format-et-post-format-standard"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/bevologyinc.com\/blog\/wp-content\/uploads\/2019\/03\/presenting-at-w2w-2018.jpg","jetpack_shortlink":"https:\/\/wp.me\/p7k1BV-D3","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/posts\/2421"}],"collection":[{"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/comments?post=2421"}],"version-history":[{"count":2,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/posts\/2421\/revisions"}],"predecessor-version":[{"id":2425,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/posts\/2421\/revisions\/2425"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/media\/2424"}],"wp:attachment":[{"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/media?parent=2421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/categories?post=2421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/tags?post=2421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}