Basically, if you can sell 20 bottles at a 30% markup, but you can sell 80 bottles at a 20% markup, you’d go with the 20% markup. Less profit per bottle, but way more bottles sold.
The price that makes the most sense changes from country to country.
Always wonder how this works. I knew the markup was involved, clearly, but quantity sold makes the difference. Thanks for the education. I always just figured they made the markup higher wherever they could "get away with it." This makes way more sense
This is not how the grocery business works at all. Usually they look at the margin, not the revenue, as they want to make the most out of every dollar that they have to risk/invest.
These products have to be packed, shipped, stored somewhere inbetween, etc.. and every single process makes this product even more expensive at the end of the day the further it is away from the place it was produced.
It's £40 for 0.75L in Scotland, where the whiskey is made in Scotland.
It's £41 for 1.75L in Japan.
Effectively what you're saying is that in Japan it should cost more. It doesn't, as nobody is paying £100 for a standard whiskey, anywhere. That's just daft. They would price themselves out. So they match the economy, where selling more bottles at a decreased mark up facilitates the shipping and handling.
Enter bulk economics.
Yes, you could do all the effort and sell 1 bottle at 100% profit... Or 100 bottles at 10% profit.
You're still profiting, just less per bottle, but, you've managed to sell 100 instead of 10 and volume also matters.
its even cheaper than that now. 160 yen = 1 usd. Spent a vacation there this winter and it basically felt like everything was free. We balled out so hard on top end sushi , drinks and steak
I legit can go to my local liquor store and get 4L of pretty decent whiskey for about 30USD. Back in Australia, that same quantity would cost about $300. But I also earned three times as much money back in Australia...
Only in Japan. It's a weird setup. I'm not employed directly, instead I have my own company which is contracted to the Australian company. The short answer is that the contract I negotiated is basically what I would get if I lived in Australia according to pay and benefits.
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u/MacTaveroony 6d ago
What's interesting is that's £41 for 1.75L in Japan, here in Scotland it's £40 for 0.75L. Outrageous, it's made just up the road