Buy Beer At Wholesale Prices: A Guide To Saving Money

Buying beer at wholesale prices can be a great way to save money, especially if you're stocking up for a party or event. The wholesale price of beer is significantly cheaper than retail because you're buying in bulk. The amount you save depends on the type of beer and where you live, but on average, a case of domestic beer costs around half the price per case at wholesale than it does at retail.

If you're looking to buy beer at wholesale prices, you'll need to find a reputable vendor or distributor and set up a wholesale account. Some wholesalers will only sell to businesses that qualify for wholesale, resale, and tax-exempt status, so it's important to do your research and ensure you meet any necessary requirements.

Wholesale beer prices vs. retail

When it comes to buying beer, there are several options available, from wholesale to retail, and the prices can vary significantly.

Wholesale Beer Prices

Wholesale beer prices are typically cheaper than retail because you are buying in bulk. The cost of a case of beer at wholesale will be around half the price of a 12-pack of domestic beer at retail, which is usually around $12-$15. However, to get these wholesale prices, you often have to buy a certain minimum amount. The wholesale price for craft beers will also be higher than for domestic beers, with a 12-pack costing around $20-$30.

Retail Beer Prices

Retail prices for beer can vary depending on the type of beer, the format (bottle, can, or draft), and the location. For example, a 12-pack of Bud Light or Miller Lite can range from $16.43 in Illinois to $33.62 in Alaska. The average case of beer (24 bottles/cans) costs around $21, but this can vary by state, with prices as low as $15 in some states and as high as $31 in others.

Buying Beer in Bulk at Retail

Even when buying beer at retail prices, you can often find bulk options that bring down the cost per unit. For example, you can buy a 30-pack of domestic beer at a lower cost per can than a 12-pack. Some retailers also offer membership programs that provide access to bulk discounts and other benefits.

Markups on Beer

The markup on beer from wholesale to retail can vary depending on the type of beer and the establishment. On average, the markup is about 200%-300%, but it can be as high as 500% for cheap macro brews. Craft beers, on the other hand, tend to have lower markups because they are more expensive to buy wholesale.

Factors Affecting Beer Prices

Several factors influence the price of beer, both at wholesale and retail. Taxes are a significant factor, especially for retail prices. Other factors include the ingredients used, the time and labour involved in production, and the format of the beer (bottle, can, or draft). Draft beer, for example, tends to have higher overhead expenses due to the cost of equipment and maintenance.

In summary, wholesale beer prices are generally cheaper than retail, but you have to buy in bulk to access those prices. Retail prices can vary depending on various factors, and there are options to buy in bulk at retail to get a lower cost per unit. The markup on beer from wholesale to retail can be significant, especially for cheap macro brews, but it varies depending on the type of beer and the establishment.

Buying wholesale for your bar or restaurant

If you're looking to buy wholesale beer for your bar or restaurant, there are a few things you need to keep in mind. Firstly, it's important to understand the local laws and regulations around purchasing alcohol wholesale. For example, in the United States, different states have different restrictions and regulatory fees, so it's essential to do your research beforehand.

Finding a Vendor

The next step is to find a reputable and affordable distributor. You can shop around for both local and remote distributors to compare prices and customer reviews. It's also a good idea to solicit quotes from multiple vendors before making a decision. This will allow you to make an informed choice that meets your budgetary and inventory needs. Once you've chosen a vendor, get set up with their credit system or consider using an automated buying strategy to streamline the process.

Planning Your Menu

When it comes to planning your cocktail or bar menu, it's crucial to consider the initial cost of materials. Understand how much you need to charge to break even, and then decide on the markup for each drink. The standard industry markup for beer is around 200-300%, but this may vary depending on the type of beer and your establishment. For example, bottles and cans of macro brew can be marked up to 500% due to their low wholesale cost, while craft beers may have a lower markup due to their higher wholesale price.

Calculating Profit Margins

The profit margin for bottled beer is typically around 75%, while draft beer has a slightly higher profit margin of about 80%. When pricing draft beer, aim for a liquor cost of 20-30%. Draft beer also tends to have higher overhead expenses, so make sure your pricing covers the cost of equipment, maintenance, and supplies like CO2 and nitrogen. Don't forget to account for spillage, spoilage, and over-pouring.

Buying in Bulk

Purchasing beer in bulk can often lead to significant cost savings. Wholesale prices are usually much lower than retail, as you're spending more money at once and buying in larger quantities. For example, a 12-pack of domestic beer can cost around $12-$15 at retail price, while a wholesale case may cost around half of that per case. However, keep in mind that wholesale prices often require a minimum order quantity.

Staying Competitive

While setting your prices, it's essential to stay competitive. Keep an eye on what other bars and restaurants in your area are charging for similar beers. You don't want to price yourself out of the market, but you also need to ensure you're making a profit. Striking the right balance between profit and customer satisfaction is key to intelligent and reasonable pricing.

Calculating wholesale beer prices

To calculate the wholesale price, you need to consider the following factors:

• Wholesale Container Cost: This refers to the price you pay for a case or a keg of beer. It is the base cost that will be marked up as it moves through the sales cycle.
• Portion Size: The serving size or portion size of the beer needs to be determined. This can vary depending on the type of beer and the establishment. For example, draft beer is typically served in larger portions (e.g., 14.5-ounce pour or 16-ounce pint) compared to bottled or canned beer (usually 12 ounces).
• Desired Cost Percentage: This is the profit margin or markup that you want to apply to the wholesale cost. It is often expressed as a percentage and can vary depending on the type of beer, the establishment, and the target audience.

Bottled or Canned Beer:

• Wholesale Bottle/Can Price: First, determine the wholesale cost of a single bottle or can by dividing the number of bottles or cans in a case by the dollar amount. For example, if a case of 24 beers costs $24, the wholesale price per beer is $1.
• Retail Price: To calculate the retail price that your customer pays, divide the wholesale price of each beer by the desired pour cost (expressed as a decimal). For example, if you want a 25% pour cost, divide the $1 wholesale price by 0.25, which gives you a retail price of $4 per beer.

Draft Beer:

• Determining Pours per Keg: Calculate the number of pours or servings you can get from a keg by dividing the total number of ounces in the keg by the serving size. For example, a standard 15.5-gallon keg contains 1984 ounces, and if you use a 14.5-ounce serving size, you will get approximately 136 pours.
• Calculating Keg Retail Value: To determine the retail value of the keg, divide the cost of the keg by the desired pour cost percentage. For instance, if you bought the keg for $120 and want a 20% pour cost, the overall keg will earn $600.
• Calculating Price per Pint: To find the price per pint, divide the retail value of the keg by the number of pours per keg. Continuing the example, $600 divided by 136 pours gives you a price of approximately $4.41 per pour, which can be rounded up to $4.50.

Markup Calculation:

The markup on beer can vary depending on the type of beer and the establishment. The average markup on beer is around 200% to 300%, but it can go up to 500% for some macro brews. Craft beers, on the other hand, tend to have lower markups due to their higher wholesale cost.

To calculate the markup percentage, use the following formula:

Markup Percentage = ((Retail Price - Wholesale Price) / Wholesale Price) x 100

For example, if a wholesaler buys a case of beer from you for $25 and sells it to a retailer for $36, the markup percentage can be calculated as follows:

Markup Percentage = ((36 - 25) / 25) x 100 = 44%

Other Considerations:

When setting wholesale beer prices, it is essential to consider the competition, customer expectations, and the pricing suggested by your beer wholesaler. Additionally, the pricing should take into account factors such as overhead costs, equipment maintenance, spillage, and portion sizes offered by your establishment.

Buying wholesale beer online

Wholesale beer is a great option if you're looking to buy in bulk and save some money. Here's a guide to help you navigate the process of buying wholesale beer online.

Finding Wholesale Beer Suppliers

Start by searching for wholesale beer suppliers online. You can use search terms like "buy wholesale beer online" or "wholesale beer suppliers." This will bring up a list of websites that offer wholesale beer sales. Look for reputable websites that offer a wide variety of beer options, including domestic, imported, and craft beers. Check out websites like Sam's Club, Alibaba, and Provi, which offer wholesale beer options.

Comparing Prices and Products

When buying wholesale beer online, it's important to compare prices and products across different suppliers. Prices can vary, and you want to make sure you're getting the best deal. Pay attention to the cost per unit, including the cost per can, bottle, or keg. Additionally, consider the minimum order requirements, as some suppliers may have higher minimums than others.

Understanding Your Beer Preferences

Before making a purchase, be clear about the type of beer you want. Wholesale suppliers often offer a wide range of options, including domestic beers like Budweiser, Bud Light, Coors, and Miller, as well as imported and craft beers. Consider the occasion for which you are purchasing the beer and the preferences of your guests. Variety packs can be a great option if you want to offer a selection of different beers.

Placing Your Order and Delivery

Once you've found the right supplier and selected your preferred beers, it's time to place your order. Make sure you have a secure payment method and that you provide accurate delivery information. Some suppliers may offer the option to pick up your order from a local store or warehouse. Consider the quantity of beer you are ordering and ensure that you have adequate storage space and the necessary equipment, such as a wine and beer cooler, to keep your beer fresh.

Legal Requirements

Remember to comply with any legal requirements when purchasing alcohol in bulk. This may include providing proof of age or meeting the minimum age requirement, which is typically 21 years or older. Be sure to drink responsibly and follow any guidelines provided by the supplier or the law.

Wholesale beer and tax exemption

Wholesale beer is cheaper than buying beer at retail prices because you are spending more money at once. A 12-pack of domestic beer will cost around $12-$15, while a wholesale case of beer will cost around half of that per case, depending on how much you are buying. The wholesale price of craft beer is expected to be higher, at $20-$30 per 12-pack, and $10-$20 per case.

When it comes to kegs, a 1.3-gallon keg of domestic beer will cost around $20 at retail price, while a 15.5-gallon keg will cost around $13 per gallon at wholesale price, which includes the price of a $30 keg deposit and taxes.

The price of beer varies depending on the state, with taxes being one of the biggest factors influencing the final price. The national average for a case of beer is around $21, with prices as low as $15 in some states, and as high as $31 in others.

Beer manufacturers and importers are generally required to pay an alcoholic beverage tax, which is a per-gallon excise tax collected on the sale, distribution, or importation of alcoholic beverages. In California, for example, the current alcoholic beverage tax rate per gallon of beer is $0.20. This tax is in lieu of all county, municipal, and district taxes on the sale of beer, and it is paid by beer manufacturers, importers, or sellers, depending on who the tax has been passed down to.

There are some exemptions to the alcoholic beverage tax. Beer consumed by brewery employees, visitors, and others within the brewery's bonded premises and not in a brewery tavern is not subject to the tax. Additionally, beer sold for export and actually exported outside the state is exempt from the tax. There are specific conditions that must be met for these exemptions to apply, and they vary by state and country.

In addition to the alcoholic beverage tax, sales and use tax may also apply to the sale of beer. This tax applies to all retail sales of tangible personal property, unless a specific exemption or exclusion is provided by law. For example, in California, the statewide sales and use tax rate is 7.25%, but local jurisdictions may add district taxes that increase this rate.

When purchasing wholesale beer, it is important to be aware of the applicable taxes and any potential exemptions. By understanding the tax landscape, businesses can ensure they are compliant with the law and are able to pass on any tax savings to their customers.

Frequently asked questions