Bringing a new wine, beer and spirits to market mean taking a good look at your product, understanding your price category and pricing your wine, beer and spirits to succeed. Getting your finance department as much information as possible on your competition and target market will help them better price your wine, beer, and spirits for growth.

Start studying your target markets by looking at your competition at the retail level - look at the pricing categories and get realistic. Once you've got a good grasp on what other similar wine, beer, and spirits are selling for, follow up by competitively pricing your product. Here are some tips on how you can guarantee trade buyer interest and get your product from your production line onto the shelves of retailers and into the drinks menu of restaurants at a competitive price.

1. First and Foremost, Buy Low

You should be buying hard and low. Every cent saved on your costs will be needed further down the line. As markup is added by importers, distributors, and retailers your costs will translate into a magnified price. You'll also be able to put your savings into marketing and incentive programs to help sell your product. Don't skimp on quality, but always try and get the best possible deal for your dollar.

2. Only Have One-Line Price

Have a set line price and list all labels in the line at your price point. Simple sells. Branding is all about perception, so let the brand send a unanimous message. When you set one price for your line, it's easy for your distributor, your retailer and your consumers to remember your products and it also evenly promotes your various labels. Even if you are going to lose a little on one of your labels, it's better to maintain your brand position then start by listing your line-up at different prices, so long as your overall line-up is bringing in a healthy margin.

3. Plan on 40% Margin for your Distributor

When launching a new brand, it's imperative to get your distributors fully on board. Allowing your distributors a chance at 40-50% gives them the incentive they need to put your brand at the top of their priority list. Distributors are businessmen and the more exciting the profit margin you can offer them the more enticed they will be to help you move your cases. Established brands can target 33% as a good starting point, but don't be surprised if your distributor pressures you to help pad their margin.

4. Plan on 30% Margin for your Importer

For 3 tier markets, like the USA, it's best to plan on importers looking for beverages with at least 30% margin. Remember, this usually translates into 50% Mark-up. Your importers are key parts of your distribution chain and will you will want to work closely with them to set up strong partnerships with your distributors. Take the time to get to know your importer and give them a large margin to help encourage a long-lasting relationship.

5. Budget 10% for your Programs

In today's industry, you need to provide quality support programs and incentive packages for your distributors to ensure your products sell. If you don't have enough in the budget to put into support groups then you should incorporate your support program prices into your overall bottle price. Look at your budgeted costs for in-store merchandising and support programs and figure how much of it you can realistically cover in your price.

6. Plan on 30% for Yourself

Perhaps the most important thing to consider is that lifelong dream hobby or not, you need to protect your investment. Don't make the mistake of planning a brand at break-even points with the hope of growing your popularity and your margins down the road. Almost always, your costs will go up and your distribution and import partners will pressure you into dropping your prices. Pricing your margin at 30% gives you the flexibility and resources necessary to grow your brand in the future.

7. Spend Extra on Quality Labels and Packaging

Color cartons, premium packaging, and top quality labels go a long way toward convincing your customers (from your importers to your consumers) that your brand is worth the extra dollar. This is one area that we strongly advise you not to skimp on. Properly marketing your wine, beer and spirits beverage products can mean the difference between a best seller and a struggling brand line up.

8. Maintain your Margins

Convincing Distributors and Importers to keep their prices consistent can be difficult. Once orders are steady there will be pressure to grow your brand. Usually, this means that distributors will want to see your brand discounted in order to increase volume and expand your distribution, but try to achieve your expansion without letting your margins shrink. Increase your brand value by increasing your price along with your volume push or convince your distributors and retailers that your support programs will be enough to get your brand moving. If neither are successful, then be sure you are ready to meet the growing demands of your customers – discount, order compliance and all.

Ultimately, your beverages should be able to move – no matter what price they are. It's never a good idea to plan your sales strategy on a one time sale. Develop your partnerships with distributors, importers, and retailers based on a line up of products that are priced to reflect the dedication you put into planning your product. As your consumer base grows to look at ways to increase your brand value and pad the bottom line. Brand extensions and earning the right to increase prices takes patience and dedication, so take the time to look at your price from top to bottom and make sure you are ready to go to market. The above article will help you establish a strong price point for the USA market when you pitch your brand to retailers and distributors.

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Beverage Trade Network USA Trade Tasting is brought to you by Beverage Trade Network, the leading online platform dedicated to connecting the global beverage industry. Beverage Trade Network (BTN) successfully connects wineries, breweries, distilleries and brand owners with international importers, distributors, brokers and beverage industry professionals on a daily basis. Strong partnerships with international and US organizations have helped BTN establish USA Trade Tasting as a premiere sales and marketing event committed to connecting the beverage industry.