I was having a discussion with some friends on the profit margin for a bottle of wine. Having never worked at a winery I have no idea what normal ranges are. At the center of this discussion was a premium brand Napa winery that makes < 8k cases/year. About half of their production is their premium line where most bottles range from $50-$85/bottle retail and the other half is their 2nd label which goes for $20-30/bottle retail.
Knowing that the winemaker is the winery owner that's 1 salary he doesn't have to pay. His residence is also on the same property as his vineyard and winery, so his rent is consolidated. I have no idea how many folks are actually employed at the winery but I know of 4, there may be another 1 or 2 I haven't met (2 hosts for visits/tours, 1 person to handle club management/shipment, and 1 assistant winemaker).
Looking at other businesses I think a 20% profit margin would have to be the absolute minimum, but running the numbers on that isn't enough to pay 1 person, much less 4. So... my question to the wino & winepro redditors is what do you think is an average profit margin for a bottle of a good Napa wine?
submitted by Pr0clivity
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from Worlds Great Wines http://ift.tt/1As9asy
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