LCBO Pricing does have its complexities and it is absolutely key that all variables are accounted for in an offering. There are calculators available (more information here).
The Quoted price to the LCBO must include all potential variables some of which include:
-Potential Packaging adjustments to adhere to LCBO product packaging standards
-Agent Commission/Promotion via a pre-negotiated contract on a product offering basis and/or all offering basis.
-Potential Debit Notes if sales targets are not met. Learn more about these.
- Freight Rate
-A key element and variable that affects the landed retail. In our calculations, we prefer to assign a liberal freight rate anticipating potential consolidation costs especially for Vintages and/or smaller one time orders.. It is favourable to quote FOB where the freight rates are better fixed.
- Case Configuration
-The LCBO usually assign a freight rate by the case .
The preferred format for a wine is 12x750ml.
For example, a 6x750ml case configuration may incur a freight rate with the same cost of a 12x750ml case configuration. For a wine, this would modestly augment the landed retail.
For beers, the LCBO prefers a 24x500ml can format.