Message heard, but for now, all stays the same and prices are controlled by the LCBO.
A two-sided coin.
“While acknowledging the need to balance policy concerns such as public health and safety with competition, I believe a less restrictive system that allows more retailers to compete on price can offer Ontarians greater convenience and access to a wider selection of products, particularly for those who live in rural and remote communities,” Boswell wrote.
It is Key to target the most attractive landed retail price.
With the LCBO, it is up to the supplier to adjust the export price in order to land at a specific retail on the LCBO Shelves.
Historically, we had handy online calculators on our website, however, with the various trade deals (NAFTA, USMCA, CETA, etc…), excise duty changes, LCBO margin changes such as the COSD (Cost of Service Differential), …. it was best to provide the direct links to the LCBO calculators which are more regularly updated.
LCBO Pricing Calculators (XLS formats) can be found HERE.
(NOTE: Some of the LCBO’s calculators do not correctly function with some other programs such as Open Office, Libre Office, Google Docs….)
We do have offline calculators available upon request. In the future, we hope to integrate them in our website.
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.