InvestorsHub Logo
Followers 38
Posts 5022
Boards Moderated 1
Alias Born 04/25/2010

Re: joerich post# 75775

Sunday, 05/25/2014 10:13:11 AM

Sunday, May 25, 2014 10:13:11 AM

Post# of 123645
Again, no fundamental understanding of retail establishments, discount or otherwise. Discount stores can sell high end products for a discounted price without killing the manufacturer or distributors profits. Goes for Grey Goose, Blanton's, whomever....Selling in a discount outlet doesn't mean the product isn't premium - it might mean MRIB trimmed margins - but not to an unprofitable extent. Again, what does it cost to get a bottle on Costco shevles? IF it cost MRIB $5.00 - then if Marani only sells at Costco for say $27.0 perbottle as opposed to its normal $31.00 per bottle, that's still a huge markup.

Without knowing the placement cost, one can't know the profit margin. However, I do understand retail marketing, and nobody needs to worry that Costco won't or can't be a profitable deal.

I may bitch about the lack of financials - but I can't complain about Costco placement.