The best way to calculate the cost price of your wines! (May 28, 2010)

Clark Wine Center is pleased to relay interesting news and articles about wine to you on this web site.  We hope that this will enhance your wine shopping experience when you visit this wine shop in Pampanga Clark Freeport Zone.

The price of a bottle of wine has become the most essential element of commercial negotiations. It is best to know how to calculate it in advance to avoid any nasty surprises!

The cost price of a batch of wine is the sum total of costs related to purchasing (raw materials, transportation…) production (labour, depreciation, rental costs…), distribution (commission, transportation, packaging…) as well as the administrative expenses necessary to manufacture the wine.

It is also necessary to distinguish between two types of expenditure:

• direct costs which can be directly incorporated into the cost price of wine (cost of raw materials, production costs, general expenses, labor costs…)
• indirect costs, which are general costs related to maintaining winemaking equipment and have to be split between all wine production runs (rent, fixed asset depreciation, water and electricity charges, machinery, trade fairs, travel expenses…)

After having identified all costs, the following outline of all the elements that make up the cost price can be drawn up:

1. Net purchase price + purchasing expenses = Purchasing costs

2. Purchasing costs + production expenses = Production costs

3. Production costs + distribution expenses = Commercial costs

4. Commercial costs + administrative expenses = Cost price

5. Cost price + margins = Sales price ex. tax

Two types of margin must be taken into account:

· The GROSS margin is the amount the producer makes or the difference between the Sales price ex. tax and the Purchase price.

· The NET margin is the actual amount the producer makes, taking all expenses into account. It is the difference between the Sales price ex. tax and the Cost price.

After all this, determining the “right” sales price ex. tax becomes quite an arduous task due to the multitude of variables that can influence the price and are by no means insignificant:

· the renown of the cuvée, the estate or the winegrower,

· the appellation

· the level of competition,

· the distribution network in question,

· the volumes of product at stake…

This alchemical process is the key to your work and to your recognition.

Clark Wine Center was built in 2003 by Hong Kong-based Yats International Leisure Philippines to become the largest wine shop in Philippines supplying Asia’s wine lovers with fine vintage wines at attractive prices.  Today, this wine shop in Clark Philippines offers over 2000 selections of fine wines from all major wine regions in the world.  As a leading wine supplier in Philippines, Pampanga’s Clark Wine Center offers an incomparable breadth of vintages, wines from back vintages spanning over 50 years.  Clark Wine Center is located in Pampanga Clark Freeport Zone adjacent to Angeles City, just 25 minutes from Subic and 45 minutes from Manila.

Wines from Burgundy, Bordeaux, Rhone, Loire, Spain, Portugal, Germany, Austria, Alsace, USA, Australia, New Zealand, Italy, South Africa, Chile and Argentina etc. are well represented in this Clark Wine Shop.

For more information, email Wine@Yats-International.com or visit http://www.ClarkWineCenter.com

Getting to this wine shop in Pampanga Angeles City Clark Freeport Zone Philippines from Manila

Getting to the Clark Wine Center wine shop from Manila is quite simple:  after entering Clark Freeport from Dau and Angeles City, proceed straight along the main highway M A Roxas. Clark Wine Center is the stand-along white building on the right, at the corner A Bonifacio Ave.  From the Clark International Airport DMIA, ask the taxi to drive towards the entrance of Clark going to Angeles City.  From Mimosa, just proceed towards the exit of Clark and this wine shop is on the opposite side of the main road M A Roxas.