LibDibbing is easy! This guide shares the nitty gritty on LibDib's cost and how to set your pricing.
Margins, Dock & Delivery Fees
LibDib earns between 14–20% margin, which varies by market, and is based on the state excise tax. In most markets, Dock & Delivery is paid by LibDib from LibDib's margin.
Dock & Delivery Fees vary by market and are determined by whether or not the product must come to rest at our warehouse before being delivered to the Buyer. In those markets, Makers must deliver to a LibDib warehouse, and we take care of "the last mile" to the Buyer. This fee (where applicable) is not paid by the Maker, but is included in the Buyer's price.
See below for a specific breakdown by state and type of product:
|State||Spirits||Wine||Non-Alcoholic||Dock & Delivery Fee|
Here's an example of how an offering might be priced with LibDib:
|From Maker to LibDib|
|$15.00||Freight from Maker to LibDib|
|$200.00||LibDib's Maker Price|
|From LibDib to Reseller|
|$34.29||LibDib's 14-20% Margin|
Dock and Delivery Fee
|$245.29||LibDib's Selling Price (Price to Reseller)|
From Maker to LibDib
- In this example, the case costs $185 to make.
- Using LibShip, it will cost $15 to ship.
- Makers are responsible for shipping costs, so add $15 to LibDib’s Maker price for a total of $200.
- LibDib pays the Maker $200.
From LibDib to Buyer
- LibDib adds a 14–20% margin.
- LibDib adds a Dock and Delivery Fee.
- LibDib’s Selling price comes out to $245.29.
- Buyer pays LibDib $245.29.
Setting up Pricing on LibDib
Ready to start pricing on LibDib?
First: if you haven’t added your product info to LibDib, go back and check out the LibDib Brand Page Guide. Once that’s done, you can get to pricing:
- Click on “Markets”.
- Choose a Market (state).
- Click “Offerings” and select your options.
Note: Before you can submit offerings for approval in a market, you must provide state compliance info, and accept the terms of the Market Agreement.
Set your Pricing
Pricing your products is one of the most important considerations you have in entering the market. In fact, our founder has a few things to say about it.
Here’s how to set up your pricing on LibDib:
Determine FOB price
This is the price you want to receive for your wine/spirits. On LibDib, enter this as your “Maker Price per Case”. You can use this formula:
- Maker Price = Cost of Product + Shipping Cost
- If you have a target wholesale price: LibDib earns 14–20% margin of the wholesale (Selling) price, so your Maker price will be roughly 80% to 85% of the wholesale price. (For a deeper explanation on how the LibDib margin is calculated you can view our help article.) Enter that value as your Maker Price, and you can then see your wholesale price (or the “Selling Price Per Case”). Adjust accordingly from there. Makers are responsible for the cost of shipping to LibDib, and this should be factored into your Maker Price.
- Selling Price = Maker Price + LibDib Margin + Dock and Delivery Fee (depends on market)
Determine Tiered Discounts
After you establish your Case 1 pricing, you can set up additional tiered pricing (varies by market). Common tiers include Case 3, Case 5, and Case 10. To add tiered options, go to the product card, and click “Add Discount Tier” under “Pricing”.
Verify shipping origin
This is where your product ships from, before coming to the LibDib warehouse in a given market. It defaults to the business address you provide when you create your account. To adjust this, hover over your name in the upper right hand corner. Click “Profile”, then select “Addresses” to add a different shipping address.
Make sure availability is set to “In Stock”. This way, Buyers will be able to view your product in LibDib. You have 5 options when setting your availability:
- In Stock: Product is available and Buyers can purchase now.
- Limited: Product is available, but it’s a limited release or limited run.
- Not in Market: You will still see the product card on your page, but it won’t be listed for Buyers in that market.
- Out of Stock: Product is not currently available. Once your product is available again, make sure to switch the availability back to “In Stock” or “Limited”.
- Coming Soon: You can upload a product’s info and pricing before it’s available for purchase. A Buyer will be able to see it, but won’t be able to purchase it until you change the availability to “In Stock” or “Limited”.
Set Quantity Available
This number is not visible to buyers, but is a good way to manage allocations or small-production products. If your quantity goes below zero, the product will show a negative quantity available. Again, this number is only internal, and designed to help you manage inventory on smaller production products.
Once you finalize your pricing, click “Submit for Approval”, and pricing for that offering will be submitted to LibDib. When all compliance requirements are satisfied, offerings will be approved and available for purchase. LibDib reviews and approves new offerings daily.
Remember: compliance varies by state, so offerings may become ‘live’ at different times. Visit our How to Go Live in Each Market page for more details.
*New York price changes: In New York, due to price posting, once your priced offering is approved by LibDib, you cannot immediately change the price. Email firstname.lastname@example.org for price changes.
Welcome to Distribution Reimagined!
Still have questions? Reach out to us at Makers@libdib.com.