This guide provides additional details on setting up your pricing within LibDib and some of the different features the platform provides.
This guide provides additional details on setting up your pricing within LibDib and some of the different features the platform provides. If you haven’t added your product information into LibDib yet, take a look at the LibDib Brand Page Guide guide to get that set up. Once you’ve entered product information for your wines or spirits, it’s time to get pricing.
Click on MARKETS, choose the market, and then click over the the Offerings tab for that market. For example, to add Colorado pricing, click MARKETS, Colorado, and then Offerings. Click on the product card to expand it and view your options. Note: Before you can submit offerings for approval in a market, you must provide the appropriate state-compliance information and accept the terms of the Market Agreement.
Setting your Pricing
How your product is priced will be one of the most important considerations you have in entering the market. You can hear from our founder about what to consider when pricing your product. Here are the steps to setting up your pricing within LibDib:
- Determine FOB price.This is the price you want to receive for your wine/spirits. In the platform, this number is your “Maker Price per Case” and is the number you’ll enter. Below is the formula to consider when entering your Maker Price:
- Maker Price = Cost of Product + Shipping Cost
- If you have a target wholesale price: LibDib earns 15-18% margin of the wholesale (Selling) price, so your Maker price will be roughly 80% to 85% of the wholesale price, depending on if you’re selling wine or spirits, and the particular market. 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 have established your case 1 pricing, you can then set up additional tiered pricing (varies by market). Common tiers include case 3, case 5, and case 10 pricing. Click “Add Discount Tier” under Pricing and Tiered Discounts on the product card to add tiered options.
- Verify shipping origin. This is where your product will be shipped from before coming to the LibDib warehouse in a given market. It will default to the business address you provide when creating 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 the LibDib store front. You have 5 options when setting your availability:
- In Stock - Product is available and Buyers can purchase product now.
- Limited - Product is available, but you are indicating that this product is a limited release or limited run.
- Not in Market - You will still be able to see the product card on your page, but it will not be listed for Buyers list 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 - This allows you to upload product information and pricing before a product is available for purchase. A Buyer will be able to see this product, but will not be able to purchase it until you change the availability status to “In Stock” or “Limited”.Make sure availability is set to “In Stock”. This way Buyers will be able to view your product in the LibDib store front. You have 5 options when setting your availability:
- Set Quantity Available. This number is not visible to buyers and is a good way of managing allocations or small-production products. If your quantity hits zero, the product will begin to show a negative quantity available. Again, this number is only internal, and designed to help you manage inventory on smaller production products.
Once you have finalized your pricing, click “Submit for Approval” and pricing for that offering will be submitted into LibDib’s system. 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.
Still have questions? Reach out to us at Makers@libdib.com. Welcome to Distribution Done Differently!