Overview: Should I expect each business in the supply chain to make a profit?
Whatever the source of alcoholic product, a company genuinely in business will attempt to maximise their profit through buying/producing at the lowest possible price, and selling at a price that, whilst being competitive, provides an acceptable profit to the business. Generally speaking, larger companies have the advantage of being able to:
- produce more efficiently and cheaply than smaller businesses;
- have more bargaining power when negotiating prices with suppliers or customers. This includes being able to negotiate larger discounts than smaller businesses.