Overview

The Gross Margin Ready Reckoner is a business planning tool that calculates the profit margin that can be achieved by a wine depending on its cost of production, the market it is going into and the target price point.

It can be used to work out whether you can hit a target price point in a particular market with a sustainable margin.

About the tool

The tool takes you through a number of questions relating to your product – including:

• Region and variety of grapes
• Wine production facility size
• Wine treatments including length of storage and oak maturation
• Destination market
• Proposed retail price

Based on your answers, the tool prepares a benchmark report and calculates your gross margin in dollars and percentage terms. You then have the option to modify the cost assumptions of the model to customise the answer more closely to your situation.

Costs including excises/duties and typical margins for importers, distributors and retailers are built into the model, based on the market selected.

How to use the tool

A walkthrough video of how to use the tool is below

Data sources

Wine Australia National Vintage Survey, Deloitte Australia