What does depletion mean in sales?
Depletion refers to the number of cases that are sold to retailers by a distributor. Oftentimes, as long as producers have made the initial sale to the distributor, they count it as a win. In their minds, they have made money and it is now up to the distributors and retailers to get the product sold.
What is a clearing distributor?
Clear and Deliver or Distribute-Clearing Model: distributor not representing a brand with their sales staff, but for clearing and delivering for a supplier, thus taking a smaller margin (example 13-18%) instead of their regular margin of 30%. They only want to represent brands that they know are going to be successful.
What are wine depletions?
In this context, we define depletion as units sold at retail to the end consumer, e.g. how much of your wine, beer or spirits was actually sold from the retailer to its customer. Depletions can be calculated in total cases, total bottles, and depletion rate (quantity vs days), depletion unit breakdowns.
How is depletion calculated?
To calculate the depletion per unit you take the total cost less salvage value and divide it by the total number of estimated units. The expense is calculated by multiplying the depletion per unit by the number of units consumed or sold during the current period.
Whats a post off?
Post-off meaning (archaic) To put off; to delay.
What is the alcohol industry called?
commercial drink industry
The alcohol industry is the segment of the commercial drink industry that is involved in the manufacturing, distribution, and sale of alcoholic beverages.
How to track sales and inventory depletions?
Program crediting distributors by a set amount (such a $1 per case) for depletions during a set period of time. Depletion report. Report generated by distributors on a monthly basis that tracks sales and inventory depletions. Report generally contains the following: beginning inventory, purchases, ending inventory, and depletions. Depletions.
What are the incentive programs for sales depletions?
Sales incentive program based on depletions. Program crediting distributors by a set amount (such a $1 per case) for depletions during a set period of time. Depletion report. Report generated by distributors on a monthly basis that tracks sales and inventory depletions.
What is the relationship between shipments and depletions?
As everyone who has been involved in the industry knows, over time, shipments equal depletions which ultimately equal consumer take-away. Any discrepancy between shipments and depletions results in a change to inventory in the market.
What happens if a wholesaler violates a franchise law?
Franchise laws mandate that the brewer have cause for terminating and that it allows for reasonable time for the wholesaler to rectify a problem before pulling its brand (s) from the wholesaler. Violation of franchise laws may involve penalties for damages. Glycol system. 1.