LCBO Pricing can be quite complex, and it is vital that all potential variables are accounted for in an offering. The quoted price to be sent to the LCBO must include all possible variables, such as:
-Potential Packaging adjustments in order to conform to LCBO standards
-Agent Commission/Promotion through a pre-negotiated contract.
-Potential Debit Notes if sales targets are not met.
- Freight Rate
-This is a key variable that greatly affects the landed retail. We generally assign a liberal freight rate in order to anticipate potential consolidation costs. It is preferred to quote FOB when the freight rates are better fixed.
- Case Configuration
-The LCBO usually assigns a freight rate per case, with the favored configuration being 12 units per case.
As an example, 6x750ml cases may incur a freight rate of twice the cost of a 12x750ml case configuration. For wine, this could augment the landed retail by one dollar. https://lcbosod.com/lcbosod-ear/SODLogon
Ontario Pricing Calculator
It is imperative to target the best possible landed retail price. With the LBCO, it's up to the supplier to adjust export price to land at a particular retail on LCBO shelves.
You can download the LCBO Pricing Calculator here.