Where do brew stores get thier supplys?

Anyone out there know where the brew stores get their supply's

Grains
Malts
Hops
Wine kits
Equipment
How does all that stuff work? Do they buy it outright and resale it or do they only pay their accounts when they have sold what their vendors gave them?

P.s. I realize know it may be posted in wrong thread, so LET ME JUST SAY I JUST HAD A GREAT EXPERIENCE WITH AUSTIN HOME BREW

They buy directly from the manufacture mainly.

Cheers

mrbeachroach said:

Anyone out there know where the brew stores get their supply's

Grains
Malts
Hops
Wine kits
Equipment
How does all that stuff work? Do they buy it outright and resale it or do they only pay their accounts when they have sold what their vendors gave them?

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There are several large distributors that service both retail home brewing stores, and breweries...most also distribute products for wine making. The distributors buy product from the mfg's in large quantity...and sell to the stores in smaller sizes.
Most Home brew stores have several distributors, most home brew stores are on pretty tight finance terms with the distributors...in many cases they pay COD for store merchandise.

They buy bulk quantities from distributers. It is not on consignment. It is paid for when ordered.

Are you trying to open a brew shop?

pwkblue said:

, most home brew stores are on pretty tight finance terms with the distributors...in many cases they pay COD for store merchandise.

Click to expand...

Seems like it puts a squeeze on the LHBS, to run their business and keep your cost reasonable

mrbeachroach said:

Seems like it puts a squeeze on the LHBS, to run their business and keep your cost reasonable

Click to expand...

It's no different from any other business.

mrbeachroach said:

Seems like it puts a squeeze on the LHBS, to run their business and keep your cost reasonable

Click to expand...

I've spent most of my career selling products to small retail business. The tight finance terms are the result of hard learned history. Small retail businesses that are healthy enough to justify finance terms are rare....and the rise of the internet discounter has made it even harder for the local guy to survive.

The point: if you have a good local home brew store that you like...buy product from them....support them.

Business credit is pretty tough to establish. Your personal credit has VERY little influence. For most distributors, it takes about a year of paying COD before they throw you a bone. A true, low cash startup is probably a good candidate for an SBA loan.

No time soon. Not within the next 5 years.