I'm new to the beer industry and have heard the term "Case 1 Post Off" relating to running a discounted price promotion for various beer brands here in Florida. What does "Case 1" and "Post Off" mean. I do not understand this terminology in relation to beer pricing. Thx.
Post off is a general term for a price promotion. Could be used interchangeably with discount. Generally, when a supplier offers a post off to a wholesaler, a wholesaler will buy, and subsequently try to retail, more beer that week in order to take advantage of the discount (most do not pass on the savings to the retail account). Often used by suppliers to manipulate sales trends or meet sales objectives. Not sure was Case 1 means, but I would guess that it correlates to a 1-week post off and maybe a Case 2 is a 2 week post off. But really that is just conjecture.
Thanks. I think "Case 1" signifies one case.... or the first case. Again, not sure. However, I know it does not correlate to Week 1, etc. I live in Florida and have only heard it used here.
Case one in fact means the first case. So the beer would be discounted when you buy the first case. For example here in MA. Post offs vary from 1 to up to 180 cases. Also some products have multiple tiers of post offs the more you buy the further it is discounted. That make sense?
What this refers to is that the discounted price to retailer is on the first case. This makes more sense when you realize that in many states, there is the option to offer quantity discounts. So, let's say the distributor might offer a ten case quantity discount or full price on case 1. Ex, Beer X might sell for 30/case for the first 9 cases ($270). But if there is a ten case quantity discount, they might sell for $28/case, so the store could buy ten cases for $280. If it's a case one post off with the same $2/case discount, 9 cases would be $252. The big advantage is that many smaller stores cannot participate in quantity discounts because they don't have room for the 10 cases (or however much), so a case 1 discount helps those smaller spots most.
It's used in Ca as well and it's funny you ask because I've heard the term a lot and always just equate it to discounted sku's the distributor is trying to get rid of. Most of the time it is nearing the end of a season or just trying to push through inventory. At least here in Ca I don't believe they can just offer a discount on the first case and not the following cases of the same order. Wine is a whole different beast though...
