Setting the price of a 20-liter container “by eye” or by copying the competition is one of the most common reasons why a seltzer delivery business or distributor works hard but earns little. The correct price is based on your own costs. In this guide, we’ll show you how to calculate it step by step.
1. Direct cost of each jug
Add up all the costs involved in filling a jug: water, treatment, cap, seal, label, and cleaning the container. If you buy the product from a supplier, this is the cost you pay for each full jug.
2. Delivery Cost
Fuel, vehicle maintenance, and the delivery driver’s salary, divided by the number of containers you deliver each month. A disorganized route can double this cost without you even noticing; in this guide, we’ll explain how to organize it.
3. Fixed Expenses
Rent, utilities, administrative salaries, insurance, and equipment maintenance. Divide these costs by the number of jugs you sell each month to determine how much each one needs to cover.
4. Non-returnable containers
Lost containers also come at a cost: add up how much it costs you to replace them each month and divide that by the number of containers sold. Tracking loans using a container tracking spreadsheet is the fastest way to reduce that loss.
5. Add your margin
Add up the four costs to get your total cost per container. Add the profit margin you want to earn to that number. The final price should be higher than your total cost, even during months with lower sales.
An example
Imagine that, based on cost per jug, you spend 30 on the product, 12 on delivery, 15 on fixed costs, and 3 on lost containers. Your total cost is 60. If you want a 40% margin, the price comes out to 84. These numbers are just for illustration: you’ll need to do the calculation yourself using your own figures and in your own currency.
You can try out different prices and volumes in the profitability calculator and instantly see your profit and your break-even point.
Check the price often
With inflation or rising gas prices, a price that was good three months ago might leave you with no profit margin today. Review your costs once a month and adjust the price when the margin falls below what you set.
Conclusion
The price of a 20-liter container isn’t copied—it’s calculated. When you know your actual cost per container, you can compete without losing money and know exactly how much you earn on each delivery.
With Yaku’s seltzer delivery software, you can view sales, inventory on the floor, and customer accounts in real time. Try it free for 7 days.
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