2. Factors Affecting Price - Cost Of Supply Chain Flashcards
What are the two categories for grape growing costs?
Vineyard establishment
Vineyard management
What costs are involved in vineyard establishment?
Vineyard purchase Surveying the land Site clearance Building access into and between plots Buying and planting vines Buying stakes and wires Installation of drainage or irrigation Protection against hazards & pests Buying machinery and equipment
What costs are involved in vineyard management?
Labour Machinery & equipment running costs Vineyard treatments Water Electricity
What costs are involved in winemaking?
Labour Machinery & equipment running Winery materials Bought in fruit Water Electricity Maturation Packaging
What 4 routes can you transport wine in bottle?
Air
Road
Rail
Sea
What forms can you transport wine in?
In bottle
Bulk
What is another cost included in transporting wine?
Insurance
What are the importation costs?
Addition costs payable when a wine is imported into another company
Customer duties & taxes
Distributor margins
What main costs will a retail incur?
Property costs Labour Equipment & materials Storage costs Delivery costs Margin at point of sale
What are the main marketing costs?
Labour
Design and production of bottles and labels
Marketing campaign
What are the impacts of legislation on the cost of wines?
Taxes, duties, trade barriers, subsidies, minimum pricing, labelling laws
Cash flow issues
Bonded warehouses
Cannot sell the wine at a competitive price
What options can a producer/importer to help with the fluctuations in currency?
Options
Fixing the price in the currency of the importer at the date of ordering
Buying currency to cover specific orders
Entering contract to fix exchange rate
Trading in USD/EUR
Opening a foreign currency account at a local bank
Opening an account at an over seas bank
What ways can funds be gained?
Personal wealth
Loans
Investors
Government subsidies
