Tapped In Sales and Strategy for Beer Distributors

55: The GP per CE Gospel: Why Dollars Beat Percentages


Listen Later

What really matters: margin percentage or gross profit dollars? In this episode, Bud, Mike, and Ross tackle one of the most misunderstood metrics in the beer business—GP per CE (Gross Profit per Case Equivalent)—and explain why chasing percentages can cost you real money.


With real-world stories from supplier negotiations, listener questions, and a few spicy email exchanges, the team lays out the case for prioritizing dollars over ratios. From high-margin bottled water that barely pays to low-margin Fireball malt that delivers big-time profit, this conversation reframes how distributors should evaluate products, packaging, and sales strategy.


📘 What You’ll Learn:

💰 Why GP per CE > Margin % – Discover why focusing on gross profit dollars beats chasing margin percentages.

📉 The Pitfalls of Margin Math – How margin % can mislead product decisions and hurt your bottom line.

📊 Real-Life Supplier Tactics – Hear how Bud and Ross used GP data to renegotiate deals (and walk away with more 💵).

🎯 Shifting Sales Rep Behavior – Learn how focusing on profit per case changes what your team pushes in the market.

🚚 Delivered Models: A Slippery Slope? – Unpack the risks of flat-fee liquor deals and what they mean for the future.


Quotes to Remember:

"You can’t spend a margin percentage.""Don’t bring me a TV. Bring me better GP per CE."

Whether you're a sales leader, supplier, or distributor exec, this episode will challenge how you look at your numbers—and may just make you a few bucks.

Chapters

00:00 Introduction to GP Margin and GP/CE what's the difference  

03:16 The Importance of GP per CE

06:20 Supplier Relationships and Data-Driven Decisions

09:34 Case Studies: Fireball and Good2Grow

12:25 The Role of Incentives in Sales

19:18 Effort to Return Ratio in Sales

24:12 Understanding Product Margins and Sales Dynamics

26:46 The Impact of Delivery Models on Distribution

30:56 Long-term Risks of Flat Delivery Models

35:01 Negotiating with Suppliers for Better Margins

===============


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Apple Podcasts: Listen on Apple Podcast Tapped In Sales


===============

Connect with Us:  

Follow us on LinkedIn for the latest episodes, industry news, and insights from the beer distribution world.


About Tapped In Sales:  

Tapped In Sales is a podcast dedicated to beer distributors and beverage industry professionals who are looking to elevate their sales strategies and drive profitability. Hosted by industry experts Bud Dunn and Mike Hall, we dive deep into real-world stories, actionable insights, and the latest trends to help sales teams and managers unlock their full potential. Each episode blends data, strategy, and motivation, making complex topics easy to understand and implement.

This podcast is powered by VXP Tech – the leading Sales Strategy Management system designed for beer distributors. VXP simplifies the complexities of goal setting, variable compensation, and sales team performance, helping you master your market and grow profits, case by case.

Stay tuned for expert advice, fresh perspectives, and tools to sharpen your sales approach!

If you enjoyed the episode, don’t forget to subscribe, leave a review, and share it with a friend!

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