Jack Daniels Price in Nigeria: The Pricing of Jack Daniels, Liquor in Nigeria

As a Nigerian, there are many questions that run through your mind when it comes to the pricing of imported products. You may wonder why prices range from one store to another or even within a single store. The general consensus is that these stores have different profit margins and therefore can afford to sell at varying price points. However, this does not answer all the questions as some brands have identical prices across different shops while others do not seem to follow any logic or pattern with regards to their pricing in Nigeria's retail market. In order for you as a consumer to make an informed decision on whether or not it makes sense for you financially, we will now break down Jack Daniels' price in Nigeria by looking at its current cost structure and how various factors affect its

What is the Price of Jack Daniels in Nigeria?

The price of Jack Daniels in Nigeria, both at its full cream and "unfiltered" version is N23,000. However, when its 8-year-old cousin is taken into consideration, its price surges up to N25,000. Currently, other beers from Guinness, Heineken, Stanbic and Anheuser-Busch InBev's products are also being sold in Nigeria at similar prices while drinks like Redbull and Coke do not command higher prices at a store that sells them compared to its cost.

The Cost Structure of Jack Daniels

When it comes to the cost structure of Jack Daniels in Nigeria, the brand has always maintained a strong position on the spirits market by providing consumers with a flavorful and affordable alcohol.

Why does the price vary from store to store?

The real reason behind the differences in the prices of brands is simple. Brands have different cost structures. Some brands have strong working capital and some brands are not. Some brands depend on distributors and some brands do not. Some brands have distribution across the country and some brands are not. Some brands are working directly with distributors and some are not. You get the picture and you can draw your own conclusions from this analysis.

As a consumer, you will be better served if you study the company's cost structure before you start going to different stores to purchase their products. The cost structure of a brand and the cost structure of the various distributors can be found at the foot of every article of a company's annual financial report.

How does import tax affect its price?

Aside from the standard 2.5% excise tax (depending on the tax jurisdiction), which the brand has been paying since its inception, Jack Daniels price in Nigeria can be broken down into three main parts. According to Linda Oriuwa, a spokesperson for Jack Daniels, since the brand was launched about 20 years ago, the brand has had to put in its own money for taxes on the first 250,000 bottles imported, hence the brand has not had any debt to service while also maintaining top quality for the consumer.

What does Jack Daniels drink?

When it comes to Jack Daniels drink, there are three varieties currently available: Jack Daniels Single Barrel, Black Label, and Tennessee Honey.

What about VAT and other government taxes?

After you buy a bottle of any imported alcoholic product from a Nigerian store, you may be concerned that the full price includes VAT, or Value Added Tax (VAT) as it is known in Nigeria. This is usually the case for products such as Spirits, Beer, Wine and Alcoholic Beverages that have high volumes sold and relatively low margins on their products, and are therefore most likely not made in Nigeria.

When VAT is included in a product's price, we see that the price of the product in Nigeria increases because the consumption tax rate applies to these products when sold in Nigeria. However, it is very important to note that the exact amount of VAT involved will vary from brand to brand and depending on the price category that it falls in.

Does the location of the store make a difference?

For those of us in the Northern part of the country, finding a store that sells Jack Daniels may not be an issue. After all, every Naira you spend in a store is worth Naira. However, if you are an expert in planning your grocery shopping for the week, you will most likely find a store that sells the brand at a cheaper price. Once you factor in the distance from the store, you will understand how it has an influence. Jack Daniels's price in Nigeria may not be higher than its competitors, however, it is based on a higher distance from the store.

How expensive is a liter of Jack Daniels?

One liter of Jack Daniels sells for N36 and is usually sold for N15 or N16 per half liter.

How much does it cost to export from USA to Nigeria?

Jack Daniels is one of the most popular American brands in the world. It is ranked as the 7th bestselling premium spirits in the world and is one of the highest selling whiskeys in the world.

In fact, Jack Daniels is one of the most consumed whiskeys in the world, a fact that has earned it the title as the top selling spirits in the United States. In 2013, Jack Daniels was the top selling whiskey in the world with volumes of 2.35 million cases, and sales are still growing at a phenomenal rate, due in no small part to the continuing proliferation of blended whiskey.

As an American whiskey, Jack Daniels derives all of its alcohol content (ABV) from American rye. Jack Daniels was distilled by Jack Daniel's father, Joe Daniel at his Tennessee distillery from 1862 until his death in 1886.

Conclusion

So, how is Jack Daniels' pricing determined? Well, this is one of the most common questions we get asked all the time, we wish that the brand had simple pricing rather than seemingly complex formulas and mathematical equations that ultimately makes sense to all, a lot of Nigerians would probably still opt for their local brand if the choice was left to them.

Written By Emmanuel Omisore

This post was syndicated from pulse.ng - Nigeria's entertainment & lifestyle platform online. Click here to read the full text on the original website.