At the wholesale level, their comparison of transhipper prices with those charged by designated exclusive distributors reveal transhipper prices 9 to 14 percent lower than those of Miller and Annheuser-Busch wholesalers.
29) Subsequent to the ban, additional wholesalers have become transhippers, though some wholesalers still continue to sell only within their home county.
It was very destructive, because when a transhipper entered a market, it disrupted the whole pricing structure.
According to Michael, this sense of market integrity separated the company from its transhipper competitors.
At first," Michael explains, "local wholesalers thought transhippers would go away, so they didn't react price-wise as quickly as they needed to.
The margins with those smaller customers were never big enough to attract transhippers, but for us they're ideal.
To meet the transhippers head-on," John says, "we had to react price-wise, and that meant working on extremely low margins.
It's good in a way," he says, "because if transhippers had been able to put branches all over the state, things would have been worse.