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Fair and equal pricing
Alko prices its alcoholic beverages transparently. The company publishes its pricing coefficients and principles for each product group every year. Suppliers determine the prices of their own products, which ensures competition between the alcoholic beverages carried by Alko.
Alko operates responsibly at all levels of its value and supply chain. Products are chosen for the product range on the basis of an open and fair selection process, and anyone can offer their products to Alko. The basic selection includes products the characteristics of which meet demand the best and that offer customers the best value for money.
Alko’s pricing policy differs from that of most other retailers, as its prices are completely transparent and based on annually published pricing coefficients and principles.
Suppliers can look for the right price point for their products by changing their prices as they wish. Suppliers set their own prices, which ensures competition between products.
Prices can be revised up to three times a year. When a supplier changes their price, Alko adjusts the price charged from consumers accordingly.
Alko’s gross profit margin is cost-based and, thanks to improvements in operational efficiency, has remained the same for years. The margin was last revised in 2012, when it was lowered. Any changes in tax rates are carried over to the prices charged from consumers in full.
Alko’s gross profit margin varies slightly between different product groups. Alko operates efficiently, and its average gross profit margin is just 17 per cent.
Alko’s gross profit is used to cover the costs of the network of stores, the salaries of sales staff, and the costs of supplies and quality control, for example.
Alcohol tax is charged at different rates on different groups of beverages (EUR 45.50 per one litre of 100% alcohol for spirits, EUR 30.80 per litre for wines, and EUR 32.00 per litre for beer).
