RE:Pushback appreciated
Wine is becoming a commodity. There are so many brands on the shelf and Peller doesn't have the brand recognition that would allow it to increase prices. It is already priced at the high end of the Canadian listed wines so I don't think a price increase would be well received. It may well end up in double digit sales decrease. Further more, while a double digit price increase would increase gross profit margin, the loss in sales would more than offset the increased margin contribution. Peller would be better off to manage its SG&A costs which tend to increase faster than revenues.