Most beer distributors are still staring at margin percentages like they’re gospel. But here’s the problem: margin % doesn’t tell you what actually hits your bottom line. It’s just a ratio — and it can trick you into ignoring products that make you the most money.
There’s a better lens: Gross Profit per Case Equivalent (GP/CE).
In Episode 55 of the Tapped In Sales podcast, we broke down why top-performing teams and owners are shifting from margin % to GP/CE — and how that one move is unlocking smarter decisions, better supplier conversations, and higher profits without more work.
Let’s break it down.
1. GP/CE Shows What Actually Hits Your Bottom Line
Margin percentage is just a comparison tool. It doesn’t show the total profit a product delivers — just the ratio. That’s fine for spreadsheets, but not for strategic decisions.
Example from the episode:
A supplier offered 35% margins — sounds great. But the actual profit per case was 50 cents lower than a similar item already in the portfolio. Swapping it in would have reduced profitability, not increased it.
“Would you rather make an extra million dollars in GP, or protect a 0.9% change in margin percentage? That’s the real question.” — Bud
2. Your Sales Team Already Thinks in GP/CE (Even if Your Reports Don’t)
High-performing sales reps make decisions based on one question: What’s this worth to me?
That’s why tools like VXP show reps exactly how much GP they’re earning per case. It removes the guesswork, and shifts their focus toward products that actually improve the business.
“I thought Good2Grow had weak margins. Then I saw the GP/CE and realized we were sitting on a goldmine.” — Distributor Manager
By giving reps a transparent view of their earning potential, you align effort with profitability — and avoid pushing products that look good on paper but fail in execution.
3. GP/CE Helps You Lead Better Supplier Conversations
When a supplier presents a new item, don’t ask for the margin percentage. Ask:
- What’s the GP/CE compared to other products in this category?
- What will this do to the average profit per case in my warehouse?
- Will this product cannibalize something more profitable?
If the numbers don’t hold up, you can show them exactly where and why their pricing model doesn’t work for your business — using facts, not feelings.
“We stopped doing incentives based on supplier dollars. Now we focus on products that grow GP. That shift changed everything.” — Ross
4. You Can’t Grow Into Margin. But Suppliers Can.
Suppliers often price new items high to maintain their own margin percentages — even if it costs you GP. They can scale into lower costs over time. But you can’t scale into margin.
That’s why top distributors negotiate early:
- Ask for lower pricing on new SKUs.
- Avoid “innovating” into lower-profit categories.
- Ensure new items meet your GP/CE bar — or they don’t get prioritized.
5. This Isn’t a Reps-Only Metric — It’s a Leadership Lens
Focusing on GP/CE helps you:
- Optimize the portfolio: Drop items with high effort and low return.
- Coach your team smarter: Highlight high-profit targets they may be overlooking.
- Justify execution decisions: Show your suppliers (with data) why certain products aren’t moving.
- Set better goals: Drive sales meetings with the question, “Where do we get the most profit per case?”
If you’re still coaching your team, building your incentives, or evaluating your portfolio based on margin percentages, you’re missing the full picture. Focusing on Gross Profit per Case Equivalent (GP/CE) gets you closer to where the real money is made — and keeps your sales team focused on what actually moves the needle.
👇 Listen to the Full Episode:
Tapped In Sales Episode 55: “The GP per CE Gospel: Why Dollars Beat Percentages”
Ready to See the GP/CE of Your Own Portfolio?
Let’s pull your numbers and compare them to the top performers in your region.
We’ll show you where you’re strong — and where you’re leaving profit on the table.
👉 Book a call with the pros from VXP
Or shoot us a note at info@vxptech.com to start the conversation.