State Break-Even Calculator FAQ

Answers to Frequeny Asked Questions about this tool.

State Breakeven Tool - Frequently Asked Questions
  • How do I use this map?
    • Move the mouse over states to see how many orders are required to break even against permit, reporting and excise tax costs
    • The darker the color, the harder it is to ship direct to that state
    • Choose onsite or offsite radio button to view the map in each context
    • Click on a state to get a printable version of the detail information below the map
    • Click Wine Consumption by State to see which states consume the most wine
  • How can I show it to others?
    • Click 'Share this tool with a friend' and enter their email address and we'll send them a link to the calculator
  • What if I find something missing in this calculator?
  • How can I get started shipping to these states?
  • How are we calculating these costs?
    • Along with 12,000 rules, the ShipCompliant database contains license and permit costs, reporting requirements and time to complete them, and excise tax rates. We balance these costs against your winery's average margin per order to calculate the number of orders required to break even on the investment to ship direct to each state.
    • Example:
      If your winery makes a margin of $5 per bottle on average and tends to ship 3 bottles per order of only one brand direct to consumer the calculation would be as follows:
      If a state has a permit cost of $200 per year, has 12 reports due per year that each take 2 hrs to complete, the total fixed cost would be:

      $200 + 12 * 2 hrs * $25 / hr (to complete the reports) = $800 fixed cost
      $800 fixed cost / $15 margin per order = 53.3 orders
      53.3 orders * 3 bottles per order * excise tax rate of .10 per bottle = $15.99 (slightly more than the margin on one order)
      This bumps it up to just above 54 orders and brings the total cost to $815.99