If you do not know who LVMH it is the company that owns the luxury brands of Moët, Hennessy, & Louis Vuitton as wells many other luxury brands.
Jay-z bought the company in 2006 after boycotting Cristal champagne after an executive at that brand made disparaging remarks about rappers. Jay-Z never even considered having his own champagne company. 15 years later he is partnering with the 5th richest man in the world! The deal actually started being discussed in 2019 when Jay-Z made connections with Alexandre Arnault, the son of LVMH founder and chairman Bernard Arnault.
So what are the take a ways for you if you are a business owner or want to start a business 🤔
A brand/company is not built overnight
Networking can take your business to new levels
A business idea can be presented to you at any moment you just need to act on it when it does
Just because a product is cheap to make does not mean it cannot be considered a luxury product. To produce a bottle of Ace of Spade cost around $13 however it retails for about $300. That is a 95% profit margin & over 2,200% markup!!🤑🤑
A gross profit margin of 95% can really help to transform a business. This shows how much money you make compared to the cost of the product that you are selling. A higher profit margin is always better because it will tell us if we have enough cash to cover other expenses in our businesses. The average gross profit margin in the alcoholic beverage industry is 53.51%. Ace of Spades, with their 95% margin, is well-positioned to stay in business for a very long time.