# Gross margin benchmarks for Australian bottle shops

Source: https://ivankamenken.com/benchmarks/bottle-shops · By Ivanka Menken, Strategic Mentor · Last updated 21 October 2026

In the ATO 2023-24 small business benchmarks, Australian bottle shops turning over between $500,001 and $2,000,000 report cost of sales of 69% to 77% of turnover, a gross margin before wages of 23% to 31%. Total expenses run 90% to 95%, which leaves 5% to 10% of turnover before the owner, family members and tax are paid.

## What are the 2023-24 benchmarks for bottle shops?

The ATO splits each industry into turnover bands and publishes a range for each. The band closest to a business turning over $500,000 to $3,000,000 is the medium turnover range: $500,001 to $2,000,000. The figures in the text on this page come from that band, and the table shows every band the ATO publishes for bottle shops.

A business turning over more than $2,000,000 falls in the high turnover range instead, and its figures are in the table too.

Cost of sales here excludes wages: the ATO takes salary and wages out of it. So one minus cost of sales is a gross margin before wages, and the gap between cost of sales and total expenses is where wages, rent and every other cost sit.

| Ratio, % of turnover | Low turnover range ($65,000 to $500,000) | Medium turnover range ($500,001 to $2,000,000) (closest to $500K to $3M) | High turnover range (More than $2,000,000) |
|---|---|---|---|
| Total expenses (ATO) | 78% to 89% | 90% to 95% | 92% to 95% |
| Cost of sales, excluding wages (ATO) | 63% to 74% | 69% to 77% | 74% to 79% |
| Gross margin before wages (calculated) | 26% to 37% | 23% to 31% | 21% to 26% |
| Left after total expenses (calculated) | 11% to 22% | 5% to 10% | 5% to 8% |

## What do these figures mean for cash and payroll in bottle shops?

At the band’s ratios, a business turning over $1,000,000 would have $50,000 to $100,000 left after total expenses, about $960 to $1,920 a week. That pool has to cover your own pay, tax, loan repayments beyond the interest already counted, and any growth you fund yourself.

At the midpoint, bottle shops keep 7.5% of turnover after total expenses, 7 points below the median of 14.5% across the 96 industries on this site. A thinner share means growth needs more cash up front for every dollar it brings in.

Size changes the picture. Businesses in the low band ($65,000 to $500,000) keep 11% to 22% of turnover; in the band closest to you it is 5% to 10%. Part of the reason is in how the ATO counts: wages paid to staff are an expense, while payments to associated persons are left out. A bigger business carries a bigger payroll, so each extra dollar of turnover arrives with more cost attached.

## How much does price change the margin for bottle shops?

At the midpoints, bottle shops keep a gross margin before wages of 27%, against a median of 45.8% across the 52 industries on this site where the ATO publishes cost of sales. Between cost of sales and total expenses sit wages, rent and everything else: about 19.5% of turnover at the midpoints.

Ivanka Menken’s chain starts with price: prices too low, margins thin, growth eats cash, payroll becomes a monthly fear. As arithmetic only, if bottle shops in this band charged 5% more for the same work, with the same volume and the same costs, cost of sales would fall to about 66% to 73% of turnover, the gross margin before wages would rise from 23% to 31% to about 27% to 34%, and the share left after total expenses from 5% to 10% to about 10% to 14%.

At the midpoint that is 7.5% becoming 11.9% of turnover, about 59% more left over from the same work. Whether your clients would accept the price is a separate question, and the one worth testing.

## Where do bottle shops sit among Retail Trade industries?

We grouped the ATO industries under their ANZSIC divisions so you can compare bottle shops with their neighbours. Of the 39 Retail Trade industries on this site, bottle shops keep the 34th largest share of turnover after total expenses, using each industry’s band closest to $500,000 to $3,000,000.

The grouping is ours, not the ATO’s; the ratios are the ATO’s. Neighbouring industries face similar costs, so a large gap to a close neighbour is worth a question about price or about the mix of work.

- Picture framing retailing: 23.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/picture-framing
- Entertainment media retailing: 18.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/entertainment-media-retailing
- Ice cream retailing: 15.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/ice-cream-retailing
- Confectionery retailing: 14.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/confectionery-retailing
- Manchester and textile goods retailing: 14.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/manchester-textile-retailing
- Computer retailing: 13.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/computer-retailing
- Watch and jewellery retailing: 13.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/watch-jewellery-retailing
- Clothing retailing: 13% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/clothing-retailing
- Florists: 13% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/florists
- Electrical and electronic product retailing: 12.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/electrical-electronic-retailing
- Footwear retailing: 12.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/footwear-retailing
- Garden supplies retailing: 12% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/garden-supplies-retailing
- Gift stores: 12% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/gift-stores
- Toy and game retailing: 11.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/toy-game-retailing
- Floor covering retailing: 11% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/floor-covering-retailing
- Motor vehicle parts and batteries retailing: 11% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/motor-vehicle-parts-retailing
- Pets and pet supply retailing: 11% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/pet-supply-retailing
- Sports, camping and fishing retailing: 11% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/sports-camping-fishing-retailing
- Delicatessens: 10.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/delicatessens
- Discount and variety stores: 10.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/discount-variety-stores
- Homewares retailing: 10.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/homewares-retailing
- Stationery goods retailing: 10.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/stationery-retailing
- Fresh meat and poultry retailing: 10% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/butchers
- Hardware and building supplies retailing: 10% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/hardware-building-supplies
- Musical instrument retailing: 10% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/musical-instrument-retailing
- Pharmacies: 10% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/pharmacies
- Book retailing: 9.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/book-retailing
- Health food retailing: 9.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/health-food-retailing
- Tyre retailing: 9.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/tyre-retailing
- Furniture retailing: 9% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/furniture-retailing
- Lawn mower retailing: 8.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/lawn-mower-retailing
- Fresh fish and seafood retailing: 8% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/seafood-retailing
- Newsagents: 8% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/newsagents
- Bottle shops and liquor retailing (this page): 7.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/bottle-shops
- Fuel retailing: 6.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/fuel-retailing
- New and used car retailing: 6.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/car-dealers
- Fruit and vegetable retailing: 6% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/fruit-vegetable-retailing
- Grocery retailing and convenience stores: 6% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/grocery-convenience-stores
- Tobacco retailing: 4.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/tobacco-retailing

## How do you check your own numbers against these benchmarks?

Take last financial year’s turnover excluding GST. Divide cost of sales, without wages, by it; then divide total expenses, less payments to associated persons, by it. Compare both with the 69% to 77% and 90% to 95% ranges above.

A benchmark tells you where you sit. It does not tell you why, or which decision to make next. Three free tools on this site turn the comparison into a monthly habit.

- The free five-number scorecard: https://ivankamenken.com/scorecard
- The margin-first scaling test: https://ivankamenken.com/margin-first-scaling-test
- The 13-week cash view: https://ivankamenken.com/13-week-cash-flow-for-founders

If you want someone to read the numbers with you each fortnight, that is what Ivanka’s 1:1 mentoring is for: https://ivankamenken.com/mentoring

## Frequently asked questions

### What is a typical gross margin for bottle shops in Australia?

In the ATO 2023-24 benchmarks, bottle shops turning over between $500,001 and $2,000,000 report cost of sales of 69% to 77% of turnover, so the gross margin before wages is about 23% to 31%. The ATO excludes salary and wages from cost of sales, so your own figure is only comparable if you take wages out too.

### Which ATO turnover band applies to bottle shops turning over $1,000,000?

For bottle shops, the ATO 2023-24 bands are: low turnover range, $65,000 to $500,000; medium turnover range, $500,001 to $2,000,000; high turnover range, more than $2,000,000. A business turning over $1,000,000 sits in the medium turnover range. Use last year’s turnover excluding GST to find yours.

### Are the ATO figures before or after the owner’s pay?

Before most of it. The ATO subtracts payments to associated persons, such as family members, from total expenses, and a sole trader or partner does not pay themselves a wage at all. So the share left after total expenses is broadly what funds the owner, tax, loan repayments and growth. Your accountant can tell you how your own returns are set up.

### What does it mean if my business is outside the range?

The ATO says a business outside the key benchmark range may have room to improve, and it uses the key benchmark to spot businesses that may not be reporting all their income. Each range covers the 30% of businesses around the industry average, so many legitimate businesses sit outside it. Check your figures with your accountant first.

## Source and licence

Source: Australian Taxation Office, Small Business Benchmarks, 2023-24 data, published at https://data.gov.au/data/dataset/small-business-benchmarks and licensed under Creative Commons Attribution 2.5 Australia (CC BY 2.5 AU), https://creativecommons.org/licenses/by/2.5/au/. Ratios are reproduced as published; the margins, midpoints, dollar examples, groupings and comparisons are calculated by ivankamenken.com. The ATO does not endorse this page.

All benchmarks: https://ivankamenken.com/benchmarks