[Thirsty_Monk]

Thanks for the replies.  Aside from the concern that contract brewers really don't make a dime (which is quite a valid concern!) its not really an option for me... I am in N. Utah, and there are not a whole lot of options.  There is however an emerging craft beer scene here, though it is IMO greatly underserved and stifled by some tricky state legal issues... most of what we have is a few ok brewpubs, one micro production and a larger micro/brewing cooperative... I am looking to open a 15bbl production brewery and am trying to cut down on the stainless bill with out compromising quality/efficiency - maybe a pipe dream.

One way to save on startup cost is to use plastic fermenters.
You have to have SS bright tanks but plastic fermenters are fine.

[majorvices]

Scmaltz Brewery Company started out contracting and was making enough money to expand pretty big.  It looks like they're successful with the Hebrew beer line and the Coney Island beers.
The guy started out wanting a few cases as a gag for presents for relatives and realized there was a minimum batch size of 10 or 15 bbls.

Not saying this is the case but: if you can prove the business is viable via contract brewing you can probably get investors/bank loan. Not the same thing as bankrolling the expansion. I know for certain a contract brewer that has done that.

[Thirsty_Monk]

Scmaltz Brewery Company started out contracting and was making enough money to expand pretty big.  It looks like they're successful with the Hebrew beer line and the Coney Island beers.
The guy started out wanting a few cases as a gag for presents for relatives and realized there was a minimum batch size of 10 or 15 bbls.

Not saying this is the case but: if you can prove the business is viable via contract brewing you can probably get investors/bank loan. Not the same thing as bankrolling the expansion. I know for certain a contract brewer that has done that.

I also have done my math and got all the pricing.
Before you start contradicting to us do your homework.
This migh sound harsh so sorry about it.

[nateo]

I don't really understand contract brewing. It seems to me either you're selling your beer in-house, or you're distributing it to other retail channels. So you're acting as a marketing company as well as a bar and/or a distributor. It seems like it'd be more profitable to just be a bar or a distributor and sell brands that are already established instead of spending the time/money/energy developing your own brand. Am I missing something?

[majorvices]

I don't really understand contract brewing. It seems to me either you're selling your beer in-house, or you're distributing it to other retail channels. So you're acting as a marketing company as well as a bar and/or a distributor. It seems like it'd be more profitable to just be a bar or a distributor and sell brands that are already established instead of spending the time/money/energy developing your own brand. Am I missing something?

on top of this, think about the states that are not allowed to self distribute. In that case your only job is marketing. Better hope you have a graphic designer who will work for beer. 

[boulderbrewer]

One thing is being willing to go with less than desirable equipment, live on craigs list. Sucks but you got to do what you got to do. I picked up 2 400 gallon dairy tanks for less than 1k, yes they are not conicals but You got to start somewhere. If they don't work as fermentors I'm sure I can add some ss screen and have extra mash tuns or sell them to other start ups.

Be resourceful.

Remember one man's trash is anothers Treasure.