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Mary Lou GA
09-19-2006, 05:28 PM
I am curious as the average pricing for a distributor. What do most energy drink distributors pay on overage? I am really interested in the Georgia market right now, as that is where I will be introducing my drink first. If any distributors feel like letting me know how much they like to make, or buy their drinks for I would appreciate it. You don't have to say any brands or anything, just estimates.

Thanks a lot,

greg
09-19-2006, 05:42 PM
I would make sure that Mary Lou got paid first. Base your "wholesale cost" on what you need to make to cover all overhead, insurance, salaries, advertising/promotion, future expansion, etc.
It sounds like a lot to add into the cost but when you do a cost per unit breakdown it is reasonable.
To answer your original question: Most ED's out there go between $26-$32 per 198 oz cases. However, I know of one company that sells wholesale at $47.28 per case.(and gets it)

Mary Lou GA
09-19-2006, 05:46 PM
Whats the cost to the distributor though? Most ED sell for $48 a case in stores($2 per drink). I know RedBull Sells it to the stores at $1.33/can or $31.92/case or close to it. What do dristributors usually pay per case or per drink?

Mary Lou GA
09-19-2006, 05:48 PM
Say if I make my drinks for around $10/case what would I sell my drinks for to my distributors? $18, or $20 a case?

Mary Lou GA
09-19-2006, 05:51 PM
I know I have to calculate my operating cost into the mix, I'm just trying to get a good estimate.

BTW Thanks greg

reset man
09-19-2006, 08:34 PM
If the distributor is selling for $32 a case they are most likely getting it for $24 a case.

NRGSLLR@
09-22-2006, 01:38 PM
Mary Lou. 8.3oz or 16oz? And to what manner of distribution are you selling. If to a DSD soft drink or beer distributor you need to add things like POS and Merchandising equipment. Also price promotions and incentive funds. If to a grocery or convenience wholesaler, you will have to do tradeshows / customer selling shows etc at which time you will be expected to offer discounts and shelving contracts.

NRGSLLR@
09-22-2006, 01:40 PM
One other factor to consider is what you expect the retail price point to be on your beverage, then working backwards from your distributors mark up you can calculate what your wholesale price needs to be. If that price covers all of the costs of merchandising, production and distribution, you are in business.