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new to industry
02-03-2005, 06:17 AM
i run a couple of local businesses here and a distributorship has always intrigued me. a worker of mine want to invest in an energy drink distributorship. how i see it, he pays a fee for a territory and he is able to sell to that market. i have just begun researching the product and distributorships. is there anybody out there who can give me an idea how much something like this should cost?

boodoo
02-03-2005, 11:04 AM
Don't ever pay a fee for distribution rights! Deal directly with the brand company and avoid brokers. Cost are widely variable so concern yourself with vehicles, warehouse, staff, insurance, cash flow, inventory, accounting, A/R, A/P and so on. You say you currently run a couple of businesses so you know the drill.

Ron Swedelson
02-03-2005, 08:31 PM
Boodoo is right...no need to ever pay a fee for an area. The suplier will give you that area for free, and if its not the supplier giving it to you, then you are being upcharged for the brand. So stay away from that. Secondly...keep your day job. Bev. dist. take a while to get off the ground, especially if you dont have enough brands with good sales behind them. Keep your day job, try to do some sales on weekends or when you have free time, and hire someone on commission who can help to open up the area.

Beverage Slinger
02-04-2005, 05:01 PM
Soccer, Im seeing new drinks dialy. the circle K corp. has 2of their own,Joker and one I dont remember the name,they keep them on the counter on ice,when a customer brings an energy drink to the counter,they ask them to try theirs on sale at .99cents or 2for $3.00,it seems like everyone is racing to cash in,but this is no fad,but there is going to be many faddish brands,I personally would perfer a protected teritory,so another vender cant come in and try to come in and undercut pricing then dump many cases on a buyin then split,when you buy a route,there are already account that are doing bussiness with the brand and are familiar with the company,and you will be seen as another vender no different than coke, pepsi,Redbull,or mission tortillas,with a corrporate reputation you can build new accounts and it will be SERVICE that will allow you to compete with even a giant,every large co.succsesses also have an achilles heal, like the giant walmart,they dont sell roofing nails,find a niche and exploit it,as for a brand I have beem reseaching Nitro 2 go ,I have no affiliation with them,theyve been in the energy bussiness for many years,they own all their routes and territories in so.cal,but do sell protected routes in other states,no spam just passing the info along,PS I also learned there aint no such thing as a free lunch.

World Beverage
02-11-2005, 06:25 PM
Redlands is one block from Highlands which is the city that Nitro2Go just happen to operate from. Whats up with that?

World Beverage
02-11-2005, 06:28 PM
Redlands is one block from Highlands which is the city that Nitro2Go just happen to operate from. Whats up with that?

Beverage Slinger
02-15-2005, 04:23 PM
And your point is ?..........

Beverage Slinger
02-16-2005, 01:01 AM
Im waiting.......

pdxbevman
02-16-2005, 06:34 AM
i was wondering what the point was also?

Lepke
02-16-2005, 06:07 PM
NEVER NEVER NEVER pay for a territory in the beverage biz. Most companies out there can’t get distribution and would be more then happy to give you a contract to sell their product.

EnergyKing
02-16-2005, 11:55 PM
Only Pay for it if it is ESTABLISHED.

Ron Swedelson
02-17-2005, 08:16 PM
Unless you are buying a route from someone who ownes it, and you have contracts that will shift over to you. I have never met a supplier that charges for a route. Even if it is established, they will still hand over a terittory to you. The supplier makes its money by filling orders, not by selling terittories.

pdxbevman
02-17-2005, 09:19 PM
A supplier, no. A distributor will at times sell or trade a line or their entire distributoship. the price is usually based on $ per annual cases sold.

EnergyKing
02-17-2005, 11:12 PM
Originally posted by Ron Swedelson:
Unless you are buying a route from someone who ownes it, and you have contracts that will shift over to you. I have never met a supplier that charges for a route. Even if it is established, they will still hand over a terittory to you. The supplier makes its money by filling orders, not by selling terittories. Thats what I meant.

Ron Swedelson
02-19-2005, 11:53 AM
yeah, but you didnt seperate between distributor and supplier. Never pay a supplier for an area, even if its established.

pdxbevman
02-19-2005, 07:05 PM
So Ron, If monster for some reason, pulled its line from a distributor then offered it to you for $3 a case, you wouldn't pay them? Say they wanted the $3 to compensate their former distributor. i'd do it without blinking! :eek:

[ 02-19-2005, 07:07 PM: Message edited by: pdxbevman97060 ]

fusion
02-19-2005, 07:10 PM
Now that is just silly.

pdxbevman
02-20-2005, 12:25 PM
Why, because MONSTER kicks full throttles butt everday of the week? Or is it because full throttle is already history? Or maybe because coke hasn't had a real winning idea since.......when?

EnergyKing
02-20-2005, 10:07 PM
Monster is one of the good ones. It puts a pinch in RedBulls business out here. Its doing really well.

Ron Swedelson
02-21-2005, 12:26 AM
You can throw out senarios, but it wont help anyone. I have had Hansens pull from another distibutor to come to my house. They did not charge me. Infact they gave us an account list and sales reps to help get the brand back out there. The distributor might want to charge someone to give up the brand, but that does not mean the supplier will stick with the new house. If any $$ changes hands, its from the suplier to buy out the existing house. They would do that if they thought the new house would create more busines for them.

World Beverage
02-23-2005, 11:22 PM
My point is that you work or manage Nitro2Go!! For the record N2G has done a great job and Mr.Dahl is making profits with high turn-around.I like the people but don't agree with the 2 managers that slam accounts with to much product.The loser managers are giving poor info to the owner.I'm not bitter and think the owner should go out in the feild to hear what customers want and respect.

Beverage Slinger
02-24-2005, 09:34 PM
Sorry World Beverage,but I dont work for or have any relationship to NTG,but I have reseached them, I agree with slamming only when theres a HOT price break with display , POS, ad price,time limit,rotation is an issue with me,nothing worse than buying out of code drinks,as for the managers, I dont know the situation so I cant comment.

Ron Swedelson
02-24-2005, 11:07 PM
I sell Red Bull, almost no accounts are going to sit on product. But I will at times tell a store that I dont recomend they order this week because they will not need that product. I hate the word slamming, but I understand it. Durring Chain adds and promos, yeah we bring in a lot more than a weeks worth of product. But its on display and we credit back any unneeded product at the end of the promo. I never understood people who slammed accounts with product. Great, you made your numbers for this week, but what about the next 3 to 5 weeks untill they sell through the excess product.