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Hungry
03-02-2006, 10:54 PM
I am speaking with a Manufacturer/Company about a distributorship that they are offering. The company seems to check out ok. They have sent me samples with some of their promotional material. Drinks taste great, and are healthy, all herbal and no chems. just sodium benzoate. The labels are fantastic, and I believe they would sell great in the bar and night clubs, as well as the stores.

My question is: at $21.50 to me and a wholesale of $32-up with a retail of $53 make sense. I would be able to set my own pricing and it would be the same as RBull. They are 24, 12 oz. bottles
*Is $10-$12 per case good? :confused:

Lepke
03-03-2006, 10:26 AM
Are you presently a beverage distributor?
Is this the franchise company that you are having trouble communicating with?
Have they promised you support?
If so what kind of support?
There are so many questions….
$21.50 is a lot of money to pay for a new unproven brand.

CCE Girlie
03-03-2006, 11:38 PM
I would same the same, especially if you can get a "hot" brand for example: Full Throttle for like $18 per case.

Red Bull Vendor
03-04-2006, 01:09 AM
What brand is this if I may ask?

Brainy
03-04-2006, 01:13 AM
All depends Hungry. 21.50 is a decent price if you get the support. This is still 10.5 margin for you. Better hope the product sells. Like Lepke says, if its not proven or if you haven't seen it in action you may want to know what their distribution looks like. I wouldn't want to be the first on line. I know a few company companies that charge around that price and they are well worth it.
By the way Full throttle, I wouldnt touch. Even with the big marketing campaign around it, that product does not sell as good as people think.

Hungry
03-04-2006, 01:21 AM
They have promised support, promo and advertising @ %50($), rights to their name and 1yr. cell phone, laptop, counter frigs', ice barrels, door racks, and corporate training, etc. They will be flying halfway across the country to meet me. They are new and from what I gather, quietly planning their attack into the mainstream market. I have plenty of Bus. exp. to start and maintain a profitable bus. It is all I have done. However, never in this field. I don't know the questions to ask THEM. I have no problem taking a risk, provided the risk/reward ratio works.
*the real ? is this - is there some sort of standard that you guys/gals would use for a new product or line before signing on.

the saint
03-04-2006, 06:50 AM
Originally posted by Brainy:
All depends Hungry. 21.50 is a decent price if you get the support. This is still 10.5 margin for you. Better hope the product sells. Like Lepke says, if its not proven or if you haven't seen it in action you may want to know what their distribution looks like. I wouldn't want to be the first on line. I know a few company companies that charge around that price and they are well worth it.
By the way Full throttle, I wouldnt touch. Even with the big marketing campaign around it, that product does not sell as good as people think. I will agree with the first half of your post concerning dist and monies, But, the second half is just nonsense.
Full Throttle ( regular, not SF or Fury) sells like crazy, If it continues to sell like it has been I think that it will overtake No Fear possibly within a year or so.
I would even say that within a few years it will give Monster a serious run for it's spot. Just so there is no confusion, I DO NOT think that it would ever come close to what Red Bull does.

Brainy
03-04-2006, 10:38 PM
ok ok...If you want to get technical.
Full throttle does not come close red bull in sales right? so let move to the second Rockstar in the west coast or Monster. To my understanding, Full throttle sales is not exactly like the above yet right? So what do you mean by "Full throttle sells like crazy".
If it sells like crazy, than rockstar would be astronomical? Monster would be unimaginable? and Red Bull would be God?
Let come back down to earth,
Red bull sells like crazy
Monster doing pretty well
Rockstar pretty good seller
Full throttle Its moving or so.
again, Full throttle does not sell as well as you think.
If it does not sell like Red Bull, Rockstar, Monster than what would it equate to in cases per week? 10 cans? 1 Case?
I dont think it nonsense anymore.

Of course there are exceptions like its doing well in Texas or where ever, but keep in mind that in some other state, it doesnt move at all.

Just keeping it real.

BuzzMonkey Energy
03-07-2006, 10:29 PM
i am also in talks with a new energy drink manufaturer overseas who has a product i believe can be real big, i have recieved a few samples and everyone that has tasted it loves it,i am new to the beverage business so i dont know much.One thing im excited about is that the comapny has given me exclusivity in some 26 states, what is the right way to market this product? should i go to national distributors or regional, should i hit the roads and sell this product store to store at first to establish a track record? WHAT WOULD BE A GOOD PRICE PER CASE 24 CANS 250 ML ?any help would be great.
PS ANY NATIONAL OR REGIONAL DISTRIBUTORS ON THESE BOARDS INTERESTED IN A GREAT NEW ENERGY DRINK, PLEASE FEEL FREE TO CONTACT ME @JFALCO69@AOL.COM

MARSS VENDING
03-08-2006, 11:45 AM
HUNGRY,
I believe Iam talking to the same company and then all of a sudden cannot get hold of any one there. They do not return phone calls or emails. It seems it would be a great seller at Night clubs and bars nothing else.

Lepke
03-08-2006, 05:30 PM
Every one is going to be the next red bull.
First off. Don’t trust any company that is telling you they can beat red bull.
Second. Don’t ever pay for the right to distribute a brand.
Third. Don’t expect the retailer to pay $32.00 a case. (You are not red bull)
I could go on and on.
The product could be the finest ever produced in the world BUT that does not mean it will sell!

DudeMan
03-08-2006, 06:25 PM
That's true. Exclusivity means absolutely nothing. It doesn't cost them anything and you are doing them a favor anyway to buy stock they otherwise wouldn't even produce (if you are the first to import it). If it's a product that is doing well all over the nation and they offer you exclusivity (which they won't), than yeah that's a deal. But if the product doesn't even exist in your area, then exclusivity is BS. They have nothing to lose. Ask them for nationwide exclusivity if you really think the product will sell.

BuzzMonkey Energy
03-08-2006, 07:47 PM
I appretiate all the input really i do, i must say you guys are the experts and i probably can learn alot from you guys, but lets say 15-18 years ago snapple gave you exclusivity for snapple would you have thought the same way? In any business being negative is the number one thing that can hold you back, of course its easy to say today ..sure id love exclusivity on snapple..its already proven, they also started somewhere(snapple is just an example). i really feel different..exclusivity is a major incentive to make a great product work. im not saying i have the next snapple...or the next red bull..but i'll sure as hell try to make it the next success story.SORRY for blabbing...but can anyone answer my questions as far as marketing my product, should i go to national or regional distributors or should i hit the roads selling retailers and build a track record first.what would be a good price to get it at for a case of 250 ml 24 cans? I also plan to hit colleges, sports arenas the hamptons in the summer at the beach, all for promotions..in a week or so i'll be able to talk about it a little more freely.....i'll keep you all posted.

[ 03-08-2006, 08:23 PM: Message edited by: jfalco ]

CCE Girlie
03-08-2006, 07:54 PM
I would safely say tha Full Throttle WILL be one of the #1 energy drinks on the market soon. Now Von Dutch is another story.

DudeMan
03-09-2006, 02:41 AM
jfalco: I didn't mean that you should turn down exclusivity. I was just agreeing with Lepke that if a brand is unproven, exclusivity is not something you pay for. You are buying bulk quantities of an unproven brand therefore you should be demanding exclusivity for free as part of your purchase agreement.

If you think they've created a great product that's fine. Just keep in mind that you are taking a risk while they're not and if you plan to turn this into a success story, you'll be doing a lot more work than them.

Lepke
03-09-2006, 09:10 AM
When Snapple first came out it was a line of juice/juice blends, natural sodas of various flavors and an ice tea all in glass bottles. The juice and sodas bombed.
Not only did Snapple not sell distributorships they were damn happy that they could get any distributor to carry their line.
Out of all the beverages Snapple put out there only one made it.
When a distributor takes on a brand they don’t pay for the privilege. On the contrary the manufacturer most often compensates the distributor with spiffs and free goods.
When red bull first hit this market it sat on the shelves for more then a year before people started picking it up. Red bull did not charge the distributor for the territory. Red bull did however want guarantees that the distributor had the money and means to get the product out into the market place. Also red bull insisted on 100% focus. And in turn the distributor needed guarantees that red bull had the recourses to promote this unproven brand in the United States. And promote they did.

You may get lucky with this new product or you may not. Most likely not.
Just look through the list of energy drinks here on bevnet. How many have survived? How many that are dead now never made it to bevnets list?

Mr Zabe
03-09-2006, 11:13 AM
Lepke,
Your overview of Snapple's early history was right on target. Also your explination of exclusivity was outstanding. It's clear you that you understand how new companies/products attempt to get into retail outlets. Bravo!!!

CStoreCatMan
03-09-2006, 11:14 AM
Ok guys...let's put some facts up here. I'm going to list some weekly sales from an actual c-store account in my market...though I won't say which. Here's how it breaks down...

Red Bull - 106 cans per week
Monster - 35 cans per week
Rock Star - 22 cans
No Fear - 11 cans
Full Throttle - 8 cans

It seems Brainy was not too far off with his post...Red Bull must be God! LOL

These are ACTUAL SCAN numbers.

Mr Zabe
03-09-2006, 11:25 AM
So Red Bull does on average in a "good C-Store" account +/- 15 cans per day. IMO that's not a large number. If the store is open 24/7,gee it seems to barely pay it's rent.(Cost to maintain stock and shelf space cost against over head.)

Is my view on this way off?

CStoreCatMan
03-09-2006, 11:29 AM
I hear ya Zabe...but it still outsells the next brand 3 to 1!! That means the #2 brand, Monster, is only selling 5 cans per day. And Full Throttle, which some say is selling very well...posts about 1 can per day - in this case.

Lepke
03-09-2006, 12:12 PM
With the rite product and incentives you cam make an energy drink out sell red bull in some individual stores.

CStoreCatMan
03-09-2006, 12:58 PM
Yeah..if you don't carry Red Bull in said store! LOL

Lepke
03-09-2006, 01:38 PM
I was distributing a European energy drink. This drink had a taste similar to red bull but not the same. The package was very classy looking. Not a cheep product.
Needless to say as a new brand to the market it was not moving off the shelves. Well the first case would move because people wanted to try the new drink.
Now what was I to do to help it move from the stores??
First thing I did was insisting on 3 facings or more in a good location in the cooler. If they would not give me the space then it was not worth my time to serve them. 1 facing in a sea of energy drinks disappears. And wont sell. As this was an attractive can 3 facings helped sales right off.
Second thing I did was to offer in store specials. The product was costing me $18.00 cs so I turned to the storeowners who hated red bull any way. And I offered them the product @ $24.00 cs if they would run a 2 cans for $3.00 special. (That is 1 can at regular price or 2 cans for $3) If they didn’t want to do the special the front line price was $32.00 of course no one paid $32.00 if they bought 3 cases they got it for $27.00 per case.
Next thing I knew my customers were calling that they had run out of product.
In many of my stores I was out selling red bull (not all but many).
If they hate red bull and like you they will work with you. These people would tell their regular customers to put back that red bull and try my brand, as it was a better deal.
The retailer was happy because they were not only making money but they were making their customers happy.
It worked. Not everywhere but in enough places to really count.

greg
03-09-2006, 03:37 PM
Originally posted by jfalco:
i am also in talks with a new energy drink manufaturer overseas who has a product i believe can be real big, i have recieved a few samples and everyone that has tasted it loves it,i am new to the beverage business so i dont know much.One thing im excited about is that the comapny has given me exclusivity in some 26 states, what is the right way to market this product? should i go to national distributors or regional, should i hit the roads and sell this product store to store at first to establish a track record? WHAT WOULD BE A GOOD PRICE PER CASE 24 CANS 250 ML ?any help would be great.
PS ANY NATIONAL OR REGIONAL DISTRIBUTORS ON THESE BOARDS INTERESTED IN A GREAT NEW ENERGY DRINK, PLEASE FEEL FREE TO CONTACT ME @JFALCO69@AOL.COM No offense but if you are granted a license for 26 states and you have to come on a discussion board to ask how to market , distribute, pricing guidelines, etc maybe you should take a better look at this "deal".
Have you or will you have to Pay anything to have the rights for this brand?
Do you really think that you can go store to store alone in 26 states to build this brand ?
This sounds like a deal that is best left to a major distributor with several key locations to get product ou in the streets. Furthermore, you have the right to 26 states, this leaves 24 more states plus DC and PR. Are you telling me they went ahead and gave you half the freaking country and you have no Beverage experience?
I could be way off base on this but this sounds like it is too good to be true.
Be careful not to get stuck buying huge minimums only to have to sell them to "Big Lots" later.

greg
03-09-2006, 03:46 PM
Originally posted by DudeMan:
That's true. Exclusivity means absolutely nothing. It doesn't cost them anything and you are doing them a favor anyway to buy stock they otherwise wouldn't even produce (if you are the first to import it). If it's a product that is doing well all over the nation and they offer you exclusivity (which they won't), than yeah that's a deal. But if the product doesn't even exist in your area, then exclusivity is BS. They have nothing to lose. Ask them for nationwide exclusivity if you really think the product will sell. Exclusivity in a predetermined market/territory does make sense. RB does it to get sweeping coverage. Bud does it, Coke and Pepsi do it. You can't give a guy exclusivity though in 26 states whom which has no Beverage experience and expect it to go well.
As far as Nationwide exclusivity...Yeah right...That'll work! LOL
Ok it would work if he had 500 million in the bank and a fleet of vans,Rigs and trailers,side bays, personel, ample storage, Killer logistics,etc.

Mr Zabe
03-09-2006, 03:51 PM
Not even a Walmart type of logistics system could pull off a nationwide distribution plan. ;)

Lepke
03-09-2006, 04:05 PM
They all promise you every thing and they will all beat red bull………. I remember a really crappie product called liquid bang. This had to be the worst garbage ever produced. Not only was it undrinkable but the package was less then amateurish. Well these people insisted it was going to blow red bull out of the market. What a joke. 2 years later these same people came out with liquid ice.
They will promise you the world…. If by chance the product does make it they will yank it from you and give it to some company that can get it out there.
And your beverage contract is worthless.

BuzzMonkey Energy
03-09-2006, 05:50 PM
I would never pay for exclusivity on an unproven product...and yes i dont have experience in the beverage business, but 7 years ago i didnt have experience in the used car business as well, only to sell my dealership for 1.4m 7 yrs later..i am hungry and believe in hitting a base hit everyday as aposed to a homerun once a month...with that attitude i will not be stopped..Once the product gets off and running in the ny metro area i plan on seeing a domino affect throughout the rest of the country...i have friends who have family that are major regional distributors...in ny,fl,nj..and i plan to knock down doors building routes them selling them off in a couple of years. NOTHING IS IMPOSSIBLE..all i was interested in was input from fresh minds...(what are a old retired guy)or maybe you would like to hire an inexperienced guy like me to set a new standard, either way i appreciate all the input and wish you all the most success...
IF ANY OF YOU GUYS ARE REGIONAL OR NATIONA DISTRIBUTORS..PLEASE DROP ME A LINE LETS MAKE MONEY..I HAVE THE PRODUCT YOU HAVE THE DISTRIBUTION..PLEASE SAVE ME FROM GOING TO EVERY STORE IN EVERY STATE LOL...HURRY IM HITTING THE ROAD ON 3/10..LOL

Lepke
03-09-2006, 05:58 PM
New Jersey is not New York. Don’t think you are going to sell routes here

CStoreCatMan
03-09-2006, 06:09 PM
Why not? He stated in the post above he knows distributors in NJ...

CStoreCatMan
03-09-2006, 06:10 PM
And he did mention "building" the routes first...

BuzzMonkey Energy
03-09-2006, 06:10 PM
does anyone know the number to melrose distributors in nj???

Lepke
03-09-2006, 06:33 PM
There is some kind of law in New Jersey that makes it very difficult to sell routes. All coke, Pepsi and Snapple trucks are owned by the distributors and always have been.
While in New York a driver could and did buy his route. You can’t pump your own gas in New Jersey either.

CStoreCatMan
03-09-2006, 06:39 PM
Originally posted by Lepke:
You can’t pump your own gas in New Jersey either. That's insanity! LOL. What's funny is I was just in Atlantic City and Philadelphia a few weeks ago. I fueled up in Philly...so I didn't even know that was the case. We can swipe our credit cards right at the pump here in California and pump away (and many other states too).

Mr Zabe
03-09-2006, 06:46 PM
My Sister lives in Philly. Once we went to the Jersey shore (which was totally awesome),we stopped for gas in NJ. I started to get out of the car to pump the gas,I got yelled at. LOL I had not idea there was no self serve in NJ. This was a few years back. I so wish Illinois had the same law. LOL

Lepke
03-09-2006, 06:52 PM
Some people I know set up a beverage distribution company to cover the New York and New Jersey metro areas. I wont name the brand. In New York they sold routes, the drivers had to buy beverage body trucks and the company had them branded. In New Jersey they were prohibited from selling routes and had to run all distribution them selves.
The company went under and the New York route owners were screwed.
In New Jersey the trucks just went back to the leasing company.
Today these same people have another distributorship and are incredibly successful. Again the brand will remain nameless.
And although we cant pump our own gas. Gas prices in New Jersey are the cheapest in the tri-state area.

CStoreCatMan
03-09-2006, 06:54 PM
Which is ironic since they're paying an employee to pump it for you!

Lepke
03-09-2006, 06:59 PM
They save on insurance.

But this thread was about some guy who was about to get ripped off by some unscrupulous beverage W H O R E.
My advice stay away from any company who wants to charge you to sell their crap.