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DLR
12-06-2006, 09:18 PM
1. Is your company going to raise its frontline pricing due to the price increase ?

2. How will your accounts react ?

3. Will you lower salesmen's commisions structures ?

Just wondering because I am interviewing for a Red Bull sales route position.

Thanks,

DLR

reset man
12-07-2006, 07:48 AM
Not a current Red Bull distributor but I'm sure prices will go up. I've had a few beverage sales routes and I've always been paid by a percentage of gross sales which means if the price goes up, so does my commission. I make more money if the volume doesn't decrease dramatically.

Bill Brasky
12-07-2006, 08:30 AM
Reset man:
Saratoga? Like Saratoga Springs? What company do you work for up there?

greg
12-07-2006, 10:19 AM
Originally posted by DLR:
1. Is your company going to raise its frontline pricing due to the price increase ?

2. How will your accounts react ?

3. Will you lower salesmen's commisions structures ?

Just wondering because I am interviewing for a Red Bull sales route position.

Thanks,

DLR I don't work for RB but I have an idea of what will go on:
1.Prices will increase to the retailer in most cases. That is business 101. Margin is margin and RB distributors are used to making certain margins and have planned their business accordingly.
2.Accounts will do excatly what you expect them to do....Bitch and Moan. After a month or two the volume levels should be back to normal though.
3. It shouldn't affect commissions. However, if the price increase is not parlayed to the retailer expect job cuts, therefore creating more accounts per salesman effectively giving him a raise monetarily but using more of his time.

DLR
12-07-2006, 01:40 PM
Thanks for the reply Reset Man. Things seem uncertain with Red Bull now and their distributors, but hpoefully I'll get the job and try to get promoted to company's other division (beer/wine sales}.

-VV-
12-08-2006, 02:53 AM
Our distributor has no plans to alter their price to retailers or vending operators. I am sure that many other distributors will not take the same approach however.

My distributor has chosen to compensate by concentrating more on areas with high growth potential. We're already seeing some benefits of this philosophy in the way of vending contract referrals and leads.

SumPoosieCat
12-08-2006, 01:01 PM
So instead of raising prices your distributor is just going to sell more... I wish them luck.

I am sure the remarkable philosophy of selling in areas that will sell more product will work well for them.... :confused:

greg
12-08-2006, 03:11 PM
Originally posted by TallThinBlonde:
So instead of raising prices your distributor is just going to sell more... I wish them luck.
See TTB, Thats why RB is so much bigger than you and me...They are just smarter! I mean, C'mon, Just sell more instead of raise prices?!?!?! Why didn't we think of that! I didn't realize it was that easy. LOL tongue.gif tongue.gif

SumPoosieCat
12-08-2006, 03:32 PM
LOL !!! Yeah and the philosophy of selling where you can sell even more.... brilliant ! ;)

-VV-
12-11-2006, 10:51 PM
Edited after a bout of remorse brought on by unprofessionalism - you nearly pulled me in TTB.

[ 12-11-2006, 10:17 PM: Message edited by: -VV- ]

SumPoosieCat
12-11-2006, 10:56 PM
A. Its SumPoosie Cat

B. It sells and sells very very well!

C. tongue.gif

-VV-
12-11-2006, 11:02 PM
I wish you luck with your brand TTB. I will just say that in the original post I was referring to vending, which is virtually unexplored among most EDs with few exceptions. There is a concerted effort to push harder in this area of sales. Also, I did very clearly state that this is true of my distributor, as such, it may not reflect the business strategy of RBNA or other distributors.

My distributor is concentrating resources on helping us grow our areas and sales. We were just recently discussing using my distributors MET team, promotional product, etc. to draw attention to new machine placements to get them performing at optimum level more quickly. I think it's fair to say my distributor "gets it" and is following through.

[ 12-11-2006, 10:26 PM: Message edited by: -VV- ]

SumPoosieCat
12-11-2006, 11:54 PM
If Red Bull wants huge growth it will not come from Vending it will come when they decide to make a new flavor most can stomach.

-VV-
12-12-2006, 04:37 AM
Well, then I guess when they are ready for "huge" growth, they should ask you how it's done. Until then, they'll just have to settle for what they managed to accomplish without your advice.

Their loss I guess.

greg
12-12-2006, 10:20 AM
VV,
I hear what you are saying but TTB has a valid point. RB has been the leader essentially by the fact they pioneered the ED category. However, they have lost considerable market share because they refuse to change. Change is good. The reason they have lost market share is simple. CHOICE! Consumers get tired of the same old thing. Monster, Rockstar, et al have changed the way consumers think about ED's. They do not just have to be functional, they now have to have a pallatable taste. RB would see dramatic sales increases if they just added 1 flavor extension. I don't know whay they are so adamant against that. Perhaps they are afarid of cannaibalism of their current flavor, which happens to all drinks. But on the flip side, maybe you get they guy who had 1 RB and didn't like but thought the results good who would come back and try your new flavor and be hooked.

SumPoosieCat
12-12-2006, 12:41 PM
Red Bull did a lot of good things and helped get the ED category going here in the USA. However, they have not done a good job at looking forward or adapting to changes.

As the 16 ounce can began to grow in popularity Red Bull was stuck because their product is not designed for 16 ounces. You can drink 8 ounces of Red Bull and get the buzz... they never really expected the masses to drink 16 ounces of Red Bull.

I think we all agree Red Bull is a very strong brand... well why not offer various flavors and increase the number of people that "can" drink Red Bull? Can you imagine Red Bull Fruit or Red Bull Orange??? Red Bull Orange and Vodka... seems like a natural.

But hey.... what do I know. ;)

DLR
12-12-2006, 07:20 PM
Isn't Red Bull coming out with a Vitamin Water type product in 2007 ?

SumPoosieCat
12-12-2006, 09:24 PM
Have not heard a thing....anyone?

Ron Swedelson
12-13-2006, 12:08 PM
That would be interesting if they had a vitamin water type of product. Red Bull is an extremely successful brand. And for all the crap they get for not changing with the times, I don't think anyone wouldnt kill to get 1/8 of their sales. But, it does hold many distributors hostage with the brand. Bringing more skus to the table will allow most distirbutors to partner with Red Bull and soley distribute their brands. But, in many markets, more skus will be needed. Energy Drinks (different sizes, and flavors) Carpe Diem or what ever their waters are currently called (I did not like it, but my wife loved them), vitamin waters, I don't know, items like this. But SPC is right, flavors would help Red Bull get back their lead in the catagory.

greg
12-13-2006, 03:06 PM
Originally posted by Ron Swedelson:
....... flavors would help Red Bull get back their lead in the catagory. Everything I have seen says RB is STILL the leader in the categroy, just losing market share.

Ron Swedelson
12-14-2006, 11:54 AM
yes and greg. Market share being lost, this is true. Category lead, not as strong or in as many markets as before. I know here in the bay area Red Bull had a dominant lead when I sold Red Bull back in 2004-05. But in Sacramento, Monster was king. Now, what it looks like, is instead of Red Bull and RB 4pks, being the top dogs, with SF and SF 4pks rounding out the top 10, RB is still at the top, but everything else is still falling behind the other skus. RB is still the lead drink in my mind. And while their sales may not be going backwards, the other guys sales are picking up at a faster pace. I'd like to see RB take back their rightful calim of dominance.

SumPoosieCat
12-14-2006, 02:42 PM
Red Bull has seen its best days unless they expand the brand and come out with other flavors.

The last 2 years has seen huge growth for Monster and Rockstar. Red Bull while still growing in the USA has lost huge market share and been replaced as No. 1 in numerous markets.

The 16 ounce can really did a number on them and they have seemed flat footed in their response. Red Bull tried and failed to bring out a 16 ounce can because their formula does not lend itself to be consumed in that quantity.

I continue to ask myself... why don't they just make a better tasting drink? Red Bull orange would be huge IMO.

greg
12-14-2006, 03:40 PM
SPC,
I wish I could find one of those "smileys" of a guy banging his head against the wall. That is what you are doing every time you suggest RB coming out with a new flavor!! LOL