Sorry guys, I just need to vent a bit.

I just learned today that if I wanted to get my beverage in a chain store I would be facing HUGE slotting fees.

This sucks so bad. How is the "little guy" ever supposed to compete in this industry? Or is this the tactic to keep the smaller beverage firms at bay from coming out with a better quality beverage while still having a competitive price.

The one ray of light that keeps my hopes up is that supposedly convenient stores and gas station stores don't have slotting fees, can any distributor here confirm this please?

This factor will either make me or break me.

Anyway folks, any insight to my dilemma is appreciated.

Thanks for listening and I apologize for the long post.

The fees are horrible.

However, I have a possible buisness plan for you.

Tab, are you an angel?
Thanks for taking an interest in my post.

Listen, there are some steps you will need to take:

First of all, create a formulation. Then, ship it out to the members of the board, along with a marketable identity.

Then, solicit those who you selected to try your beverage to invest in your company. Be it $20 or $2000, it will all come in handy.

Also, get a website real quick, even if you just use it to pop up some goole ads before you put real content up. (Those ads can be, as long as people visit from the search engines, a steady flow of income.)

What kind of soda are you wanting to market/produce.

Originally posted by TaB:
Listen, there are some steps you will need to take:

First of all, create a formulation. Then, ship it out to the members of the board, along with a marketable identity.

Then, solicit those who you selected to try your beverage to invest in your company. Be it $20 or $2000, it will all come in handy.

Also, get a website real quick, even if you just use it to pop up some goole ads before you put real content up. (Those ads can be, as long as people visit from the search engines, a steady flow of income.)

What kind of soda are you wanting to market/produce.

Tab, once again, I appreciate your reply.

At the present moment, I'm still debating if I would formulate a lemon lime flavor or coke/pepsi flavor.

I'll be more than happy to send out samples to all those who are interested, however, I didn't understand your 2nd and 3rd paragraphs.

But do you know if convenient stores and gas station marts have slotting fees?

My two cent.

I would try to develop a niche market with a target audience. If do-able you could have a sample table at a bar,concert,church any public place.

The connivance store idea is very cool. In the short run you need to generate lots of "noise".
It's a bottom deal for small new players. Try not to over invest in capital things like expensive machinery. Marketing yourself is just as important as the product.

Look at Ben and Jerry's. The were bottom dairy/farmer men who love to indulge in good ice cream. I will venture to say,in light of the high quality of their ice cream, the marketing of their trade mark"Ben and Jerry" had a major part in their success.

Keep at, think small, do not accept the word No.

Good Luck

[ 07-08-2005, 10:14 PM: Message edited by: Mr Zabe ]

Mr. Zabe, to me, the marketing aspect of business is the fun part of running a business. I do have a target market that I'm aiming at.
I'm blessed to live in Socal(nyc transplant), and there are many outdoor events taking place to take advantage of the guerilla marketing tactics that I have conceived. In short, Marketing is the easy part for myself anyways.

It's the grit of the business that kills me. Finding out the exhorbhant costs of shelf space in major grocery chains took some of the air out of my balloon.

But I have to repeat my question again, do convenient stores and gas station marts have slotting fees?

I will venture to guess that the national chains like 7 11,White Hen Pantry,Sonic,Citco and so on,
have agreements with their regional soda pop companies. Perhaps some Ma & Pa convenient stores or maybe some health food stores might work for you.

Your right, slotting fees are mind blowing.
Good Luck
Zabe

Yes, but much less than those at major stores. You'd need to communicate directly with each store at first, to try to get a feel for the market around.

Secondly, I would suggest going for a totally new beverage concept, instead of a regular cola or lemon-lime.

For example, a tangerine/lime soda with real fruit juice and just a bit of added cane sugar, carbonated correctly, wouldd be a very tasty, fresh drink that would appeal to a wide range of people and be unique in a stale marketplace.

Tab, Excellent points. Unique products are risky but the rewards are greater. [img]smile.gif[/img]