Big fan of energy drinks, started with Red Bull, worked my way up to Monster line, Full Throttle, Rockstar, Sobe, and various others.

I had purchased a membership to Costco Wholesale for the specific reason to buy the above Energy Drinks. I began going every few weeks to pick up another case of Full Throttle, Redbull, and Monster...However, all but Redbull has seemed to disappeared, all thats left aside from Redbull is some powdered junk that mixes, called "Zipfizz" I was shocked, I tried a few weeks later multiple times, same result... Nearly convinced they arent coming back to my store, unless someone here can enlighten me on their policies to restocking. This brought me to search for better place, more variety (all they had was redbull, Regular monster {No Assult or Khaos}, as well as no full throttle fury) but they atleast had the regular flavors, but it seems to be gone. Anyways, this has led me to here, and you guys seem pretty knowledgable on the subject, how exactly can I get cases of these?

Thanks for your help and insight! Its much needed to feed my addiction .

Also, a link to the stupid results of Costco search for "Energy Drink"

http://www.costco.com/Common/Search....v-_-Top_search

simply shows this "Zipfizz" mix ~.~

Outside of club stores, cases are just about impossible to come by for the end consumer. You'll have to settle for 4 packs (16oz drinks) or 12 packs (Red Bull 8.3oz).

Wallyworld usually has the 4 packs for around $6.

Why not ask at the Costco customer service why they don't carry the drinks anymore?

well, being a vendor, i have the privelage of swapping for pretty much what i want. whether it be a case of monster, lost, redbull, whatever. very nice to be able to do that!

Try ordering online, most edrinks are available see the ad above this reply box.

Most manufacturers are now realizing that places such as Costco and Sams Club do nothing but basterdize the pricing of their product. By doing so it kills the distributors business. If the Dist isn't able to make a good margin on the product why should he/she bust their ass to grow the brand?
In the end the distriutor will work harder for the manufacturer than Costco or Sams Club will therefore the pull out of those brands in Costco.

I'm just looking at this from an arm chair point of view. Net profit from bulk vendors or distributors...please explain the marginal net profits when compared?

Would a straight distributor business plan have necessarily higher profits as a big box bulk combination/distributor business plan?

Just want to educate myself. [img]smile.gif[/img]

[ 08-14-2006, 01:01 PM: Message edited by: Mr Zabe ]

Zabe,
I see your point about dollars and profit.
A big box retailer relies on volume for his profits, therefore he will make less per case to sell more volume. However, he takes ownership of the product and sets it on a pallet on the aisle. The big box does no alternative advertising to sell more product, therefore his volume can be stifled. Sure, he will get the small mom and pops to buy at his discounted rate but his volume will remain flat.
A distributor has a very entrenched motive to go out there and push every single case he can. The greater the brand grows the greater volume the distributor will have and thereby create greater revenue. The distributor will place POP/POS, will create demand by price fluctuations, promotions, sampling. The Distributor has a greater need and desire to move as much product as possible. The distributor takes ownership seriously and makes it his sole purpose to get it out the door as quickly as possible.


To get back to your question: IMO The duistributor does have higher margn needs than the big box retailer. The dist has greater overhead than a big box. The distributor relies on one segment to make maoney(inthis case drinks) while the big box can rely on on Big Ticket items ( TV's. Refridgerators, Jewelry, etc) to offset lower margins on ohther products.

Furthermore, I bet you a dollar to a donut that AB made it part of the deal to not sell Monster in CostCo or Sams Clubs or the likes unless AB wanted to do it.

Thanks Greg for helping me understand Big Box vs Distributor.

Do you have any Smart and Final Stores by you? No membership needed, sells everything in bulk. When I sold Red Bull, Smart and Final sold Red Bull only 1 penny higher than Costco. Basicaly the same price that a 7-11 could buy the product for.
Which does go into the help of a big box store. If there is no demand for your product, your product will sit. If a Costco or Sams Club carries it, you, as a distributor are still moving product. You may make a few dollars less per case, but are making more over all. Instead of paying someone to drive a van, spend time, and drop off 8 cases to an independent store. You can drive over, drop off pallets (what is it, 144 cases per pallet) and move on. If a store buys your product there, you still sold it. But it is mainly going to the stores that will not buy from their local salesman, or the house hold that would normaly not buy anything over a sporatic can or item here and there, and see the value to buy a bulk case. Just my opinion