Distributor ads vs Company Ads

[ktwdallas]

I've been in discussions with a company about distributing energy drinks. Ignoring the issues about 200 energy drinks on the market, etc., etc., I have a specific question about advertising. The company seems like they want the distributor to foot the bill for advertising. Is this normal in this market? As the distributor, I'm making less money per case than either the manufacturer or the retailer. How is this supposed to work? Obviously some advertising is my responsibility, but if I start getting into print ads and radio ads, that gets expensive very quickly.

[bigbottom]

forget about it!

[Energydude]

That was the best part about getting involved with SumPoosie Energy Drink. Not only is the name easy and fun, but the drink is excellent. When we first introduced the product the morning FM radio jocks went crazy and were talking about SumPoosie for hours and our cost was nothing!!!

[fusion]

The big boys give their distributors money or do all the advertising themselves. I'm not familiar with the smaller companies and advertising. I do know that DPSU throws around a lot of cash and stuff for Dr Pepper.

Is this a small brand? Are they producing it themselves or using a copacker? Their margin may not be as high as you think it is....

[ichiro]

The name appears easy and is fun???...You've been watching too much beavis and butthead energyboy..

[Inko]

Speaking from experience as a new beverage manufacturer, we pay distributors to advertise. Period.

If you are a small distributor with a list, then it would be nice to add them to the list for free.

As far as radio and TV goes. It is the responsibility of the manufacturer, not the distributor.

Please correct me if I'm wrong!

Inko

[Xtrem]

Yes it's up to the manufacturer to provide money for major advertising like radio or TV. It is also up to the distributor to set aside some of his profits for promotional events. Especially if the product in question is showing that the consumer likes the product.

We provide promotional material with our drink anyway but sometimes that is not enough.

[boodoo]

I can sum up my experience this way:

As a distributor it is my job to get your drink on the shelf. It is the parent company's job to get it off the shelf through marketing and/or advertising!

Now do we work together to do samplings and incentives? Absolutely, as long as I am protected by a distribution contract. If the retailer has the option to buy the same product from multiple distributors then the parent company pays all.

[Xtrem]

boodoo, has hit the nail on the head. That is exactly what we would expect from our distributor.

[RunWithDaLilGuy]

my experience with beer is that, specifically, we pay for mirrors and all fancy POS, stuff that seemingly has some value. all other stuff like falgs, stands, cooler vis-a-racks, tackers and cooler stickers are sent (or ordered) by the breweries. sometimes, just on a whim. we end up pitching a lot of stuff but most of it gets used.

as for local advertising, the brewery should coordinate with the distributor and inquire about events that may suit your products' target market. the distributor should assist in this area. i know that my distributor sponsors college sports in our local area but does so under the distributor's name, not MILLER or COORS. then again, that sponsorship has led to some great exclusivity deals.