BEV Distribution

[LMNO]

I'm looking for some advice on getting into the energy drink distribution biz. The product I would like to sell isn't anywhere around here so I know that I would be first to market. But I have another company that ties up most if not all of my money. I am wondering if anyone thinks that getting vending companies in my area to pre order the product so that I wouldn't have to put down as much of the capitol as I would if I just bought 800 cases or so? and that way I would have to worry about getting stuck.....anyways I'm just looking for some feedback.......thanks.....mike

[Mr Zabe]

IMO and from my experience in owning and opperating a regional family retail business:

Even if the vending companies were to pre order you could not expect them to pay cash and not take delivery at the same time.

Also vending companies,usally pay their bills net 30 as they have established relationships with their vendors. You could have the very finest beverage in the world yet new customers will want to order small/trial amoutnts for feild testing ect.

I'm thinking that you have put the horse before the cart. It's not plausible that new vendors will take a monetary risk on a pre order of any size.

[ 08-05-2006, 09:07 PM: Message edited by: Mr Zabe ]

[xyiencexenergy]

Very true. My husband and I just took on a big client who didn't have much weight in this area and although its a popular brand, businesses are weary of its saleabilty and tend to order small.

However, by going out and meeting local business owners, you get face time and pick up a lot of contacts. Then its easier to tell how your porduct will move.

[OCC Georgia]

LMNO look into a factoring company to help you finance your first purchase order from your buyer. You can do a search on the internet or if you need a name and number I have a guy that could possibly help. I am currently doing business with him now.
R