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need advice about becoming distributor

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  • need advice about becoming distributor

    i run a couple of local businesses here and a distributorship has always intrigued me. a worker of mine want to invest in an energy drink distributorship. how i see it, he pays a fee for a territory and he is able to sell to that market. i have just begun researching the product and distributorships. is there anybody out there who can give me an idea how much something like this should cost?

  • #2
    Don't ever pay a fee for distribution rights! Deal directly with the brand company and avoid brokers. Cost are widely variable so concern yourself with vehicles, warehouse, staff, insurance, cash flow, inventory, accounting, A/R, A/P and so on. You say you currently run a couple of businesses so you know the drill.
    banned

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    • #3
      Boodoo is right...no need to ever pay a fee for an area. The suplier will give you that area for free, and if its not the supplier giving it to you, then you are being upcharged for the brand. So stay away from that. Secondly...keep your day job. Bev. dist. take a while to get off the ground, especially if you dont have enough brands with good sales behind them. Keep your day job, try to do some sales on weekends or when you have free time, and hire someone on commission who can help to open up the area.

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      • #4
        Soccer, Im seeing new drinks dialy. the circle K corp. has 2of their own,Joker and one I dont remember the name,they keep them on the counter on ice,when a customer brings an energy drink to the counter,they ask them to try theirs on sale at .99cents or 2for $3.00,it seems like everyone is racing to cash in,but this is no fad,but there is going to be many faddish brands,I personally would perfer a protected teritory,so another vender cant come in and try to come in and undercut pricing then dump many cases on a buyin then split,when you buy a route,there are already account that are doing bussiness with the brand and are familiar with the company,and you will be seen as another vender no different than coke, pepsi,Redbull,or mission tortillas,with a corrporate reputation you can build new accounts and it will be SERVICE that will allow you to compete with even a giant,every large co.succsesses also have an achilles heal, like the giant walmart,they dont sell roofing nails,find a niche and exploit it,as for a brand I have beem reseaching Nitro 2 go ,I have no affiliation with them,theyve been in the energy bussiness for many years,they own all their routes and territories in so.cal,but do sell protected routes in other states,no spam just passing the info along,PS I also learned there aint no such thing as a free lunch.

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        • #5
          Redlands is one block from Highlands which is the city that Nitro2Go just happen to operate from. Whats up with that?

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          • #6
            Redlands is one block from Highlands which is the city that Nitro2Go just happen to operate from. Whats up with that?

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            • #7
              And your point is ?..........

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              • #8
                Im waiting.......

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                • #9
                  i was wondering what the point was also?

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                  • #10
                    NEVER NEVER NEVER pay for a territory in the beverage biz. Most companies out there can???????„?t get distribution and would be more then happy to give you a contract to sell their product.

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                    • #11
                      Only Pay for it if it is ESTABLISHED.

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                      • #12
                        Unless you are buying a route from someone who ownes it, and you have contracts that will shift over to you. I have never met a supplier that charges for a route. Even if it is established, they will still hand over a terittory to you. The supplier makes its money by filling orders, not by selling terittories.

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                        • #13
                          A supplier, no. A distributor will at times sell or trade a line or their entire distributoship. the price is usually based on $ per annual cases sold.

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                          • #14
                            Originally posted by Ron Swedelson:
                            Unless you are buying a route from someone who ownes it, and you have contracts that will shift over to you. I have never met a supplier that charges for a route. Even if it is established, they will still hand over a terittory to you. The supplier makes its money by filling orders, not by selling terittories.
                            Thats what I meant.

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                            • #15
                              yeah, but you didnt seperate between distributor and supplier. Never pay a supplier for an area, even if its established.

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