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need advice about becoming distributor

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  • new to industry
    started a topic need advice about becoming distributor

    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?

  • Ron Swedelson
    replied
    I sell Red Bull, almost no accounts are going to sit on product. But I will at times tell a store that I dont recomend they order this week because they will not need that product. I hate the word slamming, but I understand it. Durring Chain adds and promos, yeah we bring in a lot more than a weeks worth of product. But its on display and we credit back any unneeded product at the end of the promo. I never understood people who slammed accounts with product. Great, you made your numbers for this week, but what about the next 3 to 5 weeks untill they sell through the excess product.

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  • Beverage Slinger
    replied
    Sorry World Beverage,but I dont work for or have any relationship to NTG,but I have reseached them, I agree with slamming only when theres a HOT price break with display , POS, ad price,time limit,rotation is an issue with me,nothing worse than buying out of code drinks,as for the managers, I dont know the situation so I cant comment.

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  • Guest's Avatar
    Guest replied
    My point is that you work or manage Nitro2Go!! For the record N2G has done a great job and Mr.Dahl is making profits with high turn-around.I like the people but don't agree with the 2 managers that slam accounts with to much product.The loser managers are giving poor info to the owner.I'm not bitter and think the owner should go out in the feild to hear what customers want and respect.

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  • Ron Swedelson
    replied
    You can throw out senarios, but it wont help anyone. I have had Hansens pull from another distibutor to come to my house. They did not charge me. Infact they gave us an account list and sales reps to help get the brand back out there. The distributor might want to charge someone to give up the brand, but that does not mean the supplier will stick with the new house. If any $$ changes hands, its from the suplier to buy out the existing house. They would do that if they thought the new house would create more busines for them.

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  • EnergyKing
    replied
    Monster is one of the good ones. It puts a pinch in RedBulls business out here. Its doing really well.

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  • pdxbevman
    replied
    Why, because MONSTER kicks full throttles butt everday of the week? Or is it because full throttle is already history? Or maybe because coke hasn't had a real winning idea since.......when?

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  • fusion
    replied
    Now that is just silly.

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  • pdxbevman
    replied
    So Ron, If monster for some reason, pulled its line from a distributor then offered it to you for $3 a case, you wouldn't pay them? Say they wanted the $3 to compensate their former distributor. i'd do it without blinking!

    [ 02-19-2005, 07:07 PM: Message edited by: pdxbevman97060 ]

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

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  • EnergyKing
    replied
    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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  • pdxbevman
    replied
    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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  • Ron Swedelson
    replied
    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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  • EnergyKing
    replied
    Only Pay for it if it is ESTABLISHED.

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  • Lepke
    replied
    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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