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  • Questions for Red Bull distributors ?

    1. Is your company going to raise its frontline pricing due to the price increase ?

    2. How will your accounts react ?

    3. Will you lower salesmen's commisions structures ?

    Just wondering because I am interviewing for a Red Bull sales route position.

    Thanks,

    DLR

  • #2
    Not a current Red Bull distributor but I'm sure prices will go up. I've had a few beverage sales routes and I've always been paid by a percentage of gross sales which means if the price goes up, so does my commission. I make more money if the volume doesn't decrease dramatically.

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    • #3
      Reset man:
      Saratoga? Like Saratoga Springs? What company do you work for up there?
      Bill Brasky built the cabin he was born in.

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      • #4
        Originally posted by DLR:
        1. Is your company going to raise its frontline pricing due to the price increase ?

        2. How will your accounts react ?

        3. Will you lower salesmen's commisions structures ?

        Just wondering because I am interviewing for a Red Bull sales route position.

        Thanks,

        DLR
        I don't work for RB but I have an idea of what will go on:
        1.Prices will increase to the retailer in most cases. That is business 101. Margin is margin and RB distributors are used to making certain margins and have planned their business accordingly.
        2.Accounts will do excatly what you expect them to do....Bitch and Moan. After a month or two the volume levels should be back to normal though.
        3. It shouldn't affect commissions. However, if the price increase is not parlayed to the retailer expect job cuts, therefore creating more accounts per salesman effectively giving him a raise monetarily but using more of his time.
        Whether you think can or think you can\'t, you\'re probably right!

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        • #5
          Thanks for the reply Reset Man. Things seem uncertain with Red Bull now and their distributors, but hpoefully I'll get the job and try to get promoted to company's other division (beer/wine sales}.

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          • #6
            Our distributor has no plans to alter their price to retailers or vending operators. I am sure that many other distributors will not take the same approach however.

            My distributor has chosen to compensate by concentrating more on areas with high growth potential. We're already seeing some benefits of this philosophy in the way of vending contract referrals and leads.

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            • #7
              So instead of raising prices your distributor is just going to sell more... I wish them luck.

              I am sure the remarkable philosophy of selling in areas that will sell more product will work well for them....

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              • #8
                Originally posted by TallThinBlonde:
                So instead of raising prices your distributor is just going to sell more... I wish them luck.
                See TTB, Thats why RB is so much bigger than you and me...They are just smarter! I mean, C'mon, Just sell more instead of raise prices?!?!?! Why didn't we think of that! I didn't realize it was that easy. LOL [img]tongue.gif[/img] [img]tongue.gif[/img]
                Whether you think can or think you can\'t, you\'re probably right!

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                • #9
                  LOL !!! Yeah and the philosophy of selling where you can sell even more.... brilliant !

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                  • #10
                    Edited after a bout of remorse brought on by unprofessionalism - you nearly pulled me in TTB.

                    [ 12-11-2006, 10:17 PM: Message edited by: -VV- ]

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                    • #11
                      A. Its SumPoosie Cat

                      B. It sells and sells very very well!

                      C. [img]tongue.gif[/img]

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                      • #12
                        I wish you luck with your brand TTB. I will just say that in the original post I was referring to vending, which is virtually unexplored among most EDs with few exceptions. There is a concerted effort to push harder in this area of sales. Also, I did very clearly state that this is true of my distributor, as such, it may not reflect the business strategy of RBNA or other distributors.

                        My distributor is concentrating resources on helping us grow our areas and sales. We were just recently discussing using my distributors MET team, promotional product, etc. to draw attention to new machine placements to get them performing at optimum level more quickly. I think it's fair to say my distributor "gets it" and is following through.

                        [ 12-11-2006, 10:26 PM: Message edited by: -VV- ]

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                        • #13
                          If Red Bull wants huge growth it will not come from Vending it will come when they decide to make a new flavor most can stomach.

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                          • #14
                            Well, then I guess when they are ready for "huge" growth, they should ask you how it's done. Until then, they'll just have to settle for what they managed to accomplish without your advice.

                            Their loss I guess.

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                            • #15
                              VV,
                              I hear what you are saying but TTB has a valid point. RB has been the leader essentially by the fact they pioneered the ED category. However, they have lost considerable market share because they refuse to change. Change is good. The reason they have lost market share is simple. CHOICE! Consumers get tired of the same old thing. Monster, Rockstar, et al have changed the way consumers think about ED's. They do not just have to be functional, they now have to have a pallatable taste. RB would see dramatic sales increases if they just added 1 flavor extension. I don't know whay they are so adamant against that. Perhaps they are afarid of cannaibalism of their current flavor, which happens to all drinks. But on the flip side, maybe you get they guy who had 1 RB and didn't like but thought the results good who would come back and try your new flavor and be hooked.
                              Whether you think can or think you can\'t, you\'re probably right!

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