Combine Wholesale Distribution with the Beverage Industry and you get one of the most profitable and fun businesses in the world.
This article will give you an introduction into this great business, how you can start and how much money you can make on each case of beverage sold. Is beverage distribution for you? Find out right now.
Beverage distribution is one of the easiest and most profitable businesses I’ve seen.
I like it because you don’t need a lot of customers to make a lot of money. You can easily make an extra $5,000 with a few customers.
You will see why beverage is one of the best businesses in the world. I started in beverage while I had my tool and novelty distribution business. I was looking for new products, products that I did not need to exchange so often and that I could sell over and over again to the same customers. This last part was key.
You see, when I was selling tools I figured that I could sell up to 1,000 tools per day or more but every customer was unique. In other words, if you buy a hammer at a store on Monday chances are you will not go on Tuesday and buy another Hammer. Even if it only costs $1.98!
Don’t get me wrong, the “tool distribution business" is a wonderful business and I still love it. I was just looking for another type of product to add to my current items.
I figured out that in order to sell the same product over and over again it would have to be a food product. So I started going to trade shows and looking at chocolate, potato chips, candy, and other products. I even looked at name brands like Hershey’s. The problem was that I could not buy directly from the manufacturers and the profit margins were super low, about 12%. I was used to up to 70% profit margins.
Finally I ran into a beverage manufacturer of an Energy Drink. They were just starting with their product and it was easier to become a distributor.
Now let me tell you a bit about Energy Drinks. Energy Drinks are the new Super Profitable products. Everybody makes money, the manufacturer, the distributor and the retailer. You see, Energy Drinks sell for $1.99 to $2.40 at the stores for 8 to 16 ounces. This is incredible if you consider that you can buy a soda that’s the same size for $0.50 to $0.75. Even a 20 ounce soda runs you about $1.25.
Distributors love the product because they make about $8 per every case they sell compared with about $2 to $4 for their other products.
Let’s get back to the Beverage Business. The great part of this business is that if you have only one customer going into the store buying your product you sell at least 1 case of that product per month.
You see if you sell a soda someone can buy a soda every day, compared to a hammer, where people don’t buy a hammer every day. So you need fewer customers because you sell more per day.
For example: Let’s say you have only 100 stores that you service yourself and sell 3 different beverages. You sell one Energy Drink and 2 Sodas. You make $8 from every case of the Energy Drink and $3 from every case of soda.
If you sell only 1 case of the Energy Drink per week per store and 3 cases of each soda you’ll make about $600 profit from the sodas per week and another $800 profit per week from the Energy Drink. That’s $5,600 profit per month with only 100 stores and only 3 different products. It’s very easy to ramp up to 5 or even 8 products. This is why I love the beverage business.
Now let me tell you a bit more about Energy Drinks. They are the category that is growing the fastest of any other drink. It grows up to 70% per year in the US compared with 2% growth for soda. Companies are still growing from 100% to 300% per year every single year. The best part is that there is no end in sight.
Not only that, the Energy Drink Business is incredibly fun. You get advertising and promotion from companies, you get to do club and store promotions, get t-shirts, hats, gifts, extra commissions and free product from the Energy Drink companies. You also get free racks, coolers, sometimes even refrigerators.
Copyright 2006 Cube 17, Inc.
--------
Jorge Olson is a consultant, speaker and entrepreneur and owns several Wholesale Distribution companies including a Beverage Consulting Business called Liquid Brands Management, Inc. His latest eBook teaches you step by step how to get started and make money in Wholesale Distribution. You can find it at http://www.DistributionBusiness.com
Jorge Olson is an author, keynote speaker, consultant and entrepreneur.He’s worked with small businesses and Fortune 500 companies all over the world helping them with Marketing, Sales and Strategy. You can view his lattest book on self promotion
He’s been an executive for Wholesale Distribution Companies and Technology companies as a CEO, COO, and VP of Marketing and Sales. He’s also owned several different companies including a Wholesale Distribution and Importing, Business Consulting, Commercial Janitorial Service, Web Hosting, Online Portals, Advertising, and Beverage Distribution. Visit his website at www.JorgeOlson.com
» left by Marlon from Snellville, GA (1 year 28 days ago.)
How do I become a distributor who ows the rights to market in a foreign country, meaning that everyone has to go through me to buy that product since I would be the one to market it and distribute it in that country
» left by Peter Lucas from Houston, TX (361 days 14 hours ago.)
if you can get that deal with a product called FrostShot you would be an instant millionaire. You should see what those people have come up with, I know they have been approached for distribution but hey give them a try.
» left by Jay Des from London. UK (345 days 13 hours ago.)
How does one go about securing a warehouse for the beverages to be distributed? I am considering hiring a warehouse from an already established distributor but doubt I will find a willing sharer. Please help.
» left by Brandon from Honolulu, Hawaii (179 days 8 hours ago.)
Hi my name is Brandon, I want to open up a beverage distribution company in Hawaii. I want to be a wholesale distributor as well as a retail distributor. There are currently 2 major distributors on the island of Oahu which is where I would like to be based. I would specialize in home deliveries service (alcohol) which is not offered here on the island. I am young and ambitious and I believe i can make this happen with a lot of hard work and perserverance. I would appreciate any advice that anyone could give me on making this happen.
Disclaimer: All information on this site is provided for informational purposes only! By no means is any
information presented herein intended to substitute for the advice provided to you by any health care or other professional
or organization.
tweet this!
