Combine wholesale distribution with the beverage industry and you have one of the most profitable and fun businesses in the world.
This article will give you an introduction to this great business, how you can get started, and how much money you can make from each case of drink sold. Is beverage distribution for you? Find out right now.
Beverage distribution is one of the easiest and most profitable businesses I have ever seen.
I like it because it doesn’t take a lot of clients to make a lot of money. You can easily earn an extra $ 5,000 with some clients.
You will see why beverages are one of the best businesses in the world. I started in beverages while running my tool and novelty distribution business. He was looking for new products, products that he didn’t need to trade as often and that he could sell over and over to the same customers. This last part was key.
You see, when I was selling tools, I thought I could sell up to 1,000 tools a day or more, but each customer was unique. In other words, if you buy a hammer from a store on Monday, you probably won’t go shopping for another hammer on Tuesday. 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 articles.
I realized 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 well-known brands like Hershey’s. The problem was that it could not buy directly from the manufacturers and the profit margins were very low, around 12%. He was used to profit margins of up to 70%.
I finally came across a drink maker for an energy drink. They were just getting started with their product and it was easier to become distributors.
Now let me tell you a bit about Energy Drinks. Energy Drinks are the new Super Profitable products. Everyone makes money, the manufacturer, the distributor, and the retailer. You see, energy drinks sell for $ 1.99 to $ 2.40 in stores for 8 to 16 ounces. This is amazing when you consider that you can buy a soda of the same size for $ 0.50 to $ 0.75. Even a 20-ounce soda costs around $ 1.25.
Distributors love the product because they earn around $ 8 for every box they sell compared to around $ 2- $ 4 for their other products.
Let’s get back to the beverage business. The great part of this business is that if you only have one customer who goes to the store buying your product, you sell at least 1 box of that product per month.
You’ll 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. Therefore, 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 drinks. You sell an energy drink and 2 soft drinks. You earn $ 8 for each box of Energy Drink and $ 3 for each box of soda.
If you sell just 1 case of Energy Drink per week per store and 3 cases of each soda, you will make approximately $ 600 profit from soda per week and another $ 800 profit per week from Energy Drink. That’s a profit of $ 5,600 per month with only 100 stores and only 3 different products. It is very easy to increase up to 5 or even 8 products. This is why I love the beverage business.
Now let me tell you a little more about energy drinks. They are the category that is growing faster than any other drink. It grows up to 70% per year in the US compared to 2% growth for sodas. Businesses continue to grow 100% to 300% annually each year. The best part is that there is no end in sight.
Not only that, the energy drink business is insanely fun. You get publicity and promotion of companies, you can make promotions in clubs and stores, get t-shirts, caps, gifts, extra commissions and free products from Energy Drink companies. You also get free shelves, coolers, and even coolers.
Copyright 2006 Cube 17, Inc.