Combine wholesale distribution with the beverage industry and you'll get one of the most profitable and fun businesses in the world.
Drink distribution is one of the easiest and most profitable companies I've seen.
I like it because you do not need many customers to make lots of money. You can make an extra $ 5,000 with a few clients.
You will see why drinking is one of the best businesses in the world. I started out in drinks while I had my business of distributing tools and news. I was looking for new products, products that I did not need to change so often and I could sell again and again to the same customers. This last part was key.
You see, when I sold tools I realized I could sell up to 1,000 tools per day or more, but each customer was unique. In other words, if you buy a hammer in a store on Monday you probably will not go on Tuesday and buy another hammer. Even if it only costs $ 1.98!
Do not 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, chips, sweets and other products. I even looked at brands known as Hershey's. The problem was that it could not buy directly from the manufacturers and the profit margins were very low, about 12%. I was accustomed to up to 70% of profit margins.
I finally came across a beverage maker for an energy drink. They were starting with their product and it was easier to become a distributor.
Now let me tell you a little 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 if you consider that you can buy a soda that is the same size for $ 0.50 to $ 0.75. Even a 20 ounce soda runs around $ 1.25.
Distributors love the product because they make about $ 8 for each case they sell compared to around $ 2 to $ 4 for their other products.
Let's go back to the liquor business. The big part of this business is that if you have only one customer go to the store to buy your product that sells 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 do not 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 service yourself and sell 3 different drinks. You sell an energy drink and 2 sodas. You make $ 8 of each energy drink case and $ 3 of each soda case.
If you sell only 1 box of Energy Drink per week per store and 3 cases of each soda, you will get $ 600 worth of soda per week and another $ 800 per week of Energy Drink. That's $ 5,600 profit per month with only 100 stores and only 3 different products. It is very easy to upload up to 5 or even 8 products. That's why I love the beverage business.
Now let me tell you a bit more about energy drinks. They are the category that is growing faster than any other beverage. It grows up to 70% per year in the United States, compared to 2% soda. Companies continue to grow from 100% to 300% per year each 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 business promotion, you get to do club and store promotions, get t-shirts, hats, gifts, additional commissions and free products from energy drink companies. You also get free racks, chillers, sometimes even refrigerators.
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