By 
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 you don’t need a lot of clients to make a lot of money. You can easily earn an extra $5,000 with a few clients.
You will see why drinking is one of the best businesses in the world. I started in beverages while I had my tool and novelty distribution business. He was looking for new products, products that he didn’t need to change as often and that he could sell to the same customers over and over again. 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 every customer was unique. In other words, if you buy a hammer at a store on Monday, you probably won’t go to buy another hammer on Tuesday. Even if it’s only $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 realized that 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, candy, and other products. I even looked at brands like Hershey’s. The problem was that you couldn’t 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 beverage manufacturer of an energy drink. They were just starting out 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 in stores for 8 to 16 ounces. This is amazing when you consider that you can buy the same size soda for $0.50 to $0.75. Even a 20-ounce soda costs about $1.25.
Distributors love the product because they earn about $8 for every case they sell compared to about $2-$4 for their other products.
Let’s get back to the beverage business. The great part about this business is that if you only have one customer that comes to the store to buy your product, you sell at least 1 case of that product per month.
You will 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 only have 100 stores that you service yourself and you sell 3 different drinks. You sell an Energy Drink and 2 Soft Drinks. You earn $8 for each case of energy drink and $3 for each case of soda.
If you sell just 1 case of Energy Drink per week per store and 3 cases of each soda, you will make about $600 profit from sodas 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. 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 US compared to 2% growth for soft drinks. Companies continue to grow from 100% to 300% per year every year. The best part is that there is no end in sight.
Not only that, the energy drink business is incredibly fun. Receive advertising and promotion from companies, you can do promotions in clubs and stores, get t-shirts, hats, gifts, additional commissions and free products from energy drink companies. You also get shelves, coolers, and sometimes even refrigerators.
Copyright 2006 Cube 17, Inc.