7 most important wants of a beverage distributor - and why it is important for you as a supplier?
For small and medium sized distributors, margins of 40% and above are a must. And we agree. They need to be in business for you to grow your business and get paid. So structure your pricing to ensure that they can make around 40% margins. You will have the owner's motivation to sell your brand from the hundreds of brands they sell. Read More here.
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BeverageTradeNetwork.com - 7 wants of a distributor
1. 7 most important wants of a distributor
in a product they pick - and why it is
important for you as a supplier?
- BY
BEVERAGETRADENETWORK.COM
www.BeverageTradeNetwork.com
2. • Beverage Trade Network.com is one of the world ‘s leading networks for
beverage, wine, spirits and beer importers, distributors, producers and
related companies. The company is based in Delaware, USA and is
developed by wine professionals who have accumulated a rich and varied
experience in this industry.
• For buyers, Our service allows retailers, distributors of the alcoholic and
non-alcoholic beverage industry to find the right supplier and brands that
add value to their portfolio.
• For sellers, Our service allows producers, distributors and other
professional companies of the alcoholic and non-alcoholic beverage
industry to easily locate and contact distributor and importers globally.
www.BeverageTradeNetwork.com
3. 1) Margins:
For small and medium sized distributors, margins of 40% and above are a
must. And we agree. They need to be in business for you to grow your
business and get paid.
So structure your pricing to ensure that they can make around 40%
margins. You will have the owner's motivation to sell your brand from the
hundreds of brands they sell.
www.BeverageTradeNetwork.com
4. 2) Support:
This includes support for sampling, point of sale, marketing, advertising
support, market work support
3) Payment Terms:
Distributors would like better payment terms than they provide to their
customers.
4) Pick Up Location:
Freight costs are very important for a distributor, so if you are trying to sell into
California with a pick up location in New Jersey or vice versa – it will be a tough
sell.
Give them FOB to their warehouse - deliver for them. If you have to include that
in your mark up or take the punch in your own margins, it may still be worth it if
the pricing is done right.
www.BeverageTradeNetwork.com
5. 5) Quality and ratings:
The quality of the juice in the bottle is definitely important but if the wine has
ratings, your distributors will like them. So, go ahead and send your wines to
as many magazines and bloggers as you can.
Create a great 'sell sheet' that the distributor's representative can show to
the retailer to grab that sale.
Even if you have 85 points, put it on your promotional material. I have seen
shelf talkers with 85 Points and still making a big deal of it. If your wine is
under $10 and has 85 points, that’s still good!
The customer who is browsing the wine shelf at that price range may pick
your wine over a brand with no ratings.
www.BeverageTradeNetwork.com
6. 6) Supply and Inventory:
Distributors work very hard to get placements in retail stores and the last
thing you as a supplier can do is run out of product. There is a reason why
brands like Yellowtail, Bud Light or say Bacardi invest in inventory – this is
part of building their brand.
Distributors are unable to take into account the reasons that caused the
outage (vintage change, currency fluctuations, delays at the port, cash flow
problems, packaging issues, can’t keep up with the demand) and even if
they care to listen, retailers will not be bothered.
www.BeverageTradeNetwork.com
7. Why: because that empty spot on the retailer’s shelves doesn’t look good
and when your spot is empty the end consumer who drinks your product will
ask the retailer about it. The retailer may give you a week’s time to
restock, but then they will ask the customer to try another wine instead.
By keeping good supply and fulfilling your distributors’ POs in 24 hours, you
are showing them a solid commitment.
www.BeverageTradeNetwork.com
8. 7) Packaging:
Your bottle and brand packaging is THE most important part of your product
after the quality of the wine. One cannot undermine the significance of
packaging.
Distributors and retailers also pay attention to the 'trade packaging' which
includes outer cartons, quality of inserts, and thickness of cartons, content
and markings. There are many suppliers who use generic white cartons with
label xyz winery 750ml x 12.
www.BeverageTradeNetwork.com
9. The varietal and vintage should at least be displayed on cartons. It creates
a lot of work for distributors and retailers to search for a sku in their
warehouse and slows the delivery for a distributor. Invest the extra $1 in
branding the carton goes a long way.
It is not only good for store displays and merchandising (sometimes you can
put displays instead of giving racks - so works out cheaper) but retailers and
distributors will love to see your first shipment in branded cartons.
www.BeverageTradeNetwork.com
10. See how we can help you grow.
Register for free and start posting your products. Start selling now.
If you are a distributor or importer, post your buying lead here.
www.BeverageTradeNetwork.com