- 7 wants of a distributor


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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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  1. 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
  2. 2. • Beverage Trade 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.
  3. 3. 1) Margins:For small and medium sized distributors, margins of 40% and above are amust. And we agree. They need to be in business for you to grow yourbusiness and get paid.So structure your pricing to ensure that they can make around 40%margins. You will have the owners motivation to sell your brand from thehundreds of brands they sell.
  4. 4. 2) Support:This includes support for sampling, point of sale, marketing, advertisingsupport, market work support3) Payment Terms:Distributors would like better payment terms than they provide to theircustomers.4) Pick Up Location:Freight costs are very important for a distributor, so if you are trying to sell intoCalifornia with a pick up location in New Jersey or vice versa – it will be a toughsell.Give them FOB to their warehouse - deliver for them. If you have to include thatin your mark up or take the punch in your own margins, it may still be worth it ifthe pricing is done right.
  5. 5. 5) Quality and ratings:The quality of the juice in the bottle is definitely important but if the wine hasratings, your distributors will like them. So, go ahead and send your wines toas many magazines and bloggers as you can.Create a great sell sheet that the distributors representative can show tothe retailer to grab that sale.Even if you have 85 points, put it on your promotional material. I have seenshelf talkers with 85 Points and still making a big deal of it. If your wine isunder $10 and has 85 points, that’s still good!The customer who is browsing the wine shelf at that price range may pickyour wine over a brand with no ratings.
  6. 6. 6) Supply and Inventory:Distributors work very hard to get placements in retail stores and the lastthing you as a supplier can do is run out of product. There is a reason whybrands like Yellowtail, Bud Light or say Bacardi invest in inventory – this ispart of building their brand.Distributors are unable to take into account the reasons that caused theoutage (vintage change, currency fluctuations, delays at the port, cash flowproblems, packaging issues, can’t keep up with the demand) and even ifthey care to listen, retailers will not be bothered.
  7. 7. Why: because that empty spot on the retailer’s shelves doesn’t look goodand when your spot is empty the end consumer who drinks your product willask the retailer about it. The retailer may give you a week’s time torestock, but then they will ask the customer to try another wine instead.By keeping good supply and fulfilling your distributors’ POs in 24 hours, youare showing them a solid commitment.
  8. 8. 7) Packaging:Your bottle and brand packaging is THE most important part of your productafter the quality of the wine. One cannot undermine the significance ofpackaging.Distributors and retailers also pay attention to the trade packaging whichincludes outer cartons, quality of inserts, and thickness of cartons, contentand markings. There are many suppliers who use generic white cartons withlabel xyz winery 750ml x 12.
  9. 9. The varietal and vintage should at least be displayed on cartons. It createsa lot of work for distributors and retailers to search for a sku in theirwarehouse and slows the delivery for a distributor. Invest the extra $1 inbranding the carton goes a long way.It is not only good for store displays and merchandising (sometimes you canput displays instead of giving racks - so works out cheaper) but retailers anddistributors will love to see your first shipment in branded cartons.
  10. 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.