Engaging in a wholesale liquor business means
that you will sell liquor to alcohol retailers as well as commercial buyers,
usually in bulk for a better price than a retain liquor business. You must have
a complete understanding of competitive brands before you approach a retailer,
including sales volumes, retail pricing and how much shelf space the retailers
give the brands. Manufacturers purchase competitive sales data from
organizations. If you're thinking of jumping into the alcohol distributor
business selling wine, beer or liquor, make sure you understand the terminology
used in the industry. When you're dealing with customers, they'll expect you to
be on top of your game, and understanding key terminology brings you one step
closer. Always define your market and your customers. If you are a manufacturer
or importer, your customer is either the state's ABC or a private distributor.
If you are a distributor, you will sell liquor wholesale to the local bars,
restaurants and retail stores. As a distributor, you must gain an understanding
of the ownership structure of the retailers, since the prices you charge will
differ if a store is an independent retailer or part of a small, medium or
large chain of stores. Advertise your wholesale liquor business. To make money
as a wholesale liquor supplier you will need to make sure liquor retailers know
about your business. Place advertisements in local newspapers, billboards and
even door-to-door visit to local liquor stores. Consider using Internet and
traditional advertisements to get the word out about your business. Liquor distributors administer identical pricing to all
retailers and allow small companies to compete with industry giants, who would
otherwise be able to just pay their way onto shelves. Not all wholesale
liquor distribution companies are created equal. Emerging brands have specific
needs that pertain to their production capacity and ability to market and
merchandise their products in stores. These considerations will limit the
options that liquor suppliers have available to them when choosing a
distributor.
Wholesale liquor distributors sometimes refer
to themselves as “brand houses.” Within a given geographic territory, there is
usually a major, a miscellaneous and a specialty brand house. This
explains that:
- Big
and major brand houses distribute for the nation’s biggest alcohol
companies are extremely selective when adding new brands to their
portfolios whereas, a new and young liquor company is unlikely to partner
with this type of distributor.
- Miscellaneous
wholesalers may also distribute key players but serve regional companies
as well.
- A
special brand house is inclined to provide the highest level of
service but is sometimes understaffed, meaning that this service can be
compromised at times.
Going into the wholesale liquor business
requires that you understand all the aspects of selling liquor wholesale.
Approach the retailers. If you are selling an established brand, your sales
pitch will likely focus on price, gaining more shelf space and working with the
retailer to put incentives in place to increase consumer sales. If you are
giving a new brand, you should focus heavily on the retailer's profit margin,
how similar brands have historically performed, and any local or national
marketing campaigns you or the manufacturer will put into place to support the
brand. Choose to work with large and well respected alcoholic beverage
distributors in your area. Large operations can offer ease and support that you
don't usually find anywhere else. Find the companies that ranked highly by
other business owners which have completed transactions with them.
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