Making $3000/Day with 100K

[BassTrackerBoats]

I'm just going to chime in for the talk on distributing to liquor stores and from my experience in that industry it's a big F. Keep in mind this is my experience in the US.

1. It's high competition with established players who really will do there best to screw you.

2. You want a large sales force. Anytime I was with a store manager you would typically have 3-4 guys representing distributors trying to contact that manager or just walking straight through the door and pitching their brand new shit wine.

3. Cash flow can be a major issue for new players, especially in an industry that has net30 payments. Compound that with the fact competition has encouraged buyback policies, meaning even once you "sell" that 100k worth of liquor to a store if it doesn't leave the shelves you are expected to buy it back leaving you on the hook for thousands every time.

4. REGULATIONS, REGULATIONS, REGULATIONS..... They will kill you.

I could list a hundred more reasons but those are the first that come to mind. Not trying to kill the alcohol distributing idea, just saying that it's a rough game and I don't recommend it unless you really know what you are getting into and have some serious $$$. To be honest, if I was going to get back in the alcohol industry I would just open 10 wine and liquor stores. It requires a lot of capital, but as long as you have good locations you will make some serious cash with virtually no marketing needed.

Real life information.

Great post.

I've done business in retail selling to supermarkets and this is not unlike that where if they don't sell you take it back and eat it.

Super glad you chimed in.

 

[Floopa75]

Where you going to keep £250,000 worth of Twixs? Are you failing to weigh up storage and delivery costs, plus labour?

OP, take a picture of your face and post on BHW when you find out shipping will add 50% to your original cost.

 

[Jklmno]

OP, take a picture of your face and post on BHW when you find out shipping will add 50% to your original cost.

Only if you ship a single item. If you ship in bulk (per container), it is actually dirt cheap

 

[jimmyjames]

I'm just going to chime in for the talk on distributing to liquor stores and from my experience in that industry it's a big F. Keep in mind this is my experience in the US.

1. It's high competition with established players who really will do there best to screw you.

2. You want a large sales force. Anytime I was with a store manager you would typically have 3-4 guys representing distributors trying to contact that manager or just walking straight through the door and pitching their brand new shit wine.

3. Cash flow can be a major issue for new players, especially in an industry that has net30 payments. Compound that with the fact competition has encouraged buyback policies, meaning even once you "sell" that 100k worth of liquor to a store if it doesn't leave the shelves you are expected to buy it back leaving you on the hook for thousands every time.

4. REGULATIONS, REGULATIONS, REGULATIONS..... They will kill you.

I could list a hundred more reasons but those are the first that come to mind. Not trying to kill the alcohol distributing idea, just saying that it's a rough game and I don't recommend it unless you really know what you are getting into and have some serious $$$. To be honest, if I was going to get back in the alcohol industry I would just open 10 wine and liquor stores. It requires a lot of capital, but as long as you have good locations you will make some serious cash with virtually no marketing needed.

I was focused more on the chips/candy/accessories/hats and stuff they have.

I want to contact manufacturers, then distribute to the people who sell to the liquor stores.

Any idea how to help with this?

 

[gomhon]

Yeah yeah but all that takes time. Everything your saying is all service based.

I'm trying to make capital work for me, not me work for capital. It's what China does, it's why there rich.

K I'm reforming my thoughts. You're right I was way off topic. I'll post an edit here..

 

[gomhon]

Have you looked into jewelry?

 

[RankBoss]

making millions per day is also very easy
if I have millions in my bank account

I know how Amazon works, I know how eBay works,
I am also from a place where world's largest textile exporting is taking place.
It doesn't mean I can do like them in next 6 months. It takes a lot of hard work, planning, Support and mainly investment.

and becoming a middleman is not that easy because distributors only trust their regular suppliers. There are lots of middleman for almost everything.

 

[MisterF]

making millions per day is also very easy
if I have millions in my bank account

.

A prime example here is Sir Stelios Haji-Ioannou

People went on about how brilliant he was at a young age to set up his airline. Yes the boy did good.
Most people ignored the fact his dad was a multibillionaire ( imagine all the financial contacts to be able to get lines of credit )

Daddys' business advisors and staff to offer free advice, knowledge, guidance etc.


Now you try to get a few million in finance as little Bobby, the guy living in a 1 bedroom shack, wanting to borrow a million compare that to the son of a billionaire.

Making money if you have money is a damn sight easier than not. It's not impossible to do it without rich parents.


Now Sir Richard Tax Dodging Branson did it the hard way, and twice was within hours of losing everything, once was with the record label. So yes it can be done, but it's much harder and can be very stressful.

Risk = Reward ( but it's nice to have a safety net sometimes ).


Keep grinding guys !

 

[Scorpion Ghost]

"
The manufacturer of Twix sells the Twix at 0.25.
Let's say we buy $25000 worth.

We now find 10 distributors who distribute to 10 people *$250 worth to everyone.
So 10*10*250=$25000"

--------------------------------------

Using this example, I go to the manufacturer with a $50k order and tell him I want to pay 0.20.
I can then sell half to you at 0.225 and half to another guy at 0.225 and let you both sell to your distributors.

I make a little bit, you make a little bit more as you're buying cheaper.


As per the quote from the movie Layercake ; The art of good business is being a good middleman.

Layer cake - Top Movie! Love the quote. I am a middle man, for the most part

 

[BrandingCat]

My girlfriend just buyed a " clever mop" for 10 pounds. My curiosity is high and I check the eBay.

That seller have just this mop listing and he sold more then 5k products in just few months .

Makes me think he maybe buy from Alibaba like 3 dollars each. Can't be more when you buy thousands.

So let s say he spend some money on advertising + daily deals on ebay . He make some nice money.

Mops are the future I told you ; mops and matches.

I planning to sell hot water.


Conclusion: stop talking about how other makes the money when you don't have no idea about marketing, investments,taxes and so on.

You need a lot of research,study,practice,risks and so on.

This song make me post this useless shit.

 

[justbrowsing1]

I sold wholesale to big retail chains before, it's much harder than you make out.

Most only pay you after 3 months so you need huge cash flow and there's always the risk of them going bankrupt and not paying you (plenty of big retail brands have).
Any stock they don't sell they return to you.
The profit margins are small.

No thanks, I'll stick to my affiliate sites that pay me 10% per sale which is often more than a shops net profit margin.

 

[jimmyjames]

Have you looked into jewelry?

Like what types? Not very good with it. But yeah thats a great idea.

 

[jimmyjames]

Real life information.

Great post.

I've done business in retail selling to supermarkets and this is not unlike that where if they don't sell you take it back and eat it.

Super glad you chimed in.

Yeah but the idea isn't selling to supermarkets.
I think you guys don't get what I'm saying.

 

[starfox6692]

Real life information.

Great post.

I've done business in retail selling to supermarkets and this is not unlike that where if they don't sell you take it back and eat it.

Super glad you chimed in.

Thanks!

I've been a member of this forum for years and never really contributed. I'm trying to make a promise to myself to start actually giving back and helping these guys succeed.

Curious, what type of distribution were you involved in? Did you deal with getting new products on shelves? Or were you in a supply chain that just dealt with restocking existing product lines?

 

[BassTrackerBoats]

Thanks!

I've been a member of this forum for years and never really contributed. I'm trying to make a promise to myself to start actually giving back and helping these guys succeed.

Curious, what type of distribution were you involved in? Did you deal with getting new products on shelves? Or were you in a supply chain that just dealt with restocking existing product lines?

Ages ago (before my first son was born) I had an Archway cookie route.

Cookie routes are typically DSD and I had a 5 day week. Started at 04:00 and day ended between noon and two.

Periodically if a store did a reset I had to be there to make sure I got my shelf space as well as be involved in the reset.

I do believe that a grocery manager in a supermarket is the world's worst job as they were the crankiest people I have ever come across as a group. But get on their good side, and have decent margins, you could get end caps at times and floor displays in the aisles and during Thanksgiving and Christmas that was huge.

I forget the numbers but I bought it below market as my then Father-In-Law had one and knew of one for sale because the guy hated the business. I worked my backside off to build it up by getting a lot of independents and setting up a couple of guys that sold at flea markets (thse sold my outdated product). It supported my wife and I and my oldest son when he was born and I sold it for 30% more than I bought it for and used that money as a downpayment on my second house.

 

[r3L4x]

Dude I have better offer.

Just read about DROP SHIPPING...

 

[starfox6692]

I was focused more on the chips/candy/accessories/hats and stuff they have.

I want to contact manufacturers, then distribute to the people who sell to the liquor stores.

Any idea how to help with this?

Hey, typically the distributors are in direct contact with the manufacturers.

If you do want to get into the business of distributing to the distributors you want to get in a low cost niche. Once you are there you want to have a good sum of capital and acquire your items at a rock bottom price.

Keep in mind these guys get their products from China so beating the price they purchase at will be difficult, but not impossible. I'm not sure what country you are in, but in the states, you can sell them on convenience and eliminating long shipping times. Basically, if you can beat or match the price the distributors pay it's a no brainer for them to purchase from you if you have the products on hand in this country.

Also, it helps if you can get into a product line that typically does not involve brand names and is overall generic.

One thing that comes to mind is pens, here Bic and Pilot dominate the pen market and you likely will not see success selling un-branded pens. But, you could try to import pen holders, they are generic, typically carry no brand, cheap and most people could use one.

I'm not telling you that selling pen holders will be the way to go. Basically I'm letting you know how you need to think about product selection in this game.

Oh, and just to prove that people use pen holders here you go, got one right beside me lol.

 

[starfox6692]

Ages ago (before my first son was born) I had an Archway cookie route.

Cookie routes are typically DSD and I had a 5 day week. Started at 04:00 and day ended between noon and two.

Periodically if a store did a reset I had to be there to make sure I got my shelf space as well as be involved in the reset.

I do believe that a grocery manager in a supermarket is the world's worst job as they were the crankiest people I have ever come across as a group. But get on their good side, and have decent margins, you could get end caps at times and floor displays in the aisles and during Thanksgiving and Christmas that was huge.

I forget the numbers but I bought it below market as my then Father-In-Law had one and knew of one for sale because the guy hated the business. I worked my backside off to build it up by getting a lot of independents and setting up a couple of guys that sold at flea markets (thse sold my outdated product). It supported my wife and I and my oldest son when he was born and I sold it for 30% more than I bought it for and used that money as a downpayment on my second house.

Wow, that's a hell of a business to be in. I've always avoided anything that dealt with food and perishables, I know how much of a pain in the rear that can be.

Also, you are absolutely right about getting good shelve space, end caps, and displays. A good display in the middle of the floor can easily double your sales.

Did you quit because of the difficulty or greener pastures in IM haha?

 

[BassTrackerBoats]

Wow, that's a hell of a business to be in. I've always avoided anything that dealt with food and perishables, I know how much of a pain in the rear that can be.

Also, you are absolutely right about getting good shelve space, end caps, and displays. A good display in the middle of the floor can easily double your sales.

Did you quit because of the difficulty or greener pastures in IM haha?

This was ages ago... I was 22 when I bought it (had to borrow to do it) and I'm 60 now.

I'm pretty sure IM was just an idea that @pewep had and us mere mortals had no idea there would be a technical revolution.

I actually bought it to sell it because I knew it was below market and I knew I could outwork almost anyone back in the day and could build it up.

I really liked the hours, enjoyed being "on the road" and the work was not very hard at all. I really didn't mind the grocery managers' attitudes either but that was always a topic of discussion when we got together as it really irked some of the guys.

If I kept it that would have turned into me just buying a job as opposed to an investment opportunity and I had the mindset at that time in my life to buy small struggling business and work so hard they had to get better and I would then be able to sell them for a profit.

 

[GringoMonkey]

The fashion industry works in the way you are looking at operating, through distributors.

Quite a few years ago i sold a business to a guy who made a few million doing exactly this. He would find small fashion brands and distribute their garments to retailers in cities/towns they would otherwise not have access to. The key was negotiating product exclusivity.