The quality and brand name determines the price
differentiation between brands. The brew attracts a huge market and is in high
demand.
The entrepreneur needs adequate funding, marketing
strategy and a good location. They also need a steady source of wine and
dependable sales staff.
The enterprise is best run as a one man venture. To
establish you company write a business plan and carry out feasibility study to
determine your best location.
The major challenge is building a good distribution
channel. Major wine manufacturers have built their brand names through aggressive
marketing and promotions. This enables the wine distributor focus on selling
the product.
Funding
the Wine Distribution Company
Financial considerations include lease arrangement,
permits and stock. Purchasing stock takes up 40% of your funding.
Other major investment is buying a bus or truck to convey
your goods. Although you can always use a haulage company this is not cost
effective in the long run.
Approach any good commercial bank in your area for loans.
You need a fixed asset as collateral and a guarantor. Ask for long term loans
of about 2-3 years with fix interest rate.
To secure the loan present your business plan and
feasibility study including experience management team. Some banks make it
mandatory that you open an account with them to facilitate the loan and
repayment.
Permit
and Licenses.
The business of wine distribution is highly regulated. You
need permits and licenses to sell alcoholic drinks. Apply for a wholesale trade
license including an alcohol and tobacco trade license.
Register your business as a sole proprietorship and get
insurance. If you want to add beer to your inventory you need other permits.
Secure distributor agreement with major brands in your
community. Find out any additional local or state licensing to launch your
enterprise.
Carry out a Feasibility Study
The feasibility study addresses ideal location,
competitors and labor requirements. The study focuses on financial institutions
in your locality and road network.
Include a survey of customer’s interests and preferences.
How many hotels, restaurants, event centers and recreational facilities do they
have in your community?
Discover the trending brand and level of penetration. Possible
customers should be factored such as grocery store owners, supermarkets, small
retail stores.
Others are club houses, nightclubs, bars and private
individuals. The feasibility study identifies distribution channels and
financial strength of host community.
The location should be in a middle or upper class
neighborhood.
Sourcing the Wine Products
There are various ways to source your wines such as
importers and manufacturers. Purchase your stock from both big manufacturers
and small wine producers.
Wine distributors
should stock a variety of wines for greater gain and better profit taking. You
can approach wine companies to secure distribution deals and steady supply.
Build
a Website
There is nothing wrong in building a website to reach
customers. Choose a good domain name and develop a SEO website.
On your website include images of the wines you stock,
minimum purchase, description, price and a shopping cart. Leave provisions for
card or PayPal payments and shipping arrangement.
Transportation
A major aspect of wine delivery is transportation. You
need to transport the wine to your warehouse and also make deliveries.
You need a dedicated van, bus or small truck to convey
the goods. Hire a trust worthy driver to handle deliveries or do it yourself.
Other staff you might need is an accountant to balance
the book. You can learn accounting procedures and good book keeping through
diploma programs or tutorials.
Proper record keeping is mandatory for effective
financial management. The records should include purchase orders, inventory,
sales and debtors.
Others are utility charges, tax, salaries, and lease
payment. You can use an external auditor or accountant to do your books.
How to Start A Distribution Business
How to Start A Distribution Business
Marketing
Strategy for Wine Distribution Business
To reach your customers prepare a beautiful catalogue of
your wines. Approach stores, supermarkets, event planners, restaurants and
hotel in your area.
Print flyers, poster and signboards so your community is
well informed of your core business. Your marketing strategy is to each
retailer, individuals and businesses for patronage.
1 comments:
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