Advice You - Business

Combine Wholesale Distribution with the Beverage Industry and you get one of the most profitable and fun businesses in the world.

This article will give you an introduction into this great business, how y

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ou can start and how much money you can make on each case of beverage sold. Is beverage distribution for you? Find out right now.

Beverage distribution is one of the easiest and most profitable business

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

s I’ve seen.

I like it because you don’t need a lot of customers to make a lot of money. You can easily make an extra $5,000 with a few customers.

You will see why beverage is one of the best businesses

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

in the world. I started in beverage while I had my tool and novelty distribution business. I was looking for new products, products that I did not need to exchange so often and that I could sell over an

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

over again to the same customers. This last part was key.

You see, when I was selling tools I figured that I could sell up to 1,000 tools per day or more but every customer was unique. In other words,

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

f you buy a hammer at a store on Monday chances are you will not go on Tuesday and buy another Hammer. Even if it only costs $1.98!

Don’t get me wrong, the “tool distribution business” is a wonderful bus

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

iness and I still love it. I was just looking for another type of product to add to my current items.

I figured out that in order to sell the same product over and over again it would have to be a food p

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

oduct. So I started going to trade shows and looking at chocolate, potato chips, candy, and other products. I even looked at name brands like Hershey’s. The problem was that I could not buy directly fro

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

m the manufacturers and the profit margins were super low, about 12%. I was used to up to 70% profit margins.

Finally I ran into a beverage manufacturer of an Energy Drink. They were just starting with

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

heir product and it was easier to become a distributor.

Now let me tell you a bit about Energy Drinks. Energy Drinks are the new Super Profitable products. Everybody makes money, the manufacturer, the d

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

stributor and the retailer. You see, Energy Drinks sell for $1.99 to $2.40 at the stores for 8 to 16 ounces. This is incredible if you consider that you can buy a soda that’s the same size for $0.50 to $

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

0.75. Even a 20 ounce soda runs you about $1.25.

Distributors love the product because they make about $8 per every case they sell compared with about $2 to $4 for their other products.

Let’s get back t

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

the Beverage Business. The great part of this business is that if you have only one customer going into the store buying your product you sell at least 1 case of that product per month.

You see; if you

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

sell a soda someone can buy a soda every day, compared to a hammer, where people don’t buy a hammer every day. So you need fewer customers because you sell more per day.

For example: Let’s say you have o

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

ly 100 stores that you service yourself and sell 3 different beverages. You sell one Energy Drink and 2 Sodas. You make $8 from every case of the Energy Drink and $3 from every case of soda.

If you sell

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

only 1 case of the Energy Drink per week per store and 3 cases of each soda you’ll make about $600 profit from the sodas per week and another $800 profit per week from the Energy Drink. That’s $5,600 prof

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

it per month with only 100 stores and only 3 different products. It’s very easy to ramp up to 5 or even 8 products. This is why I love the beverage business.

Now let me tell you a bit more about Energy

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

rinks. They are the category that is growing the fastest of any other drink. It grows up to 70% per year in the US compared with 2% growth for soda. Companies are still growing from 100% to 300% per yea

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

r every single year. The best part is that there is no end in sight.

Not only that, the Energy Drink Business is incredibly fun. You get advertising and promotion from companies, you get to do club and

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

tore promotions, get t-shirts, hats, gifts, extra commissions and free product from the Energy Drink companies. You also get free racks, coolers, sometimes even refrigerators.

Copyright 2006 Cube 17, Inc

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Advice You - Wholesale Business: How to Start a Beverage Distribution Business

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