Question

How do distributors work?

How do product distributors charge for their services? (% of sales?) and when do they charge for their services? ( before or after they move the product) does anyone know of a reputable source i can find this info? This is for a business planning project of mine for expansion of a soft drink into the US market and we cant find anything specific about prices and other details.

1 year ago - 1 answers

Best Answer

Chosen by Asker

Think of the distributor as a 'wholesalers wholesaler'. They get the goods from the manufacturer at price X and sell it to their customers at price Y (which will still be less than retail). Manufacturer agrees not to sell products direct, so buyers can not get less than price Y.

You'll not find specifics - often protected by confidentiality agreements.

1 year ago