Monday, March 10, 2008

100 Resources Needed to Start Your Own Soft Drink Beverage Company

I am compiling a checklist for aspiring beverage company distributors. Included in the checklist is everything you will need, in the form of resources, to start your own soft drink, new age, beer, or energy drink beverage distributorship:

1. Warehouse/Storage              51. Cell Phone
2. Van/Delivery Truck             52. Voice Mail
3. Uniforms             53. Route Book
4. Two Wheeler             54. Distribution Channels
5. First Aid Kit             55. Company Policy
6. Route Accounting             56. Employee Policy
7. Point of Sale             57. Fuel Supplier
8. Route Sheets             58. Electricity
9. Tape Gun             59. Gas/Water
10. Build To Lists             60. Blade Cutter
11. Pricing/Label Gun             61. Tape Strips
12. Products             62. Cleaning Supplies
13. Shelf Strips             63. Breakeven Analysis
14. Customers             64. Receiving
15. Insurance             65. Legal Ownership
16. Cash Flow             66. Organizational Chart
17. Glide Racks             67. Filing Cabinet
18. Imagination             68. Stapler
19. Patience             69. Security
20. Health             70. Inventory Controls
21. Banker             71. CMA Programs
22. Calculator             72. Discounting
23. Invoices             73. Rebate/Return Policy
24. Fork Lift             74. Promotions
25. Static Stickers             75. Damaged Product Procedure
26. Pallet Jack             76. Forecasting
27. Computer             77. Ledger
28. Suppliers             78. Petty Cash
29. Street Sheets             79. Budget
30. Presentations             80. Long Term Plan
31. Wallet Chain             81. Margins
32. Honesty             82. Laid Ins
33. Internet             83. FOB’s
34. Pen/Pencil             84. Order Staging
35. Notepad             85. UPC’s
36. Printer             86. COD or Credit Terms
37. Humor             87. Rotation
38. Mission Statement             88. OSHA Guidelines
39. Goals             89. CDL
40. Business Plan             90. Balance Sheet
41. Excel Spreadsheet             91. Franchise/Contract
42. Fire Extinguisher             92. Brand Programming
43. EDI Capabilities             93. Merchandising skills and Tools
44. Word             94. Dependability
45. Power Point             95. Versatility
46. Space Management             96. Laptop Computer
47. Enthusiasm             97. Briefcase
48. Comfortable Shoes             98. Business Cards
49. Samples             99. Back Brace
50. Dealer Loaders             100. TIME

Please let me know what I've left out!

Monday, March 03, 2008

Calculating Gross Profit per Case

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An excellent, straightforward reference for checking the health of your beverage business is calculating your gross profit per case. Many route accounting systems have report functions that will give you an estimate of this figure, but route accounting systems don't take into consideration all of the outside influences; such as samples, free cases, breakage, discounts, promotions, or theft. I use a simple spreadsheet program that will give you the exact figure once you have entered the neccessary sales information. At the end of the month, I enter my individual case sales, gross dollars by individual case, any promotional dollars and then, in a flash, I get my figure. It stands at $4.65 a case at present, which is up substantially from three years ago, when it was a stagnant $3.87. In fact, my margins have also increased a nice 3 percentage points to 26.4%.

Analyzing your gross profit per case will undeniably impact your margins and profits in a positive manner. This simple report will also give you needed guidance in reducing unneccessary discounts, rationalization or elimination of unprofitable SKU's, monthly forecasting and ordering, and a wealth of data about your portfolio.

This program is built using simple excel formulas that you can develop very easily. If you want an example of mine, you can download it here.