Private Label Energy Drinks… The Leader continues, “Business people gather around, make your way up to the front. In my studies on Energy Drinks and Health, I came across something interesting called Private Label Energy Drinks.
Does anybody know what these are?” Complete silence in the camp, then someone says, I heard that is something people are searching for alot. “Yes it is, which peaked my interests in learning more about it.” You could hear the sound of the leader reaching in his shirt pocket to pull out some folded paper. “I will be referring to my notes so I can give you some figures that I came across. Before that I need all the businesspeople to image their businesses participating in these type of labels.
” Imagine this story: A young man in his early 30′s was enjoying his favorite energy drink one day on his lunch break. He was in the city sitting on park bench listening to his Ipod. He is approached by a representive of a private label beverage company. To protect his name, we’ll call him Travis and the rep’s name will be Jake. So Jake notices Travis drinking his favorite energy drink and walks up to him. He says, hi there my name is Jake with AB Custom Beverages.com. Hello my name is Travis how can I help you? I just noticed that you were drinking an energy drink and my company specializes in private label energy drinks.
Have you ever wanted to own your own labels on maybe your favorite energy drink? Travis says, uhhhh not really, I don’t know anything about your company. Then Jake sits down next to Travis and asks him if he could show him how it works. Travis agreed, yeah I’ll take a look at it.
So Jake begins, you can create your own brand. It’s your label, our beverage formula. You get full color printing, anything you want. Includes nutritional facts and ingredients on your private label energy drinks. Think of it this way, it’s you, your brand, in the hands of consumers who love your favorite energy drink.
Travis responds with, the benefits sounds nice, but tell me about the profits I would recieve from your company. Then the leader stops the story and says, “Before I go any further, do you think Travis is interested in this sales pitch? Pay close attention to the following explanation from Jake and the response from Travis.”
So Jake pulls out a pad and a pen. This first thing you need to understand is that as a distributor you have a 20 case minimum, which means we have a set price for 20 cases at a time that you would purchase for the private labels. Let’s say you only want to buy 5 cases, you still pay the price for 20 cases. Does that make sense to you Travis? Yes, Travis says as he nods.
The energy drinks come in 8.4oz cans in a case of 24. So the price per case is $47.04, multiplied by 19 because you have to purchase a 20 case minimum, that equals out to $893.76, that you pay to get the private label energy drinks. Travis, looking perplexed says, wow I have to pay almost $1,000 dollars to create my own brand? Yes says Jake, but also for your 1st time, you have to pay $150.00 set up fee along with shipping costs.
Travis as cool as he can be says, that’s an interesting business concept. How much will I profit if I go along with this plan? Well says Jake, you get the cost of each can that’s sold from your business. For example, if you sold a can for $3, multiplied by 24 cans, equals $72 dollars. Multiply $72 dollars by 19 cases which equals to about $1,400 dollars. If you subtract that total by 1,043.76 which is the costs of the 20 cases plus the set up fee of $150 dollars, that equals $324.24. You can make this amount of money every month you decide to purchase your 24 cases. Now that’s a good deal, am I right? To be continued in part 4…
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Tags: brands, consumers, energy drinks, energy drinks and health, marketing, price, private label, private label energy drinks, private label products, retailer
