Questions to ask potential Distributors

[ScottV]

I am just starting to be contacted by distributors interesting in distributing our beers. We have only been in operation for 2 months and have been self distributing all our beers - draft only. We currently have 65 accounts and are growing fast.

I have a pretty good idea of some of the questions I would like to ask, but I was hoping for some advice to make sure I ask ALL the necessary questions. Please feel free to put in your 2cents on the subject.

thanks
Scott

[lhall]

Cash terms in the beginning - you are now getting paid within 15 days in NY, right? Waiting a month to get paid by the distributor will kill you. Explain that you need to be paid upon delivery for a while so that you can continue to grow the business for both of you.

Line Cleaning - whose responsiblilty and frequency

Co-op of what POS materials, advertising, etc?

[frigatebay]

questions I should have asked my old wholesaler

1.terms like ihall suggested. maybe I'd try for 15 days instead of upfront.
2. setup a fixed penalty for late payments (not an issue if you go with a big wholesaler).
3. how often do they visit accounts?
4. where do you fit in their portfolio?
5. how do they see your brand in 1 year, 5 years?
6. what kind of support do they expect? ride alongs, discounts etc.