Startup Selling Methods

[brew4you_]

Ok, so we decided to start out by doing contract brewing, on a small scale, to try and establish our brand in hopes this will make funding easier while minimizing risks. We've created the recipes and established a relationship with a local brewpub to brew a few batches each month until we exceed capacity and either purchase our own FV's or grow into our own brewery.

So, the question now is should we work with a distriburor or self distribute. I see pros and cons to each but want your opinions.

With distribution, I don't need cold storage, a sales team, or a delivery truck - but i get less per barrel.

Wish self distribution my costs are higher (cold storage, sales team, delivery truck is needed) but i get a bit more per barrel.

The trend here is for bars to constantly rotate through craft beers, so I'm also concerned about the sales effort required to keep us moving and growing. A good distributor would do this leg work for us right?

What are your thoughts? In my state, I have the option...

[BlackandGold]

As a fresh start-up without a proven track recored, you may have problems attracting a distributor. My suggestion would be to self distribute in your home radius, and look for a distributor in surrounding counties or larger cities.

[brew4you_]

As a fresh start-up without a proven track recored, you may have problems attracting a distributor. My suggestion would be to self distribute in your home radius, and look for a distributor in surrounding counties or larger cities.

I've already attracted a great distributor (one of the countries top 10), the question is should I work with them. What are the pros and cons I might be missing? Experiences, etc.

[brew4you_]

Anyone????

[jwalts]

I've never worked with distributors, but since nobody else is weighing in...

You shouldn't expect a distributor to do your sales work. Whether you or they deliver your beer, you (or your employees) will need to make frequent sales visits to bars and/or liquor stores - even the ones that are already selling your beer.

You should also keep in mind that it's often very difficult to break a contract with a distributor, even if they end up doing a crappy job.

Other than that, I think you're on the right track with cost comparisons.

Joe

[brew4you_]

hmmm... this was a concern. So if they don't push my beer - what are they good for? haha. Ok, cold storage and transportation. This would be good if I were huge and had a big "pull" but we are start-up so... If I am out these pushing it, why wouldn't I just drive in a reefer truck and make the sale myself! haha.

Now all I need is a sales person and proper compensation for them. hmmm

[admin]

Check out the here at ProBrewer.

Admin

[BeerBred]

Where are you?

[brew4you_]

Where are you?

Philadelphia suburbs

[jdy29]

Follow Up

Just wondering how you've made out. I am also from the Philly suburbs and am in the process (early) of start-up. Any updates on your success, advice, etc? Thanks!

[brew4you_]

Just wondering how you've made out. I am also from the Philly suburbs and am in the process (early) of start-up. Any updates on your success, advice, etc? Thanks!

We are up and running. Spent the last year contract brewing and just opened up the brewer in the past month. Name of the company is Prism Brewing Company.

[LokeBrewSF]

Distributors...

Sorry I found this late, but I have a couple o' cents for ya.

First off, you're in PA and I'm in CA, which have quite different distribution laws (and quirks), but let's just put that aside fow now.

Even with distribution, you will still need cold storage and a sales staff. If you want your beer as fresh as possible (and don't pasteurize your beer), then you shoul have at least some cold storage.

But your sales staff (or person) is an integral part of your business. You just can't count on the distributors staff to sell your beer. Keep in mind they have numerous brands to push and some make more $$ than others. Your own sales person pushes your beer and your beer alone. They can implement post-offs, give/sell swag, and hit accounts that you want to hit. Most important of all is they are Prism Brewing, they (and you, being the brewer) are the face of the brewery. Don't leave this to someone you don't have constant contact with.

A good distributor will take care of you, but don't leave it all in their hands. You want the establishment to say, "I want this Prism beer, get it for me".

Anyway, it has been a while since your post. I hope you have been successful in your endeavors. Prost!