In this post, I am going to take you through how to become a Coca Cola distributor in South Africa and other necessary information worth knowing about Coca Cola distributorship.
Who Is A Coca Cola Distributor And How Does It Work?
A Coca Cola distributor is any business that disperses Coca Cola and other Coca Cola related products to wholesale Coca Cola dealers at factory prices. Coca Cola distributors usually receive their supplies from local canning and bottling companies.
What Are The Requirements To Become a Coca Cola distributor?
You must meet the following requirements to become a Coca-Cola distributor:
Funding for Startups Minimum Investment: A Coca-Cola distributorship firm requires a minimum investment of around R100,000. If this seems like it will be too much for you, consider teaming up with someone to share the financial burden.
Additional requirements: Some significant beginning needs for a Coca-Cola distributorship include: The containers and cases must be paid for at the same time as the beverages. Consider all facets of running a business, including acquiring goods, transportation, deals, and distribution.
Handling of receipts: A printer should be accessible for printing receipts. This is an unavoidable cost.
Distributors of Coca-Cola obtain free branded items: You have the option of requesting branded items such as branded flex, push trucks, and other items. This will help you promote your business.
Handling cartons: You must exercise extreme caution when handling your containers. Keep a variety of beverage sizes, such as 35cl and 50cl, as well as different beverage compartments, such as canned beverages, packaged beverages, and plastic beverages, on hand.
Benefits of being a Coca Cola distributor in South Africa
Below are some of the benefits of distributing Coca Cola in South Africa.
- Serves as a sturdy source of income.
- Great profit margins: The business owner deals with the production company directly and gets the least possible stock price.
- Access to gifts that may include souvenirs, container stores, and freezers.
- Less work; A distributor does not have to hawk the customers instead of searching and finding a business location.
How much can a Coca Cola distributor make in South Africa?
The margin for a distributor can range from 3% to 30% of the sales price, whereas the margin for a retailer might be anywhere from 0% to 60%. This is dependent on the sort of goods and who pays for marketing efforts.
Basically, the amount of money you make depends on the amount of business you are able to close.
For example:
Distributorship of Coca-cola products can earn you up to good money per crate. For instance, if a crate of coke sells for $30, you can resell it with an extra $1.
Can you imagine how much you can make as a distributor of the coca-cola brand? Let us do some more calculations.
In other words, if you sell up to 400 crates per day, you will have a profit of $400 a day. On the other hand, if you sell up to 1000 crates, the profit margin is also $1000 per day.
If you then deduct some transportation expenses, rent, and other costs, you can still retain up to 80% of the profit. If that continues for seven days in a week, you know what that means.