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Message
re: Why do we need alcohol distributors?
Posted on 8/27/19 at 3:20 pm to TH03
Posted on 8/27/19 at 3:20 pm to TH03
quote:
Even if another store is selling it for a lower price.
quote:
Not many stores not named Total wine fit this bill though.
False. It’s cheaper for a local bar to buy cases of beer at Sams than through the distributor. It’s extremely monitored too.
1
Posted on 8/27/19 at 3:22 pm to tgrbaitn08
quote:
not sure of the details, I just know all 3 stores have the same salesman...
I thought there was one elio's?
quote:
Elios does a lot of business but I cant imagine they do more than Rouses
You'd be surprised, but it's not always about the gross sales. It's what they sell. A place like elio's probably sells a lot more fine wine that rouses does.
Posted on 8/27/19 at 3:24 pm to TH03
quote:
I thought there was one elio's?
Im talking about all 3 stores I mentioned in my earlier post...Elios, Roberts and Rouses.....of all three of those stores...Elios sells the cheapest wine...they all get it from the same place
Posted on 8/27/19 at 3:25 pm to tgrbaitn08
quote:
Because the manufacturers dont want to deal with 100,000 little mom and pop gas stations and liquor stores
They would rather deal with just a handful of distributors
For companies that sell to 100K stores, yeah, sure, I get that.
Forcing small mom and pop brewers to deal with large distributors who then sell to small mom and pop shops? It's silly.
Posted on 8/27/19 at 3:27 pm to weagle99
The distributors make more money on each beverage sold than the actual manufacturers.
Posted on 8/27/19 at 3:27 pm to LSUAngelHere1
quote:
Not many stores not named Total wine fit this bill though.
quote:
False. It’s cheaper for a local bar to buy cases of beer at Sams than through the distributor. It’s extremely monitored too.
Not many stores =/= none at all.
Beer operates at some pretty shitty margins so I'm sure a place like Sam's can sell it cheap. Wine and liquor operate at higher margins so really only total wine sells those at a loss, which sucks for competitors and the producers who don't want their brands cheapened.
Posted on 8/27/19 at 3:29 pm to fr33manator
quote:
un a used alcohol dealership.
So you sell piss? So I have to bring my own balloons on game day, or can you provide?
Posted on 8/27/19 at 3:30 pm to tgrbaitn08
quote:
Im talking about all 3 stores I mentioned in my earlier post...Elios, Roberts and Rouses.....of all three of those stores...Elios sells the cheapest wine...they all get it from the same place
Gotcha.
It just depends. We have smaller shops in Dallas that you wouldn't think outsell bigger stores yet they have cheaper prices.
Posted on 8/27/19 at 3:30 pm to LSUFanHouston
quote:
Forcing small mom and pop brewers to deal with large distributors who then sell to small mom and pop shops? It's silly.
Why is it silly for a small restaurant, gas stations and bars to deal with Republic, Crescent Crown or even Buquet Distributing?
Posted on 8/27/19 at 3:30 pm to weagle99
Cost of transportation eats into margins.
So theyde rather ship huge amount to local distributors for local, more efficient distribution
So theyde rather ship huge amount to local distributors for local, more efficient distribution
Posted on 8/27/19 at 3:37 pm to Jack Bauers HnK
quote:
The distributors make more money on each beverage sold than the actual manufacturers.
They also spend more money to distribute the beverage than the actual manufacturer.
You would see the big boys fight like hell to change the 3 tier method if they wanted to distribute their product themselves.
This post was edited on 8/27/19 at 3:39 pm
Posted on 8/27/19 at 3:41 pm to TH03
quote:
You would see the big boys fight like hell to change the 3 tier method if they wanted to distribute their product themselves.
I don't think anyone has argued that they would want to.
Seems clear that's a pretty big reason for its continued entrenchment.
Posted on 8/27/19 at 3:44 pm to TH03
quote:
Elios Wine Warehouse sells their wine wayyyyyyy much cheaper than Rouses or Roberts sell theirs for.
quote:
It's probably a pretty important account that does a lot of business. There's also a little more leeway with independent accounts vs chains.
Elio's is a huge account. Similar situation for Martin's Wine Cellar. Depending on product, far lower cost than grocery store prices.
City Wholesale is the cheapest of all in N.O., but you have to have a business account with them- ie bar or restaurant.
Posted on 8/27/19 at 3:45 pm to Y.A. Tittle
Distributors are an outdated business. In many cases its protectionism
Posted on 8/27/19 at 3:49 pm to RogerTheShrubber
quote:
In many cases its protectionism
Yep.
I know a guy that owns a saloon. The liquor store sells booze for less than he has to pay the distributor for the same product, yet he can't buy from the store.
And the liquor store is supplied by the same distributor.
Posted on 8/27/19 at 3:54 pm to BuckyCheese
quote:
I know a guy that owns a saloon. The liquor store sells booze for less than he has to pay the distributor for the same product, yet he can't buy from the store.
What state?
In Texas there's actually a 4th tier and restaurants/bars have to order from liquor stores.
It's silly.
Posted on 8/27/19 at 3:58 pm to RogerTheShrubber
quote:
Distributors are an outdated business. In many cases its protectionism
There are outdated parts of it, especially pertaining to smaller producers.
But if you're saying distributors are outdated, that would be silly.
Posted on 8/27/19 at 3:58 pm to TH03
WI
Can't shop distributors either as I understand. They all have their territories.
eta-ATF will actually come in and check the bottles now and then for the proper stamps.
They even have an IR light or some such to tell if the bar is refilling bottles. ie-Reusing those with the proper tax stamp, filled from non stamped.
And they have to destroy the label on empty bottles.
Can't shop distributors either as I understand. They all have their territories.
eta-ATF will actually come in and check the bottles now and then for the proper stamps.
They even have an IR light or some such to tell if the bar is refilling bottles. ie-Reusing those with the proper tax stamp, filled from non stamped.
And they have to destroy the label on empty bottles.
This post was edited on 8/27/19 at 4:01 pm
Posted on 8/27/19 at 3:59 pm to BuckyCheese
quote:
Can't shop distributors either as I understand. They all have their territories.
What do you mean? Different distributors have the same product but distribute it to different areas of the same state?
Posted on 8/27/19 at 4:00 pm to TH03
quote:
You would see the big boys fight like hell to change the 3 tier method if they wanted to distribute their product themselves.
The big boys get the added benefit of incentivizing the distributors to keep their product well stocked and pushed while making it harder for smaller breweries to get their product similar exposure.
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