he Coca-Cola beverage sells over 1.8 billion bottles per day, a whopping 10,000 bottles every second globally. No doubt, the Coca-cola brand is by far the foremost soft drink worldwide, hence its distributorship.
Who would have thought a brand that sold only 25 bottles in its first year would sell over 1.8 billion bottles today?
Consequently, Coca-cola distributorship is a viable business from which you can profit as an entrepreneur.
Besides, lovers of pleasure would go at any length to get whatever satisfies their pressing need – thirst.
Picture partnership with a big brand like Coca-cola in distributorship. It may turn to be your giant leap. As a distributor of a popular brand like Coca-cola, you are pitching for the big game.
With the company’s kind of name, you can be confident to build a profitable business through Coca-cola distributorship.
As Coca-cola expands its tentacles worldwide every day, its distributorship is not with a single brand. At the same time, affiliating with the company can promote your business as well.
The Coca-cola bottling company provides immense customer satisfaction in different folds and styles. Their popular products include diet coke, Fanta, and Sprite.
Coca-cola distributorship and growth may be primarily due to the consistent and ever-increasing demand for the products.
How Profitable is the Coca-cola Distributorship Business?
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 the end, you will discover how easy it is to buy directly from coca-cola and make huge profits.
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.
Since this is wholesale distribution, it is even possible to sell more than 3000 crates per day. Besides, across the globe, the demands for the drink and its sub-products keep going higher.
In other words, the potential market retains its demand to the benefit of the investor. The higher your sales, the more your profit, and the quicker you can replenish your supply.
Besides, Coca-cola also pays a rebate to their registered distributors per unit sale volume—for instance, the primary rebate rate is 3% per 300 sold crates.
However, the rebate increase as you continue to sell more crates or cartons. Besides, the company gives some souvenirs to high-selling distributors at the end of a profitable year.
A summary of the benefits of the distributorship of Coca-cola products include the following:
- 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 store, and freezers
- Less work. A distributor does not have to hawk the customers instead of searching and finding a business location.
If you are interested in the coca-cola distributorship, you may not find an opportunity to apply online. However, the easiest place to get the coca-cola dealership application form is through the nearest distributor to you. One simple reason is that the major depot has a list of coca-cola distributors in Nigeria.
5 Simple Steps to Get Coca-cola Distributorship Deal
1. Register Your Business
As a Coca-cola Company’s legal partner, you must register your company with the Corporate Affairs Commission (CAC).
The process of business registration may take a few weeks to two months. However, the coca-cola dealership cost and the waiting time are worth it in the long run. As for coca-cola dealership cost in Nigeria, the major depot will also have all the details of how much you need to have.
Besides, in Nigeria, there are two types of registration. You can register your business as an enterprise or as a limited liability company.
You get a certificate, a registration number, and a tax identification number at the end of each registration.
Ideally, it is more appropriate to deal with a registered business and not as an individual. Besides, it gives the avenue for individuals to put resources together for the company.
The customers the only way you would be finding yourself as a legal entity with the company. Besides, as a distributor of coca-cola, you can build a big marketing partnership.
In that case, this step takes you closer to securing a distributorship opportunity with the biggest beverage brand – Coca-cola.
It is more assuring that Coca-cola distributorship is a step in the right direction for your business investment.
2. Prepare a Startup Capital
When preparing for a business like registering for coca-cola distributorship, prepare a reasonable capital to begin.
Suppose you cannot afford the required capital. In that case, you may either apply for a loan or go into a partnership with another person.
Nevertheless, all relationships that concern this business must be based on your business identity and not as an individual.
The need for capital may include business registration and acquisition of fixed capital assets. For instance, getting a storehouse or depot and stocking your first supply.
Mind you, at first, and you may have to pay for the crates at your first business transaction with coca-cola. Besides, you may also need to fulfill some obligations as a distributor of coca-cola.
Besides, don’t forget to prepare to produce receipts, payment of startup workers, and other miscellaneous expenses.
If possible, plan for a primary and alternative power supply and other things you deem fit. As a major distributor of Coca-cola, you may need to have a chilling facility too.
3. Writing a Business Plan
Every business requires a good business plan that consists of the details of the proposed location.
By implication, the proposal must be on the ground before starting the business at all. Check out our suggested ways for small loans for business startups to acquire funding for their investment.
Moreover, having a business plan shows you are serious about the business and helps in sourcing funds.
Some of your fund sources may include financial institutions and interested investors.
Whereas your business plan must provide for marketing strategies as well as advantages, you’re your competitors.
Similarly, it can also help you project all pros and cons that you can expect in implementation.
In the least sense, see a business plan as the map that will guide your business operations toward the goal.
As a distributor, your larger goal is beyond the Coca-cola brand itself, and you must prepare as such.
4. Set Up Your Depot
One of the things expected in coca-cola distributorship is to set up your depot. This depot symbolizes the mini branch for the company where you attend to customers.
However, following your market survey, find the best place to locate your store or distribution center. This step is crucial in you becoming a distributor for the coca-cola brand.
While setting up your depot or storehouse, you must carefully consider your depot’s size and location.
Other factors that can influence your depot and the business in general also comes up later.
You may set up a big container having an 8ft (2.43m) width, 40ft (12.2m) length, and 20ft (6.06m) depth.
Furthermore, the size of your depot determines how much of the product you can accommodate at once. On average, your storehouse or depot must be large enough to take up to 450 crates.
Remember, these products come in different volumes from 35 cl to 50 cl, 1-litre, and others. More so, packaging differs from the bottle to cans and plastics.
5. Get the Coca-Cola dealership application form
Visit one of the significant Coca-Cola Bottling Company or distribution outlets around you and
- Obtain the Coca-Cola distributorship form
- Meet the requirement of the company
- Submit the form with all the necessary details
- Deposit the initial capital sum and submit a piece of evidence to the company
- Follow other specifications according to the company.
Ideally, you should get approval within a few weeks of processing your application.
However, the company may send representatives to inspect your storehouse and other facilities.
With this Coca-cola brand’s distributorship, be confident that it can financially set you up for life.
5 Important Factors in Coca-cola Distributorship
a. Market Survey
Market survey is a crucial step in preparing for a new business or business environment. In other words, a survey brings you up to date with the status of the market.
You may also need some research findings of the market environment and some latest statistics. This step is essential to having a successful coca cola dealership.
Information about a high-class product like Coca-cola will also help your distributorship plans.
After setting up your plan, get a hold of how this plan works following the company’s goals. A coca cola distributor needs to have adequate information of the brand products.
On the other hand, after stocking, you must understand how to reach out to your potential customers. Also, key distributors need to understand the Coca-cola market and the rivals’ market.
b. Price Regulation
Ensure to regulate your price to a favorable amount that is common amongst your competitors.
However, you might not be able to make an accurate judgment without first doing a market survey.
Following your market survey, especially if you are relatively new to the environment, you may sell at a lesser amount. When you do, it helps you attract and retain new customers.
However, Coca-cola is an already established brand, so you may not need many advert placements for your business.
c. Location of Your Depot or Store
The localization of business is a crucial aspect when establishing a business. In the least sense, your storehouse or building structure should be close enough to your targeted customers,
More importantly, it should have a sizeable surrounding parking lot that can contain a distributing truck. Besides, this product sells well in a highly dense environment.
An extensive compound should accommodate two small-sized trucks or a long truck to prevent obstruction or congestion.
On the other hand, a good location allows keeping some of your goods outside, in case of limited space. As a distributor, you cannot afford that your Coca-cola products will litter around.
d. Proper Arrangement of Goods
Another way to quickly boost your sales is the appropriate arrangement of your crates for easy access.
There is a way to arrange creates for aesthetic and space management sake – find it! In other words, manage your area wisely and ensure your goods are safe.
You may have to employ a full-time security guard to keep an eye on the whole business establishment.
Besides, you can install a CCTV camera to watch over the environment with a designated control room.
Furthermore, do a thorough screening for every staff member working with you from least to most significant. You must employ people that are not skillful but has integrity.
In a business such as the distributorship of coca-cola, trust is indispensable. The skills part may be needful in creating crates, pallets usage, and other handy skills.
At the same time, keep the breakage of crates and bottles to the barest minimum to save loss through carelessness.
These employees must also be quick and versatile in loading and offloading trucks while storing the depot’s goods.
e. Use Delivery Vehicles
The Coca-cola Company distributorship plan makes provision for delivery vehicles, trucks and their drivers. These drivers get instructions about the safety and security of goods.
However, these channels may not be enough to depend on as the days go by and your demands increase. Therefore, you need to acquire your own vehicle and register it with the company.
There are emergency numbers on the truck to report any form of reckless driving as a means of security.
In all, your business’ delivery truck further boosts your transactions. Besides, it saves you from issues arising from goods mobility to and from your location.
11 Interesting Facts Needful for the Distributorship of Coca-cola Products
- The coke brand has a net worth of over 83.8 Billion USD. At that level, the value is above others like KFC, Budweiser, and Subway put together.
- Moreover, the global net operating revenue of the Coca-cola company is up to 37.266 million USD. Why will anyone not aspire to be a key distributor of a popular beverage like Coca-cola?
- Coca-cola has a market value of up to 203 billion USD
- It also makes over $1 billion from each of the 20 brands it currently has
- Guess who the first-ever Olympic sponsor was in 1928? Coca-cola
- As you plan to enroll for coca-cola distributorship, note that Cuba and North Korea forbid the brand
- Presently, Coca-cola has over 3500 beverages and 500 unique brands in the product catalog.
- Following the “OK” Brand, Coca-Cola is the next most famous phrase in the world above any other.
- Coca-cola is the most consumed beverage in Mexico, where consumption reaches 745 coke bottles per year.
- Don’t assume the brand doesn’t advertise anymore. In 2016, coca-cola spent over $4 Billion on advertising alone.
- The world consumes over 10,000 bottles or cans of coca-cola per second. That is a huge potential for any potential coca cola distributorship.
On a final note, Coca-cola distributorship is no doubt a money-making business venture. This business idea can move you from a low-income earner straight to a high-income earner.
However, you may have to follow these steps, in addition to basic business principles. What is important is that you become a distributor of the popular coca-cola brand.
Would you then wish to partner with Coca-cola for distributorship? In case you need help with business registration or other related stuff, drop your request below.
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