69 Starting a Softdrinks Dealership Business


How to Start a Softdrinks Dealership Business
Most business advise would start from telling you about the location and the amount of capital that you'll need, and they were for good reasons.

Starting a softdrinks (and beer) dealership business, of course, is no exemption. But aside from the location and money, you'll also need a ton of patience, hardwork and a lot of network.


To save you time from learning the basics of running this kind of business, allow me to teach you as much as I can in this article.

Please note that everything you're about to read are all based on the author's years of personal knowledge and experience from managing a softdrinks and beer dealership (wholesale, retail and delivery) business.

Market Saturation
At some point, I'm sure you've already heard or will be hearing a lot of this, “Naku, marami nang nag-gaganyan sa'tin.” True enough, when we started our softdrinks business, there were a lot of discouraging thoughts that we naively entertained, particularly those about our market already being saturated. But we refused to let go of our idea and pushed on! Indeed, you need to be stubborn and positive to get what you want in today's world full of “Naku, baka malugi ka. Buti pa ganito nalang.”

Market saturation in softdrinks business
 
But that's not to say that you just carry on without doing your homework. We pushed on with our plan because we studied the market and did some risk analysis. We started from an initial twenty thousand peso capital and grew the business steadily. Fast forward today, the business is still thriving, thanks to our commitment to grow our entrepreneurial spirit and the business.
 
Know your suppliers
This would have to be your very first step when you've finally decided that you really wanted to do this kind of business. Normally, big companies (such as San Miguel Brewery) only allow one direct dealer per town or municipality. So the first thing you should take a look at is if there's already an existing dealer for the brand in your place. There's a very slim chance that your area has no direct dealer of SMB yet, so if this is the case, then start as soon as you can! However, if there's already one, then that means you can only apply to become a sub-dealer of that particular brand. In short, instead of the mother company directly dealing with you, their dealer will accommodate you.

San Miguel warehouse

You also need to consider the terms of the supplier. Some are OK with mixing-up their products with other brands, while others are more strict and only want you to sell their products exclusively. From my personal experience, don't go into such terms, because you need to sell all brands available as possible. Customers would not want to buy Brand A from you and then go to another store to buy brand B (unless the price difference is really big). In addition, the terms of minimum purchase for delivery may vary. Some suppliers require a minimum of 30 cases for them to deliver, while others may require higher.

Price is King
As of this posting, here are the prevailing market price (range) of most of the common brands available (drum rolls):
 
Coca-Cola Philippines
Mismo (Coke/Royal/Sprite/Sarsi/Sparkle) - P108/pack (12)
Sakto - P112/case (24)
8oz. (Sprite/Royal) - P125/case (24)
Kasalo (Coke/Royal/Sprite) - P170/case (12)
Sparkle Mega - P152/case (12)
Sparkle 8oz. - P125/case (24)
Coke Litro - P224/case (12)
PET (1.5L Coke/Royal/Sprite) - P600/pack (12)
Wilkins 6L - P78/pc
 
Pepsi
Pepsi 8oz. - P112/case (24)
Mirinda - P118/case (24)
Mt. Dew 12oz. - P192/case (24)
7Up 12oz. - P192/case (24)
7Up 8oz. - P132/case (24)
Gatorade 8oz. - P210/case (24)
 
Asia Brewery
Cobra - P216/case (24)
Tanduay Ice - P480/case (24)
 
San Miguel Brewery
SMB Pale Pilsen - P590/case (24)
San Mig Light - P658/case (24)
San Mig Apple - P580/case (24)
Red Horse Beer - P410/case (12)
 
RC Cola
RC Cola 8oz. - P148/case (24)
RC Flavors 8oz. (Fruit Soda, Lemon, Rootbeer, Seetrus) - P148/case (24)
RC Mega (RC Cola, Fruit Soda, Lemon) - P220/case (12)

Please note that the prices stated here are NOT the SRP or the standard market price for each product. A plus/minus of five to ten pesos is advised.

Location
Your location, if not obvious, would play a crucial role in the set-up and success of your business. If you plan to have it in your own place, you need to consider at least two things:
  1. the storage area where you can stock at least 50 or more cases and
  2. free delivery
Since you're not strategically located on a commercial spot, offering free delivery is the way to go in order to boost your sales. You can do this in three ways:
  1. do it yourself, to limit your expenses to only gasoline and some other occasional maintenance fees for your vehicle (e.g. flat tires, welding, tune-up, etc.),
  2. hire someone or
  3. find a person willing to do business with you in a win-win scenario where he will do the selling and delivery and you'll give him discount. You earn, he earns. The only caveat for this set-up is that he may realize how huge the potential is if he decides to open up his own business instead of just getting the products from you.
Softdrinks Delivery

If you prefer to put up your store in a commercial area, you (most likely) won't need to offer free delivery services anymore. This is because of the high foot traffic that your business will get because it's what you paid for, in the first place. The disadvantages, on the other hand, are higher operational costs for your employees (since you can't do it alone), rental, water and electrical fees.
 
How much you'll need
You may plan to start small and then add more capital as you learn more about the business. You can even go to junkshops or closed stores to find empty cases and bottles that are relatively cheaper compared when you buy them at your distributor.

Currently, here's what you need to know about the cases: 
  • Small cases have 24 bottles each; where a case costs P42 while each small bottle costs P2. Therefore, 1 case with complete empty bottles would cost P42 + (24 x P2) = P90.
  • Big cases have 12 bottles each; where a case costs P52 while each big bottle costs P4. Therefore, 1 case with complete empty bottles would cost P52 + (12 x P4) = 100.
Now that you have an idea of the actual prices for each product, you may now decide on how much capital you'll be needing for you to start. To make it graphic, here's a sampler:

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Sample Computation 1
-----------------------------

*10 cases of RC Cola 8oz.

RC Cola:
P112 x 10 = P1,120

Deposit:
P90 x 10 = P900

TOTAL: P2,020

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Sample Computation 2
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*20 cases of assorted Coke/Royal/Sprite Kasalo

Kasalo:
P170 x 20 = P3,400

Deposit:
P100 x 20 = P2,000

TOTAL: P5,400

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Sample Computation 3
-----------------------------

*30 cases of Red Horse beer

Red Horse:
P405 x 30 = P12,150

Deposit:
P110 x 30 = P3,300

TOTAL: P15,450
 
Establish your market
Once you have your initial stocks, start letting the community know about your business. Make some calls to friends nearby who owns stores and ask if you can be their supplier. Check out your calendar and look for dates for known occasions such as fiestas. Prepare small business cards and a printed price list of your available products. Again, one of the advantages of being in a commercial area is that you don't have to do these things anymore. 

Establish your market
  
Dealing with Spoilage
One of the most common problem with this kind of business is spoilage. These are the products that no longer have sale value because of either breakage, expiry or manufacturing defects. You must also take note that products that are contained in plastic bottles have shorter shelf life (about 3 to 4 months from manufacturing) compared to those contained in glass bottles. Always check the expiry label in plastic bottles to ensure that you don't overstock. A product may have 4 months period before expiry date, but remember that they are not being delivered to you after production. Meaning, they are transferred or stored from the plant to the warehouse so by the time it reaches you, the product may only have 1 month shelf life!

Spoilage in softdrinks and beer

Dealing with Bottles and Cases
When it gets really hot, bottles have a higher tendency to break on their own even if it's just stacked or while in transit (I was not exempted, there was one time when I pulled a case upwards and one bottle broke, good thing I did not hurt myself). The solution is to simply store them in a location that is not exposed to sun light, or spray some water before being delivered to cool down the temperature (just advise your customers to wipe them upon delivery to prevent rusting on caps). Also, do not stock more than 5 cases.

How to store softdrinks cases
 
Promos and Marketing
Your customers are people - which makes it a no brainer to tell that giving them gifts will boost their loyalty to you. It's a simple way to show your appreciation for their patronage. A calendar, bottle opener, mug or umbrella are the common ones. You may also do a simple point-based reward system, where your customer gets a gift based on the sales you made on them (example 200-peso umbrella for Pedro and 50-peso mug for Jose). Make sure to announce the mechanics to them in order to avoid jealousy and misunderstandings. 

Monitor growth of business
 
You can also partner with existing establishments such as carinderias, sari-sari stores, canteens, bars, food stands and bakeries to expand your market. Reward them with special pricing or discounts for bulk orders.

Take care of your customers
It takes months to establish a solid relationship and only one late or failed delivery to ruin everything. This is fairly true especially when your competition in the area is tight. Customers tend to have this "privileged" attitude that they feel they can replace you anytime with other suppliers.

Save their contact numbers both in your phone and a notebook. In case your phone is lost or gets corrupted, you can easily inform them of your new phone number via call or text. Want more tip? Ask for their birthday and have them marked on your calendar. A simple text or call will surely be appreciated. You may also give them a simple gift if you wish.

Customer service sari-sari store
 
Register your business
Regardless if your business is in a commercial area or in your own place, registering your business is still a responsibility. The usual checklist would include:
  • Brgy. Business Permit
  • DTI Registration (valid for 5 years)
  • BIR Registration
  • Mayor's Permit
Business Permit  - Softdrinks business

Monitor your growth
Lastly, you need to monitor how your business is performing. Are you actually earning or just having enough to cover-up your expenses? One good way to do this is to have a simple spreadsheet (Excel) to list down all your expenses in a day or month, and your sales.
 
You can also use this to list down all your existing customers, their contact details and the last date when he or she placed an order so you can always get back on them. For example, if a customer has not been placing orders for over a month, then you can ask them why to find out. Did they replaced you as their supplier because someone offered them lower prices compared to yours? Or did their business closed? At least you would know and this could help you strategize.

Monitor growth of business

On taking profits
Much like a sari-sari store, your earnings from being a softdrinks and/or beer sub-dealer would only range between 2 to 20 pesos per case. Again, that's per case and NOT per bottle. So the number of sales is really the key to earning more. For example, if the profit per case of Red Horse beer is just P4, yet you're able to sell at least 50 cases per day, then that's 200 pesos profit per day for Red Horse alone!
 
You can take the profit in your business with the approach you want best for you. But here's my advise: NEVER TAKE PROFIT ON THE FIRST YEAR OF YOUR BUSINESS. When we started, we agreed that we will only take profits after the first year of the business. Meaning, all the earnings were rolled over on the business so we can grow it.

How to get net profit from business
 
When you're ready to earn the fruits of your hardwork, you can apply the Rule of 10 (meaning, you just get the 10% of the sales for each day as your profit), or you can save a fixed amount each day. You can also apply what we do in our business: we only get 50% of the net earnings. The remaining 50% is further divided into two: 20% is rolled over and 30% is saved on a local bank only to be used for future or major expenses (such as buying new delivery trike, store construction, etc.)

Contact Details
Are you excited to start but have no clue where to start? You can try asking stall or mini-grocery owners about the contact number of the agents that roam around your area. If you can't, then you may try contacting them directly. How?

Here's a little bonus. I'm listing all active contact details for each of the major distributors. From the headquarters, you'll probably be transferred to the nearest agent or warehouse in your area. Just be patient as some response takes a day or two. Note that the information posted herein are all publicly available on their respective websites and I do not guarantee that everything is active and working:

Coca-Cola Philippines
Tel: (02) 834-0526
Mobile: 0923-845-5930
Web: https://www.coca-colafemsa.com/contact.html

Pepsi-Cola Products Philippines, Inc.
Tel: (02) 88PEPSI
Web: https://www.pepsiphilippines.com/contact.php

RC Cola
Tel: (02) 712-0941
Web: http://www.arc.com.ph/contact.html

San Miguel
Tel: (02) 632-BEER
Mobile: 0922-632-2337
Web: http://www.sanmiguelbrewery.com.ph/contact-us.php

Emperador, Inc.
Tel: (632) 421-0671
Web: http://www.emperadorbrandy.com/contact.html

Your Turn
How was it? Did you find these tips helpful? If you're running this kind of business as well, please share your ideas and experiences on the comments section so other people can learn from you as well.

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69 comments :

  1. Ang galing naman po! Very detailed and informative. Thank you and GBU!

    ReplyDelete
    Replies
    1. Sir nag dealer po aq softdrink . Mbabagsakan nyo po b kmi ng coca cola.

      Delete
  2. Ito matagal ko na gusto simulant eh no idea nga lang. tnx!!

    ReplyDelete
  3. ok n pu ba mga 40k ang capital?

    ReplyDelete
  4. Vangie MacaspacDecember 06, 2017

    ok po na business ito meron kami nagstart kami coke products lang then nagdagdag kami ng alak kasi mabenta sya. ung ahente nila mismo nagpunta sa pwesto namin. matrabaho na negosyo pero ok ang kita basta masipag po.

    ReplyDelete
  5. Reziel DetorresDecember 07, 2017

    interested po aq. salamat at nagka-idea

    ReplyDelete
  6. Annabel AquinoDecember 10, 2017

    Just wow! What a detailed guide on what I needed to know! Sana lang di matuloy ang sugar tax. :(

    ReplyDelete
  7. Romex BaladadDecember 11, 2017

    mga ilan po kaya ang minimum na dami ng order para makapagsimula?

    ReplyDelete
    Replies
    1. wala naman po dipindi lang sa kung magkanu ang kaya ng budget mu kami nagistart lang sa 30 case mix tapus dagdag nalang paunti unti

      Delete
  8. Arjay CampasoDecember 18, 2017

    Okay sana business ito kaso may dagdag sa tax. haaaay

    ReplyDelete
    Replies
    1. hi, may tindahan yung mama ko. yung namimili ng soft drinks noon at ngayon the same lang, hindi naman daw na apektuhan ng pag taas ng presyu ang benta nila. Pag tag init malakas, pag tag ulan mahina. yun lang daw nakaka apektu.

      Delete
  9. Thanks for these brilliant ideas...Merry christmas po!

    ReplyDelete
    Replies
    1. Thanks for reading! Merry Christmas and Happy New Year! ^_^

      Delete
  10. Katuwa nman mdmi p dng mga generous n tao s mundo. Thank u very much for sharing. Una kong naencounter tong page n eto nung ngssmula ako s stock market at upon searching for ideas ng softdrink dealership again meron dn pla sya nathrill ako ksi for sure detailed at well explained ito at hndi nga ako ngakamli.Good karma will definitely hit u back, again thanks a lot for sharing!

    ReplyDelete
    Replies
    1. Wow! Salamat po ng marami, nakaka-sipag lalo pag ganyan. :P

      The very first article of this blog was about investing in stocks (way back 2014 pa!), so thank you for checking back. Please subscribe (if you haven't yet) to this blog for updates, especially when a new article is out. Just click this link po:

      http://feedburner.google.com/fb/a/mailverify?uri=PisoAndBeyond&loc=en_US

      Thank you and Good Luck to you and your future plans!

      Cheers! ^_^

      Delete
  11. Thanks for the info!!! This will be my guide for my bness

    ReplyDelete
  12. I need softdrinks dealer along brgy don bosco paranaque thanks.

    ReplyDelete
  13. Elmo RondinaFebruary 22, 2018

    Hi sana po ma-update ang prices. thank you!

    ReplyDelete
  14. paano po yung taxation.... non vat ako and vat ang mga suppliers... 3% po monthly ko what if 200 yung srp ng softdrinks and income ko is 9 pesos discount as a wholesaler including na po sa 200... diba 3 percent po is 6 pesos. so income ko per case is 3 pesos lang?

    ReplyDelete
    Replies
    1. kung distributor po kayo ng softdrinks, dapat po vatable po kayo... madali na po kasi ma.check ng bir ngayon thru TIN numbers.. kapag may mga inggetera sa inyo at pina.check record nyo sa bir, malaki po multa ninyo lalo na kung malakihan ang purchase ninyo direct from softdrinks company.

      Delete
  15. Thank you sir Jeff

    ReplyDelete
  16. My nkita qng nagbbenta mga bote ng sofdrinks. Mgnda pa cmula.slamat dito

    ReplyDelete
    Replies
    1. Welcome po! Good luck sa business ninyo. ^_^

      Delete
    2. may updated pricelist po kayo?

      Delete
  17. hello sir jeff. ask ko lang po kung sa 30 case na minimum na delivery. pwede po ba assorted or isang brand lang po ??

    ReplyDelete
    Replies
    1. Depende po yun sa dealer/distributor. Normally pwede naman assorted.

      Delete
  18. i had a bad experienced with the dealer in our area, gusto ko sana kumuha sa ibang dealer pero ayaw kami bigyan dahil inaaway daw sila ng dealer na sumasakop sa area namin. Paano po kaya yung ganun? It's like I have no choice kundi manatili sa kanila kumuha.

    ReplyDelete
  19. baka po gusto nyo may binebenta ako empty bottles with case

    Coke 8oz, 12oz, kasalo
    Sprite 8oz, 12oz
    Pop cola
    RC litro
    Cobra
    Red horse litro
    Red horse 500ml
    San Mig Light
    Pilsen

    RFS magsasarado na po store namin
    09175498941

    ReplyDelete
    Replies
    1. AnonymousMay 06, 2018

      location nyo po Sir?

      Delete
  20. good day po mrn kyo alam na supplier ng imported n alak? balak ko po kse mag open ng small liquor shop thanks po

    ReplyDelete
    Replies
    1. Hello,

      You may ask directly po sa office ng brands na gusto ninyo and they will refer you sa sales office or agents nila.

      Good Luck!

      Delete
  21. Helo guys. Sino po may alam na dealer sa bataan area. Willing magdeliver sa limay, bataan. Please message me through email: penoliarjeffrey@gmail.com

    Or search me in facebook.

    ReplyDelete
  22. Panalo to! Nkausap n po ng aswa k amg taga coca cola since ofw po ako. Tama po b n ang babayaran lng namin ang bote or prang mglagay kmi ng amount don as a deposit at dna namin kelangan ang kapital tapos once n ayaw n nmin ibalik nman dw ang pera b dineposit namin s knila? Thank u in advance s reply kc malayo po ako eh kaya gusto klang e clarify kung merong tlagang ganun.

    ReplyDelete
    Replies
    1. Salamat po! ^_^

      Yes po or ibenta nyo sa ibang dealers.

      Good Luck!

      Delete
  23. How much po need na capital??thank you po..

    ReplyDelete
    Replies
    1. Multiply nyo lang po ang price per case sa dami ng inventory na gusto nyo.

      Delete
    2. Puede po bang bumili n product na nais directly sa main supplier. Applicable pa ba yung buy 10 cases and get extra case free.

      Delete
  24. Ecila SantosJune 29, 2018

    Sana meron akong ma contact na dealer ditto sa pulilan bulacan gusto ko kasing magbusiness nyan nuon pa dahil walang gaanung supplier ditto

    ReplyDelete
  25. thank you for sharing! very informative and helpful.

    ReplyDelete
  26. AnonymousJuly 02, 2018

    Wow!ang sarap basahin,hindi lang basa ang ginawa ko cnulat ko pa dahil interisado ako sa business na'ito,ang galing nang pagka explained papasok agad sa brain mo,salamat ng marami

    ReplyDelete
  27. Thank you so idea...😂

    ReplyDelete
  28. Hi po goodmorning. Gusto ko lang po sana magtanong kung my idea po ba kayo kung meron or kung saan ang dealer ng softdrinks and beer sa oriental mindoro, gusto ko po sana kasi n maging subdealer doon samin pinamalayan oriental mindoro po...maraming salamat po. Godbless

    ReplyDelete
  29. Thank you po very informative. Plan di namin ito baka may nkakaalam ng dealer sa taal o halang batangas. 🤔09124132470 contact me. TIA!

    ReplyDelete
  30. Thank you sa idea sir. It helps a lot

    ReplyDelete
  31. Good morning po may pwede po ba kayong i refer na dealer dito sa amin. Pangit po kasi service ng dealer ko ngayon. Batasan quezon city po location ko

    ReplyDelete
  32. Good day sir jeffrey Im so lucky I found this article. I am now considering this business since last week I hope I can talk to you more about this. Ive been a public school teacher for almost 12 years now at gusto ko nrin pong magkaroon ng extra.

    ReplyDelete
    Replies
    1. Thank you! You can email me. Just be specific with your questions po.

      Delete
  33. Good morning sir / ma'am, maari po bang malaman ang bentahan ng mga softdrinks at beer ngayon. Per case po ng coca-cola products; litro, kasalo, 8oz, mismo, sparkle big at small.
    San Miguel Brewery; RH500ml, RHlitro, RHstallion, San Mig Light, Flavoured Beer at pale pilsen.
    Pepsi cola; pepsi litro, pepsi&mountain dew 750ml, mountain dew 12oz, pepsi&mountain dew 8oz, sting, gatorade(BB), at tropicana. Uumpisahan ko na po kasi ang business na ito dito sa lugar namin. God Bless po...

    ReplyDelete
    Replies
    1. Hello Sir,

      Actually, most of the price in this post is updated already, reflecting TRAIN Law. However, I can't give you the exact cost due to the following reason:

      Price varies from one location to another. Yes, even if the same product was produced by Coke, for example, the price is different in Manila with that in Cebu, etc.

      What you can do is directly research the supplier in your area and contact them.

      Good Luck :)

      Delete
  34. interested po ako! ito na po hinihintay ko pero now kaka open ko lang. . pero mas mura dito gusto kona itry po ito!

    ReplyDelete
    Replies
    1. pangalan po ng stor namin atet and peng!

      Delete
    2. ito po mobile 09755553783 pls po need ko po kayo para sa kinabukasan ko! atat na po ako! salamat!

      Delete
  35. hi po magstart po ako ng business as dealership manila area po saan po ako makakuha ng supplier?

    ReplyDelete
  36. pa advice po baka my kilala kayo supplier sa cabuyao laguna? balak ko mag start ng business na ito. salamat sa tutulong.

    ReplyDelete
  37. Need idea for business coke ask kolang po how much ang ompisa..

    ReplyDelete
  38. Greetings po! Pepsi distribution po yung business namin and I found your article helpful though di nyo lang po yung tips for monitoring po especially ng empties... baka meron po kayong program or ms excel na efficient recording for empties para po madali ma.monitor yung breakage, b.o, borrowed, returned at yung may mga deposit. Thank you po for any kind assistance. God Bless.

    ReplyDelete
  39. Magkano po ba ang dapat starting capital? wala po bang requirement ang brand kung magkano dapat ang Initial investment?

    ReplyDelete
  40. May store po kami at balak ko rin mag put up nitong business dito rin kung saan ang store namin. . Need ko pa rin ba kumuha ng mga permit separate sa business permit ng store namin? Thanks in advance for your reply.

    ReplyDelete
  41. hi sir, well explained po, ask ko lang po sana kung nsa 5 lang po ba ang kita per case? or magkano po? inaaral po kasi namin kung pano at pano ang magiging kita namin. salamat po.

    ReplyDelete
  42. Sir bka po may referal kayo pede ko pagkunan ng product, planning to be a sub dealèr

    ReplyDelete
  43. Located po ako sa north calóocan, near kiko market

    ReplyDelete
  44. how much po starting capital when you start thias business?

    ReplyDelete

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