We have a second meeting with a large distributor in Texas in the next few weeks and are seeking some advice as to dealing with distributors, contracts, ect...
I have seen in previous postings that mark-ups vary wildly from state to state. Does anyone know the typical mark-up by the distributor and by the retailer here in Texas?
After perfecting our recipes, we anticipate being ready for full production at the end of September when we receive our bottling line. Assuming that the distributor will take us that close to the holiday season, should we execute a contract (if offered) prior to receiving the bottling line or should we wait until we have the actual production capacity?
In terms of a contract, what type of terms should we expect from the distributor? Also, what terms do you wish you had negotiated (and reasonably expected the distributor would have accepted)?
In terms of logistics, do you have the distributor pick-up the product at your facility or do you have to arrange transport to the distributor? If you have to arrange distribution, what type of carrier do you need? I know in Texas that you need a permit from TABC to transport alcohol, but what type of carrier?
Also, if anyone is willing to share their lessons learned from distributors, particularly from Texas, I would really appreciate the advice.
Thanks!