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JoshGreenDoor

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Posts posted by JoshGreenDoor

  1. Hey All!

    We're working on our First ADA distributor contract. An ADA in Michigan is an Authorized Distribution Agent. They are the only people we can sell to and use to distribute our product. This particular ADA also functions as a broker and helps sell / promote the product. That is while you'll see those numbers split out. 

    As we navigate this, we'd love some feedback and are willing to share some numbers to benefit the whole.

    As an ADA -Michigan’s term for an Authorized Distribution Agent ie.. Distributor 
    Delivery Charge                            $10.00 per case ($7.50 paid to supplier by the MLCC with supplier paying an additional $2.50 to ADA
    Monthly Storage Fee                        $0.20 per case per Month (For product older than 90 days)
    Special Handling Charge                    $0.75 per case (i.e. handling, repackaging, labeling, coding, returns)
     
    As a Broker
    Commission - 10% per 9L(12 btl) case. 
    Bonus of - 5% per 9L case above X volume. 

    I see the ADA Fee's being in the right ballpark, but maybe a little high.

    As for Broker Fee's, It seems high. Is anyone else seeing this high of a fee?

  2. This topic hits hard. Its very frustrating having so many people committed to being a Distillery, and producing their own product. And at the same time, so many money driven corporations and said "craft distilleries" buying bulk whiskeys, and hiding the facts.

    They make every attempt to hide the truth, and put the bare minimum on the product.

    I would say from my experience being a millennial, is that even most millennials have no idea this "smoke and mirrors" is happening. Even if they read the label, they don't truly understand the difference.

    My $0.02

    Cheers

    Josh

  3. Teton, Congrats on your success.

    We started with all friends and family, and are working closely with our local credit unions now.

    For our expansion planned in year 3, so far the credit unions/banks will loan the necessary money as long as our books are kept and we're showing growth and profit..

    Obviously we're not there yet, but I'd encourage you to look into Credit Unions. They seem to be willing to help small businesses and take larger risks.

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