Drinks Americas Holdings, Ltd. (DKAM)

[FUNMAN]

Kezzek, it doesn't affect a distributor's delivery cost if they deliver 2 cases or 10 or 100.

The variable cost to load or unload it is all that would matter. Warehouse guys that would assemble an individual retailer's order on a pallet would not be affected by including 2 cases or 10 in the order.

Whether the delivery trucks are loaded with pallets by forklifts for individual retailers or just loaded on the trucks by hand, the only cost that matters is the total cost to the distributor to delivery that total load to each retailer.

"If" 50 distributors order 5000 12-packs per month, that's 3,000,000 12-packs. DKAM's "GROSS" profit on that is probably between $1 - $2 per 12-pack ... $2 for the brewer ... $2 for the distributor ... $2 for the retailer.

So my only real interests right now are knowing how many current distributors are reordering, and how many 12-packs per month each distributor is reordering.

I have no idea if all of the various types of retailers have slotting fees.



Posted by:

kezzek Monday, January 10, 2011 10:44:49 AM
Re: FUNMAN818 post# 54865 Post # of 54953

This may explain the negative gross margins too. Distributing 12 or fewer 12 packs to a store is probably rather costly.

Does anyone know if beer stores do/are permitted to charge slotting fees for new products? That's another potential drain.