As a Distributor, there is profit margin given by the principal. For example 24 cans of the drinks cost 10 dollars and the selling price to retailers is 12 dollars. Besides that normally there is Marketing Budget from the pricipal to the distributors in order to increase the sales. If BAB's management really good in negotiation, the stocks from principal is normally consigment. BAB's only have to come out a bank guarantee on those stocks.