If you don’t know where you want to go, any bus will get you there!
An emerging distiller and client was exploring the possibility of expanding to Georgia. They had been offered an opportunity to gain quick access to a beer wholesaler’s craft spirits sales group. It sounded too good to be true — because it was!
How Aged Whiskey Man helped
I referred to their five-year business plan. Georgia was not in their initial plan for rollout markets. I asked about product inventory and which markets would be slashed to accommodate this order. Should they ignore their previous commitments?
Georgia is also a franchise market, meaning once a wholesaler is chosen, you are legally obligated to continue this commitment unless the wholesaler determines they want to end the relationship. This wholesaler only operated in certain counties around Atlanta and would not provide statewide coverage.
The wholesaler suggested specific pricing that was lower than the strategic plan’s guidelines. I constructed price structures to illustrate the impact on their profitability. It was significantly lower. Could they afford this?
“Well, we hadn’t thought about all that.”
They chose to decline this invitation and stayed true to their original plan. As a result, they have enjoyed a successful introduction in their home market. They are now working with a wholesaler with national distribution capabilities. They are on plan!
Opportunity had knocked, but it wasn’t the right opportunity.