30Sec Milk™ is a gold mine for entrepreneurs who will build a link between dairy farms and retailers/consumers in their regions.
There are several business models that you might consider as a Business Licensee of 30Sec Milk™. Each of these models assumes that you will become a 30Sec Milk™ business licensed partner, buy our Business License that includes four basic 30Sec Milk™ units and install and exploit them at dairy farms at your expense.
Your basic business models are:
- Wholesalers. This model assumes that you install 30Sec Milk™ machines at farm(s), pay farmers for the milk, and let wholesalers pick up 30Sec Milk™ from farms(s) every day. Your margin is the difference between your cost (price of milk that you pay to the farm plus royalties and other costs associated with 30Sec Milk™ license) and the price that you get from the wholesaler. The beauty of this model is that you don’t have to worry about logistics and your entry cost is the lowest of all other models. The downside of this model is that you will have lower margin compared to other models.
- Distributors. This model assumes that you deliver 30Sec Milk™ from farms to local distributors who supply milk to retailers, restaurants, hotels, etc. In this model, you wil have extra cost of logistics, but probably no extra benefits in the form of higher prices compared to Wholesaler model. The reality, however, is that most POS are supplied from 2-3 distribution sources and have you as an extra supplier of just one product will be a headache for them. So, you may have to work with distributors however unpleasant it may look.
- Retailers. You arrange delivery of 30Sec Milk™packages from farm(s) directly to retailers. Your benefit is that retailers love 30Sec Milk™ because it lets them earn money on milk as product category. Yes, you got it right – industrial milk is a basic consumption item. It attracts customers to shops and thus retailers prefer to sell it at cost. 30Sec Milk™ is a premium product that let retailers earn some margin on it. The major problem will be to make retailers deal directly with you, because they prefer to deal with as few suppliers as possible.
- Consumers. You reach your end consumers directly. Use your imagination to do it: from vending machines in appropriate places like residential areas, shopping centers and bakeries to direct delivery to your clients’ doorsteps.
Use your imagination to create new tools and hints to reach your customers within each of these models. It is your entrepreneurial spirit and experience that will bring you to success. 30Sec Milk™ brand and technology is just a rod in your hands. The size and type of fish as well as the way you hunt it are in your hands and brains.
Please, do your homework before you decide to become our licensed business partnerand chose your business model. It means:
- Visit points of sale (POS) where you expect consumers would buy 30Sec Milk™. It could be retailers who would buy 30Sec Milk™ in wholesale volumes and then resell it to end consumers. Or it could be places where you would install a vending machine to sell 30Sec Milk directly to consumers (bakeries and deli shops could be a nice selection). Talk to the management and find out if they would let 30Sec Milk™ into their POS and on what terms.
- Go to farmers and talk to them. Ask how much processing companies pay them for bulk milk now. Offer them a better price for packaged 30Sec Milk™ and promise free 30Sec Milk™ machines, packages, and maintenance. Be patient and ready to do it on a trial basis first because farmers can be quite conservative and often prefer to stick to traditional methods of production.
- Select logistics mode. Once you made a deal with points of sale and farmers, think how you would deliver 30Sec Milk™ from farms to POS and reach the consumers there. Remember that you will need a cool chain on the whole route from a cow to the moment when a consumer picks up a 30Sec Milk™ package from a shelf. Transportation part is the key element of this chain. You may select to have your own refrigeration truck (that would drive up both your capital and current cost) or to contract an outside company for pickup and delivery.
- Make financial projections. Download your financial projections model here. Read instructions carefully. Insert results of your research (prices, costs, etc.) into the model and see how attractive it is for your future business. Consider other business models – not just the one that you planned to develop – and play with variables in the model to get to the optimal option.
- Contact 30 Sec Milk™ representatives and ask for your Business Licensing agreement offer. Business licensing agreements are standard for all our licensing and may differ only in the number of 30Sec Milk™ machines that will be included into the agreement.