How to Become a Licensed Jack Daniels Distributor

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To purchase wholesale, and then resell at a retail price, any licensed product, it is not always necessary to become a licensed distributor. In the case of distributing liquor, such as Jack Daniel's, there are state, and sometimes county and local regulations. A liquor license needs to be obtained through state or county licensing, which includes a background check of the applicant. A place of business will also be required, since a liquor license is granted to a location, as well as a person. To purchase large amounts of liquor to resell, check your own state's official website for any liquor sales and purchase requirements. In the case of general merchandise, it can be found wholesale through suppliers, usually found online. These suppliers sell case lots of merchandise at a low price, which a distributor then resells for a profit. These products can be sold for retail price in a shop or outdoor market, such as county or local fairs, festivals and flea markets. They may also be sold at a lower price, in bulk, to another person or shop that will in turn sell them at retail. This is known as sub-wholesaling a product. The profit per item is lower, but the sale is for a larger quantity, such as half or full dozen, and priced accordingly. Distributors have multiple sales options for their products, and pricing can be flexible, so long as a profit margin is there. Dealing directly with the manufacturer of the merchandise can get the distributor an even lower price, but generally will require a much larger purchase, such as truckloads or pallets. Depending on the financing and storage capacity, the larger the quantity purchased, the greater the profit margin will be.

Things You'll Need

  • Computer with internet access
  • Business cards
  • Sales tax license
  • A business license
  • Work/warehouse space
  • Search for product suppliers, usually online, that will supply wholesale lots to be resold. Find the best pricing for the amount to be ordered. Specific Jack Daniel's questions can be asked at the official Jack Daniel's website, jackdaniels.com.

  • Determine the resale strategy, or strategies, to be employed. Will the products be sold in quantity to other dealers or sold by the dozen to local small businesses? Local flea markets or swap meets are good starting points. In the event of liquor sales, the state where the sales are made will have regulations on how and where sales can be made. Research these rules on you state's official website, since it varies from state to state.

  • Get a business license at your county clerk office, generally housed in the county courthouse. This form will be known as a D.B.A. or Doing Business As form, and the fee is usually less than $25 for a five-year permit.

  • File for a state sales tax license on your state's official website. You will need to collect and pay your state's sales tax on all sales to the end user, or consumer. Keep records of all sales made to determine taxes owed. When selling sub-wholesale to others, record their sales tax license number, to show on your tax records the products that were sold to others who will collect tax from end users. These sales you do not collect the tax on; your client does.

  • Write a business plan, stating what will be done and when, to increase business and expand. The Small Business Administration can help with this. A business plan is needed to seek funding, as well as to keep the business on the right track to move forward.

  • Order your merchandise and put the sales plan into action. Print, or have printed, business cards detailing what your company does and offers. Set up a website and put the web address on the cards as well. Hand them out to any and all sellers and customers you may find.

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  • Photo Credit paper clip image by Willee Cole from Fotolia.com
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