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March, 2024

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How does Redbull make their money

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supersquid
Posts: 1430 - Karma: 2,545
So me and my friends were discussing this after seeing a redbull commercial on t.v. It was god awful and we did not see it as appealing toi the extreme sports atheletes. I also work concessions sometimes at my local motocross races and always have redbull for sale but no one ever buys it. How aften do you guys buy it or see others buy it? Im sure they sell a bunch of it but with all of the different sports they are in and all of the events they sponsor. The amount of money they spend on it im sure is mind bogling. Maybe they have a farher reach in other countries but with my experience i do not see it as a huge money making buisness. Let me know what you guys think,
Mar 17 2016 10:37PM
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Lt-Aldo-Raine
Posts: 2309 - Karma: 120
Lots and lots of jagerbombs.
Mar 17 2016 10:39PM
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supersquid
Posts: 1430 - Karma: 2,545
Lt-Aldo-RaineLots and lots of jagerbombs.


that is a possibility but i always see people use monster or rockstar when they drink because its cheaper
Mar 17 2016 10:41PM
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1337
Posts: 31038 - Karma: 29,003
jmellberg800that is a possibility but i always see people use monster or rockstar when they drink because its cheaper


The very, very, very narrow section of the market you witness in your day to day life doesn't necessarily reflect on the market as a whole. Ex. I can walk into any grocery store, gas station, and food vendor pretty much anywhere in New England and 99/100 times find Red Bull.

But yeah, those guys have more money than god, and I'm assuming their success comes from good sales. The power of their brand and marketing allows them to be THE energy drink that stores stock, and that people buy.
Mar 17 2016 10:54PM
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mike759
Posts: 872 - Karma: 1,949
They probably make a majority of their money running events
Mar 17 2016 11:15PM
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Mingg
Posts: 13936 - Karma: 48,464
Slave labor
Mar 17 2016 11:18PM
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russsavokskis
Posts: 699 - Karma: 1,264
All I drink is red bull fuck water and monster
Mar 17 2016 11:37PM
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000000000000
Posts: 843 - Karma: 1,552
They charge almost $5 for a 20 oz some places, takes less sales to drive profit. It is the maker's mark of energy drinks. Appeals to small scale luxury purchases.
Mar 18 2016 12:19AM
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HenriksDreads
Posts: 332 - Karma: 327
1337The very, very, very narrow section of the market you witness in your day to day life doesn't necessarily reflect on the market as a whole. Ex. I can walk into any grocery store, gas station, and food vendor pretty much anywhere in New England and 99/100 times find Red Bull.

But yeah, those guys have more money than god, and I'm assuming their success comes from good sales. The power of their brand and marketing allows them to be THE energy drink that stores stock, and that people buy.


i work at my local mall and so i see a lot of the same employees from various stores every day. i can confidently say i see more people drinking red bull than any other energy drink. the only more popular 'energy drink' i see is coffee

CheeFThey charge almost $5 for a 20 oz some places, takes less sales to drive profit. It is the maker's mark of energy drinks. Appeals to small scale luxury purchases.


i've gotten into the habit of buying cases. i go to BJ's (like costco) and buy the case of 8 oz ones for $40. comes out to about $1.50 a can, and that sure beats buying one for $5 at the gas station every day, which is what i used to do
Mar 18 2016 1:41AM
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S.J.W
Posts: 7609 - Karma: 31,182
Don't quote me on anything.

But if I remember correctly manufacturing red bull costs like 30 cents. They sell a standard 250ml can for for four bucks. That's pretty much $3.70 profit per can. Give or take a few bucks depending on where you live. Red bull is sold in pretty much every country. Imagine having around 4 billion people in the world consuming your product (roughly). Red Bull last year made 6.5 billion in sales. The numbers really aren't that shocking when you think about how many people have access to red bull. And how much profit they make on each can.
Mar 18 2016 1:42AM
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Bamjam
Posts: 200 - Karma: 129
Red bull has sticks their money dicks in everything.

And they sell more than you probably think. I have a buddy that knocks out a couple redbulls a day. That's nast if you ask me.
Mar 18 2016 2:21AM
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onenerdykid
Posts: 6638 - Karma: 10,532
CheeFThey charge almost $5 for a 20 oz some places, takes less sales to drive profit.


Abu-BaghdadiDon't quote me on anything.

But if I remember correctly manufacturing red bull costs like 30 cents. They sell a standard 250ml can for for four bucks. That's pretty much $3.70 profit per can. Give or take a few bucks depending on where you live. Red bull is sold in pretty much every country. Imagine having around 4 billion people in the world consuming your product (roughly). Red Bull last year made 6.5 billion in sales. The numbers really aren't that shocking when you think about how many people have access to red bull. And how much profit they make on each can.


You guys have to remember that Redbull isn't making $5 when a gas station charges $5. Redbull isn't selling direct to consumer, they make their money on a wholesale business model (just like anything else you buy at retail that isn't the store's brand). Redbull (total hypothetical cost here) sells their drink for $1 to the gas station who then marks up to $5 because of their profit goals, cost of rent, taxes, fees for being on a highway, etc. Redbull is making their insane amount of money of that $1, not the $5 retail price paid at the gas station.
Mar 18 2016 5:04AM
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S.J.W
Posts: 7609 - Karma: 31,182
onenerdykidYou guys have to remember that Redbull isn't making $5 when a gas station charges $5. Redbull isn't selling direct to consumer, they make their money on a wholesale business model (just like anything else you buy at retail that isn't the store's brand). Redbull (total hypothetical cost here) sells their drink for $1 to the gas station who then marks up to $5 because of their profit goals, cost of rent, taxes, fees for being on a highway, etc. Redbull is making their insane amount of money of that $1, not the $5 retail price paid at the gas station.


yeah true. Thought something was abit off about my post
Mar 18 2016 5:06AM
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onenerdykid
Posts: 6638 - Karma: 10,532
1337The very, very, very narrow section of the market you witness in your day to day life doesn't necessarily reflect on the market as a whole. Ex. I can walk into any grocery store, gas station, and food vendor pretty much anywhere in New England and 99/100 times find Red Bull.

But yeah, those guys have more money than god, and I'm assuming their success comes from good sales. The power of their brand and marketing allows them to be THE energy drink that stores stock, and that people buy.


This. A brand like Redbull has an insane huge global distribution. They dominate Europe, North America, and Asia. Monster and Rockstar are primarily North American phenomenons. You for sure will see them in spots where Redbull is not mainly because of some distribution war that is going on behind the scenes at the wholesale level.

When your business has that kind of distribution (think of it like a door count, i.e. how many individual retailers sell it) and each door has a high turn rate (lots of sales followed by re-orders), you are literally printing money. This is how they are able to sponsor the world's best athletes (in every sport), invent crazy sporting events, and sponsor an elite F-1 team just for kicks.
Mar 18 2016 5:18AM
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theabortionator
Posts: 51260 - Karma: 157,382
Well If know one buys any in the next week at your track theyll probably go out of business.

But seriously, is this a real question?
Mar 18 2016 6:29AM
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Jaggy_Snake
Posts: 2287 - Karma: 1,418
onenerdykid...and sponsor an elite F-1 team just for kicks.


Dietrich Mateschitz is a huge fan of F1, so it's almost inevitable that he has 2 teams running in F1.
Mar 18 2016 7:06AM
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skierman
Posts: 8063 - Karma: 4,781
They make money because a lot of truckers need an extra boost when they want to fuck a greasy walker of the night.
Mar 18 2016 12:28PM
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arnie_grape
Posts: 3429 - Karma: 11,383
onenerdykidYou guys have to remember that Redbull isn't making $5 when a gas station charges $5. Redbull isn't selling direct to consumer, they make their money on a wholesale business model (just like anything else you buy at retail that isn't the store's brand). Redbull (total hypothetical cost here) sells their drink for $1 to the gas station who then marks up to $5 because of their profit goals, cost of rent, taxes, fees for being on a highway, etc. Redbull is making their insane amount of money of that $1, not the $5 retail price paid at the gas station.


yeah but howcome a 250ml can of redbull is always the same price as a 500ml can of rockstar or monster?
Mar 18 2016 3:10PM
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Mingg
Posts: 13936 - Karma: 48,464
GORILLAWALLACEyeah but howcome a 250ml can of redbull is always the same price as a 500ml can of rockstar or monster?


Because of the way they are marked up. If people will pay the same amount for a 250ml can of redbull as they would a 500ml can of anything else, then the seller charges more to make more money. It is basic supply and demand...
Mar 18 2016 3:19PM
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MLB
Posts: 4462 - Karma: 298
Actually they have some of the best marketing on the planet. They are one of the only brands in the world that don't actually have to worry about product. They could have Red Bull branded dog shit and it would sell like hot cakes.

They know their target age group, target market and they hit it HARD. Think red-bull athlete helmets in so many different sports, formula 1 cars, their own film company, event sponsorship, etc....

They make all of their money based solely off of the fact that their product is cool, and they spend a shit ton of money to keep it cool.
Mar 18 2016 3:29PM
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arnie_grape
Posts: 3429 - Karma: 11,383
MinggBecause of the way they are marked up. If people will pay the same amount for a 250ml can of redbull as they would a 500ml can of anything else, then the seller charges more to make more money. It is basic supply and demand...


I'm not sure about that. every single gas station, grocery store and convenience store I've ever been into has them priced the same or higher. I think if they were actually cheaper than monster and rockstar wholesale than small independent stores would sell them cheaper. never seen a small can of redbull for less than $3.
Mar 18 2016 3:54PM
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Bodhisattva_
Posts: 5749 - Karma: 2,009
CheeFThey charge almost $5 for a 20 oz some places, takes less sales to drive profit. It is the maker's mark of energy drinks. Appeals to small scale luxury purchases.


Makers Mark is luxurious? Lol
Mar 18 2016 4:11PM
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KravtZ
Posts: 6637 - Karma: 2,629
They sell small cans of crap liquid at a ridiculous markup...did you really need to ask this question?
Mar 18 2016 4:26PM
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000000000000
Posts: 843 - Karma: 1,552
onenerdykidYou guys have to remember that Redbull isn't making $5 when a gas station charges $5. Redbull isn't selling direct to consumer, they make their money on a wholesale business model (just like anything else you buy at retail that isn't the store's brand). Redbull (total hypothetical cost here) sells their drink for $1 to the gas station who then marks up to $5 because of their profit goals, cost of rent, taxes, fees for being on a highway, etc. Redbull is making their insane amount of money of that $1, not the $5 retail price paid at the gas station.


True, but the competitors such as monster and rockstar are way cheaper by comparison. Even at direct wholesale, redbull is a more expensive product referencing similar products.
Mar 18 2016 7:09PM
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000000000000
Posts: 843 - Karma: 1,552
Bodhisattva_Makers Mark is luxurious? Lol


I was thinking of Maker's Mark vs Evan Williams price. Maker's Mark is disgusting
Mar 18 2016 7:16PM
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CaptainObvious.
Posts: 5711 - Karma: 20,627
Bodhisattva_Makers Mark is luxurious? Lol


Loloolololololololol fuckin unsophisticated peasants. We drink whiskey you've never even heard of and probably couldn't afford. Lololololloookokkklololoololllll Fuckin plebs right?!?!?!?!?

We're so much better than people and they don't even know it lolliollolollolololololololo
Mar 18 2016 8:51PM
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kung_powpow
Posts: 1990 - Karma: 3,669
The real question is how wouod they not make money? its globally in every conveience store/grocery store/bar, and shits not cheap
Mar 18 2016 9:13PM
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CabbyArrant
Posts: 779 - Karma: 4,120
onenerdykidYou guys have to remember that Redbull isn't making $5 when a gas station charges $5. Redbull isn't selling direct to consumer, they make their money on a wholesale business model (just like anything else you buy at retail that isn't the store's brand). Redbull (total hypothetical cost here) sells their drink for $1 to the gas station who then marks up to $5 because of their profit goals, cost of rent, taxes, fees for being on a highway, etc. Redbull is making their insane amount of money of that $1, not the $5 retail price paid at the gas station.


While this is true I would guess the wholesale price would probab be higher if the store IN question didn't just buy their inventory from a whole sale market like costco or SAMS
Mar 18 2016 9:19PM
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Bodhisattva_
Posts: 5749 - Karma: 2,009
CaptainObvious.Loloolololololololol fuckin unsophisticated peasants. We drink whiskey you've never even heard of and probably couldn't afford. Lololololloookokkklololoololllll Fuckin plebs right?!?!?!?!?

We're so much better than people and they don't even know it lolliollolollolololololololo


I don't even drink whiskey :)

Just sayin, I know there's a lot better whiskey out there
Mar 18 2016 11:52PM
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