What are the key considerations when deciding whether to use a distributor, and how should founders handle distributor demands for listing fees?

Members report significant frustration with distributor listing fees and upfront demands, which can substantially impact on-trade pricing and margins.

**Core issue:** Distributors increasingly demand substantial upfront payments (described as €20k+ in one European case) before committing to stock your product, creating a barrier for smaller brands and affecting the pricing you can offer to on-trade venues.

**Recommended approach to listing fee demands:** - **Push back firmly.** Members recommend declining unreasonable demands rather than capitulating. One founder's advice: "Tell them to have a lovely sleep in their bed." - **Understand the margin structure.** A member shared a detailed breakdown of costs and margins across distributors, wholesalers, and retailers (linked in the discussion), which helps founders see where the pressure points are and negotiate from an informed position. - **Be aware of how distributor margins compress your pricing.** The distribution chain analysis shows how each layer (distributor → wholesaler → retailer) takes a cut, ultimately affecting the price available to the on-trade and your unit economics.

**Context:** Several members reported being asked for substantial fees or free stock with poor results, describing it as "being mugged for the Christmas party." The consensus is that if a distributor won't commit without large upfront payments, their enthusiasm for selling your product is questionable, and you may be better served exploring direct-to-trade or alternative routes.