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Red Bull how do they make the $?

H8R

Cranky Pants
Nov 10, 2004
13,959
35
They must spend about $50 per super-crap TV ad.

Those are the second most annoying ads on TV next to Girls Gone Wild.
 

dropmachine

Turbo Monkey
Sep 7, 2001
2,922
10
Your face.
Not a fan of redbull myself, tastes way too strange. Big fan of the company though. THey got it right. Unlike all the reest of the companies out there who obviously sponsor events just to get thier name out, Redbull seems to do it because its insane. Its like the look at something, and say "Yeah thats fully nuts, and probably pretty stupid. Lets sponsor that cause its funny." You gotta admire a company like that, and its worked for them.

Redbull was illegal here for a bit because the Canadian way of doing things is to ask if its good for its citizens first, unlike the US way where they just ask "how much you figure we can make on this? "

:D
 

Jm_

sled dog's bollocks
Jan 14, 2002
19,030
9,685
AK
Because retarded people pay $3 for a little dinky can.

But I also worked in the beverage industry, proffit margins are crazy.
 

manhattanprjkt83

Rusty Trombone
Jul 10, 2003
9,646
1,217
Nilbog
my question is how can ferrari afford to spend $443,000,000 a year with the relatively low volume car sales the produce :banghead:...

that said if anyone has any excess cash i would accept an 430 with and f1 gearbox if you feel so inclined...

As for red bull i own one of thier fridges and and buy about 2 cases a month. Sickos like me keep them in business, dont like it with liquor though, but i guess im odd.
 

RhinofromWA

Brevity R Us
Aug 16, 2001
4,622
0
Lynnwood, WA
yah that stuff is like $2 a bottle ! But I only drink red bull when I'm in need of an energy drink (a la with rum or something) because they are the best company to spend money on they help our sport so much.
:D

Jeager-Bomb

RedBull and a shot of Jeagermeister(sp?) will get you tator'd pretty quick. :monkeydance:
 

Secret Squirrel

There is no Justice!
Dec 21, 2004
8,150
1
Up sh*t creek, without a paddle
my question is how can ferrari afford to spend $443,000,000 a year with the relatively low volume car sales the produce :banghead:...

that said if anyone has any excess cash i would accept an 430 with and f1 gearbox if you feel so inclined...

As for red bull i own one of thier fridges and and buy about 2 cases a month. Sickos like me keep them in business, dont like it with liquor though, but i guess im odd.
4,300 cars a year

No idea....total sales are 2 bil. Looks like they're 36 mil in the whole on net.....but, being a subsidiary of Fiat can't hurt.
 

jonKranked

Detective Dookie
Nov 10, 2005
86,083
24,611
media blackout
i do give RB props for being so supportive of so many different sports. we have a snowboard rail jam on my college campus (this year will be 3rd annual). the local reps somehow caught wind of this and just showed up and started handing it out. they do offer a lot to different niche sports, in terms of advertising and events. i personally like the stuff, but i don't drink it too often. i'd rather have it with some alcohol (amen for mixing uppers and downers). my girlfriend buys a case of the sugar-free RB about once a month.
 

stinkyboy

Plastic Santa
Jan 6, 2005
15,187
1
¡Phoenix!
Hundreds of people in the desert at the Tempe Flugtag were quickly separated from their bottles of water before entering.

:plthumbsdown:
 

douglas

Chocolate Milk Doug
May 15, 2002
9,887
6
Shut up and Ride
my question is how can ferrari afford to spend $443,000,000 a year with the relatively low volume car sales the produce :banghead:...

that said if anyone has any excess cash i would accept an 430 with and f1 gearbox if you feel so inclined...

As for red bull i own one of thier fridges and and buy about 2 cases a month. Sickos like me keep them in business, dont like it with liquor though, but i guess im odd.
I would think the total cost is not just coming from ferrari, but from tire manf, and other various sponsors.....shell, marlboro, olympus, etc

http://www.f1-fansite.com/wallpaper/2005/launch/Ferrari-F2005-1024.jpg
 

al-irl

Turbo Monkey
Dec 9, 2004
1,086
0
A, A
my question is how can ferrari afford to spend $443,000,000 a year with the relatively low volume car sales the produce :banghead:...

that said if anyone has any excess cash i would accept an 430 with and f1 gearbox if you feel so inclined...

As for red bull i own one of thier fridges and and buy about 2 cases a month. Sickos like me keep them in business, dont like it with liquor though, but i guess im odd.
For a start Ferrari are owned by the Fiat group. There a huge group of italian car companies. Fiat are manly high volume cheap cars and there everywhere in europe. Also Ferrari only have low volume car sales because they choose to. Most Ferraris have a year long waiting list to buy and thats only if they decide to sell one to you. By keeping the waiting list long they can keep an artifically high value on the cars and make sheds loads more money. So much so that some people will order a ferrari and sell there place in the qeue while they wait and make 50 to 100 thousand euro. Just because people want them that bad.


Back to the red bull thing, as far as i know they are the second biggest soft drinks manufacturer next to coca cola
 

FCLinder

Turbo Monkey
Mar 6, 2002
4,402
0
Greenville, South Carolina
I remember hearing from one of the Michelin guys how much they pored into their F1 Teams. It was on average $15 to $30 Million a year and that didn't include the cost of the tires each team got. Now this was a few years back when I was going to the US F1 races every year with Michelin. I don’t know what they spend now. Last I heard Michelin was pulling out of F1.
 

SDH Racing

Monkey
Apr 5, 2006
341
0
NE
Yes Red Bull definitely has done quite well for themselves in recent years. I wish I had invested in them back around 01, that and google would have been one smart move. anyways with how they are now if they want someone to ride for them, they enough $$$ to flash to get them. My friend Aaron Chase, who used to be all about SOBE for the longest time now flys RedBull and has been for a few years now. When I asked him why, he simply said "they made an offer I couldn't refuse" :D

SOBE Chase




RedBull Chase


 

Nagaredama

Turbo Monkey
Nov 15, 2004
1,596
2
Manhattan Beach, CA USA
my question is how can ferrari afford to spend $443,000,000 a year with the relatively low volume car sales the produce :banghead:...

that said if anyone has any excess cash i would accept an 430 with and f1 gearbox if you feel so inclined...

As for red bull i own one of thier fridges and and buy about 2 cases a month. Sickos like me keep them in business, dont like it with liquor though, but i guess im odd.
Enzo Ferrari always said he produced road cars to help him pay for racing.

Most of their F1 budget comes from Marlboro. Of course there are other sponsors. They are also sell of ton of merchandise at Grand Prixs. They also sell their F1 engines to Red Bull for $10-15 year. Next year their engine will be Spyker and Scuderia Toro Rosa (the other Red Bull F1 team).

They also get a cut of the F1 TV money. Starting 2007 with the new Concorde Agreement coming into affect they will get even more money.
 

SDH Racing

Monkey
Apr 5, 2006
341
0
NE
aaron chase is a lanky d00d. mad cool though. perhaps they modeled the RB can after him? :lighten:

Not as much as pics make him look. In real life hes about the height of my nose and i'm just under 6'3. He olny weighs about 145 so that makes up for it
 

davetrump

Turbo Monkey
Jul 29, 2003
1,270
0
Yes Red Bull definitely has done quite well for themselves in recent years. I wish I had invested in them back around 01, that and google would have been one smart move.
What exacttly would you have invested in?

Red Bull is a privately owned business.

as for the $$ for all the sponsorships they dish out.... they sell a TON of the stuff i id that simple. it is a global brand, and one of the largest beverage companies in the world.

also, they spend their money on athletes and sports more than any other type of marketing efforts... they do not sponsor teams, they OWN them, by doing this you make the team a business (think F1, Soccer, and Nascar for 07).

companies like coke spend all thei $$ of lucrative exclusivity contracts at major sporting venues, college campuses (they dropped 10 million just at the univ of vermont), etc. this is money that we as consumers and sporting enthusiasts never see being spent, but it is done, and the amounts make what red bull spends pale in comparison.

the big difference is that Red Bull spends money on the things that its target audience spends money on, that is why we are so aware of it.

pick of the New York Times Magazine form a week agao... there is a 4 page article on Red Bull and it's approach to sports marketing in Europe and the United States

also... whoever said they get their money from marking the price up a ton is misinformed as to where the money is going. for one red bull is made in austria, shipped to north america, and sold to its distributers... the distributer then sells it to a retail establishment, who it turn sells it to you. when you buy one for $2 all parties involved are only making a fraction of the profits... the only way to make money in the beverage industry is on VOLUME. you need to move millions and millions of units to generate the kind of money that coke, pepsi, red bull, etc do.
 

dexter

Turbo Monkey
Sep 23, 2001
3,053
99
Boise, Idaho
dont forget, ferrari makes road cars to pay for racing and they own maserati and are owned by fiat. i didnt read through the second page of this thread so if anyone has sadi this, my bad im lazy
 

aviatorsman

Chimp
Oct 28, 2006
51
0
well all I know is that Red Bull does a great job with different types of advertising, and it works. My freshman year at college some hot girls showed up to my engineering lab and were handing out cold Red Bulls to all the students. That was pretty cool.

But the best I've seen from them was when I won an internship through Red Bull with Steve Barlow in the CORR series of offroad truck racing. I spent a summer flying around the country to the races on their dime and needless to say the race team always had a good 12 cases or more of RB on hand and we had big parties at some races with all you could drink RB+vodka.

Thanks Red Bull! :cheers:
 

DH biker

Turbo Monkey
Dec 12, 2004
1,185
0
North East
They are really just marketing towards the group of people who would buy it by having it at places like mountain bike events... people who want energey so they can go faster etc.

I got 3 free cans the other day. :)
 

vtjim

Beware of Milo & Otis
Jan 6, 2006
1,346
0
North Andover MA
I saw something similar, when I was on a deployment to Thailand in 2001. We saw the Redbull sold there. They were in these dark brown medicine looking bottles.

Yeah I've had that stuff. Much "stronger" than the normal Red Bull. Thicker too. It'll have ya' bouncing off the walls!
 

James

Carbon Porn Star
Sep 11, 2001
3,559
0
Danbury, CT
I use to buy this at my local Asian market for like 90 cents a can. There is more than your traditional Red Bull can and it tastes MUCH better. I don't like Red Bull myself, but this stuff is great!!
Is that the stuff that has nicotine in it? My buddy brought some back from Thailand with that listed as an ingredient.
Edit: It was the stuff in the brown mediciny-looking bottles.
 

vtminuteman

Monkey
Nov 29, 2004
166
0
Sharon VT
Take a look at the potential health risks section of the redbull page on wikipedia. Scary.

They make their money buy selling 2 billion cans world wide.
 

SDH Racing

Monkey
Apr 5, 2006
341
0
NE
What exacttly would you have invested in?

Red Bull is a privately owned business.

as for the $$ for all the sponsorships they dish out.... they sell a TON of the stuff i id that simple. it is a global brand, and one of the largest beverage companies in the world.
My mistake on that one, and yes I think everyone knows by now their one of the largest beverage companies, capturing about 80% of the worldwide energy drink market. Dietrich Mateschitz founded Red Bull in 1987 and owns 49% of the company now. With a 1-Year Sales Growth of 22.0% and 1,850 employees they do quite well for themselves.
 

juslookin

Chimp
Feb 8, 2004
12
0
Over here
Hey. Was watching forumula one the other day and realised this year red bull has an F1 team. Then I thought about it, they sponser tons of atheletes in many different sports, organise and pay for an incredible amount of events (just for biking alone- rampage, bike battle etc), do normal marketing like on tv and through the media, and host full episodes of their re:evolution tv. series (streamed, no less) on the net.

Yet they sell... drinks? and not just a whole line of drinks, just red bull.

How do they make the money? An F1 team is a HUGE investment that even some car companies find difficult to sustain.
Red Bull sponsors two F1 Teams.