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  1. #1
    whohuh is offline Junior Member
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    The products I want to sell can't be found? Advice please

    Actually, its more like I can't buy them wholesale from the manufacturer. And the product itself is in brick and mortar stores but the company only sells them to actual retail stores. (I emailed them and everything)

    How do I approach this? Do I go to the retail stores and see if they will give me a discount for buying in bulk. It seems weird since every time I need to restock I have to drive around locally to find them.

    But on the other hand this product can't be found online anywhere so I could just charge enough to make profit right? And I could always return it if it doesn't sell ha!

    Also am I allowed to do this since I would be making a website solely for this product that the manufacturer won't sell on their website?

    lol sorry for being secretive with the product thing, I found it more generic since its a line of products that have a lot of variety in them
    "The only job where you start on top is digging a hole"

  2. #2
    PsiPro's Avatar
    PsiPro is offline Moderator
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    DISCLAIMER: IANAL... consult one

    If the manufacturer wants to be a prick about it... I would defiantly expect a cease-and-desist letter. That being said they can't stop you but you may need a lawyer to help send back the cease-and-desist-or-i-will-sue-you letter.

    Take for example: Buy scuba gear, scuba diving and snorkeling equipment, and everything underwater from LeisurePro.com

    They are not a dealer, and manufacturers won't sell to them because of this. All of their stock is purchased from dealers at a slightly elevated cost above the dealer's price. This increases the dealers buying power and therefore reduces his cost. Leisurepro then resells the gear online above the acquisition cost but below MSRP. This makes it a win-win for you and the dealer, but a risky endeavor for them.

    The gear manufactures do not like this at all, and try very hard to track down which dealers are supplying them. The manufacturers can only stop selling to the dealer, but they can't stop Leisurepro.

    These actions fall under First-sale doctrine - Wikipedia, the free encyclopedia I believe.
    Last edited by PsiPro; 06-18-2009 at 10:45 AM.
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  3. #3
    whohuh is offline Junior Member
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    Thanks that's very helpful, but the product itself is sold in brick and mortar stores that the manufacturer owns so I don't think I'd have to worry about it not being sold to the store.

    For example you can own one of the stores the manufacturer owns and run it and sell items from the manufacturer.

    So my plan of action is to ask the manager of a store if I can buy the products using the above plan. How much starting capital should I have? Each item cost about $10-25 so I'm guessing around $4000, but I'm a newb to this so any advice is appreciated!
    "The only job where you start on top is digging a hole"

  4. #4
    PsiPro's Avatar
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    If its a company owned store I really really doubt the manager will be able to make any kinda of deal with you. He most likely won't be paid based on store sales so he has nothing to gain by risking his job.

    If the only distributor is the manufacture I don't see any other options for you then to buy them in the store at retail and resell them.
    Brian Malinconico - @psipro

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  5. #5
    dropship is offline Member
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    Sounds like it could be a franchise. There is a great chance that they do not allow their items to be sold online. You could get in trouble for selling their product online if you were already told no. Why exactly did they say they will not sell to you?
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  6. #6
    whohuh is offline Junior Member
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    It was something along the lines of "upholding some kind of image of their store and they can't just let anyone sell their product," except a little bit more professional.
    "The only job where you start on top is digging a hole"

  7. #7
    canadascoffee is offline Junior Member
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    its very interesting reading this... i got a cease-and-desist letter basically doing this same thing, but i didnt not know about the first sale doctine!

    maybe i'll have to start it back up...

    are you planning on selling coffee by any chance?

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