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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.
Brian Malinconico - @psipro
Psi Webhosting Low-load business class web servers Discounted custom Shared, Reseller, and Dedicated plans available to YE members through PM only. Last edited by PsiPro; 06-18-2009 at 09:45 AM. |
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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"
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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
Psi Webhosting Low-load business class web servers Discounted custom Shared, Reseller, and Dedicated plans available to YE members through PM only. |
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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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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"
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